When you form your LLC in Virginia, you’ll have to pay certain costs to officially register your business with the state.
In addition to formation and ongoing costs, there will be business expenses like using a registered agent service, building a website, getting business insurance, and so on. So, how much does an LLC cost in Virginia?
In this guide, we break down the costs associated with forming your LLC, from the Virginia LLC filing fee to LLC upkeep prices and other business expenses.
Cost of Forming an LLC in Virginia
When forming your LLC, there are a few different costs that you may incur. These include the filing fee, LLC formation service cost, operating agreement draft, and registered agent costs.
Virginia LLC Filing Fee
To form an LLC, you must file your Articles of Organization with the Virginia State Corporation Commission. The filing fee for the Articles of Organization is $100. You will commonly see this fee referred to as the “state fee” or “filing fee.”
If you choose to use an LLC formation service, you will pay the $100 state fee on top of their service fee. Generally, these service fees start around $29 and increase depending on additional services you purchase.
Recommended ServiceMost people choose to use an LLC formation service to create their LLC. The cost is low and they guarantee that your filing is done correctly. Check out our #1 rated LLC service:
Northwest Registered Agent ($29 + state fees)
Virginia Registered Agent and Registered Office
Every Virginia LLC is required to appoint a registered agent. A registered agent is a person or entity you assign to receive tax forms, legal documents, or government correspondence on your LLC’s behalf. Registered agent services can cost around $130 per year or more.
Your registered agent can be:
- A registered agent service (most common)
- Yourself (not recommended)
- Another member of the LLC
- A business attorney
Virginia LLC Operating Agreement
An operating agreement defines the roles and responsibilities of the members or managers in your LLC and will help prevent and solve any business disputes that may arise later on.
The costs associated with the operating agreement come in the drafting of the document. For single member LLCs and simple multi-member LLCs, most people choose to create the document themselves.
You don’t need to file this document with the Virginia State Corporation Commission. Using a free operating agreement template or document builder, that means your total cost would be $0.
Optional Virginia LLC Formation Costs
Along with the fees associated with forming an LLC, there are several optional LLC formation costs that you may encounter.
- Reserve a Name for Your LLC – Before registering your Virginia business name, perform a business entity name search to ensure it’s unique. The name reservation fee of $10 is only necessary if you’re planning to wait to form your business.
- Doing Business As (DBA) Name – A DBA, known as a fictitious or assumed name in Virginia, is a name under which you conduct business that is different from that of your official LLC name The filing fee for a fictitious or assumed name is $10.
- Expedited Virginia LLC Filing – Virginia offers expedited filing of your Articles of Organization if they are filed online. It costs $50–$100 for next-day approval and $200 for same-day approval.
- Certified Document Copies – Certified copies of your Virginia business documents validate that all information and documents are correct. The fee for requesting a certified copy is $6.
- Certificate of Fact of Existence – A Certificate of Fact of Existence, known in most states as a Certificate of Good Standing, verifies that the business is registered in the state and authorized to conduct business. You may need it for banks, lenders, etc. The fee for requesting a Certificate of Fact of Existence is $15.
Virginia LLC Cost and Fees Over Time
There are a few things you need to address to keep your LLC in good standing with the state year after year. Each of these comes with costs and fees.
Annual LLC Fee Virginia
Every year, your Virginia LLC must pay an annual registration fee of $50. In Virginia, LLCs are categorized as pass-through entities (PTEs), according to the Virginia Department of Taxation. PTEs are taxed at a flat 5.75% (at the entity level).
The annual registration fee is due on the last day of the month registered. So, if you filed your Articles of Organization on October 31, the fee would be due October 1 the following year.
Note:The registration fee is to remain in good standing with the state. See our Virginia LLC Annual Registration Fee article for a more in-depth overview of the registration process.
Registered Agent Fee
If you use a professional registered agent service, you will pay their fee annually. Pricing will depend on the service provider that you use, but usually costs around $130/year. Using a registered agent service will save you time and the hassle of handling important legal documents and filings for the long term.
If you act as your own registered agent there are no maintenance fees. However, for privacy and compliance purposes, we don’t recommend being your own registered agent.
General Costs of Running a Business
Operating a business will obviously come with more than just LLC costs. These are a few of the expenses that you may run into.
Business Bank Account
An LLC separates your personal assets from your business assets. This separation is called the corporate veil. That corporate veil ensures that if your business is sued or incurs debts, your personal assets will be protected from any liabilities.
Commingling (mixing) your personal bank account with your business can pierce your LLC’s corporate veil, which means you are no longer protected by the separated entity of your LLC.
Using a separate bank account to accept payments and pay business expenses is the only way to prevent commingling funds and piercing the corporate veil.
Business Permits and Licenses
Depending on the type of business you operate, your business may need the proper permits and licenses to legally operate in Virginia.
Alongside the permits required, your business may require industry-specific licenses to operate legally. Examples include licenses like the Virginia real estate license, Virginia insurance license, Virginia adjuster license, and so on.
Every business needs a website. There’s no better way to get in front of your customers, build your brand, and grow your business.
Fortunately, the cost and difficulty of creating a business website have come down over the years. Websites are now simple to build and cheap to keep up.
Having the proper insurance coverage can potentially save your entire business if there is a loss, accident, or lawsuit.
A few of the most common business insurance policies include:
- General liability insurance – Protects against claims of personal injury, physical injury, property damage, and more. This is the most common of all business insurance policies. Learn more about general liability insurance.
- Professional Liability Insurance – Protects against claims of inaccurate or negligent work. It’s most common in the “professional” space where businesses offer services or advice to other businesses or consumers. Learn more about professional liability insurance.
- Commercial Workers’ Compensation Insurance – This type of insurance protects your employees from on-the-job injuries or illnesses. This coverage is required if you have one or more employees. Learn more about Workers’ Compensation insurance.
The cost of business insurance varies widely based on business type, size, location, and other factors. Getting a quote is the only way to understand the actual cost of insurance for your LLC.
LLC Cost in Virginia FAQ
Do you have to pay ongoing fees for an LLC every year?
Yes. Virginia requires you to pay $50 as an annual registration fee. You will also need to pay a flat 5.75% tax as a pass-through entity.
What’s the cheapest way to form an LLC?
The least expensive way to form an LLC is to file it yourself. The best LLC formation services start around $29. You’ll need to pay the state filing fee in either scenario. Check out our How to Start an LLC in Virginia guide to learn how to form on your own.
Can you start a Virginia LLC for free?
No. All applicants must pay the state filing fee to start a Virginia LLC. The filing fee is $100.
How much does a registered agent cost?
Do I need to pay a franchise tax for my Virginia LLC?
Yes. Virginia LLCs are pass-through entities (PTEs) and are required to pay a flat tax rate of 5.75%.
How much does an LLC formation service provider cost?
It depends on the LLC formation company you choose. We recommend Northwest Registered Agent, which starts at $29, plus the $100 state fee, and includes the first year of registered agent services for free.
Information on this page is not to be considered legal or tax advice. Data was gathered from a multitude of sources and most recently updated in September 2022.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state's authority on insurance.
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