How to Get a Virginia Business License

Do you need a business license in Virginia?

Virginia doesn’t require new business owners to obtain a state license to operate there. Instead, general business licenses are issued at the local level. It’s important to contact the city, country, or town where you plan to operate to learn what licensing requirements are needed to operate your business.

But getting a general business license is often just the first step. There are many other business licenses and permits you may need to get before you can open your doors. While not a comprehensive list, the following licenses may be necessary depending on your business type.

Occupational and professional licenses

Individuals working in certain types of occupations need to obtain and maintain special licensing to practice their chosen profession—and that’s true across many different states. Examples of professionals who may need to get and renew these types of licenses include architects, contractors, cosmetologists, engineers, real estate brokers, and plumbers, to name just a few.

The Virginia Department of Professional and Occupational Regulation is an excellent resource for identifying what occupational licenses you might need and can guide you to the correct forms.

Likewise, those working in the financial or medical fields must also obtain and renew required licenses in their field. If you need to obtain or renew these types of licenses and need additional guidance, contact one of the following agencies:

• Virginia Board of Accountancy
• Virginia State Corporation Commission
• Virginia Department of Health Professionals    

Zoning and building permits

There are a number of licenses and permits you may need to get depending on your business location. Certain cities in Virginia may require you to obtain zoning approval before they will issue you a business license. And you may need a zoning permit if you plan to open a business in a location that is zoned for a different purpose. 

For example, if you plan to open a retail store in an area that is zoned for manufacturing, you may need special zoning approval to move forward. Zoning laws can vary by location, so be sure to check with your city’s zoning department to determine what special permits your business will require.

If you plan to build a new structure to house your business or you are planning to make changes to an existing building, you will also likely need to apply for one or more building permits. Depending on the scope of work being done, you may need permits to complete any electrical, gas, plumbing, and mechanical upgrades within the building.

If you’re planning to erect a sign with your business name, you’ll likely need a permit for that too. As always, you should check with the zoning department of your local government office to see which specific building permits apply to your unique situation.

Licenses by business type

Just as certain occupations require licenses, so too do businesses operating in specific industries. Many of these licenses are mandated by the federal government, but there may be separate state or local licensing requirements too.

Examples of industries that may special licensing include:

• Agriculture
• Alcoholic and tobacco sales
• Firearms sales
• Pharmaceutical manufacturing and sales
• Investment services
• Transportation

Sales tax permit

If you plan to collect sales tax on goods and services offered by your business, you’ll need to apply for a Virginia sales tax permit. This permit must be prominently displayed in your business location.

If you’re a remote seller based in Virginia with more than $100,000 in total gross receipts, you may also need to apply for a sales tax permit, however this requirement can vary depending on whether you sell only through a marketplace facilitator or if you also have direct sales. The Virginia Department of Taxation can provide guidance on the sales tax requirements that may pertain to your situation.

How to get a Virginia business license: a step-by-step guide

The process for getting business licenses in Virginia will vary widely depending on your industry, occupation, and business location. However, you can expect to follow some version of the following steps.

Step 1: Register your business

Before you can even begin to fill out any type of business license application, you need to register your business with the Virginia State Corporation Commission. The easiest way to do this is on the SCC website.

To complete your registration, you’ll need to know what business entity type—such as an LLC or sole proprietorship—you plan to register as, as well as your business name. And, you’ll also need to assign a registered agent before you can complete your registration.

Step 2: Determine which licenses you need

Because business license requirements vary so much throughout the state, it’s important to check with your city or county clerk’s office and other local departments to ensure you know exactly which licenses your business needs. You may also want to contact an attorney who is familiar with local business laws in your town, as they may be able to provide additional guidance.

You may also consider getting a business license report from LegalZoom to help make the process easier. Simply enter in relevant details about your business type and location and LegalZoom will provide you with a personalized list of the licenses and permits you need.

Step 3: File your business license application

Once you’ve completed your registration and determined which licenses you need, the final step is to fill out the appropriate forms and include them with your license fee. Depending on the licenses you’re applying for, you may be able to do this online, in person, or by mail.

Renewing your Virginia business license

Business licenses typically need to be renewed, but the frequency of the renewal can vary depending on the issuing agency or local laws. Most general business licenses are renewed annually, but professional licenses might be renewed every two years, every six months, or some other duration.

LegalZoom’s building license reports can make it easier to track when your essential business licenses need to be renewed. This can help ensure you never miss a deadline and that your business remains in good standing. 

FAQs

What should I do before getting a business license?

You need to register your business with the State Corporation Commission before you can apply for a business license. But before that, you’ll also need to perform a business entity search on the SCC Clerk’s information system.

A business entity search is a critical step you must take when opening a new business because it ensures your desired business name isn’t being used by another Virginia business. Using a business name that is the same (or extremely similar to) another business could lead the state to reject your attempts to register your business. Or, it could put you in danger of trademark infringement.

Why do I need a business license in Virginia?

Business licenses are important for a number of reasons. First, they ensure your business complies with any health and safety standards dictated by your industry, the government, your profession, and/or local zoning laws. Also, keeping your business licenses up to date can help you avoid fees or other penalties the state might impose on businesses that aren’t compliant.

How much is the Virginia business license fee?

Business license fees vary according to the type of license you’re applying for and where you’re applying for it. When it comes to general business licenses, many Virginia cities calculate the fee based on the business’s estimated gross receipts.

For example, in Portsmouth, VA, a new business will pay a fee of $0.20 per $100 in estimated gross receipts. If the business expects to do less than $100,000 in gross receipts, it can pay a flat $50 to obtain a business license.

Meanwhile, in Virginia Beach, new businesses pay a flat fee based on their estimated gross receipts. For example, businesses with gross receipts up to $25,000 will pay a license fee of $25; those with gross receipts between $25,000 and $100,000 pay $40; and those with gross receipts between $100,000 and $200,000 pay $50. The fee is capped at $50 for new businesses in their first two years of business, regardless of their gross receipts.

Contact your local government office for specifics on business licensing fees related to your industry.

How long does it take to get a business license in Virginia?

The time it takes to obtain a business license will be dictated by a number of factors such as the city or county you’re applying in and whether you’re applying in person or online. Some counties in the state allow applicants to receive their business licenses the same day, so long as they meet the application requirements and pay any applicable fees. Others may send certificates by mail within a few weeks.

Is the business license tax different from a business license fee?

Some cities and counties in Virginia refer to the business license fee as a business license tax, but these terms refer to the same thing. In most cases, your first year fee for a new business will be based on your estimated gross receipts, while your license tax for the following years will be based on your total gross receipts for the previous year. However, different cities and counties may have different rules for how the fee or tax rate is calculated, so be sure to contact your local office for more information.