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


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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.

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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 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.

At the outset, it is vital to recognize that the cost of maintaining an LLC in Virginia can vary depending on several factors. These factors may include the size, nature, and specific requirements of each individual business. Therefore, it is essential for business owners to carefully evaluate these factors when estimating the cost associated with managing an LLC.

The initial cost to establish an LLC in Virginia is relatively low compared to other forms of business entities. The first expense is the filing fee with the State Corporation Commission (SCC), which varies based on the type of LLC and the submitted documents. Additionally, an annual report concentrating on the business’s sustainability may be required along with a payment to the SCC as well. Taken together, these costs are not exorbitant yet are essential for maintaining the legal status of the LLC.

Nevertheless, it is important to understand that there may be other costs beyond the necessary filings. Hiring a qualified accountant or attorney is often recommended to ensure compliance with Virginia’s business regulations and to handle aspects such as taxes, licenses, and permits. These professionals can offer valuable advice and expertise, making their services worth the investment even when they impact ongoing expenses.

Furthermore, maintaining necessary permits, licenses, and certificates specific to certain industries need to be considered. Depending on the nature of the business, there may be additional costs such as renewing business licenses or acquiring industry-specific permits. These costs vary widely across sectors and businesses of various sizes.

The cost of maintaining an LLC in Virginia extends beyond its formation-related expenses. Ongoing administrative duties also exist, such as keeping accurate financial records, regularly amending and updating internal documents, and captivating membership meetings in compliance with legal requirements. These administrative costs should never be ignored, as falling behind carries its own financial and legal consequences.

Another cost to consider is the potential need for liability insurance. While Virginia does not mandate that LLCs have liability insurance, it is a crucial consideration nonetheless. Depending on the nature of the business, obtaining liability coverage may be essential to protect the LLC and its members from potential lawsuits or damages incurred by business operations.

In conclusion, the cost of maintaining an LLC in Virginia is composed of various components that can differ considerably based on multiple parameters. Costs include the initial formation filings, emissions vary based on the ongoing regulatory and administrative requirements, industry-specific permits, and licenses, legal and accounting counsel, as well as, potentially, liability insurance. It is vital for entrepreneurs and small business owners in Virginia to thoroughly consider these factors, weighing both the immediate costs of establishment and the ongoing expenses required to maintain compliance and ensure longevity. By evaluating their unique business circumstances and seeking professional guidance, entrepreneurs may make well-informed decisions regarding the cost of maintaining their LLC and help contribute to their chances of long-term success within the state’s business climate.

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.


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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