4 Steps to Start a Business
On your mark...you have a vision for starting your own company
Get set...you have done your research and found there is a market for your idea
Go! Here are the 4 basic steps you need to take to start your own business in Virginia. The steps should be completed in this order and we’re here to help!
Click on the steps to expand and learn more:
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Before registering, thoughtfully determining the business entity is one of the first important decisions for any business owner. While this can be changed later, it's best to make an informed decision up-front to save on taxes, and frustration! We have an entity flowchart that might be helpful as you consider your options. If you are ready to get started, we'd be glad to help you make the best decision for yourself and your future plans.
Once you’ve determined your entity type, it’s time to register in Virginia! If your business is a sole proprietor or partnership, you do not need to register.
Check to see if the name you want to use for your business is available by using the Clerk’s Information System (CIS) online Business Entity Search.
Check the U.S. Patent and Trademark Office to be sure the business name doesn't have a federal trademark.
Once you’ve confirmed the name is available, create an account and register your business with the State Corporation Commission (SCC). You can expect to pay between $25 - $50 for registration up front and each year thereafter.
Note that you will need to have determined your business entity type before registering with the SCC.
You will receive a paper copy of your registration in the mail from the SCC. However, keep records of digital activity.
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The Employer Identification Number (EIN) is used by the federal government to identify a business for tax purposes. Even if you don’t plan to have employees, it’s a good idea to register for an EIN. You'll often need it for bank accounts and other business transactions. It’s free and easy from the IRS website.
You’ll receive your number right away. Keep this for your records.
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Your business may need a local business license prior to operating, although some jurisdictions do not require them. Each jurisdiction has different requirements, and some industries have additional requirements. Check our list of localities to find your licensing organization and contact them regarding local requirements. Your SBDC Advisor can help if aren’t sure how to handle this step.
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We recommend using the EFile system to register and pay Virginia taxes. You can register for your state taxes and the Virginia Employment Commission at the same time. No employees? No problem, you can report 0. Remember that if you plan to pay yourself with a paycheck, you are an employee. One of our advisors can help you determine what is best for you and your tax situation. You’ll need your EIN from step 2 to complete the registration.
Congratulations! You are now a small business owner!! Remember, we can help you with #allthingsbusiness throughout your journey.
A few more thoughts on next steps:
Setting up a business checking account to track business-related expenses is a good first step as a new small business owner. Your current bank is a great place to start; be sure to take your EIN and a copy of your SCC registration.
We’ve helped thousands of businesses in the area start, grow, and thrive, and we are here to help you, too. Whether you are a newbie or seasoned business owner, the SBDC has information to help your business thrive and grow.
