A Virginia LLC name must contain the following words in the end, “Limited Liability Company”, “Limited Company”, “Ltd.”, “Co.”, “LC”, “LLC”, or “L.L.C.”. The name cannot have words that are in parentheses, it also cannot contain any term or phrase implying any other purpose than what was stated in the Articles of Organization.
Virginia LLCs must have one or more members/managers. There is no provision stating where the members or managers must reside. There are no age requirements for the members or managers.
A Virginia LLC is not official unless the Articles of Organization has been submitted to the Virginia State Corporations Commission. The articles can be filling out the New Entity Formation form at the Virginia State Corporations Commission website (https://sccefile.scc.virginia.gov/NewEntity).
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.