| Most form a Virginia LLC over a Virginia corporation | | | | tax structure among a single level of taxation, C |
| for their new business. This is because the Va limited | | | | corporation or S corporation. |
| liability company was designed to provide all the | | | | Now, a business can obtain the benefits of corporation |
| advantages of a corporation but without the | | | | taxation but still keep all the state law benefits and |
| disadvantages. However, the LLC is not right for | | | | simplicity of the limited liability company. |
| everyone. | | | | VIRGINIA LLC CAN RESULT IN LESS ANNUAL |
| Both the limited liability company and the corporation | | | | FEES |
| offer the same level of liability protection. They are | | | | The State of Virginia charges a small annual fee to |
| both business protection vehicles and provide a layer | | | | maintain the registration of a Va limited liability |
| of protection between you personally and your | | | | company. This fee is currently $50. This fee is a set |
| business. This is a must have today given the growing | | | | fee regardless of who many membership units are |
| number of lawsuits. | | | | issued to Members. |
| VIRGINIA LLC IS A SIMPLER LEGAL ENTITY | | | | In contrast, the minimum annual fee for a corporation is |
| However, when you form a Virginia LLC you get a | | | | $100 annually but this is a minimum. As a corporation |
| much simpler legal entity than a corporation. There are | | | | equity structure gets more complex and more shares |
| no requirement legal formalities under the statutes like | | | | of stock are issued, the fee increases significantly and |
| there are with corporations so a Va limited liability | | | | can be as much as $1700 a year. |
| company is easier to maintain. | | | | SUMMARY |
| VIRGINIA LLC IS MORE FLEXIBLE | | | | When you form a Virginia LLC , you get an extremely |
| The limited liability company also provides a much | | | | versatile protection vehicle for your business which |
| more flexible business vehicle. Owners (called | | | | can start off simple but has the potential to |
| Members) are able to tailor the way the business is | | | | accommodate even the most complex of business |
| run in accordance with their own rules and processes. | | | | needs as the business grows. Of course, there are |
| With a Virginia corporation, there is a set of statutory | | | | some situations where a Virginia corporation may be |
| structures, processes and maintenance requirements | | | | more suitable. Examples include if the business owners |
| including a required Board of Directors for a typical | | | | have intentions to take the business public with an initial |
| corporation. | | | | public offering, to take on venture capital investors |
| VIRGINIA LLC HAS MORE TAX CHOICES | | | | (who usually require that their investments be in C |
| One of the main reasons the limited liability company in | | | | corporations), or in some industries, having a |
| Virginia is so popular is because in 1997, the Internal | | | | corporation is more acceptable from a business |
| Revenue Service passed the Check the Box | | | | relationship perspective. |
| Regulations which allows a Virginia LLC to choose its | | | | |