Requirements to form an LLC in Virginia

Creating a Virginia LLC involves following specific procedures established by the Virginia Limited Liability Company Act. Failing to meet any requirement can result in rejection of your filing or administrative cancellation, effectively eliminating your business authority and liability protection in the state.

These requirements include naming conventions, registered agent appointments, Articles of Organization filing, and ongoing compliance obligations that preserve your LLC's legal protections and business authority.

1. Name Requirements

Your LLC name must end with "Limited Liability Company," "Limited Company," "LLC," or "L.L.C." Virginia won't approve your Articles of Organization without this designator. Professional LLCs must use "Professional Limited Liability Company" or "PLLC."

Next comes distinguishability. Your name must be unique from all existing Virginia entities on file with the State Corporation Commission. Virginia ignores differences in punctuation, spacing, capitalization, and common articles when determining conflicts. Check the state's business entity search before filing, or you'll waste $100 on a rejected application.

Certain names are restricted regardless of availability:

  • Words suggesting government connections, like "FBI" or "Treasury," are banned outright
  • Terms requiring special licensing, such as "bank," "attorney," or "university," need documentation
  • Professional designations require licensed individuals in the entity

You can reserve your chosen name for 120 days by filing Form SCC-631 with the Virginia State Corporation Commission for $10.

Planning to operate under a trade name? You'll need to register a fictitious name certificate with the appropriate circuit court after LLC formation. This creates a business alias while maintaining your legal entity name.

2. Registered agent requirements

Virginia Code § 13.1-1015 mandates every LLC maintain both a registered office and registered agent within the Commonwealth continuously. This person or entity serves as your official contact for legal documents and state correspondence.

Qualified registered agents must meet specific criteria:

  • Virginia residents whose business office matches the registered office address
  • Members, managers, officers, or directors of qualifying entities
  • Attorneys admitted to the Virginia State Bar
  • Commercial registered agent services authorized in Virginia

P.O. boxes are not acceptable for registered office addresses. The agent must be available during regular business hours to accept legal documents and official notices.

If your registered agent resigns, you have exactly 31 days to appoint a replacement. Missing this deadline allows the State Corporation Commission (SCC) to terminate your entity, destroying good standing and requiring expensive reinstatement procedures.

Many owners choose commercial registered agent services for privacy and guaranteed availability, though self-service remains legal if you meet the qualification requirements and don't mind making your address public record.

3. Articles of Organization requirements

Filing Articles of Organization creates your Virginia LLC officially. This document serves as your company's legal foundation and must contain specific information required by state law.

Required elements include:

  • LLC name with proper legal designator
  • Registered agent name and Virginia street address serving as registered office
  • Principal office address (can be inside or outside Virginia)
  • Management structure (member-managed or manager-managed)
  • Organizer name, address, and signature

At least one organizer must sign the Articles of Organization before filing. Additional organizers may sign if multiple founders are involved in formation.

You can file online through the SCC's Clerk's Information System or by mail using Form LLC-1011. Both methods cost $100, but online filing processes faster—typically within 2-5 business days versus weeks for paper submissions.

The SCC offers expedited services for additional fees when faster processing is needed. Once approved, you receive a Certificate of Organization confirming your entity's legal existence.

4. Operating Agreement requirements

Virginia doesn't require Operating Agreements to be filed with the SCC, but creating one protects your business interests and establishes operational clarity. These agreements remain completely private between members.

For single-member LLCs, an Operating Agreement documents business legitimacy and reinforces liability protection. Courts examining veil-piercing claims look for evidence that entities operate separately from their owners—signed agreements provide crucial documentation.

Multi-member LLCs need Operating Agreements to prevent disputes and establish clear procedures for:

  • Ownership percentages and capital contributions
  • Decision-making authority and voting requirements
  • Profit distribution and loss allocation
  • Member transfer restrictions and buyout provisions
  • Management structure and individual authority
  • Dissolution procedures and asset distribution

Without written agreements, Virginia's default statutory rules govern operations, rarely aligning with how businesses actually want to operate. Creating detailed provisions prevents conflicts and provides enforceable procedures for resolving disputes.

5. Initial and ongoing compliance requirements

After the SCC approves your Articles of Organization, several immediate and ongoing obligations begin. Obtaining an Employer Identification Number (EIN) from the IRS is essential for banking and tax purposes, even without employees.

Open a dedicated business bank account using your Certificate of Organization and EIN. Maintaining separate finances protects liability shields, as commingling funds invites veil-piercing claims in court.

Virginia's main ongoing requirement is the annual registration fee—$50 due by the last day of your formation anniversary month. Virginia requires no annual report, simplifying compliance compared to most states. Late payment triggers an automatic $25 penalty, with continued non-compliance leading to entity cancellation.

Additional compliance includes:

  • Maintaining current registered agent information through prompt SCC updates
  • Registering for Virginia taxes if conducting business in the state
  • Obtaining required local business licenses specific to your industry and location
  • Filing federal tax returns based on your chosen classification

Consequences of non-compliance

Virginia enforces compliance through escalating penalties that can eliminate your business protection rapidly. Missing your $50 annual registration fee deadline triggers an immediate $25 late penalty while marking your entity as delinquent.

Continued non-compliance leads to:

  • Administrative cancellation: SCC removes your entity from active business records
  • Loss of authority: Cannot legally conduct business in Virginia
  • Compromised liability protection: Personal assets may be exposed to business creditors
  • Banking difficulties: Financial institutions may restrict account access
  • Licensing problems: Local authorities may refuse permit renewals
  • Contract enforceability issues: Courts may not hear disputes involving cancelled entities

Reinstatement after cancellation requires filing all overdue registration fees, paying accumulated penalties, and submitting formal reinstatement applications. The administrative burden and costs far exceed simple annual compliance.

Ensure Virginia LLC compliance with Discern

Discern tracks your anniversary month deadline, automatically processes the annual registration fee payment, and maintains your registered agent requirements with a compliant Virginia address and guaranteed business-hours availability.

Ready to eliminate Virginia compliance uncertainty? Book a Discern demo today.

Graphic image of Virginia state silhouette in grey on a dark teal background with white text that says 'Requirements for Virginia LLCs' positioned on the left side
Author
The Discern Team
Published Date
August 29, 2025
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