There are over 818,000 small businesses in Virginia, as of early 2026. Creating a limited liability company (LLC) is one way to start a business there. You file articles of organization with the Virginia State Corporation Commission (SCC), pay a filing fee, and appoint a registered agent with a physical Virginia address. The process is straightforward, but it’s important to pay attention to the details so your entity can succeed once it’s up and running.

Below, we’ll explain how to register an LLC in Virginia, what the SCC specifically requires, and the full cost picture, including ongoing fees and tax obligations.

Key takeaways

• Virginia LLCs benefit from no state franchise tax and from pass-through taxation; members pay Virginia’s individual income tax rate.

• Forming a Virginia LLC requires you to file articles of organization with the SCC, appoint a registered agent with a physical Virginia address, and pay an annual registration fee each year after formation.

• Liability protection holds only if you treat the LLC as a separate entity, which means separate finances, basic recordkeeping, and an operating agreement that reflects how the business runs.

What is an LLC in Virginia?

An LLC is a specific business structure that separates your personal assets from your business debts. If your Virginia LLC gets sued or can’t pay its creditors, your personal bank accounts, house, and car are protected.

Virginia LLCs are governed by the Virginia Limited Liability Company Act, which gives members real flexibility in how they structure ownership, management, and profit distribution. An LLC offers more protection than a sole proprietorship with less paperwork than a corporation.

Why form an LLC in Virginia?

Virginia’s business environment has advantages for LLC founders. The combination of favorable tax structure, geographical advantages, and entity flexibility makes it an attractive state for many.

Consider the following:

• No franchise tax: Virginia doesn’t charge LLCs an annual tax based on revenue or net worth just for existing, which is something many other states do. Virginia does, however, levy a $50 annual registration fee.

• Low corporate income tax: The state rate is 6.0%. LLC members who choose corporation tax status will pay at the entity level.

• Federal market access: Northern Virginia’s concentration of federal agencies and government contractors creates real revenue opportunities for service businesses, consultants, and tech companies. If your work touches federal procurement or defense, your status as a Virginia entity can make a difference to the clients you’re pursuing.

• Multiple strong markets: Richmond and Virginia Beach have their own economic pull.

• Flexible structure: As in some other states, Virginia LLCs offer structural flexibility. They don’t require a board of directors or formal annual meetings, and you can allocate profits in ways that don’t mirror ownership percentages—as long as your operating agreement reflects that.

How does creating an LLC in Virginia work?

The process runs through the SCC, which handles all business entity filings in the state. Here are the required steps.

Name your LLC

Check availability through the SCC’s Clerk’s Information System online. If you find a name you want but you aren’t ready to file, you can reserve it for 120 days by filing a name reservation request.

Appoint a registered agent

Every Virginia LLC needs a registered agent who’s available to receive legal documents and official state correspondence. You can serve as your own registered agent as long as you meet certain qualifications.

File articles of organization

This is the document that creates your LLC by law. You can file it with the SCC online, in person, or by mail for a fee. The articles require your LLC’s name, its principal office address, and your registered agent’s name and address.

Draft an operating agreement

Virginia doesn’t legally require an operating agreement. But if you have more than one member, this is how you define ownership percentages, profit distribution, decision-making authority, and what happens when someone wants to leave. Without this document, Virginia’s default LLC rules will apply. And these weren’t written with your specific business in mind.

Get an Employer Identification Number (EIN)

An EIN is your LLC’s federal tax ID. You need it to open a business bank account, file federal taxes, and run payroll. The Internal Revenue Service (IRS) issues EINs for free and the online application takes only minutes.

The SCC’s Clerk’s Information System handles online filings straightforwardly, and founders can likely complete the process without any outside help. For more complicated situations (e.g., multiple members with unequal ownership, outside investors, industry-specific licensing), consider working with a Virginia business formation attorney.

What does the Virginia SCC require to register an LLC?

The SCC is the filing authority for Virginia business entities. Before you submit your articles of organization, here are some details you should have prepared:

• Principal office address: This doesn’t have to be in Virginia, but your registered agent’s address does.

• Organizer information: The person who files the articles doesn’t have to be a member of the LLC. An attorney or formation service can file on the company’s behalf.

Once the SCC approves your articles, it’ll issue a certificate of organization. Banks might ask for that document, along with your EIN and operating agreement, when you open a business account.

What are some ongoing costs and tax obligations for a Virginia LLC?

The first-year costs are straightforward, but local licensing requirements can surprise founders. Here are the most common costs:

• Filing fee: $100 to file articles of organization

• Annual registration fee: $50 due every subsequent year on the last day of the month you formed the LLC

• Name reservation: $10, if you choose to reserve a name

Virginia LLC tax obligations

On the tax side, Virginia LLCs are pass-through entities by default. The LLC itself doesn’t pay state or federal income tax unless the members choose corporation tax status. Profits and losses usually flow through to members, who report them on their personal returns. Virginia taxes individual income on a graduated scale. Single-member LLCs file a Schedule C; multimember LLCs file Form 1065 and issue each member a Schedule K-1.

Virginia founders should plan for self-employment tax. Members who work in the business pay 15.3% in federal self-employment taxes on top of income tax. Many localities also require a business license separate from state registration. For example, Richmond requires business owners to get an annual business license. Check with your locality before you assume state registration covers everything. If your LLC has employees or sells taxable goods, you’ll also likely need to register for a Virginia employer withholding account or sales tax account through the Virginia Department of Taxation.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your EIN. Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in the Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.

Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.