Virginia Business Guide
How to Start a Business in Virginia
Everything you need to form your Virginia LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Virginia is a practical place to start a business. Forming an LLC costs a $100 filing fee, and the state has no franchise tax and no gross-receipts tax, so an LLC pays a $50 annual registration fee instead of filing an annual report.
This guide covers every step, from choosing a business structure to obtaining licenses.
Choosing Your Virginia Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Virginia small businesses.
| Entity Type | Liability Protection | Taxation | Virginia Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $100 | $50 annual registration fee to the SCC; no annual report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $75 up to 25,000 authorized shares | Annual registration fee by authorized shares (from $100) plus an annual report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Virginia Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Virginia State Corporation Commission, Clerk's Office database. Reserve for $10 (120 days, renewable in the 45 days before it expires).
- 3
Appoint a registered agent
Must have a physical Virginia street address. Can be yourself (free) or a registered agent service (prices vary).
- 4
File your formation documents
Articles of Organization (Form LLC1011) ($100) or Articles of Incorporation (Form SCC619) ($75 up to 25,000 authorized shares) with the Virginia State Corporation Commission, Clerk's Office.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Virginia Department of Taxation (Virginia Tax). State sales tax rate: 5.3% base (state plus local); 6% in the regional-tax localities, 6.3% in eight localities, 7% in the Historic Triangle (James City County, Williamsburg and York County); groceries 1%.
- 7
Get required licenses and permits
Virginia has no general statewide business license and the State Corporation Commission issues none.
- 8
Register for Virginia taxes
Personal income tax: 2% to $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above that.
How Much Does It Cost to Start a Business in Virginia?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Virginia State Corporation Commission, Clerk's Office) Required | $100 | Online filings can be expedited: next day for $50 or $100 (submitted by 2:00 PM Eastern, response by 4:00 PM the next... |
| Corporation filing fee Required | $75 up to 25,000 shares | If forming a corporation instead; the fee rises with authorized shares |
| Annual report | $0 | LLCs file none; a corporation files one with no fee |
| Name reservation | $10 | 120 days, renewable in the 45 days before it expires |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Virginia has no general statewide business license and the State Corporation Commission issues none. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $100 to form, then $50 a year |
Start a Specific Business in Virginia
How to Start a General Contractor Business: RBC, CBC or HIC and Class C, B or ALicenses, permits, startup costs and first steps in VirginiaRead the guide →Virginia Tradesman License Guide: Journeyman and Master, $150 Fee, $160 Renewal Every 3 YearsLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start an Electrician Business: Master Electrician Required, $150 License, Class C at $235Licenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Plumbing Business: Master Plumber Qualifier, $150 License, Residential TierLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start an HVAC Business: Master HVAC Qualifier, Residential HVAC Tradesman and 2026 FeesLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Roofing Business: ROC Specialty, Class C Over $1,000 and 2026 DPOR FeesLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Handyman Business: Over $1,000 Needs a License, $500 a Day PenaltyLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Painting Business: PTC Specialty, EPA Lead Rule and Class C Over $1,000Licenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Home Inspection Business: 15-Point License System, $80 Application, $45 RenewalLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Barbershop: 750-Hour Barber License, $120 Application, $220 Shop LicenseLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Hair Salon: 1,000-Hour Cosmetology License, $120 Fees, $220 Salon LicenseLicenses, permits, startup costs and first steps in VirginiaRead the guide →How to Start a Nail Salon: 150-Hour Nail Technician License, $120 Fees, $220 Salon LicenseLicenses, permits, startup costs and first steps in VirginiaRead the guide →
Virginia Business Guides
Formation & Entity Types
- How to Start an LLC in Virginia
- How to Start a Corporation in Virginia
- Virginia Sole Proprietorship
- Virginia LLC vs Corporation
- How to Start an S Corp in Virginia
- Virginia LLC vs S Corp
- Virginia Registered Agent Services Compared
- Virginia LLC Operating Agreement
- Virginia LLC Annual Registration Fee
- How to Dissolve an LLC in Virginia
- Virginia Foreign LLC Registration
- Virginia DBA
- Virginia LLC Taxes
- Reinstate a Virginia LLC
- How to Start a 501(c)(3) Nonprofit in Virginia
Licenses, Permits & Registrations
- Virginia Business License
- Virginia Resale Certificate
- Virginia Home-Based Business Laws
- Virginia BPOL Tax Explained
- Virginia Contractor License
- Virginia Food Truck License and Mobile Vendor Permit Guide
- Fairfax County Business License
- Loudoun County Business License
- Prince William County Business License
- Spotsylvania County Business License
- Stafford County Business License
- Hampton Roads and Historic Triangle Business License Guide
- Virginia Short-Term Rental Rules by Locality
- Virginia Localities With No Business License Tax
Taxes & Compliance
- Virginia Business Personal Property Tax
- Virginia Sales Tax
- Virginia Business Insurance
- Virginia Workers' Compensation for Employers
- Register as an Employer in Virginia
- Virginia Minimum Wage
- Virginia Paid Sick Leave and Paid Family Leave
Costs, Money & Services
- Cost to Start a Business in Virginia
- Best LLC Services in Virginia (2026)
- Virginia Registered Agent Rules
- Virginia Small Business Grants and Funding in 2026
- SBA Loans in Virginia
- Best Business Banks in Virginia (2026)
- Best Payroll Services for Virginia Small Businesses (2026)
- Best Accounting and Bookkeeping Services in Virginia
Why Start a Business in Virginia?
- Virginia has about 8.9 million residents (July 2025 Census estimate) and a $807.9 billion economy, the 13th largest among the states (BEA, 2025).
- Virginia has no general state business license: the license is a local BPOL tax, and some localities levy none.
- An LLC costs $100 to form and $50 a year to keep active, with no annual report.
- An assumed name is filed with the State Corporation Commission for $10.
Virginia Business Resources
Virginia State Corporation Commission, Clerk's OfficeEntity filing, name search, online filingwww.scc.virginia.gov →Virginia Department of Taxation (Virginia Tax)Sales tax permits, business tax registrationwww.tax.virginia.gov →Virginia Small Business Development Center networkFree business counseling and trainingwww.virginiasbdc.org →SBA Virginia District OfficeFederal loans, programs, and mentoringwww.sba.gov →
Frequently Asked Questions
- How long does it take to form an LLC in Virginia?
- Check the SCC website for current processing information. Online filings can be expedited: next day for $50 or $100 if submitted by 2:00 PM Eastern, or same day for $200 if submitted by 10:00 AM Eastern.
- What does an LLC cost in year one?
- The Articles of Organization filing fee is $100. The LLC then pays a $50 annual registration fee, due the last day of the 12th month after the month it was organized, and it files no annual report.
- Can a non-resident form a Virginia LLC?
- A Virginia LLC must keep a registered agent with a Virginia street address. Check with the State Corporation Commission Clerk's Office at https://www.scc.virginia.gov/businesses/ before you file.
- What is the cheapest way to start a business in Virginia?
- A corporation can have the lower formation fee, $75 for up to 25,000 authorized shares, but it must file an annual report and pay an annual registration fee of $100 for up to 5,000 authorized shares. An LLC costs $100 to form and $50 a year to keep active with no annual report, and Virginia has no general statewide business license, though a local license may apply.
- Is an operating agreement required?
- Virginia does not require an LLC to have an operating agreement, and it is never filed with the SCC. The Articles of Organization are the formation document filed with the State Corporation Commission, so confirm any additional requirements with the SCC before you file.