To establish a business in Virginia, you must first register your legal entity with the State Corporation Commission and obtain a federal EIN. Following registration, it is vital to secure the proper insurance coverages—such as Workers’ Compensation and General Liability—to ensure both legal compliance and long-term financial protection for your new venture.
Starting Your Business in Virginia: A Step-by-Step Guide
Launching a new venture in Virginia is an exciting milestone. Whether you’re opening a boutique in Richmond or a tech startup in Arlington, Virginia offers a business-friendly environment with a clear path to getting started.
To help you hit the ground running, we’ve outlined the essential steps to forming your entity and protecting your investment with the right coverage.
1. Choose Your Business Structure
Your legal structure determines your tax requirements and your level of personal liability. Common structures in Virginia include:
- Limited Liability Company (LLC): Popular for small businesses; protects personal assets from business debts.
- Corporation: Best for businesses planning to go public or seek venture capital.
- Sole Proprietorship/Partnership: Simpler to set up but offers no personal liability protection.
2. Register with the Virginia State Corporation Commission (SCC)
In Virginia, almost all formal business entities must register with the State Corporation Commission (SCC). This is the “birth certificate” of your business.
- Check Name Availability: Use the SCC’s Clerk’s Information System (CIS) to ensure your desired name isn’t already in use.
- File Formation Documents: You will need to file Articles of Organization (for LLCs) or Articles of Incorporation (for Corporations).
- Appoint a Registered Agent: Virginia law requires every business to have a registered agent with a physical Virginia address to receive legal documents.
- Annual Requirements: Remember that Virginia requires an annual registration fee to keep your business in good standing.
3. Obtain Your Federal Employer Identification Number (EIN)
Think of an EIN as a Social Security number for your business. It is required by the IRS for tax purposes and is usually necessary to open a business bank account or hire employees. You can apply for this for free directly on the IRS website.
4. Safeguard Your Success: Obtaining the Right Insurance
Registering your business is only half the battle; protecting it is the other. In Virginia, certain insurance coverages are legally required, while others are essential for long-term survival.
State-Required Coverage
- Workers’ Compensation: In Virginia, if you regularly employ two or more employees (including part-time workers), you are legally required to carry Workers’ Comp insurance. This covers medical expenses and lost wages for work-related injuries.
- Commercial Auto Insurance: If your business owns vehicles, Virginia law requires specific minimum liability limits. As of 2025/2026, these limits have increased to ensure better protection for drivers on the road.
Recommended Protection for Every Business
- General Liability (GL): This is the foundation of business protection. It covers “slip and fall” accidents, property damage to others, and even advertising injury or libel claims.
- Professional Liability (Errors & Omissions): If you provide advice or professional services (like consulting, accounting, or real estate), this protects you if a client claims your mistake caused them a financial loss.
- Business Owner’s Policy (BOP): For many small businesses, we can bundle General Liability and Property insurance into one cost-effective package.
- Cyber Liability: With the rise in digital threats, protecting your customer data is no longer optional—it’s a necessity for any business with an online presence.
Why Work with a Local Virginia Agent?
Navigating Virginia’s specific regulations and 2026 insurance updates can be complex. As a local agency, we understand the unique risks facing businesses in our community. We don’t just sell policies; we partner with you to ensure your hard work is protected against the unexpected.
Ready to protect your new Virginia business?
