No, but it is recommended to reserve a name prior to filing to ensure that it remains available during the incorporation process.
How do I reserve a corporate name?
The reservation of your corporate name will be handled by IncParadise and is included in the price of our service.
Do I have to renew my name registration?
No.
How do I incorporate in Virginia?
When using our service, IncParadise will file, on your behalf, the required administrative forms and articles of incorporation with the appropriate Virginia agency.
Is a registered agent required?
Yes. . Virginia requires that every corporation maintain a registered office in the state, which may be the same as any of its places of business. As part of our ongoing service, IncParadise does provide a registered agent service option that you can select during the online registration process.
How many Incorporators are required to form a corporation in Virginia?
One or more are required.
How many Directors are required to start a corporation in Virginia?
One or more as defined in the entity’s bylaws.
Are corporations in Virginia required to file an Annual Report?
Yes. An annual report must be filed in the last 3 months of the calendar year following its date of incorporation.
Chief Executive Magazine ranked Virginia as the 7th Best State for Business in its 2006 CEO Confidence Index.
In terms of economic vitality, Virginia ranked 5th in the Milken Institute’s 2004 National State Technology and Science Index.
In Forbes Special Report Best Metro Areas for Business and Careers, Washington DC/Northern VA, Norfolk and Richmond were ranked in the top 15. In addition, four other Virginia cities ranked within the Best Small Metro Areas to jump-start a business or a career. Virginia and Texas were the only states with more than one locale in the Top 20.
Virginia is headquarters to 30 Fortune 1000 firms and more than 770 foreign-affiliated firms. (Yes Virginia website)
Virginia ranks 9th in terms of venture capital investment, is among the top 15 fastest growing states for venture capital investment and places within the top 10 states for total venture dollars invested.(Yes Virginia website)
Cost of living
For Richmond, VA (2005)
Index Score
Composite:
105.2
Housing:
106.5
Utilities:
102.4
Misc. Goods & Services:
105.6
Crime Rate
Virginia has the 14th lowest overall crime ranking in the U.S. (FBI, 2004)
Fees & Taxes
Business Inventory Tax Taxed. Inventory generally is taxable as merchant�s capital, although local taxing authorities may enact an exemption.
Corporate Income Tax Virginia’s corporate tax structure consists of a flat rate of 6.0% on all corporate income.
Personal Income Tax Virginia’s personal income tax system consists of four separate brackets with a top rate of 5.75% starting at an income level of $17,000.
Personal Property Tax Virginia has no state property tax. The tax is set and collected at the local government level. Real estate is taxed at the local level based on 100% of fair market value. Tangible personal property is taxed and includes, but is not limited to, machinery and equipment, furniture, fixtures, and trucks and automobiles. There is no intangible property tax.
State Sales and Use Tax Base Rate: 4.00%
Machinery Rate: none
Virginia provides an exemption for machinery or tools, repairs, parts replacements, fuel, power, energy or supplies, used directly in processing, manufacturing, refining, mining or conversion of products for sale or resale.
Unemployment Insurance Virginia’s new employers’ rate is 2.92% for 1 year.
Advantages of Incorporating a Business in Virginia
The Old Dominion is a great place for a start-up company in Virginia as businesses Virginia as businesses locating to this state will be able to benefit from low operating costs, business-friendly tax structure, a wide variety of incentives, and several other advantages. Some of the advantages are:
It is a right-to-work state
Strategic Location with access to Interstates & Highways
Easy access to Major US Markets
Highly educated and skilled workforce
A variety of Workforce Development programs
Advanced Fiber Broadband Network
Easy access to several utilities including Natural Gas, 3 phase electrical service, Wastewater Plants etc
Advantages of setting up an LLC or Corporation
Forbes 2018 report makes it quite evident that “Virginia is the #4 Best State for Business” and is ranked #1 where “Regulatory Environment” is concerned. It is home to many major business services operations and there are many start-ups that register a new company in Virginia every day. The state also offers a competitive cost environment for business entities and it is also home to one of the largest concentrations of tech or IT workers in the nation. These are some of the business environment specific advantages that your business will be able to leverage. Let’s take a look at some specific advantages like that of an LLC or a Profit Corporation.
Advantage#1: Salient benefits of Corporation or LLC
Corporation
Tax Credits: There are a variety of tax credits that you can benefit from especially if you register a new business in Virginia. Some of the top programs beneficial for businesses include:
– Major Business Facility Job Tax Credit: Businesses can benefit from income tax credit of approximately $1,000 for each new full-time job created. You can carry forward unused credits for a period of 10 years.
– Refundable Research and Development Expenses Tax Credit: You can avail of corporate income tax credit equal to almost 15% of the first $300,000 that is invested in qualified R&D in the state.
– International Trade Facility Tax Credit: This is an income tax credit that you can avail of on either capital or creation of jobs in an international trade facility (ITF)
– Green Job Creation Tax Credit: A business can avail of this corporate income tax credit on any new green jobs created.
Independent Life: One of the salient advantages of an S Corporation in Virginia is that it enjoys an independent life. The death or incapacitation of a stockholder will not disturb operations of the business.
LLC
Small Business Grants: If you register a new company in Virginia as an LLC, you will be able to benefit from several small business grant programs the state offers. Some of the popular programs include:
– Virginia Economic Development Incentive Grant (VEDIG): It is a discretionary performance incentive with the objective of encouraging businesses to invest in Virginia and create new employment opportunities.
– Virginia Investment Partnership Act (VIP) / Major Eligible Employer Grant (MEE): This is another discretionary performance incentive with focus on continued capital investment, and increase in production using advanced technology.
– Commonwealth’s Opportunity Fund (COF): A financial incentive for businesses that has been established to support projects, which promote new jobs as well as investment. Know more about Incentives
Limited Liability: If you register a new business in Virginia as a LLC then you will be able to enjoy limited liability protection. This means claimants can sue the LLC and not the owner or investors.
Advantage#2: Other Business Incentive Programs
There is a variety of business incentive programs including tax credits, exemptions, discretionary incentives, and financing programs available for small and medium enterprises or a start-up company in Virginia. Let’s look at some of the top programs in Virginia.
The Virginia Enterprise Zone (VEZ)
The objective of the Virginia Enterprise Zone is to enable businesses that are located here in stimulating economic development and earn incentives in return. Some of the incentives include:
90% rebates on fees for using permit, rezoning, etc.,
Tax credits for creating employment.
Cash grants equal to 50% of net increase on tools and machinery tax
Commercial Façade Loan Program that makes available loans amounting from $5,000 to $50,000
Corridor Streetscape Improvement Incentive
Mixed-Use Development Incentive
Tax Exemption for Rehabilitated Structures
Currently, you can register a new company in Virginia Enterprise Zone in Portsmouth only. Incentives in VEZ
Are there any Disadvantages of Incorporating in Virginia?
When you register a new business in Virginia, you can be rest assured that there is a wide variety of business incentives to leverage. The question is – are there any disadvantages? The disadvantages are limited to the type of business entity you form. For instance, an LLC requires more paperwork and is complex as compared to a partnership or sole-proprietorship. Similarly, disagreements or conflicts among the stockholders of a business corporation may immobilize overall decision making. The disadvantages will not affect business growth keeping in mind the incentives and infrastructure offered by the state.
What makes incorporation in Virginia, a good business decision? Forbes has ranked the “Old Dominion” #4 in their list of “Best States for Business” and #1 in “Regulatory Environment” and these rankings go on to prove just one thing – it has one of the best business climates! The Gross State Product of Virginia as of November 2018 was $538 billion and businesses that are located in this state can enjoy a range of benefits right from low operating costs to a business-friendly tax structure. It is a “right-to-work” state and the manufacturing industry has one of the lowest average workers’ compensation costs in the country.
Why Choose Virginia for Incorporation?
The economy of Virginia is quite diverse and is driven by key industries including Corporate Services, Food & Beverage Processing, Information Technology, Life Sciences, Manufacturing, Supply Chain Management, and Unmanned Systems. Quite often than not, it is considered as “America’s Corporate Hometown” and provides businesses with access to world-class talent. The state’s overall infrastructure has promoted company incorporation in Virginia and today it is home to a large number of small businesses.
One of the catalysts driving the economy of the state and creating a good climate for businesses is “Strong Infrastructure.” If you set up a company in Virginia then you can benefit from several aspects of the state’s strong infrastructure. Here are some interesting facts:
According to a study by Cyberstates 2018, Virginia is home to the 3rd-highest concentration of tech workers in the country
37 Virginia companies are in the Fortune 1000 list
The Greater Richmond region, which is Virginia, is considered to be the most suitable for corporate headquarters
Hampton Roads boasts of 2,600 miles of shoreline and is home to diverse real estate, world-class port facility, and major military commands
The Roanoke region is one of the best destinations for setting up tourism business thanks to 22 miles of urban greenway, 600 miles of trails, 300,000 acres of national forest, and 24 rivers and creeks.
It boasts of being the 4th-highest number of “Active Duty Members” in the country that is responsible for providing the state with a robust pool of skilled and dedicated workers
88.7% of the Virginia population have access to broadband with speed of 100mbps or faster and hence is a leader in digital and physical connectivity
Fairfax County is considered to be the East Coast center of technology innovation due to its proximity to the nation’s capital – Washington D.C
How do you incorporate in Virginia?
What is the process through which you can set up company in Virginia? What type of documentation is required? Can the registration documents be filed online? If you are confronted with these questions then the following steps will help you to understand how incorporation works in Virginia:
Type of Business
The first step towards incorporation in Virginia is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be either a domestic or a foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
The second most important step towards company incorporation in Virginia is registering your business entity name. There are 3 steps towards business name formation and they are:
Naming Requirements: A corporation under VA Code § 13.1-630 (2016) and an LLC under VA Code § 13.1-1012 (2016) should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
Business name search: You need to search for a business name that is not in use currently. You can conduct a name search here.
Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name pursuant to VA Code § 13.1-631 (2016) for business corporations and VA Code § 13.1-1013 (2016) for LLC’s. You can reserve the name with the secretary of state for a non-renewable period of 120 days.
A foreign business entity will have to register their business name pursuant to VA Code § 13.1-632 (2016).
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of Virginia, you will have to maintain a registered agent pursuant to VA Code § 13.1-1015 (2016) for LLC and VA Code § 13.1-634 (2016) for Business Corporations.
We are one of the respected registered agents in Virginia and will be responsible towards initiating incorporation in Virginia through processing of your “Articles of Organization”, and “Articles of Incorporation” for domestic entities and “Certificate of Registration” and “Certificate of Authority” for foreign business entities.
Articles of Incorporation and Certificate of Authority
You will be required to file “Articles of Incorporation” pursuant to VA Code § 13.1-619 (2016), if your business is a domestic corporation or a “Certificate of Authority” pursuant to VA Code § 13.1-759 (2016), if it is a foreign business entity. In order to streamline the process of incorporation in Virginia, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Virginia, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Virginia Incorporation
What would it cost to set up company in Virginia? Check Fees here!
The state of Virginia requires businesses to not only register but also acquire a business license in order to become operational. The question is – do all businesses require licenses? Most businesses require some kind of license or permit and then there are businesses that will require more than a single license or permit or a combination of both. These permits or licenses are issued by different state government agencies and local bodies depending on the type of business activity and location. Let’s look at an example:
Certain permits especially those related to environmental regulations are issued by the state Department of Environmental Quality while other Virginia company license are issued locally. For example, businesses in the City of Norfolk or the City of Virginia Beach in the following industries will require a license or permit to operate:
Contracting
General Services
Professional Services
Financial or Real Estate Services
Retail Merchant or Wholesale Merchant
Step-by-Step Guide to a Business License in Virginia
How do you really obtain a business license in Virginia? Which business entities require a license and which requires permits? Who is the issuing authority for these licenses? Here is a step-by-step approach towards acquiring licenses or permit in the state:
Step#1: The Industry or Business Type
The type of industry or the activities of a business entity helps in identifying the type of business license required.
Let us take a look at some examples to understand this better:
Food Services
Food services business license or permit is required for businesses that are operating in Virginia. The type of license or permit required will depend on the following:
Full Service
Fast Food
Take-out
Caterer
Hospital
School
Concession
Other types of food service
In the state of Virginia, food service establishment require a permit to operate. Apart from the permit, you need to ensure the following are in order:
Building Permits
VDH Permit
Approved VDH Plan Review
Approved equipment, supplies, food sources and signage
Food Training
Note: Food services establishment license or permit is also issued by the City or County your establishment is based in.
Fees: The fee varies according to the type of business activity.
Issuance: License is issued by Virginia Department of Health
Liquor License
If you are planning to serve liquor in a restaurant or are planning to manufacture, import, export, store, sell and transport alcoholic beverages, then you will require a business license in Virginia. The licenses are categorized under:
Banquet Licenses
Retail Licenses
Industry Licenses
Permits
Specialized Retail Licenses
Fee: The fee for acquiring a liquor license will depend on the category of liquor business. For instance, the Annual license fee for Banquet license is $190 (Wine and beer on premises) and $500 for mixed beverages on premises. Similarly, the fee for On-Premise Retail License is nonrefundable $195 and an extra fee for type of liquor like $145 for beer and $560 for Restaurant with a seating capacity of 1–100.
Issuance: License is issued by Virginia Alcoholic Beverage Control Authority
Step#2: Licenses issued by City/County
If your business or industry type doesn’t fall under a statewide license project then you will have to check with the local city or county office. A Virginia company license can also be issued by local counties or cities in which the business is located. Let’s look at an example to understand how this works.
If you form a business in Arlington County then a company license will be issued for the following:
Food Establishments
Temporary Food Establishments
Mobile Food Units
Farmers Markets
Water Recreation Facilities
Hotel/Motel Permit
The fee will vary according to the type of business. For example, food establishments will require a $40 fee to the Environmental Health Program. The business license is issued by Arlington County Public Health Division.
How is a business license in Virginia issued? You have to identify the following to complete the process:
The type of business or industry or activity
Do you need a single license or multiple licenses?
Will it be issued by the state or the city?
Once you have identified the above, all you need to do is either download the application or submit online or contact the concerned state department or city of clerk office.
Virginia LLC and Corporation Registration and Formation
There are different types of business entities that you can form in the state including a limited liability company (LLC), a corporation, an S corporation, a limited liability partnership, and a Benefit Corporation among others. The Real Gross Domestic Product (GDP) of Virginia was $441.49 billion in 2017 as compared to $416.9 billion in 2010. The economy is thriving and it is ranked high on business climate, which are some of the many reasons to form a Virginia business. Several Fortune 500 companies are based out of the state and they are distributed over the greater D.C. area and NOVA (Northern Virginia).
We are one of the top Virginia registered agents and can assist you with the successful registration of your business entity in the state.
Let’s take a look at how you can form a Virginia business LLC or Corporation.
Virginia LLC Registration and Formation
LLC company formation in Virginia is governed by 2016 Code of Virginia, Title 13.1 – Corporations, Chapter 12 – Virginia Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:
Step#1: Maintain a registered agent
If you are planning to form a Limited Liability Company in Virginia then you will be required to continuously maintain a registered agent in the state pursuant to VA Code § 13.1-1015 (2016). This law is applicable to domestic limited liability companies as well as foreign limited liability companies.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Virginia. We can assist you to form a Virginia business LLC.
Step#2: LLC Name Reservation
One of the foremost steps towards company formation in Virginia is identifying a name for your business entity. The process is as follows:
Identify a name for your business entity
According to VA Code § 13.1-1012 (2016), the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
Apply for reservation of name pursuant to the provisions of VA Code § 13.1-1013 (2016)
Submit the form through mail with the Office of the Virginia State Corporation Commission along with the applicable fee. An LLC can reserve its name for a period of 120 days.
Step#3: Articles of Organization and Certificate of Registration
If you are planning to form a Virginia business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:
If you want to register a domestic LLC then you will be required to file “Articles of Organization” governed by VA Code § 13.1-1011 (2016).
If your business entity is a foreign LLC then you will be required to file an application for “Certificate of Registration” pursuant to VA Code § 13.1-1052 (2016).
The application or documentation for registration of LLC can be filed with the Clerk of the State Corporation Commission, in person, through mail, or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
In case, you have any questions regarding how to form a Virginia business, feel free to call us on 702-871-8678.
Virginia Corporation Registration and Formation
If you are planning to form a Corporation in Virginia then it will be governed by 2016 Code of Virginia, Title 13.1 – Corporations, Chapter 9 – Virginia Stock Corporation Act. The procedure for registration and formation of a business corporation is as follows:
Step#1: Maintain a Registered Agent
If you are planning to form a business or professional corporation in Virginia then you will be required to continuously maintain a registered agent in the state pursuant to VA Code § 13.1-634 (2016). This law is applicable to domestic as well as foreign corporations.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Virginia. We can assist you to form a Virginia business as we are in compliance with all regulations in the State of Virginia.
Step#2: Corporate Name Reservation
In order to form a corporation in Virginia, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:
Identify a name for your business entity
According to VA Code § 13.1-630 (2016), a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
Apply for reservation of name pursuant to VA Code § 13.1-631 (2016).
Submit the form through mail or online with the Office of the Virginia State Corporation Commission along with the applicable fee. A business corporation can reserve its name for a period of 120 days.
Step#3: Articles of Incorporation and Certificate of Authority
If you are planning to form a corporation in Virginia, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:
If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to VA Code § 13.1-619 (2016).
If your business entity is a foreign corporation then you will be required to file a ” Certificate of Authority” to transact business in the state pursuant to VA Code § 13.1-759 (2016).
The application or documentation for registration of a corporation can be filed with the Clerk of the State Corporation Commission, in person, through mail, or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.
If you have any questions regarding Virginia incorporation or LLC formation, you can simply visit the Virginia Business formation page.
702-871-8678
