If you want to run a business in Virginia, it’s essential to know what requirements you need to meet before beginning the process of forming an LLC.
For starting an LLC in Virginia, also known as an LLC or Virginia LLC, there are several filing requirements that both members and managers need to complete.
If you’re ready to learn about these requirements, continue reading the following information. To form a limited liability company in Virginia, you’ll need to complete the following steps:
Choose a Business Name
Complete and file Articles of Organization with your state’s LLC office. Secure required licenses and permits for your business activities. If two or more members are working together, choose an operating agreement that details how profits are allocated and defines the term of existence for the LLC.
Provide notice to any creditors that you are forming an LLC. Complete a Federal Tax ID Application with the IRS to secure your EIN. Employer Identification Number, or EIN, is a nine-digit number companies use to report their financial information to both state and federal government agencies.
You can check the detailed instructions for these steps in our guide to starting a Virginia LLC.
Steps Included in the Process
The first step to setting up an LLC in Virginia is to choose a business name. Your business name needs to be available for use in your state before filing your Articles of Organization.
While it’s possible to change your business name later, you will need a name approved by the state before filing your initial paperwork. You can check if your name is available on the Virginia State Corporation Commission website.
If you decide to use a federal business name, such as an assumed or DBA name, it must be registered with the IRS first. You can find information about doing this in our guide to filing a fictitious business name.
When creating your LLC’s Articles of Organization, you’ll need to provide basic information about your business. It will include the company’s name and address, the contact info for essential members or managers in your LLC, and details on how long it plans to exist. You’ll also need to specify if any general partners are available in the LLC.
A Virginia limited liability company must have at least one member. If there are two or more members, you’ll need to complete an operating agreement that defines ownership percentage and control within your LLC.
How to Form an LLC with Multiple Members
One of the final steps in starting an LLC in Virginia is securing the necessary licenses and permits for your business activities. These can vary depending on what your LLC will do to generate income.
If you’re unsure about the specific licenses and permits needed to form an LLC in Virginia, our guide to business licenses and permits can point you in the right direction.
After you have formed a limited liability company in Virginia, it’s essential to be aware of any creditors that would need to be notified.
It is essential because it can affect your LLC’s liability protection status. The Virginia LLC Act states that creditors have 45 days to file a claim against the company after being notified of its formation.
If you are unsure how notifying creditors of your business activities may affect your LLC, you should consult with a specialized attorney in business law.
When forming an LLC in Virginia, it’s essential to understand a Federal Tax ID number and how to get one. The IRS requires most organizations to have this identifying number. A Federal Tax ID number can be used by your business for various purposes, including paying taxes and opening a bank account.
You’ll need to complete a Form SS-4 and submit it with the necessary documentation to get an EIN. The IRS lists all the documents that can be used to get an EIN on its website.
Why Should You Start LLC in Virginia?
Before starting an LLC, you may be wondering why you should form an LLC in Virginia rather than another state.
There are several reasons to start your limited liability company in Virginia, including:
- Virginia’s cost of formation is cheaper than other states.
- The filing fee is only $50 for Articles of Organization.
- There are no franchise taxes or annual report fees.
Virginia has an economy that is not dependent on manufacturing or agriculture. It means that the economy is more diverse, contributing to a healthy business climate.
After forming your Virginia LLC, you will need to take additional steps to maintain tax-exempt status.
It includes filing the necessary paperwork with the state and federal governments. It’s also essential to consult with a professional who can help you determine how much it may cost to form an LLC and what entity types may be better suited for your business.