A limited liability company, or LLC, allows business owners to protect their personal assets from claims for debts incurred by the business. In other words, if the company can't afford to pay a creditor, that creditor can't try to seize the owner's house or other personal property. "Limited liability" refers to the fact that you can only lose as much as you've invested in the business. Forming an LLC in Virginia is fast, easy and inexpensive. In fact, the hardest part might be choosing a name.

Pick a Name

Every limited liability corporation in Virginia--or any state, for that matter--must have a unique name. You may want to call yourself "Reliable Plumbers," for example, but if that name is already registered as a business entity in Virginia, you'll just have to find something else ("Extremely Reliable Plumbers," perhaps?) You can do a quick search of the names in the database at the Virginia State Corporation Commission (SCC) by following the "Business Entity Search" link in the Resources below. But the absence of a particular name in the database doesn't necessarily mean that name is available. To verify the availability of a name, call the SCC clerk's office at (804) 371-9733 or toll-free at (866) 722-2551. If the name you want is available, but you are not yet ready to file the paperwork to set up your LLC, you can reserve the name for 120 days for $10. Download Virginia Form LLC-1013 from the "Forms and Fees" link. Check the "Reservation" box on the form and enter the business name being reserved, as well as your name, address and phone number. Submit the form, along with a check for $10, to the address provided on the form. If the 120 days pass and you're still not ready to set up your LLC, you can renew the reservation for another 120 days by submitting the same form--check the "Renewal" box this time--and sending another $10.

Draw Up Your Articles

The paperwork for setting up an LLC is so simple that the SCC provides a standard form on its website. Download Form LLC-1011 from the "Forms and Fees" link below. Enter the name of your LLC and identify an "initial registered agent." Every LLC must have a registered agent. This can be any manager of your company, including you, or a Virginia lawyer. Provide an office address for the agent; it must be a street address, not a P.O. box, because this is where any legal papers will be served. Finally, provide the address of your company's principal office. It also must be a street address, because this is where you will be required to keep all company records; this can even be your home address. Sign and date the form. Print your name and provide a phone number if you choose. Submit the form, along with a check for $100, to the address provided on the form. Congratulations! Your LLC is ready for business.

Change Your Information

Don't worry if you think the registered agent, the agent's address or the company's principal office location might change. You can change these with the state at any time for no fee. Do so by requesting Form LLC-1016 at the "Forms and Fees" link.

Source:

FindLaw.com: LLC Basics

Virginia State Corporation Commission: LLC Filing Requirements

Resource:

Virginia SCC: Business Entity Names FAQ

Virginia SCC: Forms and Fees

Virginia SCC: Business Entity Search