--- title: "Virginia Entity Running Costs and Filings" description: "What it actually costs to keep a Virginia entity compliant, from formation fees to corporate tax, and how Teamed's EOR compares." canonical: https://www.teamed.global/country-hiring-guides/united-states/virginia/entity-running-costs-and-filings --- ![Virginia business district.](/cluster-assets/country-hiring-guides/united-states/virginia/entity-running-costs-and-filings/images/hero.webp) # What does it cost to runa company in Virginia. Virginia charges a $100 formation fee and taxes corporate income at 6.0%, but ongoing filings and registered-agent costs add up fast. Teamed skips all of it. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Virginia guide 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. Corporate income tax6.0% 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 Virginia entity, and you skip the formation fee, the tax filings, and the registered agent entirely. 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 salaries 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 salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In Virginia, that means we handle the formation with the State Corporation Commission, get the entity registered for the 6.0% corporate income tax, set up the registered agent and payroll infrastructure, and only then move your employees across, with contracts and records intact. We call it Global Entity and Employment Operations, which we call GEMO, and we run it the same way across 100+ countries, so the handover is a known process, not a one-off project. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Virginia 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 GEMO service sets up the entity, migrates your employees in, and hands it back to you fully operational, so you're not starting the formation and tax registration process from scratch when the time comes. Where these figures come from ## Sources Figures on this page are drawn from the Virginia Department of Taxation and the Virginia State Corporation Commission. ## More on entities in Virginia - [Hiring in Virginia, overview](/country-hiring-guides/united-states/virginia)parent - [Virginia setting up](/country-hiring-guides/united-states/virginia/entity-setup)sibling - [Virginia tax presence](/country-hiring-guides/united-states/virginia/permanent-establishment-risk)sibling - [Virginia entity or eor](/country-hiring-guides/united-states/virginia/eor-vs-entity)sibling - [Virginia moving from an eor](/country-hiring-guides/united-states/virginia/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Virginia](https://www.teamed.global/contact?from=entity-running-costs-and-filings)CTA