How Much Does a Business License Cost in Virginia?

There’s a lot to love about the Commonwealth of Virginia, so whoever came up with the promotional campaign “Virginia is for Lovers” absolutely nailed it. It’s the home of the first permanent settlement in the U.S., is considered a border between the South and the Mid-Atlantic regions, and has plenty of beautiful scenery and amazing cities. 

It’s no wonder that Virginia is consistently ranked as one of the top locations to do business. It actually held the top title for several years but recently moved to No. 4 on CNBC rankings, still not too shabby. (For the record, fourth place is the lowest it’s been in seven years.)

Economic leaders are hoping to rebound quickly and have already announced efforts to improve conditions and bring in larger employers, including Hitachi Energy and Google. It consistently ranks high for education offerings, transportation infrastructure, and general business friendliness. It also has beaches, forests, big and large cities, and more, to help quality of life. 

So if you’re interested in being part of the growth, it’s a great time to learn everything you can about starting a business in Virginia, including how much a Virginia business license cost and how the typical business license cost compares nationwide.

The good thing is that there’s no general mandatory Virginia business license for anyone wanting to do business here, but different counties and municipalities may require their own. There also may be fees for certain occupations.

In this article, we’ll provide a good overview for those eager to learn more about business license requirements Virginia asks for.  

Do you need a business license in Virginia?

Interested in doing business here? Start by visiting the BusinessOneStop page, which offers info about getting started or expanding operations. It offers info about what resources you need and what permitting is required.

Registration is free for those who want to buy and sell products in Virginia, just sign up for with the eVA Marketplace. You also are required to sign up for a business account from the Virginia Department of Taxation, it’s also free!

Although many of these basic resources don’t have a significant charge for general registration, there are various local fees that may be required for any of the cities and the 95 counties.

Businesses that offer services or products to the public may be required to display their license. Skilled professions also are required to have licenses, failure to have one could result in fines or penalties, such as someone running a cosmetology business without completing the required hours of training and receiving certification.

How much does a business license cost in Virginia?

Virginia does charge a varying amount for certain types of businesses through the State Corporation Commission.

The State Corporation Commission (SCC) generally requires annual payments for specific types of private and public businesses, including insurance, public utilities, state-chartered financial institutions, retail franchises and railroads. It also has authority over limited partnerships, corporations, Limited Liability Corporations, and Uniform Commercial Code liens.

Annual fees to the SCC vary depending on the structure, but generally, LLCs, limited partnerships, and business trusts pay $50 a year. Non-stock companies pay $25 a year. There’s a varying schedule by stock companies based on number of shares.  

Starting an LLC requires paying $10 reserve a business name and $100 to form a new LLC or Professional LLC.

Virginia’s Department of Professional and Occupational Regulation handles the requirements of licensing for professions such as cosmetologists, geologists, elevator mechanics, interior designers, and dozens of others. Each one has different costs to apply for a license and then to renew it.  

At the local level, municipalities can charge business, professional and occupational license taxes which could be a flat amount based on overall revenue. These often must be renewed annually.

Generally, the fees range from around $15 and $500. Larger companies are often asked to pay based on projected gross revenue.  

Businesses also must pay a corporate income tax, which is a flat 6%. Sales tax is also 5.3% which businesses must pay when making purchases and must collect when selling to customers. Of this tax, 1% goes to local communities.

Some communities have higher taxes, especially in areas with high tourist populations, such as Virginia Beach, Shenandoah County, Chesapeake, and Hampton Roads.  

Types of business licenses and their costs

If you’re seeking the business license requirements Virginia asks business to follow, there are a number of resources.

The Virginia Department of Taxation can provide an overview of tax rates charged by different communities.

For individuals researching details like Virginia business license cost, the next step is to contact the Commissioner of the Revenue in each county you’re interested in doing business.

For instance, Pittsylvania County, the largest county in the state, doesn’t require a license for most businesses, with the exception of four types: bondsman, dance halls, solid waste vendors, and amusement companies.

• Bondsman ($50 and approval from a Circuit Court Judge)
• Dance Halls (needs approval from City Administrator)
• Solid Waste Vendors ($50 per vehicle and needs approval from Board of Supervisors)
• Amusement (Fees vary but the Commissioner of Revenue can share more.)

While Pittsylvania County doesn’t generally charge for business licenses it does require applicants to file paperwork and be aware of taxation and zoning regulations.  

The City of Virginia Beach, the largest in the state, also encourages applicants to be familiar with local zoning regulations as well as trademarks for business names.

It has its own Commissioner of the Revenue which will examine details about business applicants to see what industry it represents and what licenses or taxation levels are needed. Most business have to pay a $50 annual fee. Some may be required to pay annual or quarterly trustee taxes.

Virginia Beach does offer a variety of incentives to encourage businesses to start or relocate, including a flat $50 license fee for the first two years if all requirements are met and gross revenue is more than $200,000. It also offers a 90% rebate of the Business, Professional and Occupational License for 15 years.

Types of businesses that require a license in Virginia

Because Virginia wants to be a business-friendly state, it welcomes all types of businesses, although each municipality can offer more regulations and business licensing requirements.  

For instance, Pittsylvania County doesn’t require licenses for most types of industries but requires additional paperwork and oversight for certain occupations, including:

• Bondsman ($50 and approval from a Circuit Court Judge)
• Dance Halls (needs approval from City Administrator)
• Solid Waste Vendors ($50 per vehicle and needs approval from Board of Supervisors)
• Amusement (Fees vary but the Commissioner of Revenue can share more.)

In addition, the state’s Department of Professional and Occupational Regulation presents a variety of standards and requirements for different industries.

For instance, within the DPOR is the Board for Barbers and Cosmetology, which licenses and provides standards for areas such as nail care, tattooing, waxing, body piercing, and more.

Licenses are required for most of these occupations and must be renewed. They also may have industry-specific requirements, such as tattoo artists who begin with apprentice status.

Renewing your business license in Virginia

In many cases, you may be required to put in a certain amount of hours or demonstrate a level of knowledge to receive a license for different occupations. But once you reach this point, you’ll have to pay to renew the license but not necessarily to demonstrate knowledge.

For instance, a lawyer must graduate from law school and pass the Virginia bar.  Lawyers still have to pay an initial license fee, a test fee, and then renewal every two years.

Other professions also have individual requirements and costs based on their industry standards.

The oversight body or municipality may also impose late fees or penalties such as suspension if a license isn’t renewed by the specific deadline. Lawyers, for instance, can face a $50 late fee.

Conclusion

If you’re excited about starting your business in Virginia, there’s plenty of support to help with questions about licensing, permitting, taxation, and more. Before diving into those steps, it’s a good idea to understand how to create an LLC in Virginia, which is often the first move for new business owners. 

The BusinessOneStop section of the state site is a good place to get answers about getting started. There is a $20 registration fee and municipalities may charge additional fees.

The Virginia Marketplace page also has contact information for each of the 95 counties.

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