LLC Cost in Virginia – How Much to Pay for an LLC


Steve Bennett
Steve Bennett
Business Formation Expert
Steve runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
virginia_state_seal

Perhaps you are hoping to form an LLC in Virginia. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Virginia.

Virginia LLC Cost of Filing

Here are the costs involved in forming an LLC in Virginia.

Cost of Filing Formation Certificates

The Virginia Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Virginia Secretary of State.

Virginia Domestic LLC

  • Online Filing costs $100.
  • Annual Report filing costs $50
  • Name Reservation fee costs $10
  • By Mail: Fill out the application form, and send it to State Corporation Commission Clerk’s Office P.O. Box 1197 Richmond, VA 23218-1197. Costs $100.

Virginia Foreign LLC

  • By Mail: Fill out the application form, and send it to 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 office, but also it would be faster. You won’t have to wait in a queue in doing so.

Virginia LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Virginia, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

  • Worry-free service

  • Great customer support

$0 + State Fees

  • Free LLC Formation

  • Affordable Add-on services

  • Other business solutions

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 the 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 he makes 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 LLC in Virginia is 4.3%

Federal Self-Employment Tax

Federal Self Employment Tax is to be paid by all the 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, 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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Virginia $100$504.3%
Maryland$126None6%
North Carolina$125$2004.75%
Tennessee$300$3007%
West Virginia$100$256%

Based on the kind of industry you LLC operated in, your LLC will be liable to 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

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

How Much Does It Cost to Maintain an LLC in Virginia

To maintain an LLC in Virginia you will need to pay an annual fee of $50 along with state income tax at 3% to 5.75% sales & use tax at 4.3%, and federal taxes.

Maintaining an LLC in Virginia involves several expenses that business owners need to be aware of. One of the most significant costs is the annual registration fee required by the state. This fee must be paid every year to keep the LLC in good standing with the state government. In addition, there may be additional fees for filing annual reports, appointing a registered agent, and making changes to the LLC’s structure or ownership.

It is also important to consider the cost of hiring a professional to help with the paperwork and compliance requirements associated with maintaining an LLC in Virginia. While some business owners may choose to handle these tasks themselves, many find it beneficial to hire an accountant, lawyer, or business consultant to ensure that everything is done correctly and on time. These professionals can provide valuable guidance and support, but they come with a cost that needs to be factored into the overall expenses of running an LLC.

Another cost to consider when maintaining an LLC in Virginia is the cost of business licenses and permits. Depending on the nature of the business and its location, there may be specific licenses and permits required to operate legally. These can add up quickly and must be renewed regularly to avoid penalties or fines.

Additionally, business owners should be prepared for unexpected expenses that may arise when maintaining an LLC in Virginia. This could include legal fees for resolving disputes or dealing with lawsuits, as well as expenses related to compliance with state regulations or changes in tax laws.

Overall, maintaining an LLC in Virginia can be a costly endeavor, particularly for small businesses or startups operating on a tight budget. However, it is essential to view these costs as investments in the long-term success and credibility of the business. By staying compliant with state regulations, keeping up to date on paperwork, and seeking professional advice when needed, business owners can minimize the financial risks associated with operating an LLC in Virginia.

In conclusion, the cost of maintaining an LLC in Virginia is a significant consideration for business owners. By understanding the various expenses involved and planning accordingly, entrepreneurs can navigate the regulatory landscape with confidence and ensure the long-term viability of their business.

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 price of professional LLC services and choose the most affordable one.

Leave a Comment