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