Company Formation in Hungary for US Entrepreneurs
Company formation in Hungary offers access to the EU market, low taxes, and residency options. Learn about the steps, costs, and compliance rules.
If you already operate an LLC in another state and want to conduct business in Virginia, you’ll need to register as a foreign limited liability company with the Virginia State Corporation Commission (SCC). This process is known as foreign qualification, which ensures that your business meets Virginia’s legal and tax obligations.
When you register a foreign LLC in Virginia, you’re eligible to open offices, hire employees, and sign contracts within the state without forming a brand-new entity. In this guide, you'll learn how to register a Virginia foreign LLC, what documents to prepare, and what it takes to stay in good standing.
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You're required to register a foreign LLC in Virginia if your business is “transacting business” in the Commonwealth. According to Virginia Code §13.1-10571, this may include:
Occasional transactions or holding meetings alone usually don’t require registration. When in doubt, it’s best to consult with an attorney or review Virginia SCC guidance2.
Virginia requires a Certificate of Existence3 (also called a Certificate of Good Standing) from the state where your LLC was originally formed. This document must be issued within the past 12 months and prove your LLC is active and compliant.
You’ll need to obtain a certified copy of this document, which must be issued within the past 12 months and confirm that your LLC is active and in compliance. Contact your home state’s Secretary of State or equivalent agency to request one. Some states allow you to download the certificate online for a fee.
Your LLC must operate under its original name unless that name has already been taken or is not allowed under Virginia law. You can check availability through the Virginia SCC’s business entity name search4.
If your LLC name is not available, you’ll need to adopt a designated name (also called a DBA or fictitious name) for use in Virginia. This must be indicated on your registration form.
Every foreign LLC must have a registered agent with a physical street address in Virginia (no P.O. boxes). The agent’s role is to accept legal forms and documents and state correspondence during regular business hours.
You can serve as your own agent if you meet the residency and availability requirements. However, most businesses hire a commercial registered agent, typically costing between $100 and $300 per year, for reliability and privacy.
To register your foreign LLC, submit Form LLC10525 (Application for Certificate of Registration to Transact Business in Virginia) to the Virginia State Corporation Commission. You’ll need to include:
Filing fee: $100
Where to file:
Virginia does not require an initial report when registering a foreign entity. However, you must keep your business records up to date and file your annual report on time.
Virginia does not offer a statewide business license. However, most counties, cities, and towns require a local business license or zoning permit. Common licenses include:
Check with your city or county commissioner or visit Virginia’s Business One Stop7 for help.
To maintain your Virginia foreign LLC, you’ll need to:
Reports are due each year by the end of the month in which your LLC was first registered in Virginia. Failure to file can lead to penalties or administrative cancellation.
Pros | Cons |
---|---|
Clear legal standing to transact business | $100 foreign registration fee |
No state income tax on pass-through entities | $50 annual registration fee |
Well-developed legal system for business | Local licenses vary by county/city |
Access to East Coast markets and talent | Must maintain a local registered agent |
Once approved, your business becomes a registered foreign limited liability company in Virginia. To maintain that status, you must file annual reports, pay the $50 registration fee, and ensure your Virginia registered agent information remains current. Failure to do so may result in penalties or administrative cancellation, jeopardizing your legal rights.
Key requirements include:
The SCC provides access to all maintenance tasks through its CIS portal.
Virginia offers a strategic location on the East Coast with strong legal protections, a diverse economy, and proximity to Washington, D.C. It’s a top choice for professional services, defense contractors, and tech firms.
A foreign LLC in Virginia allows you to sign contracts, lease property, and open bank accounts while preserving the structure of your home-state LLC.
Feature | Virginia | Delaware | North Carolina | Maryland |
---|---|---|---|---|
Filing Fee | $100 | $200 | $250 | $100 |
Annual/Biennial Report Fee | $50/year | $300/year | $200/year | $300/year |
Income or Franchise Tax | No (pass-through) | Franchise tax | No state income tax | Personal income tax applies |
Tax Structure Type | Pass-through | Franchise | Pass-through | Personal + Corp tax |
Registered Agent Required | Yes | Yes | Yes | Yes |
Virginia stands out for its low filing and annual state fees, making it an attractive option for small businesses expanding across state lines.
Compared to Delaware and Maryland, which have higher maintenance costs and tax burdens, Virginia offers a simpler and more affordable path to compliance. While Delaware remains a go-to for larger corporations, Virginia is often the better fit for LLCs focused on local operations and cost efficiency.
North Carolina offers no state income tax for pass-through entities but has a steep $250 registration fee.
Once you have established your business with an LLC, you’ll need a business account to manage your US finances. A Wise Business account is easy to open online and comes with no monthly fees. You can convert funds from your home currency to USD with low, transparent fees.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.
Some key features of Wise Business include: |
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Open a Wise Business account online
If your LLC is expanding into Virginia, registering as a foreign LLC is a must. With a straightforward process, low fees, and access to robust markets, Virginia is a business-friendly choice for out-of-state companies.
Be sure to gather the right documents, file your registration accurately, and stay on top of your compliance obligations. Consider using a registered agent service or a legal professional to avoid costly mistakes.
Not exactly. Registering a foreign LLC in Virginia means your existing LLC, formed in another state, is getting permission to legally do business in Virginia. It does not mean forming a brand-new Virginia LLC.
If you're a non-resident of Virginia (or even of the U.S.), you can still register a foreign LLC as long as your original company is legally formed and in good standing in its home jurisdiction. This is common for businesses expanding into Virginia from other states or countries.
No, your foreign LLC does not need to maintain a physical office or storefront in Virginia. However, the state does require you to appoint a registered agent with a physical street address located within the Commonwealth. This ensures that legal documents and official correspondence can be reliably delivered during regular business hours.
No. If you transact business withouta foreign qualification, you may face penalties and lose access to Virginia courts.
Online filings through the Virginia SCC’s Clerk’s Information System (CIS) are usually processed within 1 to 3 business days, making it the fastest option. Paper filings sent by mail take longer, typically 5 to 10 business days, depending on processing volume. Delays can occur if the application is incomplete or if the required documents aren’t properly certified.
If your foreign LLC fails to file annual reports, pay the $50 annual registration fee, or maintain a valid registered agent, the Virginia State Corporation Commission may revoke your authority to do business in the state. This can lead to administrative penalties, reputational damage, and potential legal complications.
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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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