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How to Start an LLC in Virginia (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Virginia has earned a reputation for having a welcoming environment for small businesses. The Commonwealth consistently ranks as one of the best states for ease of starting a limited liability company (LLC). With over 780,000 small businesses already operating within its borders, Virginia offers tremendous opportunities for entrepreneurs. Given the state's business-friendly laws and straightforward LLC filing process, it makes perfect sense that so many entrepreneurs choose to start their company as a Virginia LLC.

An LLC combines elements of partnerships, sole proprietorships, and corporations to provide business owners with personal liability protection as well as flexible taxation options. LLC owners, known as "members," are shielded from personal liability for debts and legal judgments against the business. Additionally, the earnings of an LLC pass through to the owners' personal tax returns, avoiding corporate double taxation. These features make the LLC structure highly appealing for many small business ventures.

Starting an LLC in Virginia involves just a few key steps, such as choosing a business name, designating a registered agent, filing paperwork with the state, and creating an operating agreement. While starting an LLC in the Commonwealth is relatively straightforward, entrepreneurs still need to understand the state's specific rules and regulations for LLCs. Paying close attention to the details will ensure your Virginia LLC is set up properly and remains compliant on an ongoing basis.

Steps for Starting a Virginia LLC

Forming an LLC in Virginia entails several steps, most of which can be completed fairly quickly. Here is an overview of what is required:

Choose a Business Name

The first step is to select a name for your Virginia LLC. There are a few important rules governing business names in the state:

  • The name must include a designation like "Limited Liability Company" or the abbreviation "LLC" to identify the entity type.
  • The name cannot be the same as any existing business name on file with Virginia's State Corporation Commission (SCC). You can check name availability on the SCC website.
  • Restricted words like "bank" or "trust" can only be used if the business is engaged in those activities.

You can optionally reserve an available business name with the SCC for a small fee. Reserving provides 120 days of exclusive use to complete your LLC registration.

Appoint a Registered Agent

All Virginia LLCs must designate a registered agent, which is a person or business that agrees to accept service of process and official correspondence on behalf of the LLC. The registered agent must be located in Virginia and available during normal business hours.

File Articles of Organization

To legally form your LLC, articles of organization must be filed with Virginia's SCC. This registration document includes basic information about the LLC such as the business name, registered agent, and principal office address. The filing fee is $100, which can be submitted online for faster processing.

Create an Operating Agreement

While not required, creating an operating agreement for your Virginia LLC is highly recommended. This document spells out financial and management details as well as ownership percentages and rules for dissolving the business. Having an operating agreement makes your LLC appear more professional if you ever want financing or investments.

Obtain an EIN

An employer identification number (EIN) serves as a business tax ID number with the IRS. While not strictly required, most LLCs need an EIN to open business bank accounts and properly handle tax reporting.

Pay Annual Registration Fee

The Commonwealth of Virginia charges all registered LLCs an annual $50 registration fee to remain active. This fee is due every year by the last day of the anniversary month when the business first filed.

Meet Ongoing State Compliance Requirements

In addition to the annual registration fee, Virginia LLCs must stay current with any licensing renewals and remain aware of changes or updates impacting state compliance requirements. Consider hiring an registered agent service or accountant to handle compliance.

Benefits of Starting a Virginia LLC

Forming an LLC provides Virginia business owners with several advantages:

  • Personal liability protection safeguards owners' assets
  • LLCs avoid double taxation of earnings - Virginia does not require annual reports from LLCs
  • Low annual registration fees ($50 per year)
  • Simple compliance compared to corporations

By taking the proper steps upfront to start and run your business as a valid LLC, you can reap the benefits of asset protection and favorable taxation. Consider connecting with an attorney and accountant to ensure your LLC meets all Virginia compliance rules. Leverage available online legal services to streamline document filings and business registration processes with the state.

Conclusion

With its straightforward registration process, low filing fees, and extensive small business resources, Virginia stands out as an exceptionally business-friendly state. Entrepreneurs looking to launch an LLC can follow a few simple steps to properly establish their business and maintain state compliance on an ongoing basis. While starting a Virginia LLC does not require substantial capital or paperwork, business owners should educate themselves on LLC regulations and work with professionals to ensure their business meets all legal requirements. By building a compliant and properly structured LLC, entrepreneurs can reap the rewards of liability protection and flexible taxation Virginia LLC status provides.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
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U.K. Gilt pricing quoted net of fees. ~5% U.K. Gilt yield is sourced from Investing.com December 2023 6-month United Kingdom 6-Month Bond Yield. ~5% Treasury Bill yield is sourced from treasurydirect.gov December 2023 12-week U.S. Treasury Bill auction.

**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.