How to Get a Business License in Virginia

Starting a business in Virginia is an exciting step toward economic independence and community contribution. However, before you open your doors, serve your first customer, or sign your first contract, one critical legal requirement must be addressed: obtaining a business license. Unlike some states where a single statewide license suffices, Virginia’s business licensing system is decentralized—meaning requirements vary significantly by locality. Understanding how to navigate this system is essential to operating legally, avoiding fines, and building long-term credibility with customers, vendors, and financial institutions.

This guide provides a comprehensive, step-by-step roadmap to securing the necessary business licenses and permits in Virginia. Whether you’re launching a home-based consulting firm, opening a retail store in Richmond, or operating a food truck in Norfolk, this tutorial covers the full scope of licensing obligations, best practices, essential tools, real-world examples, and answers to frequently asked questions. By the end, you’ll have a clear, actionable plan to comply with Virginia’s business licensing regulations and position your venture for sustainable growth.

Step-by-Step Guide

Step 1: Determine Your Business Structure

Before applying for any license, you must formally establish your business structure. The type of entity you choose—sole proprietorship, partnership, limited liability company (LLC), or corporation—impacts your tax obligations, liability exposure, and licensing requirements. In Virginia, registering your business structure is typically handled through the State Corporation Commission (SCC), which serves as the central registry for all business entities.

If you’re forming an LLC or corporation, you must file Articles of Organization or Articles of Incorporation with the SCC. This can be done online through the SCC’s Electronic Filing System. Sole proprietors and general partnerships are not required to register with the state unless they plan to operate under a fictitious name (also known as a “doing business as” or DBA name). In that case, you must file a Fictitious Business Name Certificate with the circuit court in the county or city where your business is located.

Choosing the right structure affects your licensing process. For example, corporations and LLCs may need to provide documentation of their legal formation when applying for certain professional licenses or permits. Sole proprietors may be subject to fewer state-level filings but still must comply with local licensing rules.

Step 2: Register for a Federal Employer Identification Number (EIN)

Even if you don’t plan to hire employees, obtaining an EIN from the Internal Revenue Service (IRS) is strongly recommended. An EIN is a unique nine-digit number used to identify your business for tax purposes. It’s required to open a business bank account, apply for business licenses, file taxes, and hire employees.

You can apply for an EIN for free directly through the IRS website. The process is entirely online and typically takes less than 15 minutes. Once submitted, your EIN is issued immediately. Keep your EIN confirmation letter in a secure location—many local jurisdictions will request it when you apply for a business license.

Important: Sole proprietors without employees may use their Social Security Number (SSN) for tax purposes, but using an EIN enhances privacy and professionalism. It also prevents the need to share personal identifying information with local government offices.

Step 3: Research Local Licensing Requirements

This is the most critical—and often most confusing—step in the process. Virginia does not issue a single statewide business license. Instead, each city, county, and town has its own licensing authority and rules. What’s required in Fairfax County may differ entirely from what’s needed in Roanoke or Charlottesville.

To find your local requirements:

• Visit the official website of your city or county government.
• Search for “business license,” “business tax,” or “business registration.”
• Look for a department named “Office of the Treasurer,” “Department of Finance,” “Business Licensing,” or “Revenue.”

For example:

• In Virginia Beach, businesses must register with the Department of Finance and pay an annual business license tax based on gross receipts.
• In Arlington County, all businesses must obtain a business license, and certain professions (e.g., contractors, salons) require additional occupational licenses.
• In Charlottesville, home-based businesses must comply with zoning regulations and may need a home occupation permit in addition to a general business license.

Some localities offer online business license applications, while others require in-person or mail-in submissions. Always confirm the most current requirements, as regulations can change annually.

Step 4: Apply for a General Business License

Once you’ve identified your local licensing authority, complete the application. Most jurisdictions require the following information:

• Business name and legal structure
• Physical and mailing addresses
• Owner(s) name(s) and contact information
• EIN or SSN
• Description of business activities
• Estimated annual gross receipts
• Start date of operations

Some localities charge a flat fee, while others base fees on projected revenue. For example, a small home-based business with under $10,000 in annual gross receipts may pay as little as $50, while a retail store generating over $500,000 could pay several hundred dollars annually.

Applications can often be submitted online, by mail, or in person. Some cities, like Alexandria and Richmond, offer streamlined online portals where you can upload documents, pay fees, and track your application status. Always retain a copy of your submitted application and payment receipt.

Step 5: Obtain Required Professional or Occupational Licenses

In addition to a general business license, certain industries in Virginia require state-issued professional or occupational licenses. These are regulated by specific state boards and are non-negotiable for legal operation.

Common examples include:

• Contractors: Must be licensed by the Virginia Department of Professional and Occupational Regulation (DPOR). Requirements vary by trade (e.g., electrical, plumbing, general contracting) and include passing an exam, providing proof of insurance, and paying fees.
• Real Estate Agents: Licensed through DPOR’s Real Estate Board. Must complete pre-licensing education and pass a state exam.
• Daycare Providers: Regulated by the Virginia Department of Social Services. Requires background checks, facility inspections, and staff training.
• Restaurants and Food Establishments: Must obtain a food service permit from the Virginia Department of Health. This includes passing a health inspection and ensuring staff hold food handler certifications.
• Beauty Salons and Barber Shops: Licensed by DPOR’s Board of Barbers and Cosmetology. Requires facility inspections and licensed practitioners.

Visit the DPOR website (dpor.virginia.gov) to search for your profession and view licensing requirements. Many applications can be completed online, and fees are typically paid directly to the state agency.

Step 6: Secure Zoning and Land Use Permits

Where you operate your business matters as much as what you do. Every city and county in Virginia has zoning ordinances that dictate what types of businesses can operate in specific areas (residential, commercial, industrial).

If you’re operating from a commercial property, confirm your lease or ownership aligns with the permitted use. If you’re running a home-based business, check whether your locality allows it and under what conditions. For example, some jurisdictions limit signage, customer traffic, parking, or noise levels for home businesses.

Apply for a zoning compliance certificate or home occupation permit if required. This often involves submitting a site plan, paying a small fee, and sometimes attending a zoning board meeting. Failure to comply can result in fines or forced closure, even if you hold a valid business license.

Step 7: Register for State and Local Taxes

Virginia requires businesses to register for various taxes depending on their activities. The Virginia Department of Taxation manages these registrations.

Key registrations include:

• Sales and Use Tax: Required if you sell tangible goods or certain services (e.g., repair, installation). Apply online via the Virginia Department of Taxation website. You’ll receive a sales tax permit and a taxpayer identification number.
• Employer Withholding Tax: Mandatory if you hire employees. Register through the Department of Taxation’s employer portal.
• Business, Professional, and Occupational License (BPOL) Tax: This is the local tax assessed by cities and counties in lieu of a traditional business license fee. It’s based on gross receipts and is collected annually. Your local treasurer’s office will notify you if you owe BPOL tax.

Failure to register for required taxes can result in penalties, interest, and even suspension of your business license. Always file on time—even if you have no sales or income in a given period.

Step 8: Obtain Necessary Insurance and Bonds

While not always a licensing requirement, certain types of insurance and bonds are legally mandated for specific businesses in Virginia.

• Workers’ Compensation Insurance: Required if you have three or more employees. Can be obtained through private insurers or the Virginia Workers’ Compensation Commission.
• General Liability Insurance: Often required by landlords, clients, or local governments, especially for contractors, event planners, or service providers.
• Professional Liability Insurance (Errors & Omissions): Recommended for consultants, accountants, and other professionals.
• Contractor Bonds: Required by DPOR for licensed contractors. The bond amount varies by license type and project size.
• Alcohol Licenses: If you plan to sell alcohol, you must obtain a license from the Virginia Alcoholic Beverage Control Authority (ABC). This involves background checks, public notice, and fees.

Always verify with your local authority whether insurance or bonding is a prerequisite for your license application. Many jurisdictions require proof of insurance before issuing a license.

Step 9: Renew and Maintain Your Licenses

Business licenses in Virginia are not one-time registrations. Most local licenses expire annually and must be renewed. Some professional licenses (e.g., contractors, cosmetologists) require renewal every one to two years, along with continuing education credits.

Set calendar reminders for renewal dates. Many localities send courtesy notices, but relying on them is risky. Failure to renew can result in late fees, license suspension, or even revocation.

Also, update your license information promptly if you change your business address, ownership, name, or scope of operations. Many jurisdictions require notification within 30 days of a material change.

Step 10: Keep Records and Stay Compliant

Organize all licensing documents in a dedicated file—physical or digital. Include:

• Business registration documents (SCC filings)
• Business license certificates
• Professional license credentials
• Tax registration confirmations
• Insurance policies and bond certificates
• Zoning approvals
• Renewal receipts and correspondence

Regularly review changes in local ordinances and state regulations. Subscribe to newsletters from your city/county government and the Virginia Department of Taxation. Compliance isn’t a one-time task—it’s an ongoing responsibility.

Best Practices

Start Early and Plan Ahead

Don’t wait until your grand opening to begin the licensing process. Many applications, especially for professional licenses or alcohol permits, take weeks or even months to process. Begin at least 60–90 days before you plan to open. This gives you time to correct errors, gather documentation, and address any unexpected delays.

Verify All Information Before Submitting

Errors in business names, addresses, or EINs are the most common reasons for application rejections. Double-check every detail against your official documents. Use the exact legal name registered with the SCC. Even minor typos can delay approval.

Use Official Government Sources Only

Third-party websites may offer “business license services” for a fee. These are often unnecessary and can mislead you into paying for services you can complete yourself for free. Always rely on .gov websites: the State Corporation Commission, Virginia Department of Taxation, DPOR, and your local government portals.

Keep a Licensing Checklist

Create a master checklist that includes all state and local requirements specific to your business type and location. Update it as you complete each step. This ensures nothing slips through the cracks and provides a clear audit trail for future renewals or inspections.

Understand the Difference Between Licenses and Permits

A business license grants you the right to operate generally. Permits are often activity-specific: building permits, health permits, signage permits, or event permits. You may need both. Don’t assume a business license covers everything.

Consult a Professional if Unsure

If your business involves complex regulations—such as healthcare, alcohol sales, construction, or childcare—consider consulting a business attorney or accountant familiar with Virginia law. The upfront cost can save you from costly violations later.

Document Everything

Keep digital and physical copies of every form, receipt, approval letter, and email. Store them in a secure, accessible location. In the event of an audit, inspection, or dispute, organized records are your best defense.

Stay Informed About Regulatory Changes

Virginia’s business laws evolve. New ordinances may be passed, fees may increase, or new compliance requirements may emerge. Subscribe to updates from your local government and the Virginia Department of Taxation. Join your local chamber of commerce—they often provide compliance alerts and workshops.

Tools and Resources

Virginia State Corporation Commission (SCC)

scc.virginia.gov

The SCC is the central hub for registering your business entity (LLC, corporation, etc.). Use their online filing system to submit Articles of Organization or Incorporation, file annual reports, and search existing business names.

Virginia Department of Taxation

tax.virginia.gov

Register for sales tax, employer withholding, and BPOL tax. Access forms, tax calculators, and filing schedules. The site includes a business tax guide tailored to different industries.

Department of Professional and Occupational Regulation (DPOR)

dpor.virginia.gov

Search for licensing requirements by profession. Apply for contractor, real estate, cosmetology, or healthcare licenses. View exam schedules, continuing education requirements, and disciplinary records.

Virginia Department of Health (VDH)

vdh.virginia.gov

Food service permits, daycare licensing, and health inspections are managed here. Find inspection checklists and training resources for food handlers.

Virginia Alcoholic Beverage Control Authority (ABC)

abc.virginia.gov

Apply for beer, wine, and liquor licenses. Review zoning restrictions for alcohol sales and understand public notice requirements.

Virginia Small Business Development Center (SBDC)

vbsbdc.org

Free, confidential business advising. SBDC consultants help with licensing, financing, marketing, and compliance. They offer workshops across the state and can connect you with local resources.

Local Government Websites

Each city and county has its own business licensing portal. Examples:

• Richmond: richmondgov.com/treasurer
• Arlington: arlingtonva.us/business
• Virginia Beach: vbgov.com/government/departments/finance/business-licensing
• Chesapeake: chesapeake.gov/business

Bookmark your locality’s official site. Avoid unofficial third-party portals that may charge unnecessary fees.

Business License Compliance Software

For businesses with multiple locations or complex licensing needs, consider tools like:

• LicenseLogix – Tracks license expirations and renewal deadlines.
• ComplianceQuest – Helps manage regulatory documentation and audit readiness.
• GovDocs – Aggregates local, state, and federal compliance requirements.

These tools are especially useful for multi-location businesses or franchises but may be overkill for sole proprietors.

Real Examples

Example 1: Home-Based Consulting Business in Fairfax County

Sarah runs a freelance marketing consulting business from her home in Fairfax County. She operates as a sole proprietor under her legal name, so she doesn’t need to file a DBA. She obtained her EIN from the IRS and registered for Virginia sales tax because she sells digital marketing services to out-of-state clients (which may trigger economic nexus).

She applied for her business license through the Fairfax County Treasurer’s Office online portal. Since she works from home, she also submitted a Home Occupation Permit application, which required a signed affidavit confirming no external signage, no customer traffic, and no employees. Her license was approved within 10 business days. She set a calendar reminder for annual renewal and keeps all documentation in a cloud-based folder.

Example 2: Restaurant Opening in Alexandria

Carlos plans to open a small Italian restaurant in Old Town Alexandria. He formed an LLC through the SCC and obtained an EIN. He applied for a general business license from the City of Alexandria, which required proof of zoning compliance and a fire safety inspection.

He also applied for a food service permit from the Virginia Department of Health, completed ServSafe training for himself and his staff, and submitted floor plans for kitchen layout approval. Because he planned to serve alcohol, he applied for a restaurant liquor license through the ABC Authority, which involved a 30-day public notice period and a $1,200 fee.

He hired a licensed contractor to install commercial-grade ventilation and plumbing, which required building permits. His total licensing and permitting process took 14 weeks. He now keeps all licenses displayed prominently in the restaurant and renews them annually.

Example 3: General Contractor in Roanoke

Mark is a licensed general contractor operating in Roanoke. He first obtained his state contractor’s license from DPOR, which required passing an exam, submitting $50,000 in surety bonds, and providing proof of $500,000 in general liability insurance.

He then applied for a local business license through the Roanoke City Treasurer’s Office. His application required his DPOR license number, EIN, and proof of workers’ compensation coverage (he has four employees). He also registered for the BPOL tax based on his projected annual revenue.

Each time he takes on a new project, he must pull a building permit from the city’s Department of Planning and Zoning. He uses a digital calendar to track all license and bond renewals, which occur every two years. He also subscribes to DPOR’s regulatory updates to ensure he remains compliant with new safety codes.

FAQs

Do I need a business license if I work from home in Virginia?

Yes. Even if you operate a home-based business, you are generally required to obtain a local business license. Some cities may offer a simplified application or reduced fee, but exemption is rare. You may also need a home occupation permit to comply with zoning rules.

How much does a business license cost in Virginia?

Costs vary widely. Most localities charge between $50 and $500 annually, based on projected gross receipts. Professional licenses (e.g., contractors, real estate agents) can cost $100–$1,000+ depending on the profession and scope. Sales tax registration is free.

Can I operate a business in Virginia without a license?

No. Operating without a required business license is illegal and can result in fines, closure orders, and legal action. Even if your business is small or home-based, local laws still apply.

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

Processing times vary. Simple general licenses can be approved in 1–2 weeks. Professional licenses, alcohol permits, or those requiring inspections may take 4–12 weeks. Always apply well in advance of your planned start date.

Do I need a separate license for each city where I do business?

Yes. If you operate in multiple cities or counties, you must obtain a business license in each jurisdiction where you have a physical presence or generate taxable revenue. Remote sales may trigger economic nexus rules, requiring registration for sales tax even without a physical location.

Is a business license the same as an EIN?

No. An EIN is a federal tax ID issued by the IRS. A business license is a local or state permit allowing you to operate legally. You need both.

What happens if I don’t renew my business license?

You may face late fees, suspension of your license, or revocation. Some jurisdictions impose daily penalties. You may also be barred from renewing until all outstanding fees and penalties are paid.

Can I transfer my business license to a new owner?

No. Business licenses are not transferable. If ownership changes, the new owner must apply for a new license under their name and entity structure.

Do online businesses need a Virginia business license?

Yes—if you have a physical presence in Virginia (e.g., warehouse, office, home-based operation) or meet economic nexus thresholds (e.g., over $100,000 in sales or 200+ transactions to Virginia customers), you must register for sales tax and obtain a local business license where you’re based.

Where can I get help if I’m confused about licensing?

Contact your local government’s business licensing office directly. You can also visit a Virginia Small Business Development Center (SBDC) for free, personalized guidance. Avoid paid consultants unless you have complex legal needs.

Conclusion

Obtaining a business license in Virginia is not a single task—it’s a series of coordinated steps that require attention to detail, timely action, and ongoing compliance. From choosing the right legal structure and registering with the state to navigating local ordinances and securing professional permits, each phase builds the foundation for a legitimate, credible, and sustainable business.

While the process may seem overwhelming at first, breaking it down into manageable steps—as outlined in this guide—makes it entirely achievable. Use the official tools and resources provided by the state and your locality. Stay organized, keep records, and renew on time. The effort you invest upfront will protect your business from costly penalties, build trust with customers, and position you for long-term success.

Virginia offers a dynamic environment for entrepreneurs. By ensuring full compliance with licensing regulations, you’re not just following the law—you’re demonstrating professionalism, responsibility, and commitment to your community. Now that you have the roadmap, take the next step with confidence. Your business license isn’t just a piece of paper; it’s the official seal of your legitimacy in the marketplace.