How to Start a Business in Virginia

Everything it takes to legally start a business in Virginia, in order — with the official Virginia links for each step. Most people can complete the core setup in one to three weeks.

LLC filing fee
~$100
Processing
immediate online
Ongoing report
annual · ~$50
State sales tax
yes
State income tax
yes
  1. Pick a structure (sole proprietor or LLC)

    Most Virginia owners start as a sole proprietor (free, no filing) or form an LLC for liability protection. The LLC filing fee is about $100, and formation typically takes immediate online. Confirm the current fee on the state site before you pay.

    Virginia business filing office

  2. Name a registered agent

    If you form an LLC or corporation, Virginia needs a registered agent with a physical in-state address. You can be your own agent if you're available during business hours, or hire a service for about $100–$150/year.

  3. Get your EIN from the IRS

    An Employer Identification Number is free from the IRS and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN

  4. Register for Virginia taxes

    Virginia has a state sales/use tax and has a state income tax. Virginia charges a $50 annual registration fee (not a full report) due on the last day of your formation month.

    Virginia tax registration

  5. Confirm local licenses and permits

    Virginia rarely issues a single statewide "business license" — most licensing is by city or county, plus profession-specific licenses. Check your city and your trade.

    Virginia professional licensing

  6. Open a business bank account and get insurance

    Keep business and personal money separate from day one. General liability insurance is the baseline; some contracts also require a bond.

  7. Put the ongoing report on your calendar

    Virginia requires a annual report (about $50). annual registration fee, no report content

    Virginia reports

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Frequently asked

How much does it cost to start an LLC in Virginia?

The state filing fee is about $100. Beyond that, budget for a registered agent if you hire one (~$100–$150/year), the annual report (~$50), and any local license fees. An EIN is free.

Do I need an LLC to start a business in Virginia?

No. You can operate as a sole proprietor in Virginia with no state filing. An LLC adds a layer of personal liability protection and can make you look more established to customers and lenders — it's a judgment call based on your risk and goals, not a legal requirement.

How long does it take to form an LLC in Virginia?

Standard processing is immediate online. Many states offer paid expedited options.

Does Virginia have a sales tax?

Yes. If your product or service is taxable in Virginia, you must register with the state tax agency before you collect tax. Many services are not taxable — confirm on the official site.

What ongoing filings does a Virginia LLC have?

Virginia requires a annual report (about $50). annual registration fee, no report content

Official sources

Fees and timelines are commonly-cited figures last reviewed 2025-06 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

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AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center