Virginia keeps its rules fairly uncomplicated: one flat filing fee, one flat annual fee, and no franchise tax lurking in the background to plan around. Below is a walkthrough of what it takes to get a business registered and compliant here in 2026.
1. Which business structure fits you?
Here's the lineup you're choosing from before filing anything:
- Sole proprietorship. Legally indistinguishable from you personally, so nothing needs to be filed to start. It's the easiest setup, but you're personally on the hook for whatever the business owes.
- Partnership. Two or more people running the business together, sharing the same liability exposure a sole proprietor carries, just split between them.
- LLC. The structure most small Virginia businesses land on, largely because it separates personal assets from whatever debts or lawsuits the business runs into.
- Corporation, S-corp or C-corp. Brings more paperwork and formal requirements, generally worth the extra effort once you have investors or several shareholders involved.
For more on the tradeoffs, see our guide on choosing a business structure.
LLCs and corporations register with the Virginia State Corporation Commission, the agency handling business filings statewide. Sole proprietorships and general partnerships have no filing to make there.
2. Register your business
Forming an LLC
Forming a Virginia LLC means filing Articles of Organization with the State Corporation Commission. The fee is $100 regardless of whether you file online or by mail, and online submissions are typically approved the same day.
Every LLC needs a registered agent with a physical Virginia address available during business hours. You're free to act as your own agent, or you can bring in a commercial service.
Virginia doesn't mandate an operating agreement by law, but drafting one still pays off, particularly with multiple members, since it's the document that spells out how decisions and profits get divided.
Sole proprietorships and DBAs
Sole proprietorships have nothing to file with the SCC. Operating under a fictitious name means registering it with the clerk's office in the circuit court for the county or city where the business is based, for a small fee.
3. Get an EIN
An Employer Identification Number is free from the IRS and takes about 15 minutes to get online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even running a single-member LLC with no employees.
4. Check licenses and permits
There's no blanket business license in Virginia either. What applies to you hinges on industry and location: certain professions carry their own licensing, most cities and counties require a local business license, and selling taxable goods or services means registering for sales tax with the Department of Taxation. Our guides on professional licensing by industry and zoning laws for home businesses go further into both.
5. Understand Virginia taxes
Virginia's personal income tax is progressive, from 2% up to 5.75%, but the brackets haven't been adjusted for inflation in years. In practice, that means the top rate now applies to most working Virginians, and to nearly all pass-through LLC profit as a result.
Sales tax runs 5.3% across most of the state, combining a 4.3% state rate with a mandatory 1% local add-on. Certain regions, including Northern Virginia, Hampton Roads, and Central Virginia, layer on additional regional taxes that push the combined rate to around 7%.
6. Stay compliant
There's no traditional annual report for Virginia LLCs. Instead, every LLC pays a flat $50 annual registration fee to the State Corporation Commission, due by the last day of the month the LLC was originally formed. Missing the deadline adds a $25 late penalty, and going three months past due triggers automatic cancellation of the LLC.
Virginia business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $100 |
| Annual registration fee (every year) | $50 |
| Late registration penalty | $25 |
| Registered agent service (optional) | $100 to $250/year |
| EIN | Free (IRS) |
| State income tax | 2% to 5.75% (progressive) |
| State sales tax | 5.3% (4.3% state + 1% local), up to 7% in some regions |
Frequently asked questions
Does Virginia require a traditional annual report for LLCs?
No. Instead, every LLC pays a flat $50 annual registration fee to the State Corporation Commission.
How much does it cost to form an LLC in Virginia?
$100 for Articles of Organization, usually approved the same day whether you file online or by mail.
What's the top personal income tax rate in Virginia?
5.75%. Because the brackets haven't been adjusted for inflation in years, that top rate now applies to most working Virginians.
When is Virginia's annual registration fee due?
The last day of the month the LLC was originally formed, with a $25 penalty for missing it.
How high is sales tax in Virginia?
5.3% across most of the state, made up of a 4.3% state rate plus a mandatory 1% local add-on, though some regions like Northern Virginia reach around 7%.
Fees and rates above are drawn from the Virginia State Corporation Commission and Department of Taxation as of 2026, and both change periodically, so confirm before you file. This isn't legal or tax advice. Talk to a Virginia-licensed attorney or CPA about your specific situation.