Limited Liability Company

 

If you are thinking about starting a business of your own, you are on the right track to something very meaningful in your life.  In addition to being a way to pursue something you really enjoy, you are also moving toward financial independence.

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.

Virginia lawmakers have a history of providing meaningful incentives to encourage the launching of business here.  As a result, Virginia usually rates in the top 5 of any state list for the best place to start a business.  Forbes has rated in #1 for several years in a row.

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.

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CREATE AN LLC IN VIRGINIA FOR PERSONAL LIABILITY PROTECTION

Without the use of a limited liability entity such as a Va LLC, you would be operating as a sole proprietor. In this case, everything you own or might own in the future is at risk for being lost in the event your business becomes liable for obligations or involved in a lawsuit.

You cannot run a business without needing to interact with other persons or businesses. For example, you may need to hire employees or contractors. You may need to obtain inventory or supplies and you will be doing business with banks, government agencies and other businesses.

Each time there is an interaction, there gives rise to activity which could later become the basis for a claim.  Before the Va LLC, the only alternative to manage this risk was to incorporate and many business owners opted not to use a corporation due to the complexity of that type of legal entity.

But, when the Virginia Limited Liability Company Act was passed, entrepreneurs finally received a workable solution.  When you create an LLC in Virginia, this Act prevents you and other owners from being personally liable merely because you are owners.  So, with this passage, there really is no need to run as a sole proprietor.

The success of the Va LLC is evident by looking at the number of formations that have taken place. The limited liability company is now the entity of choice for Virginia small business not only because of its protection but because of other attractive features.

OTHER BENEFITS OF A VA LLC INCLUDE FLEXIBILITY AND SIMPLE GOVERNANCE

Another objective of the Virginia LLC lawmaking process was not to burden business owners with any unnecessary or complex legal compliance matters. As a result, the Va LLC does not have associated with it, the kind of legal mandates that come with a corporation.  No board of directors, annual meetings or annual informational filings are required.

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

Currently, it only costs $100 to create an LLC in Virginia.  There may be other fees if you need expedited processing. After formation, the current registration fee is only $50 a year. As you can see, the fees are so low.  Given that this entity can save you from losing your home, your savings and anything else you own, it is clear that it is a small price to gain significant protections and other benefits.

THE VA LLC HAS OTHER ADVANTAGES

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.

Another feature is the choice of taxation structure.  First, a Va LLC automatically qualifies for pass through taxation which means income is only taxed once.  This is preferred by most any small business because they are able to avoid the double tax of C corporations.  However, if a particular LLC company could benefit from being taxed under corporate tax rules, it has that option.  Always check with your accountant before electing a different tax treatment, but know that you have these options for your limited liability company.

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.

Click Here For a FREE Guide and More Details about the Virginia LLC