The Virginia limited liability company offers
risk and asset protection to the Virginia business owner.
Forbes magazine has consistently
ranked Virginia as the best state when it comes to starting
and operating a business. The Virginia lawmakers recognize the
importance of having a business friendly environment. The
Virginia Limited Liability Company Act is an example of a
pro-business set of laws that are helpful. While personal
liability protection is the major benefit afforded to those who
use a Virginia LLC for business, the LLC laws go further with
other advantages as well.
THE VIRGINIA LIMITED LIABILITY
COMPANY IS AN ASSET PROTECTION VEHICLE
Without the use of a legal asset
protection entity, a business is run as a sole proprietorship.
In this case, the business owner is risking everything he or she
owns to loss if the business experiences any problems or
liability.
When operating a business in
Virginia, it is necessary to interact with other people and
businesses. So, your business will create interactions with
customers, suppliers, contractors, service providers, investors,
banks, potential partners, government agencies and others.
Potential problems, disputes and liabilities arise when you have
any dealings with another party. As you can see, the more
business you do, the bigger this risk becomes.
When you establish an LLC in
Virginia, the Virginia Act protects a member from being personally
liable for business obligations and liabilities unless he
or she
specifically agrees to be liable.
In the period since the Virginia
limited liability company was made available, it has become the
most common choice for business owners because it offers the
same level of protection as a corporation but provides a
simpler, more flexible and easier to maintain entity.
THE VIRGINIA LIMITED LIABILITY
COMPANY IS EASY TO OPERATE
Unlike the corporation entity, a
Virginia LLC is not required to hold annual meetings or have an
official board of directors. As a result, the paperwork is
greatly minimized. Also, currently, Virginia does not even
require the filing of any annual information reports for an LLC
which saves more time when it comes to compliance requirements.
LOW REGISTRATION AND
MAINTENANCE COSTS
The filing fee charged by the
state to establish a Virginia limited liability company is
currently $100 for a regular filing and $200 for an expedite
filing. Both filings will create the required legal entity for
you but the only difference is time for processing the filing.
Processing times for a regular filing are not guaranteed and can
vary from between 15-30 days. An expedited filing is guaranteed
to be processed within 2-3 working days. Once created, a Virginia
LLC must pay a small annual registration fee which is $50.
The tremendous benefits you get with a Virginia limited
liability company are well worth the low costs.
OTHER VIRGINIA LLC BENEFITS
A Virginia limited liability
company also provides more benefits when starting a business in
Virginia. You get an official business entity and as an LLC you
are viewed by the public as a more trustworthy and serious
business which is good for getting new business. You will also
have more tax choices and planning options than other choice of
entity alternatives.
