How To Start a Business in Virginia: 11 Easy Steps (2025)

Learn how to start a business in Virginia in 11 steps, including choosing a business name, obtaining a license, finding funding, and registering your business.

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Virginia has more than 850,000 small businesses, employing more than 1.5 million people—46% of the state’s private workforce. That makes it a particularly dynamic and welcoming market for starting a business. But there will always be state-specific hurdles to jump over when it comes to starting a company—along with many perks and advantages.

Rural Virginia has some unique challenges—such as access to public transportation, skilled workers, and infrastructure—according to business advisers with the Greater Roanoke & New River Valley SBDC. Still, there are thriving entrepreneurial ecosystems and wraparound support for entrepreneurship that’s accessible across the Commonwealth. 

These are benefits that have garnered national attention: Virginia is ranked number one in CNBC’s America’s Top States for Business in 2024.

This step-by-step guide will take you through how to start a business in Virginia. 

How to start a business in Virginia

1. Choose a business idea
2. Name your business
3. Create a business plan
4. Choose a business structure
5. Get an employer identification number (EIN)
6. File the necessary paperwork and register your business
7. Set up a business bank account
8. Fund your business
9. Obtain a business license and permits
10. Examine insurance options in Virginia
11. Market your business

1. Choose a business idea

Before you can open a company in Virginia, you need the right business idea in your back pocket. Choosing a solid business idea requires a clear vision of your target audience and the needs of the market. 

As you brainstorm business ideas, it’s worth considering the types of businesses that are especially likely to find ready customers in Virginia. According to Greater Roanoke & New River Valley SBDC business advisers, here are some of the best types of businesses to start in the state:

• Outdoor recreation. Virginia has a plethora of natural beauty, including mountains, the ocean, rivers, parkways, and vibrant destinations throughout the state, the advisers note. In this space, there are ample opportunities for industry collaboration, environmental conservation, and community engagement.
• Technology. Virginia has a thriving technology industry sector throughout the state, plus increased opportunities for remote workers to live more affordably and have an improved quality of life.
• Agriculture. Agriculture offers a wide range of opportunities for small businesses in Virginia—from traditional farming and food production to agri-tourism, value-added products, and agricultural technology, the advisers explain.

Once you have an idea of what type of business you want to run, conduct a competitive analysis of comparable small businesses, analyzing what products or services are offered in Virginia that are similar to yours. You may also find it beneficial to research industry trends.

2. Name your business

Naming your new Virginia business is like introducing yourself to the state. Your business name also affects other crucial decisions, including branding and marketing. Here are a few considerations when choosing a business name:

• Is it unique in Virginia? 
• Is the domain name for your business website available? 
• Is there a marketable domain name available that aligns with your chosen business name?
• Are there other domains that are too similar to your chosen business name?
• Is it memorable?

A word of warning when choosing a name: All business names in Virginia must be unique—you can conduct a search of business names using the Virginia State Corporation Commission Clerk’s Information System. 

You also want to think about the implications of your chosen name. For example, you should make sure to choose a domain name that makes sense as a URL for a business website. 

If nothing is available that aligns with your business name—or other businesses have names and URLs that are too similar—you may want to reconsider your name choice.

Before finalizing your business name, you need to confirm it meets all Virginia naming requirements: 

• If you form an LLC in Virginia, your company name must contain the phrases “limited company” or “limited liability company” or one of its abbreviations.
• The legal name of a Virginia corporation must include any of the following: corporation, incorporated, company, or limited, or the appropriate abbreviation.

If you want to apply for a DBA (“doing business as”) or an alias to your company in Virginia, you’ll need to register with the Virginia State Corporation Commission, which you can do online or using paper forms. Procedures depend on the county, but expect to fill out an application form and pay a filing fee of $10. 

The Virginia State Corporation Commission can also walk you through any business formation documents you may need to complete to officially register your business. 

3. Create a business plan

Starting a business can feel overwhelming, but having a roadmap to follow can help you determine where to channel your focus and resources. One of the best early steps to take when starting a business in Virginia is to create a solid business plan. A detailed business plan includes the following:

• Executive summary
• Detailed company description
• Market analysis
• Outline of organizational and managerial structure
• List of products and/or services
• Customer segmentation report
• Marketing plan
• Logistics and operations plan
• Financial plan

You’re not the only one who will use your business plan. Potential investors, lenders, and financial institutions can all use your business plan to assess funding viability. 

Make sure your business plan can answer all the tough questions, like: 

• What problem does the business solve and what products/services will it offer?
• Who is the target audience and what is the market opportunity?
• Who are the main competitors and how does this business stand out?
• How will the business make money (pricing and revenue streams)?
• How will the business attract and retain customers?
• What are the estimated startup costs and ongoing expenses?
• What are the projected revenues, profits, and break-even point?
• How much funding is needed and where will it come from?
• What is the long-term vision for growth and scalability?

One of the most important considerations of any solid business plan is your break-even point: What number of products or services would you have to sell to cover your costs? 

4. Choose a business structure

When navigating how to start a business in VA, it’s important to consider which business legal structure you will choose. 

After choosing a name and making a business plan, one of your most critical choices is deciding your legal structure. This will determine how your company is taxed, how easy it is to lock down investments and how personally liable you are if something doesn’t go according to plan.

The types of business structures offered in Virginia include:

• Sole proprietorship. Sole proprietorships are owned by one person only. If you don’t formally incorporate or form a partnership, by default you have a sole proprietorship. As with partnerships and most LLCs, money earned by sole proprietorships is taxed once as your personal income, rather than dually as corporate income and personal income. If you are a solo entrepreneur, you may find that a sole proprietorship helps you keep things simple. 
• General partnership. General partnerships are business entities where two or more people share ownership and management responsibilities. Each partner has a say in decision-making and profits and losses are shared.
• Corporation. Both C corporations and S corporations are legal entities separate from their owners. This filing type requires significantly more paperwork and takes more work and expense to get off the ground and maintain over time. However, it offers stronger personal asset protection and provides you with a unique opportunity to raise capital through stock.
• LLC. Limited liability companies (LLCs) contain elements of both corporations and partnerships. In this case, your personal assets are afforded a level of protection against creditors in bankruptcy and legal judgments if anyone attempts to sue you.

5. Get an employer identification number (EIN)

Once you’ve decided how to name and file your Virginia business, it’s time to get an employer identification number.

This nine-digit number functions similarly to an individual’s Social Security number, but it’s assigned to new organizations by the IRS. An EIN enables you to file taxes at the federal and state levels and it can also help secure lines of credit and open a business bank account.

You can apply for an EIN in a few ways:

• Online: The quickest and easiest way to apply for an EIN is online through the IRS website. The process is straightforward and you will receive your EIN immediately after.
• Mail: You can also complete Form SS-4 and mail it to the IRS. It takes longer, usually around four weeks by mail.
• By phone: Call the IRS Business & Specialty Tax Line at (267) 941-1099 from 6 a.m. to 11 p.m. Eastern Time.

6. File the necessary paperwork and register your business

If you’re wondering, “Do I need to register my business in Virginia?” the answer is yes. After starting a corporation or an LLC, you’ll need to file either Articles of Incorporation (for a corporation) or Articles of Organization (for an LLC) with the Virginia State Corporation Commission. 

Here’s what you’ll need to register a business with the tax authorities once it’s been formed:

• Your legal business name and address
• The name and email of the person filing online to create an account or the account information, if you already have one
• Your federal EIN number
• Your North American Industry Classification System (NAICS) code
• Your business entity type and tax type
• Name, email, and phone number of the business’s primary contact and responsible party (these may be two different people)

By registering online, you also save time by creating a business online services account through which you may also pay taxes for your business.

LLC formation services are the easiest way to form a business entity in Virginia. These services help you with the legal side of things and also assign you a registered agent. Registered agents act as your official point of contact within the state.

Two simple services include:

• ZenBusiness: A popular formation service with fast turnaround and has served more than 500,000 businesses. It offers a $0 option plus state fees. ZenBusiness also has excellent customer support and offers extras like free operating agreement templates and registered agent services. 
• LegalZoom: A highly reputable LLC formation that’s served more than four million businesses. It also offers a $0 option plus state fees. It also offers attorney consultations, business document templates and assists with getting an EIN. 

7. Set up a business bank account

Starting a business can be costly upfront, and having a business bank account ready and waiting can make it easier to stay on top of your finances. 

A business bank account keeps personal and business finances separate, making it easier to track expenses, manage cash flow, and simplify tax filing. 

Having a business bank account can also give you access to business-specific financial tools like merchant services and loans.

8. Fund your business

It’s hard to start a business with no money. Luckily, as a Virginia small business owner, you have options for how to finance your exciting new enterprise. Generally, you’ll take some or all of these steps to find the right financing:

• Assess startup costs. Outline expenses, revenue projections, and funding needs to attract potential lenders and investors.
• Use personal savings and bootstrapping. If you have a low-investment business idea, this route will help you retain full control and minimize debt.
• Apply for small business loans. Of course, many entrepreneurs need to borrow money to get their business off the ground. Explore options like Virginia Small Business Financing Authority (VSBFA) loan programs, SBA loans, and local bank financing.
• Seek grants and state programs. Look into resources such as the Virginia Economic Development Incentive Grant and minority or veteran-owned business grants.
• Connect with investors. If your business has high growth potential, pitch to angel investors or venture capital firms.
• Consider crowdfunding. Crowdfunding sites like Kickstarter or GoFundMe can help raise capital to get your business off the ground.

9. Obtain a business license and permits

In Virginia, the only permit every business needs to get at the state level is a sales tax certificate. In addition, certain craftspeople and tradespeople may need more specific types of licensing and permits, such as:

• Occupational and professional licenses
• Zoning and land use permits
• Building permits
• Alcoholic beverage license
• Home occupation permit
• Sign permits

10. Examine insurance options in Virginia

As a business owner, you will inevitably face circumstances beyond your control—inclement weather, workplace accidents, fires, and other risks. For such circumstances, it’s beneficial to have business insurance to help protect your Virginia business and assets. 

A few types of business insurance in Virginia include:

• Liability insurance. General liability insurance protects your business against any lawsuits resulting from accidents, injuries, or negligence.
• Commercial property insurance. This type of business insurance covers the costs associated with fire, weather damage, or theft.
• Commercial auto insurance. Commercial auto policies cover the cost of damages to a work vehicle, as well as related legal bills and medical expenses.
• Workers’ compensation insurance. Workers’ comp covers treatment for employee injuries sustained on the job, rehabilitation costs, and lost wages. This type of insurance is mandated in Virginia.
• Professional liability insurance. Professional liability insurance protects you and your business from lawsuits associated with unsafe products.
• Cyber liability insurance. If your Virginia business has a data breach, cyber liability insurance can help (it’s more comprehensive than data breach insurance).
• Umbrella insurance. Umbrella insurance extends coverage to exceed the policy limits of other business insurance plans.

11. Market your business

When you’re ready to unveil your Virginia small business, you’ll need a comprehensive marketing strategy. 

Here are key elements to consider:

• Market research. If you do your research and understand the market, you’ll have more insight into your target customers’ wants and needs.
• Advertising and promotion. Whether you place ads yourself or hire an agency to handle your advertising, you may want to consider paid advertising to get the appropriate messaging across about your product and/or business.
• Social media. You can promote your products or services to diverse audiences across multiple social media platforms, including Facebook, Instagram, TikTok, and YouTube.
• Public relations. Building relationships with the public and media outlets is the goal of public relations. Adopting this strategy can be an asset to increase your visibility organically and strengthen positive news about your business.
• New business and customer retention. Genuine relationships with customers are key, so make sure to increase customer retention through word-of-mouth marketing tactics that spread the word about your business to friends, family, and colleagues of existing customers.

Examples of Virginia businesses 

These thriving ecommerce businesses call Virginia home:

Alpha Industries

Alpha Industries is headquartered in Chantilly, Virginia. Originally a US military contractor based in Knoxville, Tennessee, the family-run brand is now an international seller of American and military-inspired clothes.

The Goulet Pen Company

The Goulet Pen Co., a small business founded in 2009 and located near Richmond, Virginia, strives to offer a highly personalized online shopping experience for fountain pen enthusiasts. Its mission centers around providing comprehensive educational resources, exceptional customer service, and a curated selection of products they stand behind.

The Goulet Pen Co. has been named one of the best workplaces in the region, and it’s also dedicated to serving the local community. On its website, the brand writes, “While The Goulet Pen Company is an internet-based company, we’re also heavily invested in supporting the Richmond, Virginia area we call home.” To do so, the brand offers team members paid hours to volunteer with local nonprofits.

Absurd Snacks

Absurd Snacks sells a snacks mix that’s largely allergen-free; that means no milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soy, and sesame—all the usual suspects. Although the brand has an ecommerce store that ships anywhere in the US, it also has a local retail presence at Whole Foods stores in Virginia and DC.

The brand writes, “Our roots are firmly planted in Richmond, Virginia, and we take immense pride in producing our innovative snacks right here in Southside, Richmond. This not only contributes to the local economy but also supports our beloved community.”

Resources and tips for starting a business in Virginia

The Greater Roanoke & New River Valley SBDC business advisers offer the following professional advice for setting up your Virginia business:

1. Connect with the Virginia SBDC to provide technical assistance, support, and guidance throughout your journey of starting a business.
2. Build your relationship currency to cultivate and strengthen authentic connections with those around you—including people in your professional networks, company, and business circle (such as bankers).
3. Seek support and guidance from your local economic development team, planning and zoning team, and/or regulatory agency early and often.
4. Be comfortable being uncomfortable with asking for technical assistance, guidance, and support.
5. Focus on cash flow management, which can significantly impact every aspect of your business.
6. Don’t underestimate the significance of deeply understanding your target customers, completing thorough market research, and validating your product. Together, they are keys to your success.

How to start a business in Virginia FAQ

What do you need to incorporate a business in Virginia?

To incorporate as an LLC in Virginia, you have to file Articles of Organization; as a corporation, you must file Articles of Incorporation. Both are filed with the Virginia State Corporation Commission. You will also need to get a federal employer identification number (EIN) to register your business with both state and federal tax authorities.

Does Virginia require a statewide business license?

No, Virginia does not have a statewide business license, although some counties and municipalities do require business licenses. Virginia does require licenses for some regulated professions such as health care, education, and finance.

How much does it cost to register an LLC in Virginia?

The fee to file the Articles of Organization to register your LLC in Virginia is $100. The state also charges $10 to reserve a business name.

Can I start a business in Virginia without a physical location?

You do not need a physical location to start a successful business in Virginia. Plenty of plucky entrepreneurs start home businesses or online businesses in the great state of Virginia. If you plan to start a business at home, make sure you follow all applicable rules and regulations for doing so.

Is Virginia considered a good place to start a business?

CNBC found that Virginia is the best American state to start a new business thanks to strong infrastructure, internet access, and support systems for entrepreneurs.

What are the zoning laws for businesses in Virginia?

Like all states, Virginia has zoning laws in place to help businesses operate in appropriate locations, maintain community standards, and minimize conflicts between different types of land use. Stay on top of local zoning regulations to ensure your operations comply and to determine what permits or variances may be necessary to operate legally.