Does an LLC Require a Business License in Virginia?

By Joseph Scrofano

Many states require certain businesses to obtain business licenses to legally operate in the state. This licensing requirement may be in addition to any other tax and regulatory requirements. In Virginia, almost all businesses must apply for business licenses. Accordingly, limited liability companies, or LLCs, usually must obtain a business license not because they are LLCs but because virtually every business in Virginia must obtain some type of license to legally operate in the Commonwealth.

LLCs

An LLC is a business entity that combines characteristics of sole proprietorships, partnerships and corporations. LLCs can get taxed like partnerships or sole proprietorships, but provide limited liability protections analogous to what corporations have. In addition, LLCs enjoy management flexibility and do not have the same onerous requirements that corporations have. To form an LLC in Virginia, the business organizers must file articles of organization with the State Corporation Commission.

Registration

Virginia imposes a state sales tax on the sale of all tangible personal property, with some exemptions. Counties and cities in the Commonwealth also impose local sales taxes. To pay these sales taxes, businesses must register with the Commonwealth to obtain authorization to sell goods and collect these taxes on behalf of the government. Different types of businesses have different requirements and regulations that must be followed.

Ready to start your LLC? Start an LLC Online Now

Local Licensing

In addition, Virginia LLCs must also obtain a business license from the county or city in which they intend to operate. For example, the city of Alexandria requires LLCs to fill out a Business License Application annually and pay all relevant taxes to obtain and maintain a business license in that city. The city imposes strict penalties for noncompliance with these rules.

Exemptions

Some types of professions are exempt from sales tax and business licensing requirements. For example, King William County exempts public service corporations and sellers of farm products as well as nursery products that are homegrown. In addition, newspaper, magazine and newsletter publishers, as well as wholesale manufacturers, are exempt from the requirements.

Ready to start your LLC? Start an LLC Online Now
The Requirements of a Sole Proprietor in Pennsylvania
 

References

Resources

Related articles

How to Start a Sole Proprietorship in Maryland

A sole proprietorship is a common business entity because it is relatively simple to set up and has few filing requirements. In Maryland, new business registrations are handled by the Department of Assessment and Taxation. Although you are not required to register a sole proprietorship with the state, you may be required to obtain state and local occupational licenses and business permits, depending on the type of business. Many sole proprietors are also required to register with the state tax authority.

Sole Proprietorship in Charlotte, NC

Sole proprietorships are a common business structure because they are relatively simple to set up, and provide for flexibility in management. Generally, business formation and registration is handled by the secretary of state's office, while local offices handle business name registration and local licensing. A sole proprietor does not have to register or file formation paperwork if the business is filed under the owner's name. There are specific filing requirements, however, for sole proprietorships doing business in the city of Charlotte, and for sole proprietorships that use an assumed name, hire employees or collect sales tax.

Do Members of a Foreign LLC Need to Be Authorized to Do Business in Texas?

Under Texas business law, all businesses that wish to conduct extensive business in the state of Texas must be registered with the Texas Secretary of State. Typically, smaller businesses that conduct business in Texas are domestic corporations or domestic LLCs, which are incorporated in Texas. An LLC organized outside the state of Texas that wishes to conduct significant commerce in Texas must register as a foreign LLC with the Texas Secretary of State.

LLCs, Corporations, Patents, Attorney Help

Related articles

Alabama Sole Proprietorship Rules

A sole proprietorship is a common business structure because it is simple to set up and has few filing and tax ...

Do You Have to Get a Business License With an LLC?

State laws for business licenses vary, and states, cities and counties often also require separate business licenses. ...

How to Operate a Texas LLC

A limited liability company, or LLC, is a flexible form of business association that combines the limited liability ...

Sole Proprietorship Laws in Illinois

For individuals looking to start a business without partners, a sole proprietorship is a common business entity because ...

Browse by category
Ready to Begin? GET STARTED