Starting a business is an exciting and challenging time in anyone’s life. In addition to the exhilaration of executing your idea, there are also a number of practical and bureaucratic considerations to make before you can begin doing business in Virginia.
The first step will be choosing the right name for your business. You want a name that serves your purposes for marketing and reaching clients, and most importantly, one that’s available in the state of Virginia. We’ll explain how to conduct a business name search and set up a Virginia LLC.
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How to check business name availability in Virginia
As mentioned, you can’t just pick any name for a Virginia business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the Virginia Secretary of State website
The Virginia Secretary of State website has a search tool that entrepreneurs can use to look into business name availability.
2. Enter keywords
Next, just enter your proposed name in the search bar. In this case, your keywords will be potential business names.
3. Run the search
You use the search tool just like you would a search engine. If the search results return a match to your business name, it means the name is already taken. If there aren’t any matches, the name is available.
Virginia law says no two businesses in the state can have the same name, so you should keep searching for names until you find one that’s available.
You might assume that you can make a small tweak to your name to make it original, but state officials won’t allow you to add “LLC” or “company” to the name to make it unique. The name must be distinguishable from others.
4. Consider reserving a name
After running a Virginia business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Virginia allows business owners to reserve a name for 120 days for $10. To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Virginia, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Virginia business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Virginia company?
As you research available business names in Virginia, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Virginia business
Ready to set up your business in VA? Here’s what you do:
1. File your Articles of Organization
Visit the Virginia Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Virginia, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Virginia, the cost is $100.
4. Wait for approval
Virginia will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Virginia small business facts
Before you start considering business name availability in Virginia, take a look at these small business statistics from the U.S. Business Administration:
- Virginia small businesses employed 1.6 million people, or 47.1% of the private workforce, in 2017.
- Firms with 20 to 99 employees have the largest share of small business employment. Figure 1 provides further details on firms with employees.
- The number of proprietors increased in 2018 by 3.3% relative to the previous year.
- In the fourth quarter of 2019, Virginia grew at an annual rate of 2.1%, which was the same as the overall US growth rate. Virginia’s 2019 overall growth rate of 1.9% was down from the 2018 rate of 2.6%.
- In April 2020, the unemployment rate was 10.6%, up from 2.9% in April 2019. This was below the April 2020 national unemployment rate of 14.7%.
- Private-sector employment decreased 10.2% during the 12-month period ending in April 2020. This was below the increase of 1.2% during the prior 12-month period.
- The median income for self–employed individuals at their own incorporated businesses was $54,830 in 2018. For self– employed individuals at their own unincorporated firms, median income was $24,748.
- Small businesses created 39,397 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 29,300 net jobs. The smallest gains were in firms employing 100 to 499 employees, which added 3,428 net jobs.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Virginia:
Why is it so important to check on business name availability?
Virginia will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
How can I fund my new business in Virginia?
Some funding options include:
– Bootstrapping: This means you provide the capital yourself, using things like savings and current income.
– Friends and family: If you have friends or family with access to funds, they may be willing to invest. It’s a good idea to write up formal contracts.
– Small Business Loans: Banks and other lending institutions may offer loans specifically designed to kickstart a business.
– Small Business Grants: Unlike loans, grants do not have to be paid back. Grants can be offered by private organizations, non-profits, or government organizations.
What should I do to protect my assets?
It is recommended to use dedicated business banking accounts and credit accounts when starting a business. This delineation will protect your personal assets in the event your business is sued or otherwise compromised. Having these funds separated will also make it easier to maintain accounting records and properly file state and local taxes.
Business credit cards will also create a credit for your business, which could be used in the future to raise capital.
Do I need business insurance?
You should look into insurance for your business. A general liability policy is important for all businesses, even those based out of the home. Anyone who sells professional advice or services may supplement this with professional liability insurance.
In Virginia, any business with more than two employees (besides the owner) is required to obtain workers’ compensation insurance.
How do I file taxes as a business?
To sell goods in Virginia, you need to register with the Department of Taxes (DOT) in order to collect appropriate state taxes. You will also need to register for any employees in order to withhold taxes. This can be done online through the VATAX Online Services portal.
You will also need to register federally by obtaining an Employer Identification Number (EIN) from the IRS. You can apply online through the IRS website with no filing fee.
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