How to Start an LLC in Virginia

Important Next Steps to Protect Your Virginia LLC

After you’ve formed your LLC, you’ll need to complete several key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

1. Get a Business Bank Account and Credit Card

Getting a dedicated business bank account is an essential part of operating legitimately because it keeps your personal and business assets separate therefore helping to shield your personal limited liability. 

Skipping this step can often lead to:

• Courts determining you haven’t been treating your LLC as a separate entity
• Your “corporate veil” being pierced, meaning you’ll no longer benefit from limited liability in law. 

Recommended: Read our Best Business Bank Accounts for LLCs in 2026 review. 

You also may choose to acquire a corporate credit card if you’re interested in building your LLC’s credit and potentially raising capital down the line. 

2. Check If You Need a Virginia Business License

Virginia doesn’t require LLCs to hold a “general” business license in order to operate. 

However, business licensing is regulated at a local, state, and federal level so your licensing needs will ultimately depend on your exact location and industry.

• Local Licenses: You’ll need to check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals, your LLC will need. 
• State-Level Licenses: You can check the Virginia Department of Professional and Occupational Regulation and the Virginia Business One Stop portal to find out if your LLC will need to obtain a state-issued license.
• Federal Licenses: While most Virginia LLCs won’t be subject to federal regulation, those involved in heavily regulated industries (e.g., agriculture, alcohol, and firearms) will. Visit the U.S. Small Business Administration’s website to find the relevant federal agency you’ll need to contact.

A few questions to ask yourself when deciding whether or not you need a license include:

• Will you sell, lease, or rent taxable goods or services? If so, you’ll need to register for a Sales Tax Certificate through the Virginia Department of Taxation. You can find more information on this in our Virginia Sales Tax guide. 
• Will you work as a licensed professional? If your LLC will focus on regulated fields, such as medicine, law, insurance, or real estate, you’ll need to ensure you or a member of your LLC is appropriately licensed.
• Will your LLC’s activities negatively impact the environment? If so, you might need to obtain a business license or permit from the Virginia Department of Environmental Quality.

For more information, see our Virginia Business License guide. If you’d rather have a service handle this step for you, we recommend checking out LegalZoom’s Business License service.

3. Understand Your Virginia LLC Tax Obligations

Virginia LLCs aren’t all taxed in the same way because LLCs are taxed as pass-through entities by default. This means they’re largely taxed similarly to sole proprietors — the business gets paid, the profits pass to you as the owner, and you get taxed. There’s no “corporate” tax involved. 

Federal Tax Implications

You’ll need to submit personal income tax returns using either Form 1040 (for single member LLCs) or Form 1065 (for multi-member LLCs). If you have employees, you’ll also be subject to federal income tax withholding. 

State Tax Implications

Virginia has a state individual income tax that ranges from 2% to 5.75%, which members of pass-through LLCs must pay on their share of the profits. LLCs taxed as corporations are instead subject to a flat 6% corporate income tax. 

You also may need to collect and remit state sales and use tax if you sell taxable goods or services and register for employer withholding if your LLC will have employees.

Local Tax Implications

Your LLC may need to pay local sales taxes, property taxes, or other location-based business taxes at the county or municipal level.

For more information on the Virginia-specific LLC tax obligations that may apply to you, check out our in-depth Virginia LLC Taxes guide. Alternatively, you can schedule a free online consultation with 1800-Accountant for all your tax-related questions. 

4. Get Business Insurance for Your LLC in Virginia

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. 

This is because an LLC’s default limited liability protects your personal assets, not the business’s. Some of the most common types of business insurance include:

• General Liability Insurance: This is a broad insurance policy that protects your business from lawsuits. Most small businesses end up getting general liability insurance.
• Professional Liability Insurance: This is a business insurance policy for professional service providers (consultants, accountants, etc.) that covers your LLC against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: This insurance covers medical costs and lost wages if an employee is injured on the job. It’s legally required for all Virginia businesses with more than two employees.

What This Means:

Without insurance: If a customer slips on a wet floor during an event catered by your LLC and files a $69,000 lawsuit for medical bills and lost income, your commercial kitchen equipment, event supplies, and $15,000 in outstanding client payments could be at risk — although your personal assets would still be protected.

With insurance: Your general liability policy could cover the full $69,000 claim, meaning that both your personal assets and business property would remain protected.

That’s why many small business owners turn to providers like Ergo Next Insurance for affordable, tailored coverage. Get a free quote today.

Want to learn exactly what coverage your business may need? Read our full Virginia Business Insurance guide.

5. Learn How to Properly Sign Your LLC’s Legal Documents

Improperly signing a document as yourself and not as a representative of the business can leave you open to personal liability. 

When signing legal documents on behalf of your company, you we recommend following this formula to avoid any problems:

• Formal name of your business
• Your signature
• Your name
• Your position in the business as its authorized representative

It’s important to be consistent and sign all official documents using this format. This’ll help protect your personal assets by clearly showing that the agreement is with the LLC, not you as an individual.

6. Pay an Annual Registration Fee for Your Virginia LLC

Instead of a full annual report, Virginia requires payment of a $50 annual registration fee to the State Corporation Commission. This can be paid online and is due on the last day of the month in which your LLC was registered to transact business in Virginia.

Note: If your LLC misses the filing deadline for annual registration, it will be charged a $25 late fee. If you have failed to pay your annual registration within three months of this deadline, your LLC will be administratively dissolved. 

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Virginia Business Resources

Business Center

Check out our business center for regular updates, vetted reviews, free downloadable templates, and video guides that aim to help you start and grow your business. 

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Local Resources

• Commonwealth of Virginia State Corporation Commission
• Virginia Small Business Resources
• Virginia LLC Statutes

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