Starting a Business in Virginia: Steps and Costs (2027)

To start a business in Virginia, you need to choose what you’ll sell and decide on a business structure. Check your business’s registration and licensing requirements and calculate how much money you need to launch.

Virginia has 880,366 small businesses that employ 1.6 million people as of 2025, according to the US Small Business Association. The state’s Business One Stop portal helps entrepreneurs complete registrations with state and local agencies.

This guide walks you through starting a business in Virginia with resources for business advice and financing.

How to start a business in Virginia

Follow these 11 steps to starting a business in Virginia.

1. Choose a business idea
2. Name your business
3. Create a business plan
4. Choose a business structure
5. Get an employer identification number (EIN)
6. File the necessary paperwork and register your business
7. Set up a business bank account
8. Fund your business
9. Obtain a business license and permits
10. Examine insurance options in Virginia
11. Market your business

1. Choose a business idea

Find a product or service you can sell and the target audience most likely to buy it. Describe the problem you can solve and why someone would choose it over an existing option.

Here are three industries to consider when exploring business ideas in Virginia:

• Outdoor recreation. Virginia’s mountains and waterways offer opportunities for outdoor recreation businesses. An online store selling hiking gear is one example.
• Technology. CompTIA’s 2025 State of the Tech Workforce report lists 26,165 tech business establishments with payroll in Virginia and estimates 375,469 net tech jobs in the state.
• Agriculture. Explore food production or products made from locally grown ingredients. For example, a farm could sell its fruit preserves online.

Once you have an idea, conduct a competitive analysis of businesses selling similar products. Compare their prices and read customer reviews for complaints your product could address. For an online store, include competitors that ship to Virginia as well as local businesses.

2. Name your business

Choose a name that customers can remember and spell after hearing it for the first time. Search the Virginia State Corporation Commission’s (SCC) Clerk’s Information System for existing business names. For an LLC or corporation, your proposed name must be distinguishable from names protected in the SCC’s records.

Check available web addresses when you choose a domain name. Keep the spelling close to your business name so customers can easily find your store online.

Virginia also requires specific words or abbreviations in LLC and corporation names:

• LLCs: Include “limited company,” “limited liability company,” or an accepted abbreviation, such as “LLC.”
• Corporations: Include “corporation,” “incorporated,” “company,” or “limited,” or an accepted abbreviation, such as “Inc.”

If you plan to operate under a different name, file a fictitious name certificate with the SCC. This doing business as (DBA) filing costs $10 and can be completed online or on paper. Fictitious names don’t have to be unique, and there are no word restrictions.

3. Create a business plan

Write a business plan that explains what you’ll sell and how the business will earn money. Include the costs of launching and running the business, along with realistic sales estimates.

A detailed business plan covers:

• Executive summary
• Company description
• Market analysis
• Ownership and management structure
• Products or services
• Customer segmentation
• Marketing plan
• Logistics and operations
• Financial projections and funding needs

Lenders and potential investors review business plans when assessing funding requests. Explain how much money you need and how you’ll spend it. Show the research behind your sales projections and account for ongoing expenses.

4. Choose a business structure

A sole proprietor is personally responsible for business debts. An LLC or corporation generally protects its owners’ personal assets from those debts, but requires state filings and ongoing fees.

Compare these four options for a Virginia business:

Corporation fees increase with the number of authorized shares. The formation minimum includes a $25 filing fee and a $50 charter fee. DBA filings and business licenses have separate fees.

Qualifying corporations and LLCs can elect S corporation tax treatment by filing Form 2553 with the IRS. This election passes business income through to owners’ tax returns. A Virginia LLC with this election still pays the $50 annual LLC registration fee.

5. Get an employer identification number (EIN)

An employer identification number (EIN) is a nine-digit federal tax ID issued by the IRS. Partnerships, corporations, and businesses with employees need one.

If you’re forming an LLC or corporation, complete its formation filing with the Virginia SCC before applying for an EIN.

The IRS has three application methods for businesses with a principal place of business in the US:

• Online. Apply free through the IRS website. Approved applications receive an EIN immediately. You’ll need a Social Security number or individual taxpayer identification number (ITIN).
• Fax. Complete Form SS-4 and fax it to 855-641-6935. Include a return fax number to receive your EIN in about four business days.
• Mail. Send Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, Ohio 45999. Processing takes approximately four weeks.

Telephone applications are reserved for international applicants whose principal place of business is outside the US. These applicants can call 267-941-1099, Monday through Friday, from 6 a.m. to 11 p.m. Eastern Time. The IRS also has international fax and mail options.

6. File the necessary paperwork and register your business

File with the Virginia State Corporation Commission through its Clerk’s Information System. Create an account and select the filing for your business. Complete the required information and pay the state fee.

For for-profit business structures, the initial filings are:

• LLC. File articles of organization. The filing fee is $100.
• Stock corporation. File articles of incorporation. Fees start at $75, including the filing fee and minimum charter fee.
• Limited partnership. File a certificate of limited partnership. The filing fee is $100.
• Registered limited liability partnership (LLP). File a statement of registration. The filing fee is $100.

Sole proprietorships and general partnerships require no SCC formation filing. A general partnership can optionally file a statement of partnership authority for $25. A business operating under a DBA or assumed name must also complete the applicable fictitious name filing.

Authorized businesses must appoint a registered agent to receive legal documents. Virginia’s requirements cover:

• Individual eligibility. An individual agent must live in Virginia and meet the entity's qualifications. Examples include an LLC member or manager, a corporation’s officer or director, or a member of the Virginia State Bar.
• Business eligibility. A third-party business can act as another business's agent.
• Registered office. The agent must have a physical business address in Virginia where legal documents can be delivered.
• Availability. Arrange for someone authorized to accept legal documents at the registered office during regular business hours.

You can be your LLC’s registered agent if you qualify as a Virginia resident member or manager and meet the office requirements. After forming the business and obtaining an EIN, register for applicable state taxes through Virginia Tax. Have these details ready:

• Legal business name and address
• Federal EIN
• Business structure and NAICS industry code
• Tax types and the date each taxable activity begins
• Contact information for your business

Online registration also creates a Virginia Tax account where you can file returns, make payments, and update business information.

7. Set up a business bank account

Open a business bank account before collecting customer payments. Deposit business revenue into the account and pay business expenses from it. Keeping those transactions separate from personal spending gives you a clearer record for bookkeeping and tax preparation.

Ask the bank which documents it requires. Requests usually include your EIN and business formation documents.

Compare monthly fees and minimum balance requirements. For an online store, check how the account receives payment processor payouts and whether transactions can sync with your accounting software.

8. Fund your business

Calculate how much cash you need to launch and pay operating expenses until sales cover your costs. Subtract the money you already have available to find the amount you need to raise.

In a 2025 Shopify survey of store owners, 79% said they used profits to self-fund growth, and 62% reported using outside funding as well.*

Consider these financing options:

• Contribute personal savings. Funding initial purchases yourself lets you retain ownership and avoid loan repayments. Set a spending limit that protects the money you need for personal expenses.
• Compare small business loans. The Virginia Small Business Financing Authority has direct financing and programs. Its Microloan Program, for example, finances equipment and working capital for eligible businesses already operating in Virginia. Compare these options with SBA-backed loans and local bank financing.
• Review state grant programs. The Virginia Department of Small Business and Supplier Diversity lists Technical Assistance Grants and Small Business Investment Grants. Technical Assistance Grants fund services such as accounting advice for eligible businesses pursuing qualifying funding. Small Business Investment Grants go to eligible investors who finance Virginia businesses. Check the current eligibility rules and application windows for each program.
• Pitch investors. Angel investors and venture capital firms fund businesses with substantial growth potential. Prepare to explain your sales projections and negotiate an ownership stake.
• Consider crowdfunding. A campaign can raise money from backers ahead of a product launch. Include the cost of producing and delivering promised rewards in your funding target.

Once the business earns a profit, you can reinvest part of it in your next growth stage, for example, by placing a larger inventory order.

9. Obtain a business license and permits

Before opening, check these licensing options in Virginia:

• Professional and occupational licenses. Regulated professions require approval from the appropriate state board. For example, contractors apply through the Virginia Department of Professional and Occupational Regulation. Check your board’s requirements for qualifications, examinations, and business licensing.
• Local business licenses. Your city, county, or town may require a business license and assess Business, Professional and Occupational License (BPOL) fees or taxes. Local ordinances set application deadlines, exemptions, and tax rates based on gross receipts. Contact your local tax office about requirements for your business address, including home-based operations.
• Activity-specific permits. Ask your local planning and building departments about zoning approval, home occupation permits, and permits for renovations or signs. Businesses selling alcohol must obtain the appropriate Virginia ABC license.

BPOL charges vary by locality. For example, Fairfax County charges a $30 fee for businesses with annual gross receipts or purchases of $10,001 to $50,000.

Online sellers must also check Virginia’s sales tax rules:

• Virginia-based sellers. Businesses making taxable sales directly to Virginia customers generally must register as in-state dealers. This includes sellers operating an online store from a Virginia home or office.
• Out-of-state remote sellers. Sellers without a physical presence in Virginia generally must register after exceeding $100,000 in Virginia retail sales or reaching 200 separate retail transactions in the current or previous calendar year. For sellers making both direct sales and sales through a marketplace facilitator, only direct sales count toward these thresholds.
• Marketplace sellers. A registered marketplace facilitator generally collects and remits Virginia sales tax on transactions it facilitates. Sellers should avoid collecting tax again on those orders. Remote sellers whose Virginia sales occur exclusively through such marketplaces generally have no separate collection registration requirement.

Register with Virginia Tax and obtain your sales tax certificate before collecting Virginia sales tax through your own store.

10. Examine insurance options in Virginia

Compare coverage limits, deductibles, and exclusions for these business insurance options:

• General liability insurance. Covers claims involving bodily injury or property damage caused by your business, such as a customer slipping in your store.
• Commercial property insurance. Covers insured buildings, equipment, and inventory against specified risks, such as fire or theft.
• Commercial auto insurance. Covers liability arising from business vehicle accidents. Additional coverage can pay for damage to your vehicles.
• Workers’ compensation insurance. Pays benefits for covered work-related injuries or illnesses, including medical treatment and partial wage replacement. Virginia generally requires coverage when you regularly employ more than two people, including part-time workers. Subcontractor employees may also count toward that threshold.
• Professional liability insurance. Covers claims involving errors, negligence, or omissions in professional services, such as a consultant’s costly mistake.
• Product liability insurance. Covers claims involving injuries or property damage caused by defective products you manufacture, distribute, or sell.
• Cyber liability insurance. Can cover data breach response costs and claims involving compromised customer information.
• Umbrella insurance. Adds liability coverage above the limits of specified underlying policies.

Review Virginia’s workers’ compensation requirements before hiring, and ask an insurance agent to explain the exclusions in each proposed policy.

11. Market your business

In the 2025 Shopify survey of store owners, 36% named finding customers as a top challenge during their first year in business.* Set a monthly marketing budget and track which campaigns bring in customers at a profitable cost.

Build your marketing plan around these activities:

• Customer research. Ask potential customers how they shop for your product and what frustrates them about existing options. Address those concerns in your product descriptions and advertising.
• Advertising and promotion. Test a small paid campaign aimed at one customer group. Compare the cost of acquiring each customer with the profit from their purchases before increasing spending.
• Social commerce. Shopify’s social sales channels connect your product catalog with social platforms where customers discover products. Facebook and Instagram offer product tagging, while TikTok Shop enables shopping through videos and livestreams.
• YouTube Shopping. Connect Shopify’s Google & YouTube channel to display products alongside YouTube videos and livestreams. Check the channel eligibility requirements before planning a launch.
• Public relations. Pitch a specific story to local media, such as a Virginia-made product launch. Include clear product photos and details about the business’s connection to the community.
• Customer retention. Send relevant product updates to email subscribers and invite customers to refer friends. Track repeat purchases and referral sales alongside new customer acquisition.

How much does it cost to start a business in Virginia?

Forming a Virginia LLC costs $100 in state filing fees. Incorporating a stock corporation starts at $75. Sole proprietors and general partnerships have no required SCC formation filing, though local licenses and other registrations can add costs.

The table below separates initial government charges from recurring filing and licensing fees.

Check the SCC’s formation fee guidance and annual registration fees for your chosen structure. A stock corporation’s minimum $50 charter fee covers up to 25,000 authorized shares.

Budget separately for equipment and initial inventory. Your ongoing operating budget should account for recurring expenses such as insurance, rent, ecommerce subscriptions, and marketing, plus inventory replenishment and shipping costs.

What is the best business to start in Virginia?

Virginia is home to apparel brands, specialty online retailers, and packaged-food producers. Consider businesses you have the expertise and budget to run, and test whether customers will buy at a profitable price. These three companies show the different approaches available.

Alpha Industries

Headquartered in Chantilly, Alpha Industries sells military-inspired clothing. The company began in Knoxville, Tennessee, and received its first US Department of Defense contracts in 1959.

In 1970, Alpha began manufacturing jackets for consumers to keep production running between government contracts. Its expansion is an example for businesses in Virginia’s defense industry, showing that products developed for government customers can also have a consumer market.

The Goulet Pen Company

The Goulet Pen Company, founded in 2009 near Richmond, sells fountain pens and related supplies. The specialty retailer promotes detailed educational content for fountain pen enthusiasts.

Its Fountain Pen 101 videos and comparison tools help shoppers understand their options before purchasing. For entrepreneurs considering specialty ecommerce, Goulet shows how product expertise can become part of the shopping experience.

The company also invests in its Richmond community. After one year of full-time employment, team members receive up to 40 paid volunteer hours annually.

Absurd Snacks

Richmond food producer Absurd Snacks makes snack mixes with roasted chickpeas. The brand targets shoppers avoiding common food allergens, with recipes free from nine major allergens.

Customers can order directly from its online store for delivery across the US and Canada. The company also sells through grocery retailers, including Whole Foods Market.

Resources and tips for starting a business in Virginia

Virginia Business One Stop gathers state startup resources in one place. Its aspiring entrepreneur guide directs you to information on business formation requirements, tax registration, and professional licensing.

Use these tips to get started:

• Meet with a business adviser. The Virginia Small Business Development Center (SDBC) offers confidential, individual advising. Bring specific questions about your business plan or financial projections.
• Develop professional relationships. Get to know a local banker and other business owners before you need financing or a referral. Follow up after introductions and offer help when you can.
• Check local requirements early. Ask your local economic development office where to get licensing guidance. Discuss your proposed location with planning and zoning staff before signing a lease.
• Review cash flow regularly. Compare expected customer payments with upcoming bills. Account for the time between paying for inventory and receiving money from sales.
• Test demand before placing a large order. Ask prospective customers about their current purchases, then test a small batch at your intended price. Record sales and feedback before increasing production.

*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.