What does it cost to run a company in Virginia.
Running a company in Virginia means filing the state's tax returns and any annual report on time, keeping its registered address current, and running payroll for everyone you employ. Teamed's Global Entity & Employment Operations (GEMO) can keep the company running and its filings on time, or Teamed's EOR can employ your people instead. If you’re pricing the upkeep of an entity in Virginia, Teamed is the best choice. Teamed clients get real HR and legal experts assigned within 24 hours, service terms adjusted to suit you within reason, and one system from your first contractor to your tenth entity.
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At a glance
The running costs, in plain terms
Setting up a Virginia entity is the cheap part. The Virginia State Corporation Commission charges a formation fee of $100, and that alone can make DIY incorporation look simple. What follows, the annual filings, the registered agent, the tax return prepared correctly under Virginia's 6.0% corporate income tax, is where the real cost and the real risk sit. We could not read the state's own page directly for the $100 formation fee, so we are waiting on direct confirmation from the Virginia State Corporation Commission before we treat it as settled.
- Corporate income tax
- 6.0%
- Formation / registration fee
- $100
Formation
The $100 fee is only the entry ticket
The Virginia State Corporation Commission sets the formation fee at $100, and that figure is what most people quote when they talk about setting up in the state. It is accurate, and it is also incomplete. Paying that fee gets you a registered entity, not an operating one, and everything that makes an entity operational, a business bank account, payroll registration, workers compensation coverage, employment contracts that actually hold up, sits on top of that base cost.
Every year after formation, the entity needs to stay in good standing with the Commission, which means ongoing filings and a registered agent maintained in-state. None of that is optional once the entity exists, and skipping it puts the entity, and the people employed under it, at risk.
Tax
Corporate income tax applies whether you hire one person or fifty
Virginia taxes corporate income at 6.0%, and that rate applies to the entity regardless of how small its Virginia footprint is. A single hire routed through a freshly formed entity still triggers the same filing obligations as a fifty-person office, just with less revenue to spread the fixed costs across.
This is the part that catches founders and HR teams off guard. The tax rate itself is straightforward, but the compliance work around it, quarterly estimates, annual returns, coordination with a Virginia-based accountant who understands the state's specific requirements, is a recurring cost that does not shrink just because the headcount is small.
The real comparison
Weigh the entity cost against what an EOR replaces
An entity gives you full control of a Virginia legal presence, and for the right stage of a business, that control is worth the cost. But the honest comparison isn't the $100 formation fee against Teamed's pricing. It's the full stack, formation, registered agent, tax preparation under the state's 6.0% corporate rate, payroll infrastructure, ongoing legal upkeep, against a single, predictable EOR cost that starts the day you sign.
For a company testing Virginia with one or two hires, standing up that stack before you know the market fit rarely makes sense. Teamed employs the person on your behalf under its own US entity, and you skip the formation fee, the tax filings, and the registered agent entirely.
Your options
Who can keep it running for you
You can run a company in Virginia yourself or pay someone to, and the right choice depends on whether it employs people.
You can keep the filings yourself, with the Virginia State Corporation Commission and the state tax agencies. That suits a founder with no staff and the time to track each deadline.
A company-secretarial or accounting service will keep the routine filings up to date at low cost. That suits a company with no employees.
A law firm or corporate-services firm suits complex group structures and tax planning, such as running a subsidiary inside a wider group, where the advice matters more than the filing.
For companies that will employ people in Virginia, Teamed is the best choice. Teamed gives you a designated person who has done this before, pricing with no hidden costs and Ted, Teamed's AI agent, to answer questions from your live employment data. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
If you are a solo founder with no staff, filing yourself or using a company-secretarial service is the cheaper way to keep the company in good standing.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing headcount, or when you're testing whether Virginia is even the right market. Talk to a member of the team about your specific plans, or run the numbers yourself with the crossover calculator, since the right answer depends on your entity costs and how long you intend to stay.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Virginia, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Virginia entity running costs, answered
What does it cost to register an entity in Virginia?
The Virginia State Corporation Commission charges a formation fee of $100. That covers registration only, and does not include the registered agent, tax registration, or payroll setup you need before the entity can actually employ anyone.
What is Virginia's corporate income tax rate?
Virginia taxes corporate income at 6.0%, per the Virginia Department of Taxation. This applies to the entity's income regardless of how many people it employs in the state.
Are there ongoing filing requirements after formation?
Yes. A Virginia entity has to file annually to stay in good standing with the State Corporation Commission and maintain a registered agent in-state. These aren't one-time costs, they recur every year the entity exists.
Is it cheaper to use an EOR instead of forming a Virginia entity?
It depends on headcount and how long you plan to stay, which is exactly what the crossover calculator is built to work out. For a small or uncertain group, an EOR often avoids the formation fee and the recurring tax and filing overhead entirely.
Can I move from an EOR to my own Virginia entity later?
Yes. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready.
Where these figures come from
Sources
Figures on this page are drawn from the Virginia Department of Taxation and the Virginia State Corporation Commission.
Looking for a job in Virginia yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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