Virginia LLC Tax Filing: Forms, Rates & Due Dates (2026)

Q: How is a Virginia LLC taxed?

By default the IRS treats a single-member LLC as a disregarded entity (income on the owner's Schedule C) and a multi-member LLC as a partnership (Form 1065). Virginia has no separate LLC entity tax; income passes through to the members, who pay Virginia individual income tax at rates up to 5.75%. The LLC itself files Virginia Form 502 if it has more than one owner or nonresident withholding.

Q: Does a Virginia LLC file Form 502?

A multi-member LLC (taxed as a partnership) files Form 502, the Virginia Pass-Through Entity Return of Income, which is informational and reports each owner's share plus any nonresident withholding. A single-member LLC that is disregarded generally does not file Form 502 because its income is reported on the owner's individual return.

Q: When is the Virginia pass-through entity return due?

Form 502 is due the 15th day of the 4th month after the close of the taxable year - April 15 for calendar-year filers. Virginia grants an automatic 6-month extension to file, but tax and withholding are still due by the original date. Virginia individual income tax returns are due May 1.

Q: What is the Virginia PTET (Form 502PTET)?

Virginia offers an elective Pass-Through Entity Tax. An eligible LLC can elect to pay a 5.75% entity-level tax on its Virginia taxable income using Form 502PTET, and its owners claim a refundable credit. It is a workaround for the federal $10,000 state-and-local-tax (SALT) deduction cap and must be filed electronically.

Q: Does a Virginia LLC pay a franchise tax?

No. Virginia does not impose a franchise tax or a separate annual entity income tax on ordinary LLCs. The only recurring state charge to keep the LLC active is the $50 annual registration fee paid to the State Corporation Commission, which is not an income tax.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

A Virginia LLC pays no separate state entity tax. By default the IRS treats it as a pass-through - a single-member LLC files on Schedule C and a multi-member LLC files Form 1065 - while the LLC files a Virginia pass-through return, Form 502, due the 15th day of the 4th month (April 15 for calendar-year filers). Members then pay Virginia individual income tax at graduated rates up to 5.75%.

Quick Answer

Federal default: Disregarded (1 member) or partnership (2+ members); can elect S-corp or C-corp
State entity tax: None - no Virginia franchise or separate LLC income tax
State return: Form 502, Pass-Through Entity Return - due 15th day of 4th month (Apr 15)
Owner tax: Virginia individual income tax, graduated up to 5.75%
Elective PTET: Form 502PTET - optional 5.75% entity-level tax (SALT-cap workaround)
Sales tax: Register with Virginia Tax (Form R-1) if selling taxable goods; 5.3%+ rate

How a Virginia LLC Is Taxed: The Basics

An LLC is not a tax classification of its own - it is a legal entity created under state law whose tax treatment is layered on top. In Virginia there are two layers to understand: how the federal government (the IRS) classifies your LLC, and how Virginia taxes the income that flows out of it. The good news for most owners is that Virginia imposes no franchise tax and no separate entity-level income tax on an ordinary LLC. Instead, profits pass through to the members, who report them on their own returns. The only recurring state charge to keep the entity alive is the $50 annual registration fee to the State Corporation Commission - see Virginia annual registration - which is a maintenance fee, not an income tax.

This page walks through federal classification, the Virginia pass-through entity return (Form 502), individual income tax on the income, the elective pass-through entity tax, sales tax, and employer obligations. For the national framework, see business tax and how to file business taxes.

Federal Default Classification

The IRS applies "check-the-box" rules to LLCs. Unless you elect otherwise, the default classification depends on how many members the LLC has:

Single-member LLC - treated as a disregarded entity. The LLC is ignored for federal income tax and the owner reports business profit or loss on Schedule C of their Form 1040. See single-member LLC.
Multi-member LLC - treated as a partnership. The LLC files an informational federal return, Form 1065, and issues each member a Schedule K-1 showing their share of income, which they report on their personal return.

Either way, the business itself usually pays no federal income tax at the default level - the income is taxed to the owners. Owners who actively work in the business generally owe self-employment tax on their share and may need to make quarterly estimated tax payments. Your Virginia classification follows the federal one.

Electing S-Corp or C-Corp Status

An LLC can change its federal tax treatment by election. Filing IRS Form 2553 elects S-corporation status; filing Form 8832 elects C-corporation treatment. Many profitable owner-operated LLCs elect S-corp status to split income between salary and distributions and reduce self-employment tax - weigh the tradeoffs in S-corp vs LLC and LLC vs S-corp tax. An S-corp files federal Form 1120-S; a C-corp files Form 1120. For Virginia, an S-corp is still a pass-through entity and files Form 502, while a C-corp instead files the Virginia corporation income tax return (Form 500) and pays Virginia's 6% corporate income tax. Election changes your forms and deadlines, so confirm the effect before you file Form 2553.

The Virginia Pass-Through Entity Return (Form 502)

Virginia requires most pass-through entities that do business in the state or derive Virginia income to file Form 502, the Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax, with Virginia Tax (the Department of Taxation). A multi-member LLC taxed as a partnership, and an LLC taxed as an S-corporation, file Form 502. It is largely an informational return: it reports the entity's Virginia-source income and each owner's distributive share, and it reconciles any nonresident withholding.

A single-member LLC that is disregarded generally does not file Form 502, because the LLC is ignored and its income is reported directly on the owner's individual return. Form 502 is due the 15th day of the 4th month after the close of the taxable year - April 15 for calendar-year filers. Virginia grants an automatic 6-month extension to file (to November 15 for calendar-year filers), but the extension does not extend the time to pay any withholding or tax due. Pass-through returns are generally filed electronically through Virginia Tax's business online services.

Virginia Individual Income Tax on LLC Income

Because the LLC is a pass-through, the members ultimately pay the tax on their own Virginia individual income tax returns. Virginia's individual income tax is graduated, with a top marginal rate of 5.75% that applies to Virginia taxable income above $17,000. Lower brackets of 2%, 3%, and 5% apply below that. Each member includes their share of the LLC's income on their Virginia return. Note that Virginia's individual income tax return is due May 1 (not April 15) for calendar-year filers, with an automatic extension to file until November 1. Members who expect to owe should plan for estimated payments during the year.

The Elective Pass-Through Entity Tax (Form 502PTET)

Virginia offers an elective Pass-Through Entity Tax (PTET) that lets an eligible LLC pay Virginia income tax at the entity level so that the deduction is not limited by the federal $10,000 state-and-local-tax (SALT) cap. An electing entity pays a 5.75% tax on its Virginia taxable income using Form 502PTET, and its owners claim a refundable credit for their share of the tax paid. The election is annual and must be made on a timely filed Form 502PTET, which is filed electronically. Whether the PTET benefits your members depends on their situation, so review Virginia Tax's PTET guidance and consult a tax professional. The PTET does not replace the informational Form 502 obligations in every case.

Virginia Sales and Use Tax

If your LLC sells or leases taxable goods or certain services, you must register with Virginia Tax for a Certificate of Registration before making sales. Registration is free using Form R-1 or the online business portal. The general state retail sales and use tax rate is 5.3%, with an additional regional tax in Northern Virginia, Hampton Roads, and certain other areas producing combined rates of 6% or 7%. You collect the tax from customers and remit it on a monthly or quarterly schedule assigned by Virginia Tax. Sales tax is separate from income tax; for the licensing side of registration see business license in Virginia.

Employer Withholding and Other Taxes

If your LLC has employees, you must register for and remit Virginia employer income tax withholding and pay Virginia unemployment insurance tax through the Virginia Employment Commission, in addition to federal payroll taxes and an EIN. Multi-member LLCs and LLCs with nonresident owners may also owe nonresident withholding: a pass-through entity generally must withhold and remit Virginia income tax on the Virginia-source income allocable to nonresident owners, reported on Form 502, unless it files a unified (composite) return or makes the PTET election. Keep your EIN and Virginia tax accounts current so filings match.

Key Virginia LLC Tax Forms and Due Dates (2026)

Filing	Form	Who files	Due (calendar year)
Federal single-member LLC	Schedule C (Form 1040)	1-member LLC (disregarded)	April 15
Federal partnership return	Form 1065	Multi-member LLC	March 15
Federal S-corp return	Form 1120-S	LLC electing S-corp	March 15
Virginia pass-through return	Form 502	Multi-member / S-corp LLC	April 15 (auto 6-mo extension)
Virginia elective PTET	Form 502PTET	Electing LLC	April 15 (e-file only)
Virginia individual return	Form 760	Members	May 1
Virginia sales & use tax	Form ST-9	LLC selling taxable goods	Monthly/quarterly (20th)

Verify the exact dates each year with Virginia Tax and the IRS, especially when a due date falls on a weekend or holiday. For the cost of keeping the entity itself registered, see Virginia LLC cost.

Frequently Asked Questions

How is a Virginia LLC taxed?

By default a single-member LLC is disregarded (income on Schedule C) and a multi-member LLC is a partnership (Form 1065). Virginia has no separate LLC entity tax; income passes through and members pay Virginia income tax up to 5.75%. See business tax.

Does a Virginia LLC file Form 502?

A multi-member LLC or an LLC taxed as an S-corp files Form 502, the Virginia Pass-Through Entity Return. A disregarded single-member LLC generally does not, because its income is on the owner's individual return.

When is the Virginia pass-through entity return due?

Form 502 is due the 15th day of the 4th month after year-end - April 15 for calendar-year filers - with an automatic 6-month extension to file. Virginia individual returns are due May 1.

What is the Virginia PTET?

An elective entity-level tax: the LLC pays 5.75% on its Virginia taxable income using Form 502PTET and owners claim a refundable credit. It is a workaround for the federal SALT deduction cap and must be e-filed.

Does a Virginia LLC pay a franchise tax?

No. Virginia imposes no franchise tax on ordinary LLCs. The only recurring state charge is the $50 annual registration fee to the SCC, which is not an income tax.

Sources

IRS - Limited Liability Company (LLC) (default classification; check-the-box).
IRS - Single-Member Limited Liability Companies (disregarded entity; Schedule C).
IRS - Partnerships (Form 1065; Schedule K-1).
IRS - About Form 2553, Election by a Small Business Corporation (S-corp election).
IRS - S Corporations (Form 1120-S).
Virginia Tax - Pass-Through Entities (Form 502; who must file; due date).
Virginia Tax - Elective Pass-Through Entity Tax (PTET) (Form 502PTET; 5.75%; refundable credit).
Virginia Tax - Virginia Income Tax Rates (graduated to 5.75% over $17,000).
Virginia Tax - When to File (individual returns due May 1; automatic extension).
Virginia Tax - Retail Sales and Use Tax (5.3% general rate; regional add-ons).
Virginia Tax - Register a Business (Form R-1; Certificate of Registration).
Virginia Tax - Corporation Income Tax (6% Virginia corporate rate; Form 500).
Code of Virginia - § 58.1-390.1, Definitions (pass-through entities and owners).
Code of Virginia - § 58.1-320, Imposition of individual income tax.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Tax rates, forms, thresholds, and due dates change; verify current requirements with the IRS and Virginia Tax, and consult a CPA or enrolled agent about your specific situation before acting.