Virginia Business Compliance Checklist
Virginia has affordable formation costs, reciprocal income tax with 5 states, and recent non-compete restrictions. This page covers everything from filing fees to sales tax to hiring laws.
$100
$50
Every year
5.3%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $100 |
| Corp filing fee (Articles of Incorporation) | $25 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $50 |
| Franchise tax | None |
3. Sales Tax
| State base rate | 5.3% |
| Combined rate range (with local) | 5.3% – 7% |
| Economic nexus (out-of-state seller) | $100,000 OR 200 transactions per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $12.41/hr (2025) |
| Paid sick leave law | None (federal only) |
| Non-compete enforceability | Restricted — banned below income threshold; enforceable for high earners |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Virginia Hiring Laws.
5. Workers' Compensation
Virginia allows private-market workers' comp insurance (competitive market). Coverage is required starting with your 3th employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 5.75%. Reciprocity agreement with: DC, KY, MD, PA, WV.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Virginia Distinctive
Compliance quirks and rules that separate Virginia from other states — worth understanding before you file.
- Virginia charges $100 for LLC formation and $50 for the annual report.
- Virginia State Corporation Commission (SCC) handles entity filings.
- Virginia has reciprocal income tax with 5 states (DC, KY, MD, PA, WV).
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Virginia Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.