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Rental property LLCs in Virginia

Yes, you can hold a Virginia rental in an LLC. You file Articles of Organization with the State Corporation Commission for $100, and every year you pay a $50 annual registration fee by the last day of the month you formed; if it is still unpaid three months after the due date, the LLC is automatically canceled. Virginia's LLC Act also allows "protected series," but a series carries the same state fees as a separate LLC. Forming the LLC doesn't move your deed, and a deed to your own LLC can be exempt from the state recordation tax if the grantors keep at least 50 percent of the profits, but you have to claim the exemption on the deed. Short-term rental rules in Arlington County and Fairfax County, and in Richmond's residential districts, are built around the operator's primary residence.

Last checked 2026-10-24. General information, not legal or tax advice.

Local rental rules come first

Statewide. A locality may inspect rentals only inside rental inspection districts it designates after findings of blight, deterioration or need of inspection (or for an individual unit it finds blighted or deteriorating); "Nothing in this section shall be construed to authorize one or more locality-wide rental inspection districts" (Va. Code § 36-105.1:1(B)). For short-term rentals (fewer than 30 consecutive days), a locality may require annual registration for a reasonable fee and fine an unregistered operator up to $500 per violation. An ordinance enacted after 2023 can't require a special exception or conditional use permit for a home the owner also lives in as a primary residence, but zoning authority stays local (§ 15.2-983(B)-(E)).

Richmond. "The short-term rental operator shall be the property owner," and in a residential zoning district the rental must be on the lot of the operator's primary residence, as shown by DMV or city registrar records. The permit costs $600 and lasts two years (city STR page; Ord. 2023-235). An LLC has no primary residence, so ask Zoning Administration whether your LLC can hold a permit before you deed a listed home to it. Council adopted a Residential Rental Inspection Program on Nov. 10, 2025 (Ord. 2025-161), but the city says the ordinance "does not itself designate any Rental Inspection Districts" and each district needs a separate Council vote. I couldn't confirm that any district exists yet.

Virginia Beach. A short-term rental (an entire dwelling rented for under 30 consecutive days) needs a zoning permit for each address, renewed annually for $500, plus annual registration with the Commissioner of the Revenue and monthly reports with the transient occupancy tax. The Planning page also requires at least $1 million in liability insurance, safety inspection reports and one off-street parking space per bedroom, and a property in the Oceanfront Resort STR Overlay District needs a City Council conditional use permit first. A homeowner who rents rooms while living in the home needs no zoning permit, only the registration.

Norfolk. A short-term rental of fewer than 30 nights needs a zoning permit and a business license. The administrative permit is free to apply for and lasts two years, but only for smaller properties (fewer than four bedrooms, enough parking, listed single-family districts); larger properties and those without enough parking usually need a Council conditional use permit, and the first costs $1080. The permit follows the owner: "If/when ownership is transferred, it is the responsibility of the new owner to obtain a Zoning Permit and Business License for Short-Term Rental use," so a deed to your LLC means new applications (city STR page).

Arlington County. A short-term rental is an "Accessory Homestay," and stays of 30 or fewer days are "only allowed in the residence you use as your primary residence (meaning you live there for at least 185 days of the year)." The host must obtain a permit, register for a business license and comply with tax obligations. Longer stays are household living, and "you do not need to live in the unit or the County" (county FAQ). The county also says businesses "renting residential property" may have additional licensing and tax requirements, so ask the Commissioner of the Revenue about a license for a long-term rental.

Fairfax County. Short-term lodging (under 30 days) needs a Zoning Administrator permit: the application fee is $285 and the permit expires after two years. The operator must "Be a permanent resident of the property hosting the short-term lodging use," meaning at least 185 days a year, and the FAQ says you can't run it at several properties you own. Use is capped at 60 nights a year (county STL page; Zoning Ordinance 4102.7.O).

Elsewhere. Rental rules are local. Newport News, for example, enacted rental inspection districts in 2016 and 2025: owners in them must get a permit, pay a $50 inspection fee in advance and hold a 1-year or 4-year rental certificate (city FAQ). Ask your city or county before the first lease.

What the LLC protects, and what it doesn't

Virginia's LLC Act says that, "Except as otherwise provided by this Code or as expressly provided in the articles of organization," no member, manager, organizer or other agent has "any personal obligation for any liabilities of a limited liability company, whether such liabilities arise in contract, tort or otherwise, solely by reason of being a member, manager, organizer or agent," whether the LLC has one member or many (Va. Code § 13.1-1019).

  • Guarantees still bind you. A personal guarantee you sign for a lender is your own promise.
  • Your own acts are yours. The protection covers liability that comes solely from being a member, manager or agent; ask a Virginia attorney about your own negligence.
  • It isn't insurance. The LLC still needs coverage that pays claims and defense costs.

One LLC, or one per property?

Separate LLCs keep one property's judgment away from the others, at $100 to file and $50 a year each, plus a registered agent for each. Virginia also lets one LLC establish "protected series." A protected series is "a person distinct from" the LLC and every other series, and "[a] debt, obligation, or other liability of a protected series is solely the debt, obligation, or liability of the protected series" (§§ 13.1-1089, 13.1-1099.7(B)). All members must approve one, and the LLC files a statement of protected series designation with the Commission (§ 13.1-1095). Each series costs $100 to designate and $50 a year (§§ 13.1-1005(1)(e), 13.1-1062(A)), so a series doesn't save state fees.

  • The wall depends on records. An asset is the series' "associated asset" only if its records name the series and describe the asset specifically enough for "a disinterested, reasonable individual" to identify it and see when and from whom it was acquired (§ 13.1-1099.2(B)). A judgment against the LLC can reach a series' non-associated assets, and the reverse, and whoever claims an asset is associated has the burden of proof (§ 13.1-1099.10(B), (D)). Skipped formalities "may be a ground to disregard" the separation between the LLC and its series (§ 13.1-1099.8(B)).
  • Ask before you rely on it. The Act's rules are about liability among the LLC, its series and their owners. Ask a Virginia attorney, your lender and your title insurer whether a series works for your property.
  • Splitting doesn't shrink your landlord duties. The landlord-tenant act counts units you own "individually or through a business entity," so a separate LLC for each house doesn't keep you under its threshold: a landlord with more than four rental dwelling units, or a stake of more than 10 percent in more than four, must give written notice of a rent increase and of nonrenewal at least 60 days before the term ends (§ 55.1-1204(K)).

More: Should you have a separate LLC for each rental property?. Other states: Tennessee · South Carolina · Georgia · all rental property LLC guides.

Form it where the property is, or register there

The simplest setup is a Virginia LLC for Virginia property. A foreign LLC "may not transact business in the Commonwealth until it obtains a certificate of registration" from the Commission (§ 13.1-1051(A)). The Act lists "Owning, without more, real or personal property" among activities that are not transacting business (§ 13.1-1059(A)(9)), but the list "is not exhaustive" and leasing isn't on it, so ask a Virginia attorney whether renting the property counts for yours.

Registration costs $100 (§ 13.1-1005(1)(b); SCC business-types page) and needs a Virginia registered agent and office plus a copy of the LLC's articles "duly authenticated" by its home state (§ 13.1-1052(B)); the SCC can't accept a certificate of existence in its place. Skipping it doesn't void your leases, but the LLC "may not maintain any action, suit, or proceeding" in a Virginia court until it registers, and each member, manager or employee who knowingly does the business without a certificate faces a penalty of $500 to $5,000 (§ 13.1-1057(A), (C), (D)). A registered foreign LLC pays the same $50 annual fee (§ 13.1-1062(A)). Separately, a "nonresident property owner," defined as a nonresident individual or group of individuals who owns and leases residential real property, must appoint a Virginia agent, name it in every lease and file the appointment with the SCC for $10 (§ 55.1-1211); ask an attorney whether that reaches an out-of-state LLC.

What it costs the state

  • Articles of Organization: $100 (Va. Code § 13.1-1005(1)(a); SCC business-types page)
  • Annual registration fee: $50, due by the last day of the twelfth month after the month the LLC was organized and each year after, so an LLC organized in March 2026 first pays by March 31, 2027 (§ 13.1-1062(A); SCC annual registration fee FAQ)
  • Late penalty: $25 added if the fee isn't paid on time (§ 13.1-1064(A); SCC FAQ)
  • Name reservation (optional): $10 (§ 13.1-1005(3)(a))
  • Foreign LLC registration: $100
  • Protected series: $100 to designate and $50 a year each
  • Reinstatement of a canceled LLC: $100 plus all unpaid fees and penalties (§ 13.1-1050.4(B))
  • Annual report: none for an LLC; the SCC says the annual report is a corporation filing
  • Entity-level income tax: only if the LLC elects it (§ 58.1-390.3)
  • EIN: free from the IRS

Compare services: LLC services compared.

Forming the LLC, in order

  1. Pick a name that contains "limited company" or "limited liability company" or an abbreviation such as "LLC" and is distinguishable from names on the Commission's records (§ 13.1-1012(A), (C)). The SCC has a name availability check.
  2. Name a Virginia registered agent and office: an individual Virginia resident who is a member or manager (or a Virginia State Bar member) whose business office is the registered office, or a company authorized to do business in Virginia (§ 13.1-1015(A)(2)). The agent receives your annual registration fee notices.
  3. File Articles of Organization with the SCC ($100): name, registered office and agent, and a principal office address that needn't be in Virginia (§ 13.1-1011(A)). The LLC exists when the Commission issues the certificate of organization (§ 13.1-1004(B)). The SCC says it keeps no record of members or managers.
  4. Write an operating agreement.
  5. Get an EIN and open the LLC's bank account.
  6. Put the LLC's name in every lease: the landlord must disclose in writing, at or before the start of the tenancy, the name and address of the person authorized to manage the premises and of an owner or a person authorized to act for the owner (§ 55.1-1216(A)).
  7. Get the city or county permits and business license, and set up Virginia sales tax reporting if you take short-term bookings directly.

Forming the LLC doesn't move your deed

Putting your rental in the LLC takes a new deed, recorded with the circuit court clerk of the county or city where the property sits (§ 17.1-227).

  • The state recordation tax is $0.25 per $100. It applies to "the consideration of the deed or ... the actual value of the property conveyed, whichever is greater," and value means the most recent property tax assessment (§ 58.1-801(A)). On a property assessed at $400,000 that is $1,000 before any exemption. A city or county may add one-third of that (§§ 58.1-814, 58.1-3800), a sale also owes a grantor's tax of $0.50 per $500 (§ 58.1-802), and Northern Virginia and Hampton Roads deeds can carry regional transportation fees (§§ 58.1-802.3, 58.1-802.5).
  • A deed to your own LLC can be exempt. The state tax doesn't apply to a deed to an LLC "when the grantors are entitled to receive not less than 50 percent of the profits and surplus" of it, provided the transfer "is not a precursor to a transfer of control of the assets of the company to avoid recordation taxes" (§ 58.1-811(A)(9)). The grantor's tax and regional fees are lifted for the same transaction (§ 58.1-811(C)(1)), and a deed back out to owners entitled to at least 50 percent is exempt on the same terms (§ 58.1-811(A)(10)). Section 58.1-811 has other exemptions, such as a deed of gift that says no consideration passed (D); which one fits your transfer is a question for your attorney and the clerk.
  • You must claim it on the deed. The clerk may reject a deed that doesn't state on its face the law "under which any exemption from recordation taxes is claimed" and on its first page the consideration and actual value (§ 17.1-223(A)); a recordation cover sheet can carry that information instead (§ 17.1-227.1). The clerk may test an exemption by "inquiry, affidavit, declaration or other extrinsic evidence," and knowingly misstating the consideration or other requested information is a Class 1 misdemeanor (§ 58.1-812(B), (C)).
  • A residential deed needs two statements. A deed on residential property with no more than four dwelling units must say on its first page which title insurance underwriter insures it (or that the preparer doesn't know) and that the owner or a Virginia-licensed attorney prepared it, with the attorney's name and Virginia State Bar number (§ 17.1-223(B)).
  • Recording costs money. The clerk's fee is $18 for 10 or fewer pages and $32 for 11 to 30 (§ 17.1-275(A)(2)), plus a $3 open-space fee where the Virginia Outdoors Foundation holds easements (§ 58.1-817). A new deed of trust in the LLC's name owes its own recordation tax, generally $0.25 per $100 secured (§ 58.1-803(A)), and the current owner must transfer security deposits and accrued interest to the new owner "at the time of the transfer of the rental property" (§ 55.1-1213).

Have a Virginia attorney prepare the deed and decide whether the exemption fits. After it records, update leases, rent payment instructions, deposits and insurance, and re-apply for any city short-term rental permit.

Check the mortgage before you transfer

Federal law lets a lender enforce a due-on-sale clause, and a transfer to an LLC isn't one of the exceptions for 1–4 unit homes (12 U.S.C. § 1701j-3(d)). Fannie Mae allows a transfer to an LLC the borrower controls for loans it acquired on or after June 1, 2016 (Fannie Mae Servicing Guide D1-4.1-02). Ask your servicer in writing.

Insurance and taxes

Tell your insurer before title moves. For federal income tax, a single-member LLC is disregarded unless it elects corporate treatment (IRS). Virginia follows suit: "A single-member LLC that is disregarded as a separate entity for federal income tax purposes will be similarly treated for Virginia income tax" (Virginia Tax Form R-1 instructions). Owners of pass-through entities owe income tax "only in their separate or individual capacities" on passed-through income, and an entity-level tax applies only if the entity elects it (§§ 58.1-390.2, 58.1-390.3).

  • Short-term rentals owe sales tax. "Booking a hotel or motel room, campground space, and other similar short-term lodgings is subject to Virginia sales tax." If a guest books with you directly, you collect it and report it on your Virginia sales tax return; if a platform takes the booking, it reports the tax on the whole transaction (Virginia Tax, Retail Sales Tax on Accommodations). Local lodging taxes are separate: Virginia Beach, for example, requires monthly reports with its transient occupancy tax payments.

Keeping each LLC in good standing

  • Pay the $50 annual registration fee by the last day of the month the LLC was organized. The SCC mails the assessment to the registered agent two months before it is due. If the fee is unpaid by the last day of the third month after the due date, the LLC's existence is canceled automatically, "[w]hether or not" the notice is mailed; an LLC organized in April owes by April 30 and is canceled if it hasn't paid by the end of July (§ 13.1-1050.2(A); SCC FAQ).
  • A canceled LLC's properties and affairs pass to its managers, or to its members if member-managed, as trustees in liquidation (§ 13.1-1050.2(C)). You can apply for reinstatement within five years with a $100 fee and all back fees and penalties, and the LLC's existence is then treated as continuous (§ 13.1-1050.4).
  • Keep the registered agent current. If the agent resigns and you don't file a statement of change within 31 days, the Commission sends notice and cancels the LLC if it isn't fixed by the end of the second month after the notice (§ 13.1-1050.2(B)).
  • Renew local permits on their own clocks: Virginia Beach annually, Richmond, Fairfax County and Norfolk's administrative permit every two years, and Newport News rental certificates after one or four years.

Before you file or transfer a property

  • Attorney: the deed, the recordation-tax exemption, the title-insurance and preparer statements, series vs. separate LLCs
  • Servicer: is the transfer allowed?
  • Insurance agent: named insured, coverage
  • CPA: income tax, sales tax and local lodging tax on short-term stays
  • City or county: inspection district, short-term rental permit and business license in the LLC's name
  • Calendar: the annual registration fee, permit renewals, lodging tax reports

Form it with Corpus

Corpus prepares and files your Articles of Organization and includes the first year of registered-agent service. The Virginia page shows the current price. Corpus isn't a law firm: the deed, the loan, taxes and city permits are separate steps.

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Sources

Last checked 2026-10-24. Corpus is not a law firm and does not provide legal or tax advice.