To operate a business in Virginia, you’ll need to get a business license. A business license ensures your activities comply with regulations and taxes, legitimizes your operations, and helps protect you from potential fines and closure. The state of Virginia doesn’t issue a general business license. Instead, business licenses are issued by the county, city, or town where your business operates.

Below, we’ll explain how to get a business license in Virginia, the costs to expect, and the additional registration and permitting requirements to consider.

Key takeaways

• Virginia doesn’t have a state-level general business license. The county or municipality where your business operates will issue your business license.

• You’ll typically pay a business license fee that’s a percentage of your gross receipts from the previous year. New businesses pay a fee based on estimated gross receipts.

• The business license cost and filing deadline will depend on your location.

What is a business license in Virginia?

Virginia has no state-level general business license. In most cases, you’ll need to obtain a business license from the locality where you’ll have an office or physical location. However, requirements vary widely by jurisdiction.

While several Virginia counties don’t require a business license to operate, the city or town where your business is based will generally have its own licensing regulations. You might also need to register your business with the county even if there’s no official business license to apply for at that level.

In Virginia, a city’s or county’s finance department or commissioner of the revenue usually oversees business licensing. You’ll often see Virginia localities refer to a business license as a Business, Professional, and Occupational License (BPOL).

What are the types of business licenses and permits in Virginia?

There are several types of licenses and permits a new business owner in Virginia might need. The ones you’ll be required to get depend on the industry you’re in, where you’re based, and the taxes you’re required to assess. Here are the types of licenses that might be necessary:

• County, city, or town BPOL: Most businesses in Virginia need one or more locally issued business licenses to operate. Your business’s home base will determine at which level of government you must apply for a license.

• Professional or occupational license: Certain regulated professions require licensing in Virginia to operate, including architects, contractors, nail technicians, and opticians. You can find a list of regulated occupations on the website of Virginia’s Department of Professional and Occupational Regulation (DPOR).

• State retail sales tax certificate: Every business with either a physical or economic nexus in Virginia is required to register for sales tax. This includes online sellers that exceed $100,000 in Virginia gross sales or 200 transactions to customers in Virginia per year. Defined by state law as “dealers,” these businesses must register with the Virginia Department of Taxation, then collect and remit sales tax.

• Federal licenses for regulated industries: A few industries also require a federal business license or permit to operate. These include businesses related to alcohol, broadcasting, and investment advising.

How can you get a business license in Virginia?

Here’s a step-by-step guide to getting a business license in Virginia:

• Choose and register your business structure: Talk with a tax professional or lawyer to figure out the best business structure for you. Then, register your business online with the Clerk’s Information System of the Virginia State Corporation Commission. You can register as a limited liability company (LLC), corporation, limited partnership, general partnership, registered limited liability partnership, or business trust.

• Get an Employer Identification Number (EIN): Apply for an EIN online from the US Internal Revenue Service (IRS). You’ll need your business entity type, Social Security number or taxpayer ID number, and business name to apply.

• Apply for required state-level professional licenses: If your business is considered a regulated profession in Virginia, submit an application for a Virginia professional or occupational license with the DPOR.

• Obtain a local business license: Determine which of the local jurisdictions you’ll operate in require a BPOL. Start on the website of your county’s commissioner of the revenue. It’ll likely explain whether to apply for a BPOL through the county, city, or town in that jurisdiction and link to the relevant business license application. You can also search for your local government by address on Virginia.gov.

• Register to collect and pay state taxes: On the Department of Taxation’s website, register your new business with your EIN, business entity type, and North American Industry Classification System (NAICS) code. You might be required to register to pay retail sales tax, employer withholding tax, corporate income tax, or use tax if you’re going to run an online or out-of-state business with nexus in Virginia.

How much does a business license cost in Virginia?

Since Virginia business licenses must be acquired from each individual jurisdiction where your business operates, costs vary by location. Counties and municipalities in Virginia frequently refer to their individual business license fees as BPOL taxes. BPOL tax rates depend on a business’s annual sales and industry, and assessment thresholds vary by locality.

For example, in Fairfax County, you’ll pay a flat fee of up to $50.00 to get and renew your business license if your gross receipts add up to $100,000 or less per year. Once they surpass that amount, you’ll pay a percentage of your gross receipts, and the rate you pay depends on the nature of your business.

In the city of Virginia Beach, the flat rate varies from $25.00–$50.00 for businesses with gross receipts of up to $200,000. You’ll pay a percentage of gross receipts once you earn more than $200,000 in a calendar year. New businesses must estimate their gross receipts for their first year in operation and pay an estimated BPOL tax.

There’s no cost to register for a Virginia state sales tax certificate. The cost to apply for a professional license, if your industry requires one, varies widely by trade. It can cost $39.50 for auctioneers, for example, and $425 for contractors. Renewal schedules also depend on the trade, but they’re often biennial.

How can you renew a Virginia business license?

Virginia business licenses must be renewed annually. While each locality manages its own license issuance and renewal process, the details are frequently similar. Business licenses are valid from January 1–December 31 each year. Renewal applications are generally mailed to you in January and must be submitted by March 1. In some counties and municipalities, you can file a business license renewal application online.

Renewal fees are based on your business’s gross receipts from the previous calendar year. You can usually pay the fees online, by mail, or in person if your municipality requires that. If you fail to renew your license by the deadline, you’ll generally incur a 10% late fee and, potentially, interest. Operating a business in Virginia without a license can result in fines.

What are Virginia-specific considerations and common mistakes?

Getting a business license in Virginia requires significant knowledge of the local regulations in the place where your business will operate. Here are three situations that commonly lead to errors and confusion for businesses:

• Early zoning and treasurer approval: In some Virginia localities, there are obstacles to address before you can acquire a business license. In Norfolk, for example, you must first apply for a business license zoning review through the Department of Planning. This confirms you’re approved to run your business at the location you’ve chosen. You must then verify with the Norfolk city treasurer that your business doesn’t owe any delinquent taxes. Only then can you submit your business license application to the city’s commissioner of the revenue.

• Hyperlocal licensing: If your business operates in or expands to multiple locations in Virginia, you must address differing business license application rules. For example, in most of Fairfax County, the Department of Tax Administration oversees business license applications and collects fees. But the cities of Alexandria, Falls Church, and Fairfax and the towns of Clifton, Herndon, and Vienna assess their own BPOL taxes. That means you might have to get a business license at the county level in one of your business’s locations, at the city level in another, and at the town level in another.

• Estimate of gross receipts in year one: BPOL tax rates are generally tied to your gross receipts in the previous year. As a result, new Virginia businesses must estimate their gross receipts for the first year and pay estimated tax. Some localities, such as Fairfax County, require estimates for the first two years of operation. When you renew your business license, the rate you pay will be adjusted based on actual gross receipts. You might then have to pay more if the prior year’s estimate was too low.

How Stripe Atlas can help

Stripe Atlas handles everything you need to legally launch your company—incorporation, EIN, equity setup, and tax filings—so you can fundraise, open a bank account, and start accepting payments in as little as two business days, from anywhere in the world.

Join 100,000+ startups incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Get started in minutes with Atlas

The application takes under 10 minutes. You’ll choose your company structure, confirm your name is available, add up to four cofounders, set your equity split, and e-sign. Then, Atlas takes it from there, including notifying cofounders to sign their documents electronically.

Banking and payments before your EIN arrives

Atlas files your EIN application automatically after incorporation. You don’t have to wait. Atlas enables pre-EIN payments and banking so you can start accepting payments and making transactions right away. US founders with a Social Security number are typically eligible for expedited IRS processing.

Automatic 83(b) tax election filing

Atlas files your 83(b) election for you—US and non-US founders alike—with US Postal Service certified mail and tracking to reduce personal income taxes. You’ll get a signed 83(b) election and proof of filing directly in the Stripe Dashboard, with certified mail confirmation.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company—drafted by Cooley, one of the world’s leading venture capital law firms—and stores them directly in the Stripe Dashboard. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

$2,500 in Stripe credits, plus $50K+ in partner discounts

Atlas startups get $2,500 in Stripe product credits for their first year, plus $50,000+ in discounts on essential tools—Mercury, AWS, Carta, Xero, Perplexity, and more. Delaware registered agent service is also included free for your first year.

Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.

FAQs about getting a business license in Virginia