LLC in Virginia (2025 Guide): Costs, Taxes & Requirements

Should you form your LLC in Virginia?

If you are a non-resident founder, the internet probably told you to choose Wyoming or Delaware. But maybe you have a specific reason to look at Virginia (like buying real estate in Virginia or hiring local employees).

This guide breaks down the real costs, taxes, and requirements for a Virginia LLC in 2025.

Cost Breakdown: Is Virginia Expensive?

It's not just about the $100 to start. It's about how much it costs to keep the company alive.

Expense	Cost	Frequency	Notes
LLC Formation Fee	$100	One-time	Paid to Secretary of State
Registered Agent	~$125	Annually	Required by law
Annual Report	$50	Annually	Mandatory compliance filing
Franchise Tax	$0	Annually	None

Compare this: Wyoming charges $100 to start and $60/year. Delaware charges $90 to start but $300/year. Check our full comparison: Best LLC Services for Non-Residents.

The Tax Reality

Many founders forget about state taxes.

1. Income Tax

Virginia has a personal income tax rate of Top 5.75%.

• If you live abroad: You usually only pay this if you are "doing business" physically in Virginia (e.g., you have a warehouse or store here).
• If you are remote: You might be exempt, but Virginia is stricter than Wyoming.

2. Corporate / Franchise Tax

Virginia has a corporate tax rate of 6%. Good news: There is no separate Franchise Tax.

Privacy & Anonymity

Does Virginia allow you to hide your name from the public record? NO. Virginia generally requires you to list a Manager or Member on the public Articles of Organization. If privacy is your goal, look elsewhere.

Is Virginia Right for You?

The Pros

• ✅ Good for local businesses in Virginia
• ✅ Close to DC.

The Cons

• ❌ None significant

The Verdict

Verdict: Only form an LLC in Virginia if you have a physical office or employees here. For remote businesses, consider Wyoming or Delaware instead.

If you are just selling on Amazon or running a digital agency, stick to Wyoming or New Mexico. They are cheaper and more private. However, if you are buying a rental property in Virginia, you must form the LLC in Virginia to comply with local laws.

graph TD
    A[Start: Do you have a physical office in Virginia?] -->|Yes| B[Form LLC in Virginia]
    A -->|No| C[Are you buying Real Estate in Virginia?]
    C -->|Yes| B
    C -->|No| D[Are you a remote Non-Resident?]
    D -->|Yes| E[Choose Wyoming or New Mexico]

Next Steps

1. Need a Registered Agent? See our review of Northwest Registered Agent.
2. Need a Bank Account? Read Best US Business Bank Accounts.
3. Need an Address? Read How to Get a US Business Address.