If you are thinking about starting a business of your own, you are on the right track to something very meaningful in your life. In addition to being a way to pursue something you really enjoy, you are also moving toward financial independence.
However, there are some risks to starting a Virginia business. One effective way to significantly reduce those risks is to create an LLC in Virginia to operate you your business.
Major publications and business associations have rated Virginia as a top state for business. In fact, Virginia has one the #1 Forbes Magazine rating for several years. This is because the Virginia government has always actively promoted small business growth through incentives and protection in its laws.
The laws that allow for a Va LLC is one of the most business friendly laws available. The major benefit is liability protection for business owners but the lawmakers went even further to encourage small business by providing other benefits.
OBTAIN LIABILITY PROTECTION WHEN YOU CREATE AN LLC IN VIRGINIA
The most important feature of a Va LLC is that it creates a layer of protection shielding your personal assets from business liability and problems. Without the use of an entity like this, you would be running as a sole proprietorship. It is generally considered a significant risk to run a business these days as a sole proprietor because of the many cases where owners have lost everything. This can be avoided by the proper use of a limited liability entity.
It is close to impossible to run a business without giving rise to a potential for liability or problems in the future. This is the result of having to enter into transactions and connect with other people and businesses. You may hire employees which could later lead to an employment claim. You may have a store where a customer could be injured. You will have to do business with suppliers, partners, banks and government agencies.
Every interaction you have with someone or some business create the potential for a later claim related to that activity. Prior to the option of operating under a Va LLC, a business owner only had the option of using a corporation to manage this risk. Many opted not to use incorporation because of the complexity and set of rules mandatorily imposed on corporations.
But, when the Virginia Limited Liability Company Act was passed, entrepreneurs finally received a workable solution. When you create an LLC in Virginia, this Act prevents you and other owners from being personally liable merely because you are owners. So, with this passage, there really is no need to run as a sole proprietor.
If you look at the increasing number of LLC formations in Virginia throughout the past decade, you will see proof that this legal entity is succeeding in giving small business owners the necessary protection plus other advantages.
THE VA LLC IS EASY TO MAINTAIN AND PROVIDES MAJOR OPERATIONAL FLEXIBILITY
In addition to protection, the Virginia legislature wanted to free business owners from any unnecessary legal compliance or regulation. Accordingly, the Va LLC is not subject to mandatory meetings, filings or management structures like the corporation. In fact, there is not even any information filing requirements annually.
On the other hand, an LLC does not have to have simple governance and reporting. If the needs of a particular company and its owners require some complexity when it comers to managing or structuring the rights and obligations of an owner, the Virginia LLC laws allow for most any type of structure to be adopted and implemented.
In summary, this flexibility allows for companies to be run and operated based on the requirements of the business as opposed to unnecessary or irrelevant legal structures.
MINIMAL REGISTRATION COSTS
Virginia has also agreed to keep filing and registration fees low for a Va LLC. Presently, the filing fee is $100 for a standard filing. You may need to pay a little more if you need expedited processing. Then, each year, the registration fee to keep the LLC active is only $50. As you can see, these costs are minimal compared to the huge protection benefits you get. You protect you home, savings and other things you own from being lost due to business ownership with just a few hundred dollars.
OTHER BENEFITS OF A VA LLC
When starting a business in Virginia, a Virginia LLC can help in other areas as well. For one, it provides an official and trustworthy image for your new business which makes getting customers easier. Customers view legal entity businesses as more credible and professional.
The Va LLC also provides more income tax structures for a business over other structures. You can choose a single layer of taxation or to be taxed under a C corporation or S corporation structure. The great majority of small businesses opt for the single layer of tax to avoid the double taxation of C corporation but check with your accountant to see what makes the most sense if you are in doubt.
When you create an LLC in Virginia, you are making an important first step towards a successful business that will not only provide you with financial independence but also with protection and tax benefits.
However, there are some risks to starting a Virginia business. One effective way to significantly reduce those risks is to create an LLC in Virginia to operate you your business.
Major publications and business associations have rated Virginia as a top state for business. In fact, Virginia has one the #1 Forbes Magazine rating for several years. This is because the Virginia government has always actively promoted small business growth through incentives and protection in its laws.
The laws that allow for a Va LLC is one of the most business friendly laws available. The major benefit is liability protection for business owners but the lawmakers went even further to encourage small business by providing other benefits.
OBTAIN LIABILITY PROTECTION WHEN YOU CREATE AN LLC IN VIRGINIA
The most important feature of a Va LLC is that it creates a layer of protection shielding your personal assets from business liability and problems. Without the use of an entity like this, you would be running as a sole proprietorship. It is generally considered a significant risk to run a business these days as a sole proprietor because of the many cases where owners have lost everything. This can be avoided by the proper use of a limited liability entity.
It is close to impossible to run a business without giving rise to a potential for liability or problems in the future. This is the result of having to enter into transactions and connect with other people and businesses. You may hire employees which could later lead to an employment claim. You may have a store where a customer could be injured. You will have to do business with suppliers, partners, banks and government agencies.
Every interaction you have with someone or some business create the potential for a later claim related to that activity. Prior to the option of operating under a Va LLC, a business owner only had the option of using a corporation to manage this risk. Many opted not to use incorporation because of the complexity and set of rules mandatorily imposed on corporations.
But, when the Virginia Limited Liability Company Act was passed, entrepreneurs finally received a workable solution. When you create an LLC in Virginia, this Act prevents you and other owners from being personally liable merely because you are owners. So, with this passage, there really is no need to run as a sole proprietor.
If you look at the increasing number of LLC formations in Virginia throughout the past decade, you will see proof that this legal entity is succeeding in giving small business owners the necessary protection plus other advantages.
THE VA LLC IS EASY TO MAINTAIN AND PROVIDES MAJOR OPERATIONAL FLEXIBILITY
In addition to protection, the Virginia legislature wanted to free business owners from any unnecessary legal compliance or regulation. Accordingly, the Va LLC is not subject to mandatory meetings, filings or management structures like the corporation. In fact, there is not even any information filing requirements annually.
On the other hand, an LLC does not have to have simple governance and reporting. If the needs of a particular company and its owners require some complexity when it comers to managing or structuring the rights and obligations of an owner, the Virginia LLC laws allow for most any type of structure to be adopted and implemented.
In summary, this flexibility allows for companies to be run and operated based on the requirements of the business as opposed to unnecessary or irrelevant legal structures.
MINIMAL REGISTRATION COSTS
Virginia has also agreed to keep filing and registration fees low for a Va LLC. Presently, the filing fee is $100 for a standard filing. You may need to pay a little more if you need expedited processing. Then, each year, the registration fee to keep the LLC active is only $50. As you can see, these costs are minimal compared to the huge protection benefits you get. You protect you home, savings and other things you own from being lost due to business ownership with just a few hundred dollars.
OTHER BENEFITS OF A VA LLC
When starting a business in Virginia, a Virginia LLC can help in other areas as well. For one, it provides an official and trustworthy image for your new business which makes getting customers easier. Customers view legal entity businesses as more credible and professional.
The Va LLC also provides more income tax structures for a business over other structures. You can choose a single layer of taxation or to be taxed under a C corporation or S corporation structure. The great majority of small businesses opt for the single layer of tax to avoid the double taxation of C corporation but check with your accountant to see what makes the most sense if you are in doubt.
When you create an LLC in Virginia, you are making an important first step towards a successful business that will not only provide you with financial independence but also with protection and tax benefits.
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