How to Start a Business in Virginia
Virginia is home to more than 780,000 small businesses, representing 99.5% of all employers in the state.
In This Article
The Complete Guide
How to Start a Business in Virginia — 12 Steps
This is a full walkthrough: entity selection, state registration, federal tax IDs, licenses, banking, insurance, and ongoing compliance. Every step includes the official Virginia links, fees, and timelines.
Cost depends on your structure. A sole proprietorship may cost nothing to start. An LLC costs $100 to file online. A corporation costs $100. Step 3 walks through every option.
Virginia: Key Business Facts
Updated: Feb 2026- LLC Filing Fee (Online)
- $100
- Sole Proprietorship / DBA
- $10
- Corporation Filing
- $100
- Processing Time
- 1-3 business days (online)
- Expedited Option
- $25+ for same-day or next-day…*
- State Income Tax
- 2% to 5.75% (graduated brackets)
- Sales Tax Rate
- 5.3% (4.3% state + 1% local)
- Gross Receipts Tax
- No
- Franchise / Annual Tax
- None
- Filed With
- Virginia State Corporation Commission
- State Business License
- Not required (check local)
- Last Verified
- February 24, 2026
* Expedited Option: $25+ for same-day or next-day processing
Local licenses: Most Virginia cities and counties require a local business license (often called a BPOL license). Fees typically range from $30 to $100 annually depending on your locality and gross receipts.
What It Takes to Start a Business in Virginia
Forming a business in Virginia starts with a $100 filing at the Virginia State Corporation Commission (SCC). The SCC handles all business entity registrations, and online filings are typically processed within 1 to 3 business days.
Virginia does not require a statewide general business license, but most cities and counties issue their own local licenses. You will also need to register for state taxes, obtain an EIN from the IRS, and set up your banking and insurance before you begin operations.
Validate Your Business Idea in Virginia
Test your concept against Virginia's strongest sectors before investing time and money. The state's top industries include:
- Government contracting and defense (Virginia borders Washington, D.C. and hosts the Pentagon)
- Technology and cybersecurity (Northern Virginia is home to Amazon HQ2 and major data centers)
- Healthcare and life sciences
The Virginia Small Business Development Center (SBDC) offers free one-on-one consulting and market research assistance. Schedule a session to pressure-test your idea with an advisor who knows the local market.
Pro Tip
Write a Business Plan
Draft a business plan that covers your market analysis, revenue model, startup costs, and 12-month financial projections. Banks and SBA-backed lenders require a formal plan before approving any financing.
Follow our step-by-step business plan guide to build a plan that works for both lenders and your own decision-making. Keep it under 20 pages and focus on realistic numbers rather than aspirational language.
Pro Tip
Choose Your Business Structure in Virginia
Most founders in Virginia choose an LLC because it combines personal liability protection with pass-through taxation. Filing an LLC costs $100 at the Virginia State Corporation Commission.
The four main structures are sole proprietorship, LLC, S-Corp, and C-Corp. Each has different tax treatment, liability exposure, and paperwork requirements. See the full comparison below, then visit our Virginia LLC formation guide for detailed filing instructions.
Pro Tip
Business Structure Comparison — Virginia
Full comparison guide| Structure | Virginia Filing Cost | Personal Liability | How You're Taxed | Best For |
|---|---|---|---|---|
| Sole Proprietorship | $10 (DBA) | ❌ None | Personal income tax. No separate return. | Freelancers, consultants, side hustles testing an idea with no employees. |
| LLC Most Common | $100 online | ✅ Personal assets protected | Pass-through by default. Elect S-Corp when profitable. | Most small businesses. Best balance of liability protection, flexibility, and tax options. |
| S-Corporation | ~$100 + IRS election | ✅ Personal assets protected | Pass-through. Owners pay themselves a salary — can reduce self-employment tax. | Profitable businesses (typically $50K+ net) where payroll tax savings justify the complexity. |
| C-Corporation | $100 | ✅ Personal assets protected | Corporate tax rate (21% federal). Double taxation on dividends. | Startups planning to raise VC funding, issue stock options, or eventually go public. |
| General Partnership | Free / No State Filing | ❌ None — all partners personally liable | Pass-through. Each partner reports share on personal return. | Two or more owners who trust each other and don't need liability protection. |
Which should you choose? Most first-time founders in Virginia pick an LLC — it protects your personal assets without the complexity of a corporation. If you're not sure, consult a CPA or business attorney before filing. Read the full Virginia LLC guide →
Choose and Register Your Business Name in Virginia
Search the Virginia SCC business name database to confirm your desired name is available. Your name must be distinguishable from every other entity on file.
Virginia LLCs must include "LLC" or "Limited Liability Company" in their legal name. You can reserve a name for 120 days for just $10 if you are not ready to file your formation documents immediately.
Pro Tip
Check Virginia Business Name Availability
Search the official Virginia State Corporation Commission database before you file.
Register Your Business with the Virginia SCC
File your Articles of Organization with the Virginia State Corporation Commission online for $100. Online filings are typically processed within 1 to 3 business days, though expedited options start at $25 for faster turnaround.
You must designate a registered agent with a physical Virginia address on your filing. See our Virginia registered agent guide for affordable options.
Once approved, you will receive a Certificate of Organization confirming your LLC is legally formed in Virginia.
Pro Tip
Important
File Online with Virginia State Corporation Commission
Official Virginia business registration portal. Standard processing: 1-3 business days (online).
Get Your Federal EIN from the IRS
Apply for your Employer Identification Number (EIN) for free on the IRS website. The online application takes about 10 minutes and you receive your EIN immediately upon completion.
You need an EIN to open a business bank account, hire employees, and file federal tax returns. Even single-member LLCs benefit from having an EIN to keep their Social Security number off business forms.
Pro Tip
Get Your Virginia Licenses and Permits
Requirements vary by industry and location, but most Virginia businesses need some combination of the following:
- Local Business License (BPOL) — most Virginia cities and counties require this; fees typically range from $30 to $100 annually (contact your local Commissioner of Revenue)
- Sales Tax Certificate of Registration — required if selling taxable goods or services; register free at Virginia Tax
- Professional License — required for contractors, real estate agents, healthcare providers, and other regulated fields through the Virginia Department of Professional and Occupational Regulation (DPOR)
- Employer Registration — register with the Virginia Employment Commission (VEC) before hiring your first employee
Pro Tip
Important
Open a Business Bank Account
Bring your EIN confirmation letter, Certificate of Organization, operating agreement, and a government-issued photo ID to open a dedicated business checking account. Keeping personal and business finances separate is essential for maintaining your LLC's liability protection.
Compare options in our best business bank accounts guide to find accounts with no monthly fees and low minimum balances. Many Virginia credit unions and community banks offer competitive small business accounts.
Pro Tip
Set Up Accounting and Understand Virginia Taxes
Virginia imposes a graduated income tax with rates from 2% to 5.75% on taxable income over $17,000. LLC members pay this through their personal returns as pass-through income.
Register for all applicable state taxes at Virginia Tax online. If you sell taxable goods, you will collect the combined 5.3% sales tax (4.3% state + 1% local) and remit it monthly, quarterly, or annually depending on your volume.
Set up accounting software from day one to track income, expenses, and estimated quarterly tax payments. See our best accounting software picks for options that handle Virginia sales tax automatically.
Pro Tip
Get Business Insurance in Virginia
Virginia requires workers' compensation insurance for most employers with 3 or more employees (or 2+ employees in the construction industry). Register through the Virginia Workers' Compensation Commission if this applies to you.
General liability insurance is recommended for every business regardless of size or industry. Compare quotes in our business insurance guide to find coverage starting around $30 to $50 per month.
Pro Tip
Build Your Online Presence
Claim your free Google Business Profile to appear in local search results across Virginia. This is the single highest-impact marketing step for any local business and costs nothing.
Build a simple website using one of the platforms in our best website builders guide. Even a one-page site with your services, location, and contact info builds credibility with potential customers.
Pro Tip
Stay Compliant After Forming Your Virginia Business
After forming, keep your Virginia business in good standing by meeting these ongoing requirements:
- Annual Registration Fee — $50 due by May 31 each year (you can file as early as March 1); pay online at the Virginia SCC portal
- State Tax Filings — file your Virginia income tax return annually and remit sales tax on your assigned schedule at Virginia Tax
- Registered Agent — maintain a registered agent with a physical Virginia address at all times
- Local Business Licenses — renew your BPOL license and any local permits annually with your city or county
Missing the May 31 annual registration deadline triggers a $25 late fee. If the fee and penalty remain unpaid for 90 days, the SCC will administratively dissolve your LLC. Track all deadlines with StartupOwl's compliance calendar.
Pro Tip
Important
Virginia Business Background & Context
State-specific data to help you plan — taxes, economy, funding, and what to expect after you form.
Frequently Asked Questions
What to Do Next
Once you've registered your Virginia business, take these steps to set up for success.
Form Your Virginia LLC
File your Articles of Organization with the Virginia SCC for $100 and get your business legally established.
Start Your LLC →
Get a Virginia Registered Agent
Every Virginia LLC needs a registered agent with a physical in-state address. Compare affordable options.
Compare Agents →
Open a Business Bank Account
Separate your personal and business finances from day one with a dedicated business checking account.
Compare Accounts →
Connect with Virginia SBDC
Get free consulting, market research, and funding assistance from your local Virginia SBDC office.
Find Your SBDC →
Write Your Business Plan
Build a business plan that satisfies lenders and keeps your strategy focused in your first year.
Write Your Plan →
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Requirements change — always verify current fees and requirements directly with Virginia State Corporation Commission and the IRS before filing.
Ready to Form?
Get your Virginia business registered with ZenBusiness — choose your structure, file the paperwork, and stay compliant from day one.
About the Author
Director of Entrepreneurial Strategy
Jennifer is a former founder who built and sold a boutique B2B logistics company in her thirties. She understands the emotional and strategic toll of building a business from the ground up without a massive safety net. She is deeply connected to the Atlanta startup ecosystem and is passionate about equitable funding.
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