Incorporating in Virginia gives your business a legal foundation for raising capital, hiring employees, and signing contracts in its own name. The decision shapes how investors view you, how taxes apply, and how your personal assets are protected. Virginia makes incorporation straightforward with predictable costs, clear filings, and a business climate designed for growth.

Below, we’ll cover how to incorporate in Virginia, including the advantages, requirements, costs, and important steps, plus how Stripe can support your business once you’re up and running.

What’s in this article?

• What does it mean to incorporate in Virginia?
  
• What are the advantages of forming a corporation in Virginia?
  
• How much does it cost to incorporate in Virginia?
  
• What are the steps to incorporate your business in Virginia?
  
• How Stripe Atlas can help
  

What does it mean to incorporate in Virginia?

Incorporating in Virginia means giving your business a legal identity of its own by forming a corporation. Once you file the necessary paperwork with the Virginia State Corporation Commission (SCC), your business exists as a separate legal entity that can own property, sign contracts, and be held accountable in its own right.

When you incorporate, you’re protecting your personal assets from business debts and lawsuits. If the business faces a claim, it’s the corporation—not you—that’s responsible. Corporations are similar to limited liability companies (LLCs) in this way, but corporations have more formal governance requirements and can issue stock.

Virginia founders can choose to form a stock corporation, which can issue shares and raise capital. From there, you decide how you’ll be taxed: you can stay a C corporation (C corp) with profits taxed at the corporate level, or you can take on S corporation (S corp) status with the IRS so profits pass directly to shareholders. The state also recognizes nonstock corporations for nonprofits and professional corporations (PCs) for licensed fields such as law or medicine.

Incorporation is infrastructure. You’ll draft bylaws, issue shares, and keep records—steps that give the business its credibility and legal durability. Investors, banks, and partners take that structure seriously.

What are the advantages of forming a corporation in Virginia?

Virginia corporations enjoy the classic benefits of incorporation, such as limited liability, access to capital, and business continuity, layered with a state environment built to support growth.

Businesses that incorporate in Virginia can expect these advantages:

Strong legal and financial protection

A corporation separates personal and business liability. In Virginia, that protection is well established. Shareholders are typically not responsible for business debts beyond what they’ve invested.

Capital and credibility

Corporations can issue stock, which opens doors to investors, lenders, and venture capital. Even small corporations gain credibility through the structure. The business continues to exist regardless of who owns or manages it, a main factor for attracting long-term partners and funding.

A business-friendly climate

Virginia consistently ranks among the top states for business: in 2025, it was ranked No. 4 overall. Businesses benefit from low operating costs, predictable regulations, and a skilled workforce, especially across tech-dense regions such as Northern Virginia. The state’s major ports, highways, and broadband infrastructure make it easy to reach markets along the East Coast.

Predictable taxes and useful incentives

The corporate income tax is a flat 6% and has remained unchanged for decades. There’s no separate franchise tax for most businesses in Virginia (banks are an exception), just an annual registration fee that scales with the number of authorized shares.

Virginia offers a suite of tax credits and incentive programs, including:

• Job creation credits of up to $1,000 per new full-time job, with unused credits carrying forward up to 3 years

• Research and development (R&D) credits of up to 15% of the first $300,000 in qualified research expenses

• Targeted credits for green energy, international trade, and other growth sectors

Local roots and easy compliance

If you operate primarily in Virginia, incorporating locally simplifies your life: you have one set of state filings, one tax regime, and a commitment to the community you serve.

Virginia pairs the solid advantages of incorporation with a stable, pro-growth system for businesses that want to build for the long term.

How much does it cost to incorporate in Virginia?

Virginia’s costs are straightforward and predictable, which is one reason why many founders form businesses in the state. Costs include:

• State filing fee: The filing fee for the articles of incorporation is $79.

• Registered agent fee: If you appoint a professional registered agent instead of serving as your own, expect to pay $100 to $300 per year for that service.

• Annual registration fee: Corporations pay an annual registration fee—Virginia’s version of a renewal—to remain in good standing. The amount depends on the number of authorized shares, and the payment is due in the anniversary month of incorporation.

• Other potential costs: You might add small local business-license fees or optional legal and filing help, but there’s no franchise tax or up-front “initial report” charge.

Overall, forming and maintaining a Virginia corporation typically costs only a few hundred dollars in the first year.

What are the steps to incorporate your business in Virginia?

Incorporation in Virginia follows a straightforward sequence. Each step builds the legal and organizational foundation of your business.

1. Decide on your structure

Confirm that a corporation fits your goals. If you plan to raise capital, issue stock, or reinvest profits, it’s often the right choice.

2. Choose and verify your name

Your name must be distinct from any registered business in Virginia and include “Corporation,” “Incorporated,” “Company,” or “Limited” or an abbreviation of one of those. Use the SCC’s online tool to check availability and confirm compliance before filing.

3. Appoint directors and a registered agent

List at least one director (no residency or age limits apply), and choose a registered agent with a physical address in Virginia. The agent accepts official correspondence and legal notices, which is important for maintaining good standing.

4. File the articles of incorporation

Submit your articles online through the SCC’s Clerk’s Information System for the fastest processing. Include your business name, registered agent details, number of authorized shares, initial directors, and incorporator information. Pay the filing fee. Once approved, you’ll receive a certificate of incorporation, the document that officially creates your business.

5. Organize your corporation

Hold an organizational meeting to adopt bylaws, appoint officers, and issue stock to founders. Keep signed minutes, and store them in your corporate records. Drafting bylaws and recording early decisions demonstrates that the corporation is being managed properly, which is important for legal and tax integrity.

6. Register for taxes and licenses

If you plan to collect sales tax or hire employees, register with the Virginia Department of Taxation and Virginia Employment Commission. Some cities and counties also require corporations to have a basic business license before operating.

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 Employer Identification Number (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 your 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 payments volume.

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