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

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.

Whether you’re considering starting an LLC in Virginia, or you already have one and want to expand, you may have questions about the costs involved. While there’s no way to predict exactly what your future expenses will be, you can be prepared by knowing what the state’s requirements are. The good news is that you don’t have to spend a fortune. If you’re a new business owner in Virginia, you can form an LLC for as little as $100. Depending on your needs, you may also need to invest in additional services.

For example, you may need to register your business with the Virginia Department of Taxation. This will allow you to sell goods and services in the state. The process can be fast and easy if you’re registering online, but it can take a little time if you’re filing in person. In addition to this, you may also need to pay for licenses. You can learn more about your licensing needs by visiting the State Corporation Commission’s website.

Aside from your registration and licensing fees, there are also a few other expenses to keep in mind. These include a registered agent, insurance, and other business services that you may need. You may also be required to pay for industry specific licenses or permits. These fees vary from state to state, depending on the activity of your business.

In addition to the licenses and permits you’ll need, you’ll also need to file an LLC annual report. This is a legal document that is required by the state to maintain your LLC’s good standing. It’s a good idea to keep a copy of this document in your files. You should also know that a registered agent is necessary for an LLC in Virginia, as he or she is the contact person for all official communications and documentation associated with your business. You can hire a professional to do this job for you, or you can do it yourself. If you’re unsure of how to find a good registered agent, try searching the Internet. You may even find a free one.

The other cost you need to know about is the annual registration fee for your LLC. This fee will be due on the last day of the month that your LLC was registered. If you miss the deadline, you’ll be hit with a $25 penalty. You can pay your fee in person, by mail, or online. Depending on the method you choose, it can take as little as three business days to complete the process.

The state of Virginia also requires that you file a Certificate of Good Standing (aka a Certificate of Fact of Existence). The certificate is a legal document that helps you to prove your business has a valid business name and that you’re in business. You can also file a Certificate of Fictitious Name, if you want to do business under a name other than your legal business name.

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.

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.

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