A sole proprietorship is the simplest business form to create in Virginia. To start, you can use your Social Security Number as your business tax ID. You report your profits and losses. Even if you aren’t required to register your business, registering an LLC comes with legal and financial benefits.
Steps to Establish a Sole Proprietorship in Virginia
- Choose a business name.
- File a fictitious name with the State Corporation Commission (SCC).
- Apply for licenses, permits, and zoning clearance.
- Obtain an employer identification number (EIN).
Most businesses will need to register with the Virginia Department of Taxation to receive a tax account number. Visit their website to learn about business taxes, find forms, view services, and more.
While sole proprietors don’t have to register with Virginia, check local rules. Virginia Beach requires all businesses, even home-based ones, to file a business license application.
Sole proprietors without employees can use the owner’s Social Security Number as their EIN. Getting an EIN only takes a few minutes and is free. Most businesses need one.