An LLC, or a Limited Liability Company, is fairly easy and affordable to form in the state of Virginia. An LLC is a useful entity to form for many reasons. If you’re starting a business, forming an LLC will offer you legal protection. As a business owner, you would have limited liability for debts and obligations. For example, if you own a dance studio and one of your students breaks a leg on a slippery floor, and they decide to sue for medical bill payments, that student would need to sue your business (your LLC) instead of suing you individually. That way, your LLC would be financially responsible, instead of risking your own personal bank accounts. Other advantages to forming an LLC include pass-through taxes, which means that you would not be required to file a separate corporate tax return, and enhanced credibility for your business.
The first step in forming an LLC is deciding on a name. Your name must end with “Limited Liability Company,” or “LLC.” For example, our fictional dance studio could be called “Dave’s Dance Studio, LLC.” There are a few prohibited words, however. You cannot choose a title that could be confused with a state agency, such as “Secret Service” or “IRS.”
Once you’ve decided on a name, you will need to do a name search to make sure it’s available. The next step is registering your LLC with the State Corporation Commission. You can do this online or by mail. Upon registration, you will need to select a Registered Agent for your LLC. The registered agent can be a person or a business who is responsible for dealing with all the paperwork, receiving the mail and filing annual state taxes for your LLC. Your registered agent can be someone within the company, including yourself. Some people choose to name their lawyer as their registered agent, because one of the most important responsibilities of the registered agent is to "accept service of process," or be the one to be served with a lawsuit if the business is sued. You must file the Articles of Organization and pay a non-refundable fee of $100.
Once you’ve formed your LLC, don’t forget to create an operating agreement. An operating agreement is not required of an LLC in Virginia, but it’s always a good idea to have clear-cut rules and guidelines for your business. An operating agreement is a simple legal document that outlines the operating procedures of your company. If you’re interested in forming an LLC, or if you have already formed an LLC and would like to establish an operating agreement, we can help you draft the professional legal document you need. Contact us for a free consultation.
The first step in forming an LLC is deciding on a name. Your name must end with “Limited Liability Company,” or “LLC.” For example, our fictional dance studio could be called “Dave’s Dance Studio, LLC.” There are a few prohibited words, however. You cannot choose a title that could be confused with a state agency, such as “Secret Service” or “IRS.”
Once you’ve decided on a name, you will need to do a name search to make sure it’s available. The next step is registering your LLC with the State Corporation Commission. You can do this online or by mail. Upon registration, you will need to select a Registered Agent for your LLC. The registered agent can be a person or a business who is responsible for dealing with all the paperwork, receiving the mail and filing annual state taxes for your LLC. Your registered agent can be someone within the company, including yourself. Some people choose to name their lawyer as their registered agent, because one of the most important responsibilities of the registered agent is to "accept service of process," or be the one to be served with a lawsuit if the business is sued. You must file the Articles of Organization and pay a non-refundable fee of $100.
Once you’ve formed your LLC, don’t forget to create an operating agreement. An operating agreement is not required of an LLC in Virginia, but it’s always a good idea to have clear-cut rules and guidelines for your business. An operating agreement is a simple legal document that outlines the operating procedures of your company. If you’re interested in forming an LLC, or if you have already formed an LLC and would like to establish an operating agreement, we can help you draft the professional legal document you need. Contact us for a free consultation.
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