Danville VA Business License: The $100,000 Line, March 1 Deadline and 6.3% Sales Tax
Danville sets its own business license tax, and the line that matters most is $100,000 of gross receipts. A business under that line registers, reports its receipts and pays a flat $50 on the city renewal form. A business at $100,000 or more pays a rate per $100 of gross receipts that depends on its classification. Renewals and payment are due March 1. Registration and reporting are required even when the tax works out to $0.
This guide covers the Danville VA business license rules, the city's rate structure, the March 1 deadline, the Danville VA sales tax rate and the steps for a short-term rental permit. It is informational content, not legal or tax advice. Confirm every figure with the named office before you file or pay.
Virginia has no state business license
The State Corporation Commission (SCC) forms business entities and records business names, but it issues no business license. Virginia has no general statewide business license. The business license is a local tax called the Business, Professional and Occupational License (BPOL) tax, authorized under Va. Code 58.1-3700 and following. Each city or county administers its own, usually through the Commissioner of the Revenue.
Not every locality levies a general BPOL tax. Va. Code 58.1-3704 allows a locality to levy none, and several counties near Danville have no general county license. Do not assume your county or town works the same way as Danville. Check before you open.
Danville has a population of 41,647, which places it in the 25,000 to 50,000 band. State law bars a locality in that band from requiring a license on gross receipts under $50,000. Danville's $100,000 line sits above that floor.
How the $100,000 line works
If your gross receipts are under $100,000, you still register with the city and file the renewal form. The renewal form shows a flat $50. The city's web page says that $50 is waived if you file by March 1 and is $60 ($50 plus a $10 late fee) if you file after March 1.
The two city sources disagree. Call the Commissioner of the Revenue at 434-799-5145 before you file, ask which figure applies to your year, and get the answer in writing if you can.
The city pages do not state how a business that opens partway through the year is charged. Do not assume a full-year or prorated amount. Ask the Commissioner before you open.
Class rates at $100,000 or more
At $100,000 or more, the classification rate applies to gross receipts. Rates are per $100 of gross receipts.
| Classification | Rate per $100 of gross receipts |
|---|---|
| Contractor | 0.16 |
| Retail merchant | 0.20 |
| Professional, real estate and financial | 0.58 |
| Finance company | 0.20 |
| Services | 0.36 |
| Wholesale merchant | 0.15 |
| Telephone and telegraph | 0.50 (one-half of 1 percent) |
The wholesale merchant rate of 0.15 is above the statewide cap, so do not treat it as a typical rate. Confirm it with the Commissioner before you budget around it.
Here is the arithmetic for a services business with $250,000 in gross receipts. Divide receipts by 100, then multiply by the rate: 2,500 times 0.36 comes to $900. This shows the formula only. Confirm the calculation, and any exclusions that apply to your business, with the Commissioner.
Flat-fee license categories
- Itinerant vendor: $500
- Peddler: $50
- Small loans and credit unions: $50
- Mixed beverages: $200 for 50 to 100 seats, $350 for 101 to 150 seats, $500 for over 150 seats
Deadlines and payment
- Renewals and payment are due March 1.
- A yearly tax of $400 or more may be paid quarterly. The first installment is due January 31 with the renewal.
- Make checks payable to City of Danville Tax Division.
- Late payments carry the statutory penalty of 10 percent. The city's $10 late fee also applies, as shown on the city page.
- The city interest rate is not listed on the city pages. Ask the Commissioner for the current rate.
Where to file and who to call
The Commissioner of the Revenue is on the second floor of the Charles Harris Financial Building, 311 Memorial Drive, Danville, VA 24541. Mail goes to P.O. Box 480, Danville, VA 24543. The phone number is 434-799-5145, and the office is open 8:30 to 5:00 on weekdays.
The city lists Jack V. Thomson as Commissioner of the Revenue and Bryan D. Gibson as Business License Inspector. Forms are downloadable PDFs: the new application, the rate schedule and the renewal. No online license portal is known for the city, so confirm before you assume you can file online.
Zoning approval comes first
Zoning approval comes from the Planning Division before you apply for the license. The office is at 427 Patton Street, Room 207, and the phone number is 434-799-5260. A zoning clearance fee has been reported at $20. Confirm the current fee with the Planning Division before you pay it.
Business name registration with the SCC
A business that operates under a name other than its own legal name registers that assumed name with the SCC. A corporation already registered with the state does not need a separate filing for its registered name. An assumed name (DBA) is filed with the SCC for $10 under Va. Code 59.1-70, not with the circuit court. A name reservation costs $10 and holds the name for 120 days. Confirm with the SCC whether your name needs filing before you pay.
If you form an LLC, the Articles of Organization (Form LLC1011) cost $100. Virginia LLCs file no annual report. They pay a $50 annual registration fee to the SCC instead. Start at the SCC Clerk's Information System at https://cis.scc.virginia.gov/ or the SCC business page at https://www.scc.virginia.gov/businesses/.
Food businesses and food trucks
- Food businesses need a health permit. The number to call is 434-766-9828.
- Food businesses also sign up for the meals tax at the Commissioner's office.
- Virginia has no statewide food-handler card. A Certified Food Protection Manager is required in food establishments.
- Food trucks also pass a Fire Department inspection.
Food trucks must also follow Danville City Code Sec. 15-35 to 15-38. In practice, that means no parking on city streets from 2 a.m. to 7 a.m., no parking within 50 feet of a restaurant property line, no parking on streets posted over 25 mph, one parking space, and pedestrian sales only.
Alcohol, sales tax and contractors
Alcohol sales need an ABC permit. Retailers register with Virginia Tax at https://www.tax.virginia.gov/sales-and-use-tax.
Danville's sales tax rate is 6.3 percent, in effect since 2022-07-01. Food for home consumption is exempt from the extra 1 percent. The statewide base is 5.3 percent, state plus local. Virginia Tax publishes the current rate tables at https://www.tax.virginia.gov/.
If a contracting job is $1,001 or more, you need a state contractor license. The classes since 2025-07-01 are:
- Class C: over $1,000 to under $30,000
- Class B: $30,000 to under $150,000
- Class A: $150,000 or more
Class B and Class C licenses require a $5,000 bond. Class A is exempt from the bond. Workers' compensation coverage is required for three or more employees. A business with two or fewer employees signs a rejection form instead.
Short-term rentals: the Danville permit
The Short-Term Rental Permit is the city process for a property rented to short-term guests. Do not confuse it with the BPOL term. In BPOL law, short-term rental means equipment rental, not a home rented to overnight guests.
- Pay the $300 advertisement fee for the Short-Term Rental Permit.
- Letters go to property owners within 300 feet of the property.
- The permit is denied if 33 percent of neighbor feedback is negative.
- Pass a Certificate of Occupancy inspection, which costs $50.
- Obtain zoning clearance for each address.
- Obtain the city business license.
A 1 percent short-term rental tax also applies. Confirm the sequence and any current fees with the Planning Division and the Commissioner before you list the property.
Other local taxes
| Tax | Rate |
|---|---|
| Meals | 6.5 percent (3 percent vendor discount if remitted on time) |
| Lodging | 8 percent plus $3.00 per night |
| Real estate | $0.83 per $100 of assessed value |
| Personal and business personal property | $3.45 per $100 of assessed value |
| Machinery and tools | $1.50 per $100 of assessed value |
Confirm the rate basis for property taxes with the city before you budget around these figures.
Dan River region: check the neighbors
If you serve customers across the Danville line, each locality sets its own rules. Confirm each one with the office listed.
| Locality | What to confirm |
|---|---|
| Martinsville | Its own thresholds and dates. Call the city. |
| Henry County | Its own thresholds and dates. The 2026 renewals moved to April 1. |
| Halifax County | Its own thresholds and dates. Call the county. |
| Pittsylvania County | Surrounds Danville. Reported to levy no general county license, so call the county to confirm. Sales tax is 6.3 percent. |
| Patrick County | No county business license reported. The Town of Stuart licenses businesses. |
| Gretna | Has its own license. |
Before you file: checklist
- Estimate your gross receipts and identify your classification. A figure under $100,000 and one at $100,000 or more follow different rules.
- Get zoning clearance from the Planning Division at 434-799-5260.
- Register your business name with the SCC if it applies to you.
- Calendar March 1, and January 31 if you plan to pay quarterly.
- Get written confirmation of the under-$100,000 fee from the Commissioner.
When to get professional help
If you are forming an entity, holding a contractor license, running food trucks or planning a short-term rental, talk to a Virginia attorney or CPA before you file. The Virginia Small Business Development Center network at https://www.virginiasbdc.org/ can point you to local help.
Disclaimer: This guide is informational content only. It is not legal or tax advice. Rates, fees and deadlines change, and some figures here are reported rather than confirmed. Confirm every number with the Danville Commissioner of the Revenue, the SCC or Virginia Tax before you file or pay.