Starting a business is exciting, but knowing where to begin can feel overwhelming. From choosing a business structure and registering your business to understanding licenses, taxes and finances, there are plenty of details to consider before you open your doors.
The good news? You don’t have to figure it all out on your own.
If you’re thinking about starting a business in Virginia, this guide walks you through the key steps and points you toward resources that can help you get started with confidence.
1. Make Sure You’re Ready to Start
Before filing paperwork or choosing a business name, take some time to make sure you understand the opportunity you’re pursuing.
Ask yourself:
- What product or service will I offer?
- Who are my customers?
- What problem will my business solve?
- Is there demand for what I’m offering?
- Who are my competitors?
- How much will it cost to get started?
- How will the business make money?
- What will I need to operate the business successfully?
You don’t need to have every answer figured out before you begin. But spending time researching your market, customers and costs can help you make informed decisions and avoid surprises later.
It’s also a good time to think about your personal readiness. Starting a business takes time, money and commitment. Understanding what you’ll need from yourself, your family and your finances can help you decide whether now is the right time to take the next step.
2. Choose Your Business Structure
One of the first formal decisions you’ll make is choosing a legal structure for your business.
Common structures include:
- Sole proprietorship
- Partnership
- Limited liability company (LLC)
- Corporation
Each structure can have different implications for liability, taxes, ownership, filing requirements and how you operate your business. There isn’t one structure that’s right for every business. Your choice can depend on factors such as the type of business you’re starting, how many owners you have, your plans for growth and how you want the business to be structured.
Because this decision can have legal and tax implications, consider talking with a qualified attorney or tax professional before making your choice.
3. Choose a Business Name
Your business name is an important part of your brand, so take some time to choose one that works for your business today and gives you room to grow.
Before settling on a name:
- Check whether the name is available.
- Search for similar business names.
- Consider whether the name could be confused with another business.
- Check whether an appropriate website domain is available.
- Consider whether you may want to protect the name as a trademark.
If you plan to operate under a name that is different from your legal name, you may also need to file a fictitious or assumed name with the Virginia State Corporation Commission.
4. Register Your Business in Virginia
Once you’ve chosen your structure and business name, you’ll need to complete the appropriate registration steps. For many business entities, registration takes place through the Virginia State Corporation Commission (SCC). Depending on your business structure, you may need to file formation documents or other required paperwork.
Virginia’s Business One Stop can help organize many of the steps involved in establishing a business and connect you with information from the state and other agencies.
The goal isn’t simply to complete a form. It’s to make sure your business is properly established so you can move forward with confidence.
5. Determine Which Licenses and Permits You Need
Registering your business doesn’t necessarily mean you’re ready to operate. Depending on what you do and where you operate, your business may need additional licenses, permits, certifications or registrations.
Requirements can vary based on:
- Your industry
- The services or products you provide
- Your location
- Whether you have employees
- Whether you operate from a physical location
- State and local regulations
Some professions and industries are regulated by specific Virginia agencies or boards. Local governments may also have their own business license, zoning, permit or other requirements. Don’t assume that because another business operates in your area, it has the same requirements you do. Check the requirements that apply to your specific business and location.
Virginia’s permit and licensing resources can help you identify applicable state requirements, while your city or county can provide information about local requirements.
6. Understand Your Tax and Employer Responsibilities
Taxes are another important part of setting up your business.
Depending on your business and activities, you may need to register for certain Virginia tax accounts. For example, businesses may have state tax responsibilities related to sales tax, employer withholding or income taxes. Virginia Tax provides online business registration and information about the tax types that may apply to your business.
If you plan to hire employees, you’ll also have additional responsibilities as an employer. These can include employment tax requirements, wage and hour requirements, required employment forms, recordkeeping and other obligations. Don’t wait until your first employee starts work to learn what you need to know. Understanding your responsibilities ahead of time can help you establish good practices from the beginning.
7. Create a Basic Business Plan
You don’t need a 50-page document to benefit from business planning. A basic business plan can help you think through how your business will operate, who you’ll serve and what it will take to succeed.
At a minimum, consider documenting:
- Your products or services
- Your target customers
- Your market and competitors
- Your pricing
- Your marketing and sales approach
- Your day-to-day operations
- Your staffing needs
- Your startup costs
- Your expected revenue and expenses
- Your funding needs
- Your goals for the next one to three years
Your plan can change as your business changes. In fact, it should. Think of your business plan as a working tool that helps you make decisions, measure progress and prepare for what’s next.
8. Set Up Your Business Finances
One of the best habits you can establish early is keeping your business finances organized and separate from your personal finances.
Consider setting up:
- A business bank account
- A system for tracking income and expenses
- A process for keeping receipts and financial records
- A budget and cash-flow projection
- A system for invoicing and collecting payments
- A plan for managing taxes
Knowing where your money is coming from and where it’s going can help you make better decisions as your business grows. It can also make it easier to understand your business’s financial health and prepare for future needs, including financing.
9. Build Your Support Team
You don’t have to be an expert in everything to be a successful business owner. As your business gets started, identify professionals and organizations that can help you with areas outside your expertise.
Depending on your needs, that might include:
- An accountant or tax professional
- An attorney
- An insurance professional
- A banker or lender
- A business counselor
- A mentor
- A Small Business Development Center
- Industry or professional associations
- Local economic development organizations
- Other small-business resource organizations
Virginia has a broad network of organizations that provide education, counseling, training and other assistance to small businesses. Getting connected early can help you find answers before a challenge becomes a bigger problem.
10. Make Virginia Business One Stop Your Starting Point
If you’re still wondering, “Where do I start?”, Virginia Business One Stop is a great place to begin.
Business One Stop was created to help aspiring entrepreneurs and business owners find the information and complete the steps needed to establish, plan, develop and expand their businesses. It brings together resources and information from multiple state and federal agencies in one place.
You can use Business One Stop to:
- Explore steps for starting a business
- Organize business registration tasks
- Find information about licenses and permits
- Learn about business resources
- Connect with other government agencies
- Find additional support for planning and growing your business
Think of it as one place to help you figure out what’s next.
Starting a Business Doesn’t Mean Doing It Alone
Starting a business is a big step, but you don’t have to have everything figured out on day one.
Start with a clear idea. Learn about your customers and market. Choose the right structure. Complete the required registrations. Understand your licenses, taxes and responsibilities. Get your finances organized. And connect with people who can help. Most importantly, take it one step at a time.
Virginia Business One Stop can help you organize those first steps and connect you with resources along the way. And through the Virginia Department of Small Business & Supplier Diversity (SBSD), you can find additional education, business counseling, training and resources to help you start, strengthen and grow your business.
Ready to Get Started?
Start with Virginia Business One Stop to explore the steps, resources and information you need to establish your Virginia business.
