Reasons to Create an LLC in Virginia

Starting a new business is exciting because it is not only a way to do something you love but is also a path to financial freedom. So, if you are thinking of starting one, you are on the right track.

However, entrepreneurship also brings a long more risk which is why many shy away from it.  The good thing is that the Virginia laws allow you to create an LLC in Virginia  as a method of reducing a lot of the risk of running a business.

Virginia is a great state to start a business and it has been consistently fallen into the top 5 states for business in most of the publications and associations.  It is clear that Virginia lawmakers have always wanted to promote small business activity in the Commonwealth.

The Virginia laws that allow for a business to be operated through a Va LLC is a prime example of a business friendly law. Under this Act, business owners get personal liability protection which is so important in today’s business world where lawsuits are out of control.  But, the laws go even further to offer other major benefits.

CREATE AN LLC IN VIRGINIA FOR PERSONAL LIABILITY PROTECTION

The Va LLC is first and foremost about protection.  If you run a business without the benefit of a limited liability entity, you are a sole proprietor.  Sole proprietor businesses are very risky because everything that the owner owns or may acquire in the future can be lost due to business related problems and liabilities.  It is a huge risk.

You see by definition, running a business will create potential risks for liability and disputes.  This is because you will be required to interact with other people and businesses. Examples include the need to hire service professionals, contractors or possibly employees.  Also, you will be doing business with suppliers, partners or may need to work with a bank for capital.

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.

Click Here For a FREE Guide and More Details about the Virginia LLC

THE VA LLC IS SIMPLE TO RUN AND OFFERS FLEXBILITY

Another objective of the Virginia LLC lawmaking process was not to burden business owners with any unnecessary or complex legal compliance matters. As a result, the Va LLC does not have associated with it, the kind of legal mandates that come with a corporation.  No board of directors, annual meetings or annual informational filings are required.

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

Currently, it only costs $100 to create an LLC in Virginia.  There may be other fees if you need expedited processing. After formation, the current registration fee is only $50 a year. As you can see, the fees are so low.  Given that this entity can save you from losing your home, your savings and anything else you own, it is clear that it is a small price to gain significant protections and other benefits.

ADDITIONAL FEATURES OF A VA LLC

The Va LLC also gives a business a credible image.  This goes a long way today when the public is very skeptical about businesses and determining which ones are legitimate.  Statistics prove that customers prefer to do business with legal entity companies.

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.

The choice to create an LLC in Virginia is the best one for most entrepreneurs.  This is because it not only provides the essential protection needed but also helps to keep more of what you make through tax benefits and helps you grow with an official image and business vehicle.

Click Here For a FREE Guide and More Details about the Virginia LLC

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