Forming an LLC in Virginia involves more than just the $100 state filing fee that gets most of the attention. The complete cost picture includes registered agent services, potential business licensing, and ongoing compliance obligations that can add hundreds of dollars to your first-year expenses.
Understanding these costs upfront prevents budget surprises and helps you make informed decisions about which services truly benefit your business.
Virginia's straightforward formation process keeps mandatory costs low, but several optional services can streamline your setup and provide ongoing compliance benefits.
Whether these expenses make sense depends on your business complexity, available time, and comfort level with handling legal documents independently.
Attorney fees for formation assistance range from $800-$2,500 for comprehensive packages that include custom operating agreements and compliance guidance. Many attorneys can identify tax planning opportunities or liability protection strategies that justify their fees through long-term savings.
Accountant consultation for tax planning typically costs $100-$500 and often prevents costly mistakes once operational. Virginia LLCs with complex ownership structures or anticipated high revenue should invest in initial tax planning.
Business formation service fees start at $0 (plus state fee) for basic packages and go up to $299 for premium offerings with registered agent and compliance tracking. These services automate annual registration filing and provide deadline reminders.
These include the following:
After formation, Virginia LLCs face recurring expenses to maintain good standing and legal compliance. These costs are refreshingly predictable compared to states with complex franchise tax calculations or extensive reporting requirements.
Virginia's cost advantage becomes clear when you compare the $50 annual fee to other business-friendly states. Delaware charges a $300 annual franchise tax, Nevada requires a $200 business license fee plus a $150 annual list fee (totaling about $350), and California imposes an $800 franchise tax regardless of income.
Virginia's flat fee structure eliminates the complexity of revenue-based calculations while keeping compliance costs predictable and manageable.
Are there any hidden fees when forming an LLC?
The biggest surprises typically come from local business licensing requirements and professional registered agent services.
Virginia doesn't require publication or impose additional state-level fees, but cities and counties often require business licenses that can add $30-$150 annually.
Can I get a refund if my filing is rejected?
No, Virginia considers the $100 fee payment for processing your Articles of Organization, not approval. Once the State Corporation Commission processes your payment, the money is non-refundable even if your filing contains errors requiring resubmission.
Can I avoid registered agent fees legally?
Yes, you can serve as your own registered agent if you maintain a Virginia address and are available during business hours to receive legal documents.
This saves $100-$300 annually but requires using your personal or business address as public record.
Are there ongoing tax obligations specific to Virginia LLCs?
Virginia LLCs benefit from pass-through taxation, meaning profits flow to your personal tax return without separate entity-level taxes.
You'll pay Virginia state income tax on your share of LLC profits, plus federal self-employment tax if actively managing the business, but there's no additional state franchise tax beyond the $50 annual registration fee.
Discern automates annual registration filings, provides professional registered agent services across all 51 jurisdictions, and offers transparent pricing that includes all state fees, with no surprise charges.
Ready to eliminate compliance tracking stress and missed deadline risks? Book a demo with Discern today.
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