The Virginia limited liability corporation designation was created expressly for the small business owner. It has the same benefits that a corporation does, but does not have the same drawbacks.

Corporations and limited liability companies both offer the identical amount of protection from liability. Both are vehicles designed to shield your business and deliver a protective layer between your personal assets and those of your small business. In today's litigious society, this protection is a necessity.

VIRGINIA LLC IS A SIMPLER LEGAL ENTITY

You can choose to form a Virginia LLC over a corporation because you gain a legal entity that is much simpler. A Virginia limited liability corporation has none of the required statutory legal formalities of a corporation, making it easier to maintain.

VIRGINIA LLC IS MORE FLEXIBLE

When you form a Virginia LLC you are required to follow a set of statutory structures and processes as well as some maintenance requirements like having a Board of Directors.

With a Virginia corporation, there is a set of statutory structures, processes and maintenance requirements including a required Board of Directors.

MORE TAX OPTIONS WITH A VIRGINIA LLC

Because the IRS passed the Check the Box Regulations in 1997, owners of a Virginia LLC are able to decide which tax structure they want in a single level of taxation. It can be a C corporation or an S Corporation.

Because of these changes, you can now secure the tax benefits of a corporation for your business without giving up the benefits of state law or the ease of a limited liability company.

VIRGINIA LLC CAN RESULT IN LESS ANNUAL FEES

In the State of Virginia, there is a minor yearly fee you must pay to renew the registration of your Virginia LLC. The fee is set at $50. The fee does not change, no matter how many members you have or how many shares you have issued.

In contrast, the minimum annual fee for a corporation is $100 annually and it can be more. As a corporation equity structure gets more complex or more shares of stock are issued, the fee increases significantly and can be as much as $1700 a year.

SUMMARY

A corporation is good for a more sizeable business, but small business can benefit tremendously from a Virginia LLC. Limited liability corporations give you the protection you need for your business without all the restrictions of a corporation.