Portsmouth Business License: In-Person Application, $50 Under $100,000 and $15 Zoning Clearance
Opening a business in Portsmouth, VA (population 96,777, Census 2025) means working with two city offices and making one in-person visit. Virginia has no general statewide business license, and the State Corporation Commission forms businesses but issues no license. The license you need is local: the Business, Professional and Occupational License (BPOL), a local license tax under Va. Code 58.1-3700 et seq. The Commissioner of the Revenue administers it. Before you apply, you need a zoning clearance from the Planning Department.
This guide covers the order of steps, what to bring, the rates by business type, the other city taxes to check, the home occupation and rental rules that catch new owners off guard, and the mistakes we see most often. Portsmouth's website now serves a JavaScript shell instead of readable pages, so the figures here come from archived copies of city pages. Confirm every fee, rate and date (verify) with the office named before you pay.
Step 1: Get the Zoning Business License Clearance from Planning
Start here. The clearance confirms that your business type is allowed at your address under city zoning. Request it from the Planning Department:
- Email: portsmouth.zoning@portsmouthva.gov (verify)
- Phone: 757-393-8836 (verify)
The clearance fee is $15.00, or the amount set in City Code Appendix A (verify). Here is the detail that surprises most applicants: you pay the $15 at the Commissioner of the Revenue's office, not to Planning (verify). Bring the clearance with you when you apply for the license.
Step 2: Apply in Person at the Commissioner of the Revenue
The license is issued by the Commissioner of the Revenue, Franklin D. Edmondson, at City Hall, 801 Crawford Street, Portsmouth, VA 23704. New businesses apply in person and should allow about an hour (verify). We did not find an online business license application, so plan on going to the office. Call before you go:
- 757-393-8700, 757-393-8771 and 757-393-8779 (verify)
- 757-393-8714, the number printed on the license form (verify)
- Fax: 757-393-8604 (verify)
What to Bring
- Photo ID.
- Your charter or partnership agreement, depending on how the business is organized.
- An estimate of gross receipts through December 31 (verify). Gross receipts is the total your business takes in before expenses, so estimate it honestly.
- Any permits your business type requires.
Contractors need more. Bring a copy of your state contractor license or an exemption affidavit, plus proof of workers' compensation coverage. Contractors based outside Portsmouth file a special packet, so ask the office for it before your visit (verify).
How the License Tax Is Calculated
State law sets a floor based on population. A locality over 50,000 people cannot require a license on gross receipts under $100,000, and Portsmouth falls in that group. Portsmouth's published schedule still sets a $50 minimum tax for businesses with an estimate under $100,000 (verify), so ask the Commissioner how that minimum applies to your situation. If your estimate is $100,000 or more, the tax is the rate for your business type applied to the estimate. Rates are per $100 of gross receipts unless noted:
| Business type | Rate (verify) |
|---|---|
| Finance, real estate and professional | 0.58 (verify) |
| Business, personal and repair services | 0.36 (verify) |
| Contractor | 0.16 (verify) |
| Retail | 0.20 (verify) |
| Wholesale merchant (per $100 of gross purchases) | 0.15 (verify) |
| Direct seller (class 69-000, no threshold) | 0.20 (verify) |
A worked example: a retailer with a $250,000 estimate at the 0.20 retail rate (verify) owes $500, which is $250,000 divided by $100, times 0.20. A contractor estimating $80,000 falls under the $100,000 line and pays the $50 minimum (verify).
Renewal is due March 1 (verify). A 10% penalty applies to late renewals (verify). The renewal form is CP001, dated 12/2024 (verify).
Rental Licenses, Food Trucks and Short-Term Rentals
Portsmouth has a rental license class: $12 per unit per year under class 99-000, prorated at $1 a month (verify). If you rent out property, ask the Commissioner whether your activity falls in that class. Watch the terminology, too. In BPOL law, "short-term rental" means equipment rental, not vacation lodging. Transient lodging is handled under the lodging tax listed below.
Food trucks are permitted under City Code chapter 32, article X, through Planning (verify). We could not confirm the fee or the rules, so ask Planning. The same goes for short-term rental registration. Ask Planning before you list a property, and do not assume a fee.
Other City Taxes to Check
The license is only part of the city's tax picture. Confirm each of these with the Commissioner:
- Business tangible personal property: $5.00 per $100 of assessed value (verify). Equipment is assessed at 50% of original cost for equipment acquired after 1984 (verify). Return due March 1 (verify).
- Manufacturers' machinery and tools: $3.00 per $100 (verify).
- Meals: 7.5% since January 1, 2021 (verify), due on the 20th (verify). A meal tax bond may be required (verify).
- Lodging: 8% plus $3.00 per room per night since July 1, 2019 (verify). The lodging page says transient stays are 60 days, while the rate sheet says 90 days, so confirm which window applies (verify).
- Admissions: 10% (verify).
- Cigarettes: $0.95 per pack of 20 and $1.19 per pack of 25 (verify).
- Equipment daily rental: 1% on daily rentals, with the 92-day period (verify).
- Sales tax: 6.0% total (verify): 4.3% state, 1.0% local and 0.7% regional. Register for a sales tax permit through Virginia Tax (verify).
Home Occupations
If you run a business from your house, Planning's zoning rules govern. The main limits are (verify):
- No more than two home occupations.
- No more than 25% of the structure used for the business.
- The operator must be a resident.
- No nonresident employees. Remote workers are excepted.
- No outdoor display.
- No more than two vehicles.
- No on-premises retail or wholesale sales.
Some uses are prohibited outright: vehicle repair, physicians and dentists, invasive procedures such as acupuncture, tattooing and piercing, restaurants and bars, kennels, and firearms sales. An older Commissioner page lists stricter limits, such as under 15% of the home and no clients. Planning's rules govern zoning, so confirm the current limits with Planning before you sign a lease or order signage. Sign rules appear in section 40.2-307 (verify).
Common Mistakes
- Paying the $15 to Planning. The clearance fee goes to the Commissioner of the Revenue (verify).
- Looking for a state business license. The SCC forms entities but issues none. The license is local.
- Applying before the clearance. Get Planning's clearance first, then apply.
- Relying on an old home occupation page. Use Planning's current rules, not the stricter limits on the older Commissioner page.
- Confusing rental terms. In BPOL law, "short-term rental" means equipment rental, not Airbnb-style lodging.
Checklist
- Get the Zoning Business License Clearance from Planning (757-393-8836) (verify).
- Pay the $15 clearance fee at the Commissioner of the Revenue (verify).
- Apply in person at City Hall, 801 Crawford Street, with photo ID, your charter or partnership agreement, your receipts estimate and any permits. Allow about an hour (verify).
- Pay the $50 minimum for an estimate under $100,000, or the rate on your estimate (verify).
- Renew by March 1 each year. A 10% penalty applies after that date (verify).
Where to Get Help
The Virginia Small Business Development Center network offers business advising at virginiasbdc.org. Complex entity, tax or zoning questions are worth a session with a qualified attorney or CPA.
This guide is informational only. It is not legal or tax advice. Entity choice, tax treatment and zoning questions depend on your specific facts. Consult a qualified attorney or CPA for complex situations, and confirm every figure with the Commissioner of the Revenue or Planning before you pay.