Henrico County VA Business License and BPOL Guide: No Tax Up to $1,000,000, Application and March 1 Renewal
Henrico County requires every business to obtain a business license before it operates. If your gross receipts are $1,000,000 or less, you still file the application, but you owe no license tax. Above $1,000,000, the county charges a Business, Professional and Occupational License (BPOL) tax based on gross receipts, and the license renews every year with a March 1 filing deadline. Henrico has no merchants' capital tax.
This guide covers who needs a license, how the $1,000,000 line works, how to apply, and what to file by March 1. It is informational content, not legal or tax advice. Confirm your numbers with the Henrico Business Section, and consult a qualified CPA or attorney for complex situations.
Virginia has no state business license, but localities can levy BPOL
Virginia does not issue a general statewide business license. The State Corporation Commission (SCC) forms entities such as LLCs and corporations and issues no business license. The business license is a local tax. The Business, Professional and Occupational License (BPOL) tax is authorized under Va. Code 58.1-3700 et seq. and is administered by each city or county.
Not every Virginia locality levies a general BPOL tax. Va. Code 58.1-3704 allows a locality to levy none, and some counties have no general license at all. Henrico does levy one. Henrico's local code is found at Henrico Code Sec. 20-350 through 20-821. Regulated trades and professions may also need a license from a state board, such as DPOR, the Department of Health Professions, VDACS or ABC.
The $1,000,000 line: application required, tax not owed
Henrico's county summary describes the exemption as gross receipts "less than $1,000,000," while its rate list says "$1,000,000 or less." Read together, a business with gross receipts up to $1,000,000 must apply for a license but pays no license tax. If your receipts are right at the line, confirm with the Business Section before you file.
Once gross receipts exceed $1,000,000, the county's rates apply. The figures below are the county's published rates, per $100 of gross receipts unless noted.
| Business type (above $1,000,000) | Henrico rate |
|---|---|
| Retail merchant | 0.20, or $30, whichever is greater |
| Professional service | 0.20, or $30, whichever is greater |
| Contractor, contract basis | 0.15, or $30, whichever is greater |
| Contractor, fee basis | Printed on the county page as "$1.50 per $100." This looks like a typo for 0.15, so confirm with the county before you rely on either figure. |
| Utilities, including cellular | One-half of 1 percent, or $30, whichever is greater |
Wholesale merchants are taxed on purchases, not receipts. The first $1,000,000 of purchases is excluded. The county's wholesale schedule is:
| Purchases | Tax |
|---|---|
| First $10,000 | $25 flat |
| $10,001 to $5 million | 0.20 per $100 |
| $5 million to $15 million | 0.15 per $100 |
| $15 million to $25 million | 0.10 per $100 |
| $25 million to $50 million | 0.05 per $100 |
| $50 million to $100 million | 0.025 per $100 |
| Over $100 million | 0.0125 per $100 |
The county's text applies the rate to gross receipts and describes no deduction for wholesalers. If your wholesale business is near the line, ask the Business Section how the tax is computed before you file.
What the threshold means in dollars: a $800,000 professional services firm
Consider a professional services firm with $800,000 in gross receipts, using 2026 rates:
- Henrico: $0 in license tax. The firm files the application only.
- Chesterfield: about $500. Chesterfield's 2026 deduction is $550,000, and the rate applies at 0.20 per $100 to the $250,000 above it.
- Richmond: $4,640. Richmond's threshold is $500,000 from 2026, and above it the rate applies to all receipts.
Local rules change, so treat these as a 2026 snapshot and confirm current figures with each locality before you budget for the tax.
How to apply for a Henrico business license
Henrico's license is issued through the Department of Finance, Revenue Division, Business Section. Do not look for a Commissioner of the Revenue office in Henrico. You have two ways to apply:
- Online: Complete the New Business License Application at henrico.gov, plus the Business License Questionnaire (Side A or Side B, depending on your business).
- In person: Visit the Western Government Center, 4301 E. Parham Road, Room 136, or the Eastern Government Center, 3820 Nine Mile Road.
Contact numbers: the Business Section is 804-501-4310, and the Finance main number is 804-501-4729. The Permit Center, which handles zoning review, is 804-501-7280. The county page does not list a business email address, so use the phone numbers or the online application.
Timing matters. The county says you must have the license before you operate, so do not wait until your first day of sales to apply. The Permit Center reviews zoning after the application is submitted. A license usually takes a few days and can take up to two weeks. Plan around that window.
The Business Tax Filing and Payment Portal at businesstax.henrico.gov is for businesses that already have an account. A new business applies through the application above.
Contractors, home-based businesses and special permits
Contractors submit proof of workers' compensation coverage on Form 61A, along with their state contractor license number. If you do not hold a state license, use the Contractor Affidavit. Since July 1, 2025, Virginia contractor license classes are Class C for contracts over $1,000 to under $30,000, Class B for $30,000 to under $150,000, and Class A for $150,000 or more. Confirm your class with DPOR.
Home-based businesses answer the home-based section of the questionnaire, which asks about work done at the home office. Henrico does not charge a separate home occupation permit before the license.
Mobile food units need each operating location approved by the Permit Center, with the property owner's written consent.
Massage parlors and adult businesses need separate permits in addition to the business license.
Renewal: the March 1 deadline
Henrico business licenses expire December 31. The renewal must be filed by March 1. If you file late, a 10 percent filing penalty applies.
Payment works differently depending on the amount assessed:
- Assessments under $200, and peddlers: pay by March 1. Late payment carries a 10 percent penalty, plus 10 percent annual interest starting March 2.
- Assessments of $200 or more: you may pay half by March 1 and half by June 15.
- Extension: the county can grant an extension for reasonable cause, but the request must be granted on or before March 1.
If your estimate was wrong, correct it with the county's Prior Year Adjustment form. Appeals of an assessment go to the Director of Finance under Henrico Code 20-377.
Calendar reminder: the business personal property return is due March 1, not May 1. The tax itself is due June 5 and December 5.
Other Henrico taxes to plan for
The license is only one part of your local tax picture. Henrico also levies these taxes, as stated on the county page:
- Business personal property: $3.35 per $100 of assessed value. The return is due March 1.
- Machinery and tools: $0.30 per $100.
- Data center equipment: $2.60 per $100.
- Biotech equipment: $0.90 per $100.
- Meals tax: 4 percent.
- Lodging tax: 8 percent. The county states this includes the 2 percent Tourism Improvement District fee charged by hotels with 41 or more rooms.
- Sales tax: 6.0 percent, of which 1.0 percent is local and 0.7 percent is the Central Virginia regional tax.
For state-level sales tax registration and filing, use the Virginia Department of Taxation (Virginia Tax) at tax.virginia.gov. Note that BPOL law defines short-term rental as equipment rental, not short-term lodging rental such as an Airbnb.
Where to confirm your numbers
Before you file or budget, confirm these items directly with the named agency:
- Your exact gross receipts position relative to $1,000,000, and how wholesale or fee-basis contractor tax is computed: Henrico Business Section, 804-501-4310.
- Zoning review and permit questions: Permit Center, 804-501-7280.
- Your entity filing fees and registered agent rules: the SCC at scc.virginia.gov/businesses. An LLC pays a $50 annual registration fee to the SCC and files no annual report. The LLC articles cost $100, and an assumed name certificate costs $10.
Disclaimer: This guide is informational content, not legal or tax advice. Local rates, thresholds and deadlines can change, and the county's published figures control. Consult a qualified CPA or attorney before making decisions about your entity, tax position or licensing.