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Starting a limited liability company in Virginia involves a set of costs. In general, the cost of forming an LLC anywhere is much lower than the cost of establishing a corporation or other business structures. To start an LLC in Virginia, you pay $100 as a filing fee. There are other types of fees, like annual reports, licenses, permits, and state taxes (if applicable).
In this article, the LLCBuddy team has summed up the overall projected LLC cost in Virginia. From initial filing fee to maintenance cost, and to annual taxes, you will get it covered here!
Cost of LLC Filing in Virginia
The cost to start an LLC anywhere in the US includes many things. Apart from the initial filing fee, it involves license and permit fees, tax filing, sales taxes, other local and state government fees, etc.
Cost of Filing Formation Certificates
The main cost associated with an LLC is the filing fee paid to the state. The fee is different based on which state you’re in. In Virginia, the filing fee is $100. Once you file the Virginia Articles of Organization, you must pay the fees to the Virginia Secretary of State at the time of form submission. Apart from the filing fee, some other fees and costs are mentioned below,
Virginia Domestic LLC
- Online Filing costs $100
- Offline (PDF) Filing costs $100
- Annual Report filing costs $50
- Name Reservation fee costs $10
By Mail: Fill out the application form, and send it to the State Corporation Commission Clerk’s Office, P.O. Box 1197, Richmond, VA 23218-1197
Virginia Foreign LLC
- By Mail: Fill out the application form, and send it to the State Corporation Commission Clerk’s Office, P.O. Box 1197, Richmond, VA 23218-1197. Costs $100.
- Annual Report filing costs $50
- Name Reservation fee costs $10
Note that filing online is ideal, not only because you need to go to the Secretary of State’s office, but also because it would be faster. You won’t have to wait in a queue to do so.
Virginia LLC Registered Agent Fee
Hiring a registered agent in Virginia is necessary while forming an LLC. LLC formation cost includes the cost of hiring a registered agent. You can be your own registered agent; however, that is not recommended, as a registered agent has to be present at the official physical address during working hours. Here are the best LLC services in Virginia that offer registered agent services as well.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Virginia Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes payable to the Virginia Department of Taxation
At the stage of its formation, an LLC has to pay certain taxes to the Federal & State Governments. This article is a list of all such important taxes that are to be paid by LLCs in Virginia. The state taxes are to be paid to the Virginia Department of Taxation. The main state and federal taxes that an LLC has to pay are:
State Income Tax: As the owner of the LLC, one has to pay State Income tax on all the earnings that they make through the LLC. These earnings will be taxed through personal tax returns. The standard income tax rate in Virginia ranges between 3 and 5.75 percent. You can file for all the standard allowances and deductions at the time of filing.
State Sales & Use Tax: If your LLC is a seller of goods, selling tangible goods & a service provider providing services, it has to collect sales & use taxes & then pay them to the Virginia Department of Revenue. The Sales & Use Tax varies in different regions, counties, & cities. The current state sales & use tax rate on LLCs in Virginia is 4.3%
Federal Self-Employment Tax: Federal Self-Employment Tax is to be paid by all LLC Business members or managers. This kind of tax applies to all the earnings you withdraw from your business. The Federal self-employment tax rate in Virginia is 15.3 percent.
Federal Income Tax: The Federal Income Tax is levied on the Income & the amount of the Federal Income Tax depends upon your earnings, the income tax bracket your LLC falls into, the deductions, & the manner/ mode of filing.
You pay Federal Income Tax on all the profits your LLC makes after calculating the deductions & allowances, such as Healthcare or Retirement Plans.
Employee & Employer Taxes: An LLC with several employees drawing monthly salaries will have to bear some added Employee-Employer taxes. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.
Cost Comparison Between States
Virginia is surrounded by many states, namely Maryland, North Carolina, Tennessee, West Virginia, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Virginia | $100 | $50 | 4.3% |
| Maryland | $126 | None | 6% |
| North Carolina | $125 | $200 | 4.75% |
| Tennessee | $300 | $300 | 7% |
| West Virginia | $100 | $25 | 6% |
Based on the kind of industry your LLC operates in, your LLC will be liable for some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Virginia.
Other Costs
- Virginia Name Reservation: $10 by mail
- Doing Business As (DBA): $10 for online filing, or if filing by mail
- Certified Document Copies: $6 per page.
- Certified of Good Standing: $6
- Business Domain Name and Website: depend on your preference, but the domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Virginia LLC: $25
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds necessitates the creation of a business bank account for your LLC.
In Conclusion
The cost of Virginia is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the prices of professional LLC services and choose the most affordable one. Hiring professionals, like LegalZoom, which offers LLC formation at $0, can be profitable, as there will be no additional cost to form an LLC.