Annual Filing Requirements for Virginia LLCs

Learn about the annual report and tax filing obligations for Virginia limited liability companies.

To establish and operate a Virginia limited liability corporation (LLC), you must prepare and submit certain paperwork with the state. This page discusses the initial filing procedures for Virginia LLCs, as well as the most critical continuing reporting and state tax filing needs.

Fee for Annual Registration

You must pay a yearly registration cost for your LLC in the state of Virginia. The cost is $50. You may pay by mail or online using the SCC eFile system. Online payments incur an extra convenience charge. Each year, the annual registration fee is payable on or before the last day of the month in which your LLC was formed.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Virginia has an annual registration fee (see above).

In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Virginia, like almost every other state, has a corporate income tax. The corporation tax in Virginia is a flat 6% of net income from Virginia sources. The tax is due to the Department of Taxation in the state (DOT). To pay the tax, use the state’s company income tax return (Form 500).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) However, Virginia companies must additionally pay state taxes.

To begin, you must withhold and pay employee income taxes to the DOT. Begin by registering your company with the DOT, either online (through the VATAX online service) or in paper form (Form R-1). After you’ve enrolled, you must submit withholding taxes on a regular basis (such as semi-weekly or monthly) using Form VA-5 or VA-15. Each year, you’ll also need to utilize Form VA-6 to balance your LLC’s tax withholding. Visit the DOT website for further information.

You’ll also need to register to pay state unemployment insurance (UI) taxes. The Virginia Employment Commission is in charge of these taxes (VEC). an an an aa aaaaaaaaaaaaaaaaaaaaaaaaa (Form VEC-FC-27). Then, each quarter, utilize the appropriate forms of Forms VEC FC-20 and VEC FC-21 to report on salaries and pay the UI taxes, depending on whether you’re web-filing.

Taxes on Sales and Use

If your LLC sells items to clients in Virginia, you must collect and remit sales tax. This implies you’ll have to register with the Department of Taxation for this reason and then make periodic sales tax payments for products sold. You may register online (through VATAX) or by mail using Form R-1. After registering, you will get a Form ST-4, Certificate of Registration. Then, you must file sales tax reports with the DOT on a regular basis (typically monthly or quarterly). In most cases, you must submit these forms online.

Other States Registration

If you want to do business in states other than Virginia, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.