Virginia business license requirements

What is a Virginia business license?

A business license is an official document or registration that grants legal permission to operate within a jurisdiction. Most businesses require some type of general license or tax registration before they can legally begin operating. Additionally, certain licenses are required based on your specific industry or occupation.

The Commonwealth of Virginia does not have a general business license requirement at the state level. However, many cities and counties require businesses to obtain a business license known as a Business, Professional, and Occupational License (BPOL). (This license is frequently referenced using the generic terms “business license” or “business tax license”). Businesses operating in multiple jurisdictions must obtain a separate BPOL for each location. Businesses may also be responsible for paying a Business Tangible Personal Property tax in each of those locations.

Who needs a business license in Virginia?

Most Virginia businesses will need various licenses, permits, and registrations depending on their location and industry. For example, corporations, LLCs, and other business entities will need to register with the Virginia Department of Taxation and obtain a Virginia Tax business account number. Cities and counties may require businesses operating within their limits to obtain a local general business license and pay miscellaneous taxes. Additionally, if your business activities are regulated by a federal agency (such as drug manufacturing or transportation), you'll need the appropriate federal license or permit.

Keep in mind that certain changes to your business (such as opening a new location or adding a new product line) may trigger additional licensing requirements.

Below is a sample of common licensing and registration requirements for Virginia businesses.

• Secretary of State registration. LLCs and corporations must file formation documents with the Virginia State Corporation Commission to legally establish their business entity in the state.
• Federal tax ID: Also called an EIN, a federal tax ID is issued by the IRS and is included on federal tax returns filed for your business. It is also required for filing payroll taxes.
• Virginia State Tax Registration: Most businesses will need to obtain a Virginia Tax Account Number from the Virginia Department of Taxation. During the registration process, businesses will need to indicate the applicable tax type(s) (e.g., retail sales tax, use tax, employer withholding, or corporate/pass-through entity income tax).
• Fictitious name registration: If you plan to operate your business under a name other than its legal name, you will need to file online through the State Corporation Commission Clerk's Information System (CIS).
• Virginia professional or occupational licenses: Certain professions and industries require state-level licensing, such as real estate, construction, and pharmacy.
• Local general business license: Local municipalities in Virginia may require a general business license (also known as a Business, Professional, and Occupational License, or BPOL) prior to doing business in that jurisdiction. Businesses may also need to pay a Business Tangible Property Tax.
• Other local licenses and permits: Cities and counties may impose additional licensing and registration requirements on businesses, such as a certificate of occupancy, zoning permits, sign permits, and health department permits.
• Federal licenses and registrations: Federal licenses are typically required for businesses regulated by a federal agency, such as the Securities and Exchange Commission, the U.S. Department of Agriculture (USDA), and the Bureau of Alcohol, Tobacco, and Firearms. For example, food businesses that purchase or sell more than 2,000 pounds of fresh or frozen fruits and vegetables are required to obtain a USDA-issued PACA license.

How to obtain a business license in Virginia (VA)

Business license requirements and the processes for obtaining a license can vary based on your business activities and locations. Below are the general steps for obtaining a business license in Virginia.

Step 1: Research licensing requirements

Research all licensing requirements early in your business planning process for every location where you'll be operating. Check zoning requirements, as these may restrict where you can do business. Many state and local government websites provide online resources to help you identify your specific requirements.

Step 2: Register your business entity

To form a legal entity, such as a corporation or LLC, you must register it with the Virginia State Corporation Commission. Out-of-state businesses operating in Virginia must register with the Commission as a foreign business entity. All LLCs and corporations (both domestic and foreign) must designate a Virginia registered agent as part of the registration process.

Step 3: Obtain an EIN

A federal employer identification number (EIN) is issued by the IRS and is required for many businesses. An EIN is used for filing federal taxes, banking, and payments.

Step 4: Register a fictious name (optional)

Businesses or individuals operating under a fictitious name (also referred to as an assumed or “doing business as” (DBA) name) must file that name with the State Corporation Commission.

Step 5: Obtain state-level licenses, registrations, and permits

Virginia businesses are responsible for obtaining required state-level licenses, permits, and registrations. These may include Virginia Department of Taxation registration, Virginia Employment Commission registration, and industry- or occupation-related licenses and permits.

Step 6: Apply for local business licenses and permits

Most Virginia localities have Business, Professional, and Occupational License (BPOL) and Business Tangible Property Tax requirements.

The process for obtaining a local business license in Virginia varies by jurisdiction. In Henrico County, the permit center reviews and approves the zoning after a business license application and questionnaire has been submitted. The City of Norfolk, on the other hand, requires zoning approval (as well as treasurer approval) prior to completing the business license application.

You may also need local permits or certifications for zoning, building occupancy, signage, alarm systems, food preparation or sales, and home-based businesses.

Step 7: Renew/update your business license

Licenses and permits must be periodically renewed. Create a system to track renewal deadlines and ensure continuous compliance. For certain business events, you may need to update your business licenses or apply for new ones. Common events that trigger a licensing change include a change in business name, address, officer/directors, or ownership structure.

For more information, see How to get a business license.

Virginia business license FAQs

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

The timeline for obtaining a business license varies depending on the type of license, the issuing authority (federal, state, county, or city), and the application requirements. In some jurisdictions in Virginia, a local business license can be obtained in the same day. In others, the process make take several weeks, especially if inspections are required.

What are the penalties for failure to obtain a business license in Virginia?

Operating without a required license in Virginia can result in serious consequences, including fines, orders to cease operations, negative publicity, and potential criminal penalties. Violations may also delay important business activities such as mergers, acquisitions, or opening new locations.

How much does a business license in Virginia cost?

Business license costs in Virginia vary by location and industry. For the Business, Professional, and Occupational License (BPOL), jurisdictions (such as Henrico County, Virginia Beach, Fairfax County, and so on) generally set tax rates according to business classification type. The cost is calculated based on gross receipts and the rate applied to the industry classification of the business. Small businesses with low gross receipts (under $100,000) typically qualify for reduced fees.

Do independent contractors need a business license in Virginia?

Independent contractors in Virginia must obtain any required state professional licenses from the Department of Professional and Occupational Regulation (DPOR) before performing licensed work (e.g., HVAC, electrical, plumbing).

Additionally, if their gross receipts meet the local threshold (usually $10,000+), they must obtain a local business license (BPOL) and provide proof of their state license when applying.

Next steps

Obtaining a business license in Virginia involves understanding a range of requirements that vary by industry, location, and business structure. While the Commonwealth does not issue a general state-level business license, most cities and counties require a local Business, Professional, and Occupational License (BPOL), along with other possible registrations and permits.

Businesses should carefully research all applicable requirements, register their entity with the Virginia State Corporation Commission, secure necessary tax IDs, and obtain any industry-specific or local licenses. Staying compliant with renewal deadlines and updating licenses as business circumstances change is essential to avoid penalties and ensure smooth operations. For personalized guidance, consider reaching out to a business license specialist  or support.