A Virginia LLC operating agreement serves as a legal contract between the members of an LLC. Your operating agreement determines internal business operations in a way that satisfies all business owners’ preferences and needs.
Your operating agreement will confirm what would happen if someone wants to leave the company and how individual members will share profits. What’s more, it provides guidelines for resolving financial disputes. After each member signs the proposed agreement, they can store it in their records and use it as the company’s framework.
No, the state of Virginia doesn’t require an LLC operating agreement. However, creating one can clarify the intentions, governing procedures, and business processes for the LLC to follow.
Establishes the financial and operational guidelines for an LLC with one owner.
Records the operations for a company with multiple owners.
The Virginia Limited Liability Company Act (Title 13.1, Chapter 12) guides the operation of LLCs. It covers general provisions, formation, and the relationship of an LLC and its members to third parties. Without an operating agreement, your LLC will abide by these provisions.
If you create an operating agreement, you have more say over how your business conducts itself. § 13.1-1023 reviews specific aspects of the creation of operating agreements, including:
The costs and fees for starting and maintaining an LLC in Virginia are relatively affordable:
You can form an LLC in Virginia by following these steps:
The State Corporation Commission website provides a name search function. This tool will ensure you choose a name for your LLC that no one else already has. Identifying a domain that matches a potential business name is also necessary.
Choosing a domain name that matches as close as possible to your company name will help you establish a uniform corporate identity.
Adhere to these Virginia state guidelines when choosing a business name:
A registered agent agrees to receive all legal correspondence on your business’s behalf.
The person you choose as your registered agent doesn’t have to be one of your LLC members. Any person willing to perform the job and provide their commercial or residential address to you qualifies as your registered agent.
Note that a registered agent must have a physical address, not a P.O. box.
When you’re ready to form your LLC, you can file your articles of organization with the State Corporation Commission. You can file it online or fill out the paper form.
Ensure you have the following information handy when you fill out your Virginia LLC formation papers:
Even though an operating agreement is optional, having one can help you document procedures for running your company. You and your members can refer to these guidelines if you ever encounter something you’re unsure how to handle.
The IRS will assign you an Employer Identification Number (EIN) when you apply for one online. The process is entirely free.
Once you obtain this number, you can pay your employees properly, file your business taxes, and open a separate bank account for your company.
Unlike most states, Virginia doesn’t require you to submit an annual report to update your LLC’s business information. Instead, you only have to pay a $50 yearly registration fee.
This fee is due on the last day of the month you formed your LLC. For example, if you formed your LLC on January 19, your annual registration fee will be due on January 31 of each year.
Start building your Virginia LLC operating agreement today!
