Why form a Virginia LLC?
There are definitely more advantages to forming a Virginia LLC than disadvantages. The biggest reason why people go from a sole proprietorship to a LLC is to protect them from a lawsuit. The Limited Liability Company, as the name indicates, provides limited liability protection for the individual for the debts and obligations of the company. Therefore your personal assets are not vulnerable to a lawsuit. There may be other reason for forming a LLC which a professional can best describe to you.
Tips for an approvable LLC name
A Limited Liability Company formed in Virginia must contain, in their name, the words Limited Liability Company, or Limited Company or its abbreviation. A Limited Liability Company may not assume the same name as an existing Corporation or another LLC. Names must be distinguishable from other corporations, LLC and LLPs that are active or reserved in Virginia. The company name is not distinguishable by differences in punctuation, conjunctions, or prepositions. Also the Secretary of State may reject names that are too similar to that of another business entity. There may be other words that are restricted in its use and prior approval may be needed. Such words are “bank”, “trust”, or “insurance” etc.
Management types
There are two types of management structures for LLCs. The first and most common is the member managed system. This type of management allows for all the members to have equal say in the day to day operations of the company and have equal weighting. For a manager managed system, the members dictate a third party to be the manager of the LLC. This person has the sole role of dictating the direction of the LLC.
Registered agent, what is it?
The role of the registered agent is to be served process from the Secretary of State in the event of a lawsuit. This person is not necessarily tied to the company. All that is required of the registered agent is to be 18 years of age and a resident of the state the company is filed. If a registered agent can't be obtained, a third party company can serve as the registered agent, usually with certain annual fees.
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