All businesses, including corporations, limited liability companies, partnerships, and sole proprietorships, must be licensed in Virginia. The city or county where your business is located must issue you a business license if you are running a business in Virginia. It’s crucial to verify with your local government office for precise criteria as the costs for obtaining a business license differ based on the area.
However, sole owners are exempt from Virginia’s business registration requirements. However, you must submit a Certificate of Assumed or Fictitious Name to the Virginia State Corporation Commission (SCC) if you are operating a sole proprietorship under a trade name (DBA). To make sure that your company name is distinct and does not conflict with any already-existing firms in Virginia, you must go through this process.
In a sole proprietorship, the owner is legally and personally liable for all debts and obligations of the business. A sole proprietorship is not regarded as a distinct legal entity from the owner in Virginia. This means that if the firm is unable to pay its debts, the owner’s personal assets, such as their home and car, may be used instead.
Last but not least, it’s critical to comprehend the distinction between a trade name and a fictitious name. Customers will recognize your company by its trade name, which is the name under which it operates. A business may operate under a name that differs from the owner’s legal identity, which is known as a fictitious name. You must submit a Certificate of Assumed or Fictitious Name to the SCC if you are operating a sole proprietorship under a trade name.
In conclusion, all businesses in Virginia, including corporations, limited liability companies, partnerships, and sole proprietorships, must get a business license. The Commonwealth of Virginia does not need sole owners to register, but they must submit a Certificate of Assumed or Fictitious Name if they are using a trade name. It is preferable to speak with your local government agency or an attorney who is knowledgeable about Virginia’s business regulations if you are unsure of what kind of company license you require.