It is a good thing if you are pondering over whether to start a new business. Business ownership is not only a wonderful way for you to provide something valuable to this world, but it is an avenue to financial independence and extra income.
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.
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.
OBTAIN LIABILITY PROTECTION WHEN YOU CREATE AN LLC IN VIRGINIA
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.
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.
With the enactment of the Virginia LLC laws, business owners finally got a real answer for managing their personal liability risk. After you create an LLC in Virginia, you are the owner of a separate legal entity and this structure prevents owners from being personally liable for business obligations.
The success of the Va LLC is evident by looking at the number of formations that have taken place. The limited liability company is now the entity of choice for Virginia small business not only because of its protection but because of other attractive features.
THE VA LLC IS SIMPLE TO RUN AND OFFERS FLEXBILITY
Another goal of Virginia lawmakers was not to burden entrepreneurs with unnecessary legal compliance requirements in order to operate under a Va LLC. So, this legal entity is different from a corporation in that there are no annual meeting requirements or a mandatory board of directors required to manage the business. Virginia does not even currently impose any annual informational reporting for an LLC.
However, if an LLC company requires some planning and structure to accommodate a business need, the laws allow great flexibility for this. The owners can agree to virtually any ownership or management structure that makes sense for their particular situation.
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
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.
ADDITIONAL FEATURES OF A VA LLC
Another advantage of using a Va LLC for your company is that it will be easier to get customers. This is because your business will be seen as more trustworthy and professional. Statistics support the fact that the public is very paranoid about scam and fraudulent businesses and just by using an official business vehicle such as a limited liability company, you are separating out your business as more credible.
Another feature is the choice of taxation structure. First, a Va LLC automatically qualifies for pass through taxation which means income is only taxed once. This is preferred by most any small business because they are able to avoid the double tax of C corporations. However, if a particular LLC company could benefit from being taxed under corporate tax rules, it has that option. Always check with your accountant before electing a different tax treatment, but know that you have these options for your limited liability company.
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.
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.
OBTAIN LIABILITY PROTECTION WHEN YOU CREATE AN LLC IN VIRGINIA
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.
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.
With the enactment of the Virginia LLC laws, business owners finally got a real answer for managing their personal liability risk. After you create an LLC in Virginia, you are the owner of a separate legal entity and this structure prevents owners from being personally liable for business obligations.
The success of the Va LLC is evident by looking at the number of formations that have taken place. The limited liability company is now the entity of choice for Virginia small business not only because of its protection but because of other attractive features.
THE VA LLC IS SIMPLE TO RUN AND OFFERS FLEXBILITY
Another goal of Virginia lawmakers was not to burden entrepreneurs with unnecessary legal compliance requirements in order to operate under a Va LLC. So, this legal entity is different from a corporation in that there are no annual meeting requirements or a mandatory board of directors required to manage the business. Virginia does not even currently impose any annual informational reporting for an LLC.
However, if an LLC company requires some planning and structure to accommodate a business need, the laws allow great flexibility for this. The owners can agree to virtually any ownership or management structure that makes sense for their particular situation.
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
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.
ADDITIONAL FEATURES OF A VA LLC
Another advantage of using a Va LLC for your company is that it will be easier to get customers. This is because your business will be seen as more trustworthy and professional. Statistics support the fact that the public is very paranoid about scam and fraudulent businesses and just by using an official business vehicle such as a limited liability company, you are separating out your business as more credible.
Another feature is the choice of taxation structure. First, a Va LLC automatically qualifies for pass through taxation which means income is only taxed once. This is preferred by most any small business because they are able to avoid the double tax of C corporations. However, if a particular LLC company could benefit from being taxed under corporate tax rules, it has that option. Always check with your accountant before electing a different tax treatment, but know that you have these options for your limited liability company.
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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For a Free Virginia LLC Report and More Details on How to Create an LLC in Virginia, visit: Form a Virginia LLC
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