What Is a Stock Corporation in Virginia?

General Information about Corporations in Virginia

Generally speaking, in Virginia business corporations form stock corporations and nonprofits form non-stock corporations. Stock corporations issue stock. Shareholders own stock anticipating dividends or selling stock for a profit. The Virginia Stock Corporation Act defines Corporation or Domestic Corporation as a corporation authorized by law to issue shares, irrespective of the nature of the business to be transacted. One or more persons may act as the incorporator or incorporators of a corporation. The General Assembly has power to amend or repeal all or part of this Act at any time. All domestic and foreign corporations subject to this Act shall be governed by the amendment or repeal.

A corporation in Virginia is a legal entity created by filing articles of incorporation with the Virginia State Corporation Commission. A corporation in Virginia must have at least one director. Yes, a corporation can be formed in Virginia by a single person who is both the owner and director. The Virginia State Corporation Commission requires a completed form, prepayment of fees, and verification of name availability to file articles of incorporation. Once documents are filed and fees paid, it typically takes five to seven business days to form a corporation in Virginia.

S Corporations in Virginia

An S corporation is a C corporation that has taken S corporation election with the IRS for tax advantages like pass-through taxation. To become an S corporation in Virginia, business owners must file Form 2553 with the IRS, electing S corp status. S corporations have restrictions like limits on shareholders and stock.

Historical Context: Virginia Company and Colonization

Virginia was founded as a business venture by the Virginia Company, a joint-stock company formed to bring profits to shareholders and establish an English colony. The colony was a private venture, financed and organized by the Virginia Company of London.

Purpose of Stock Corporations

What are the purposes of a stock corporation?

Differences Between Corporation and LLC in Virginia

What is the difference between a corporation and an LLC in Virginia?

Leave a Comment