The Virginia LLC is designed specifically for small business. It has all the advantages of a corporation but without the disadvantages.

With the number of lawsuits constantly increasing, it is important to have protection of your personal assets. The limited liability company and the corporation are both ways to keep your assets and the businesses assets separate and offer equivalent amounts of liability protection.

VIRGINIA LLC IS A SIMPLER LEGAL ENTITY

Virginia corporations require several legal formalities under statutes. Fortunately, a Virginia LLC does not. It is less complicated to form and a great deal easier to maintain.

VIRGINIA LLC IS MORE FLEXIBLE

The LLC also provides a much more flexible business vehicle. Owners are able to tailor the way the business is run in accordance with their own rules.

However, when you run your business with a Virginia corporation, you must adhere to the statutory framework, procedures and continuing requirements for maintenance, and you must have a Board of Directors.

VIRGINIA LLC HAS MORE TAX CHOICES

Because the IRS passed the Check the Box Regulations in 1997, owners of a Virginia LLC are able to decide which tax structure they want in a single level of taxation. It can be a C corporation or an S Corporation.

Now, a business can obtain the benefits of corporation taxation but still keep all the state law benefits and simplicity of the limited liability company.

VIRGINIA LLC CAN RESULT IN LESS ANNUAL FEES

Currently, the annual fee Virginia charges to maintain a limited liability corporation is $50. This is a set fee that does not change regardless of how many members you have or how many shares of stock have been issued.

With corporations, the annual fee starts at $100 and can go up depending on the size of the corporation’s equity structure. As it gets more intricate and more and more shares of stock are issued, the fees increase. It can even get as high as $1700 per year.

SUMMARY

When you form a Virginia LLC , you get a versatile protection vehicle for your business. While a corporation may be more suitable for larger and complex businesses, the Virginia limited liability company is more suitable for the typical small business.