Are you thinking of starting a company in Virginia? Before you leap, you should know what it takes to form an LLC in Virginia. The state requires all limited liability companies to register their name with the Virginia State Corporation Commission (SCC).
Read on to know how to start an LLC in Virginia.
The SCC can’t give your LLC a distinctive name if one is already registered. The LLC name should end with one of the following phrases: “Limited Liability Company,” “Limited Company,” or “LLC.”
Your registered LLC name must also be distinguishable from other LLCs’ names on file with the SCC.
The Process for Applying for an LLC Name
You can’t apply for a unique LLC name that’s already registered in Virginia. Your initial choice may be unavailable if the SCC receives more than one application for a similar name.
The state agency will reject your application and return it to you with instructions on applying for another LLC name. You’ll have seven days from receipt of this letter to submit a new application.
How to Apply for an LLC Name in Virginia?
You can apply for your unique LLC name by filing a Certificate of Name Reservation with the SCC.
You’ll need to submit one name reservation application for each LLC you want to register with the SCC, and your application must include:
- Your name as it is on your federal tax return
- Your mailing address and telephone number
- The name of the LLC (without the “Limited Liability Company,” “Limited Company,” or “LLC” suffix)
- County where you want to register your LLC
- A $10 filing fee
You must submit the application and filing fee to:
Virginia State Corporation Commission PO Box-1197, Richmond, VA 23218-1197. The SCC will mail you a Certificate of Name Reservation for your LLC name. The document serves as evidence that you’ve reserved this particular name with the SCC for 120 days.
You’ll need to attach the Certificate of Name Reservation to your Articles of Organization when you submit them for filing.
When Your LLC Name is Suspended?
The SCC will suspend a distinctive LLC name if it receives three or more notices from other parties claiming ownership of that name within five years.
The agency will mail a notice of suspension to all parties who submitted LLC names similar to your unique LLC name.
If you receive this notice, you must provide the SCC with evidence of your company’s continuous use of its distinctive LLC name within 90 days or risk losing it for good.
You can submit certified copies of:
1) Your Articles of Organization (state the LLC name)
2) Your Application for Reservation of Name (state the LLC name and renewal date)
3) First page of your most recent annual report
The SCC will then send a letter to confirm that your distinctive LLC name is available for you or others on file with the state agency. If you fail to submit timely evidence, the SCC will remove your name from its active list and make it available for other Virginia LLCs.
The LLC Operating Agreement
Every Virginia LLC must have an operating agreement. Although an operating agreement isn’t a requirement of state law, it’s a vital part of your LLC because it defines the rights and responsibilities of LLC members.
Every member is subject to the authority of the LLC manager, even if he holds a majority interest in the company. All LLC members are also entitled to receive financial statements within 120 days after the end of your LLC’s fiscal year. You can’t withhold or delay these reports beyond that point.
The Virginia Limited Liability Company Act requires LLC managers to keep members informed of the LLC’s financial condition. Managers must provide an annual update concerning your LLC’s financial situation, including profit or loss statements.
The report should also include how much money is owed by or to the company, whether any contracts will require payment in the coming months, and whether your LLC has enough money to pay its debts.
Thankfully, now you can know how to start an LLC in Virginia by following the above points carefully that covers all the essential information for forming a successful organization. Analyze all the information properly, know your strengths and start your venture.