| Starting a business means a lot of great things. You | | | | allowed business owners to form a Virginia LLC as a |
| are following your passion and taking that first step | | | | business vehicle. After you form a Virginia LLC, the |
| toward financial independence. But, starting a Virginia | | | | law states that you are not personally liable for the |
| business is not without risks. You can reduce those | | | | debts and obligations of the business just because you |
| risks significantly if you form a Virginia LLC as your | | | | are an owner. This protection is not available with a |
| business vehicle. | | | | sole proprietor business and it is a great benefit |
| Forbes and other major sources have ranked Virginia | | | | because it significantly limits personal risk when starting |
| as the best state for business. This is because the | | | | a Virginia business. |
| Virginia government has always actively promoted | | | | In the period since the Virginia limited liability company |
| small business growth through incentives and | | | | was made available, it has become the most common |
| protection in its laws. The Virginia Limited Liability | | | | choice for business owners because it offers the |
| Company Act is no exception and is one of the most | | | | same level of protection as a corporation but provides |
| business friendly laws out there. The Virginia LLC's | | | | a simpler, more flexible and easier to maintain entity. |
| main benefit is liability protection but the legislature went | | | | THE VIRGINIA LLC IS A LOW MAINTENANCE AND |
| even further to provide other advantages. | | | | FLEXIBLE ENTITY |
| PROTECTION AFFORDED WHEN YOU FORM A | | | | Unlike the corporation entity, owners of an LLC are not |
| VIRGINIA LLC | | | | required to hold annual meetings or maintain a board of |
| A sole proprietor business is when you run a business | | | | directors. There is a lot less paperwork involved. The |
| without the use of a limited liability entity such as an | | | | state does not even require the filing of any annual |
| LLC. Without one, everything the business owner has | | | | information reports which is required for a corporation. |
| or owns is at risk in the event the business becomes | | | | Plus, the Virginia limited liability company has a lot more |
| liable for obligations or in a lawsuit. | | | | flexibility when it comes to how the business will be |
| After you start a Virginia business, you will be | | | | operated. There is no set governance structure as |
| interacting with many third parties. In order to conduct | | | | with a corporation. This means you can operate your |
| and build your company, you will be communicating | | | | business the way you want yet you will have the |
| with and speaking to customers, suppliers, contractors, | | | | flexibility to evolve as the business grows or becomes |
| service providers, investors, banks, potential partners, | | | | more complex. |
| government agencies and others. With every | | | | MINIMAL REGISTRATION COSTS |
| interaction and every business transaction, there | | | | The filing fee for form a Virginia LLC is $100 for a |
| comes a risk of potential problems or liability. | | | | regular filing and $200 for an expedite filing. The state |
| Before the limited liability company was created in | | | | does not guarantee a processing time for regular filing |
| Virginia, many business owners took on the risk of | | | | which usually takes between 15-30 days. The state |
| liability because there only other option was to form a | | | | requires 2-3 business days to process an expedited |
| corporation. A corporation is a more complicated entity | | | | filing. After formation, there is an annual registration |
| which comes with it more maintenance, paperwork | | | | charge of $50 a year. The fees are so low and are a |
| and possibly more fees. | | | | small price to gain the protection and other benefits. |
| This changed when Virginia passed the laws that | | | | |