Starting a new business is exciting because it is not only a way to do something you love but is also a path to financial freedom. So, if you are thinking of starting one, you are on the right track. However, there are some risks to starting a Virginia business. One effective way to significantly reduce those risks is to create an LLC in Virginia to operate you your business. Major publications and business associations have rated Virginia as a top state for business. In fact, Virginia has one the #1 Forbes Magazine rating for several years. This is because the Virginia government has always actively promoted small business growth through incentives and protection in its laws. The Virginia laws that allow for a business to be operated through a Va LLC is a prime example of a business friendly law. Under this Act, business owners get personal liability protection which is so important in today's business world where lawsuits are out of control. But, the laws go even further to offer other major benefits. OBTAIN LIABILITY PROTECTION WHEN YOU CREATE AN LLC IN VIRGINIA The Va LLC is first and foremost about protection. If you run a business without the benefit of a limited liability entity, you are a sole proprietor. Sole proprietor businesses are very risky because everything that the owner owns or may acquire in the future can be lost due to business related problems and liabilities. It is a huge risk. It is close to impossible to run a business without giving rise to a potential for liability or problems in the future. This is the result of having to enter into transactions and connect with other people and businesses. You may hire employees which could later lead to an employment claim. You may have a store where a customer could be injured. You will have to do business with suppliers, partners, banks and government agencies. Every interaction you have with someone or some business create the potential for a later claim related to that activity. Prior to the option of operating under a Va LLC, a business owner only had the option of using a corporation to manage this risk. Many opted not to use incorporation because of the complexity and set of rules mandatorily imposed on corporations. This changed when Virginia lawmakers enacted the Virginia Limited Liability Company Act. Now, if you create an LLC in Virginia, the law protects your from being personally liable for the liabilities of the business just because you are an owner. If you look at the increasing number of LLC formations in Virginia throughout the past decade, you will see proof that this legal entity is succeeding in giving small business owners the necessary protection plus other advantages. OTHER BENEFITS OF A VA LLC INCLUDE FLEXIBILITY AND SIMPLE GOVERNANCE In addition to protection, the Virginia legislature wanted to free business owners from any unnecessary legal compliance or regulation. Accordingly, the Va LLC is not subject to mandatory meetings, filings or management structures like the corporation. In fact, there is not even any information filing requirements annually. On the other hand, an LLC does not have to have simple governance and reporting. If the needs of a particular company and its owners require some complexity when it comers to managing or structuring the rights and obligations of an owner, the Virginia LLC laws allow for most any type of structure to be adopted and implemented. Basically, the way the LLC laws work allow a company to operate the way it wants or needs to be managed without having to fit into any irrelevant legal structures. MINIMAL REGISTRATION COSTS The standard, non-expedited filing fee to create an LLC in Virginia is only $100 currently. If you need faster processing, it may cost you another couple hundred. Also, each year, Virginia only charges $50 per LLC to maintain the registration. These fees are so low compared to the protection you are given which can save you from losing your home, savings and other assets. ADDITIONAL FEATURES OF A VA LLC When starting a business in Virginia, a Virginia LLC can help in other areas as well. For one, it provides an official and trustworthy image for your new business which makes getting customers easier. Customers view legal entity businesses as more credible and professional. A business also opens itself up to paying less in taxes if it is run through a Va LLC. The IRS gives the LLC the most tax choice structures than any other legal entity. You automatically qualify for the single layer of taxation which is the most popular preference because it avoids the double taxation of C corporations. However, a Va limited liability company can elect a corporate tax structure as well. If in doubt, consult your accountant. The choice to create an LLC in Virginia is the best one for most entrepreneurs. This is because it not only provides the essential protection needed but also helps to keep more of what you make through tax benefits and helps you grow with an official image and business vehicle.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
