How to Start a Business in Virginia

Below, we’ve outlined the steps you’ll need to take to start your Virginia business, along with helpful links to resources and ways hiring us can make the process easier.

1. Decide on a Business Structure
2. Choose Your Business Name
3. Designate Your Virginia Registered Agent
4. Get a Virginia Business Address
5. Submit Your Articles of Organization or Incorporation
6. Obtain Your Federal Tax Number (EIN)
7. Create Your Operating Agreement or Bylaws
8. Look Into City & State Business Licenses
9. Open up a Company Bank Account
10. Build Your Online Business Presence

1. Decide on a Business Structure

Before you can legally form your Virginia business, you must decide on a business structure. Here’s a quick breakdown of the types of businesses you can start in Virginia:

LLC (Limited Liability Company):

• Generally, LLCs are easier to maintain than corporations because they have fewer annual requirements, such as holding annual meetings.
• Owners of an LLC have more flexibility in structure, management, and profit allocation (can split based on ownership or otherwise).
• LLCs are taxed as Pass-through entities by default (no double taxation like corporations).
• LLCs can elect to be taxed as an S-corporation or a C-corporation

PLLC (Professional Limited Liability Company):

• Only licensed professionals within the same field (doctors, lawyers, attorneys, etc) can be members of a PLLC.
• Similar to a traditional LLC, PLLCs offer liability protection for business debts and lawsuits. However, they do not protect members from malpractice claims.
• By default, PLLCs are taxed as pass-through entities.
• PLLCs can elect to be taxed as an S-Corporation or a C-Corporation.

Corporation:

• Corporations are typically more attractive to investors because selling shares is a relatively straightforward process.
• Incorporating can enhance your professional image and credibility.
• Although corporations (by default) are taxed as a C-corporation, the double taxation allows for reinvesting profits back into the company.
• Typically, corporations have more annual requirements to maintain their good standing. For example, most corporations are required to hold annual meetings and keep detailed shareholder records.

For more information on specific entities, please check out our Virginia LLC, corporation, or PLLC pages.

2. Choose a Business Name

One of the most exciting steps you get to take as an entrepreneur is choosing your company’s name. You’ll want to consider your target audience, brand, and the unique services you offer.

Here are a few tips for selecting the best name for your business:

• Keep it short and simple. Long business names can be hard for potential customers to remember or spell correctly.
• Ensure it accurately reflects your brand and services. For example, if you offer personalized dog training, consider including phrases such as “dog training” or “K9 classes” in your business name to effectively convey the services you provide.  

Once you’ve chosen a business name, there are a few state-specific rules you’ll need to follow:

• You must include an appropriate phrase or abbreviation, such as “LLC” for LLCs or “Inc.” for corporations.
• Do not include words or phrases that suggest your business is a different type of entity. For example, LLCs can’t use the abbreviation “Corp.”
• Do not include words or phrases that imply your business provides services you are not authorized to offer. For example, if you sell homemade muffins, you can’t use words such as “Legal” or “Medical” in your business name.
• Your business name cannot be identical (or too similar) to another registered Virginia business.

You can verify that the name you want is available by searching the SCC’s Virginia Name Check Availability page.

3. Designate a Virginia Registered Agent

Like most states, Virginia requires all businesses to have and maintain a local registered agent, who acts as the official point of contact for your LLC or corporation. Basically, your registered agent will accept all state and legal notifications on your behalf.

Your registered agent must be available during regular business hours and maintain a physical (no P.O. Boxes) address in Virginia. While you can act as your own registered agent, it’s not always ideal. Why? When you form a new business in Virginia, you are required to list the name and physical address of your registered agent. That information becomes public record, which means anyone (including scammers) could find your information online.

When you hire us for registered agent service, we’ll list our Virginia business address to safeguard your privacy. You’ll also enjoy a secure online account to manage your documents, same-day mail scans, unlimited access to our library of business resources, and a 90-day free trial of our web & phone services. All for just $49 a year.

4. Get a Virginia Business Address

A Virginia business address is a physical address that you can use anywhere on your business formation documents where an address is required.

Our core business services include the use of our Virginia business address on public records at no additional fee. Why is this important? Listing our local address (instead of your home address) means your personal information remains private.

Need an address you can list on business cards, websites, or company letterhead? Check out our paid Mail Forwarding and Virtual Office services starting at just $49 a year.

5. Submit your Business Formation Documents

To legally form your business, you’ll need to file Articles of Organization (LLC) or Articles of Incorporation (corporation) with the Virginia State Corporation Commission (VSCC). The filing fee for LLCs is $100. Most corporations will pay a $75 filing fee–your cost will increase if your total authorized shares exceed 25,000.  

You can submit your business formation documents online, by mail, or in person.

Online:
SCC Clerk’s Information System

Mail:
State Corporation Commission
Clerk’s Office
P.O. Box 1197
Richmond, VA 23218-1197

In-person:
1300 East Main Street
Tyler Building, 1st Floor
Richmond, VA 23219

6. Obtain Your Employer Identification Number (EIN)

Your Employer Identification Number, or EIN (occasionally referred to as the Federal Employer Identification Number, or FEIN), is a nine-digit ID number assigned to your business by the IRS for tax purposes. An EIN is required for tasks such as filing tax returns, opening bank accounts, and obtaining specific business permits, among other things.

An EIN is easy to obtain through the IRS Employer ID Number website, and doesn’t cost anything. If you hire us to form your business, you can choose to have us apply for your EIN on your behalf for an additional $50 (with a SSN) or $200 (without a SSN).

7. Create your LLC Operating Agreement or Corporate Bylaws

Your Virginia business needs an internal document laying out the policies, procedures, and organizational structure of your company. For LLCs, this document is known as an operating agreement, and for corporations, it’s referred to as corporate bylaws.

Adopting a strong LLC operating agreement or corporate bylaws reduces potentially harmful risks to your company, whether that’s confusion and stress among the members or shareholders, or even damaging legal conflicts that could have been avoided by agreeing to your policies in advance.

When you hire us to form your business, we’ll include free bylaws and operating agreement templates, as well as templates for initial resolutions, stock certificates, and a resolution to open a business bank account.

8. Look into City & State Business Licenses

State Business Licenses: While there is no general state business license that all businesses must have, there may still be professional, occupational, or specialty licenses or permits required by the state for your company. Occupations such as barber, engineer, or real estate agent are a few examples of industries that require special licensing or certification.

Visit the Virginia  Department of Professional and Occupational Regulation (DPOR) website for detailed information.

Local Business Licenses: Depending on where your business is located, your city or county may require a business license. For example, most businesses in Richmond will need to obtain a Business, Professional, and Occupational License (BPOL) Tax. The filing fee will vary depending on what type of business you own.

Contact your local city or county government for more information.

9. Open a Company Bank Account

Separating your business banking from your personal banking is one of the key ways to demonstrate the separation between yourself and your business. This practice can help maintain your business’s limited liability and prevent piercing of the corporate veil.

Simply choose the bank you prefer and inquire about the necessary paperwork and steps to open a business bank account with them. Some banks will require more information than others, including your company’s business plan. Some benefits of having a business bank account include the following:

• Protecting your limited liability
• Accurately identifying business expenses and tax deductions
• Accepting client or customer credit card payments
• Efficiently managing business transactions – writing checks, collecting receipts, etc.

10. Create Your Online Business Presence

Most successful businesses have a website where customers can learn more about the company, contact the owner, or order services.

When you hire us, you’ll get a free trial of our Virginia Business Presence. Design and launch your company website using our customizable templates and easy-to-use editing tools. If you need assistance, our experienced website-building team is here to guide you through the entire process.

Our Virginia Business Presence comes with everything you need to start reaching customers quickly:

• Business website + SSL Security for your website
• Domain name
• Business email
• Local phone service

Pricing and Discount Options: Domain service is free for a year (up to $25). After that, you’ll pay the annual renewal fee based on the domain’s current value. Web + SSL Security, business email, and phone services are free for 90 days, then just $9 a month for each service you keep. Get 20% off the entire bundle ($21.60 a month) when you keep all services.