What Is an Annual Registration Fee?
In Virginia, the annual fee is a regular payment that your LLC must complete every year. All LLCs are required to file their annual report with the Virginia State Corporation Commission.
Unlike most states, Virginia does not require an annual or biennial report for LLCs. Instead, the purpose of this fee is to keep your business compliant with the state of Virginia.
Learn more about annual reports by reading our article, What is an LLC Annual Report?
Filing deadlines: Virginia's Annual Registration Fee is due on or before the last day of the month that your LLC was formed.
Penalties for late filings: For LLCs, the penalty for late annual registration fee payments is $25. Failure to pay your annual registration fee by the last day of the third month following the due date will result in your LLC's termination. At that time, your business name becomes available to any other corporation, limited partnership, or limited liability company.
Should I Use a Registered Agent Service?
A registered agent is a person or business nominated by your company to officially receive and send papers on your behalf. By using a registered agent service, you can ensure that your LLC's reports are always filed on time to the appropriate government agency. Here are the three main advantages to using a registered agent service for your LLC:
1. Avoid penalties of late filing: In Virginia, an LLC may lose its name to another business entity if it goes three months without paying the annual registration fee. A registered agent service will notify you when payments are due, and they can also submit the payments for you for an additional fee.
2. You will have flexibility: A registered agent can receive and send documents for your LLC during regular business hours, so that you have to be on the job from 9-5 every week. You can also use a registered agent service to form an LLC in other states where you don't already have an established business presence.
3. You will have privacy: Using a registered agent allows you to keep your personal address off of public records, ensuring your personal privacy. Additionally, in the unfortunate event that your LLC is sued, the lawsuit will be served to the registered agent address, rather than at your place of business in front of your employees.
Learn more about a registered agent by reading our article, What is a Registered Agent?