Richmond VA Business License: $30 Up to $500,000, Full Tax Above It, and the RVA Business Portal
Richmond licenses every business at each location, and the cost turns on gross receipts. Receipts of $5,000 or less owe $0 plus any flat fees that apply to your activity. Receipts from $5,001 to $500,000 owe a $30 license. Above $500,000, the rate for your business type applies to all of your gross receipts, not only the amount over $500,000. That $500,000 line is a cliff, not a deduction. It replaced the old $250,000 threshold for the 2026 license year under Ordinance 2024-187, effective January 1, 2026.
This guide covers the 2026 rates, who issues the license, deadlines and penalties, how renewals work through the RVA Business Portal, and the other city taxes that often come up at the same time. It is informational only and is not legal or tax advice.
What you pay: the three receipt bands
| Gross receipts | Richmond BPOL license cost |
|---|---|
| $5,000 or less | $0, plus any flat fees that apply to your activity |
| $5,001 to $500,000 | $30 |
| Above $500,000 | Rate per $100 of gross receipts, applied to all receipts (see the rate table below) |
Two points trip people up. First, a business in the $5,001 to $500,000 band still needs its license. The $30 is the cost, not an exemption. Second, the top-band rate is charged on every dollar of receipts, so a change of one dollar across the $500,000 line can move a bill from $30 to several thousand dollars.
Richmond BPOL rates by business type
These are the 2026 rates, expressed per $100 of gross receipts.
| Business type | Rate |
|---|---|
| Professional service | 0.58 per $100 of gross receipts |
| Personal service | 0.36 per $100 of gross receipts |
| Repair service | 0.36 per $100 of gross receipts |
| Restaurant | 0.36 per $100 of gross receipts |
| Retail merchant | 0.20 per $100 of gross receipts |
| Contractor | 0.19 per $100 of gross receipts |
| Wholesale merchant | 0.22 per $100 of purchases |
The wholesale rate is measured on purchases, not sales. It also sits above the statewide cap, so do not treat it as a typical wholesale rate. Confirm with the Business Unit how it classifies your activity before you file.
Some activities carry flat fees instead of, or in addition to, the rate calculation:
- Beer and wine: $75
- Mixed beverages: $200 for 1 to 100 seats, $350 for 101 to 150 seats, and $500 for more than 150 seats
- Itinerant merchant: $500
- Peddlers and sidewalk vendors: $300
Each location and each activity is licensed separately. A business with more than one activity may elect to apply the higher applicable rate to all of its receipts. Model both options before you choose a classification, because the election can cost more than the separate calculations.
Worked examples at 2026 rates
The math is simple. Divide gross receipts by 100, then multiply by the rate for your business type.
- A professional firm with $500,000 in receipts pays $30.
- The same firm at $500,001 owes 0.58 per $100 on every dollar, about $2,900.
- At $800,000 in receipts, the firm owes $4,640 ($8,000 times 0.58).
- A retail shop with $600,000 in receipts owes $1,200 ($6,000 times 0.20).
For comparison, the $800,000 professional firm would owe about $500 in Chesterfield and $0 in Henrico. Each locality sets its own rates and filing rules, so check the neighboring jurisdiction before you choose where to operate.
Who issues the license
The Richmond business license is issued by the Department of Finance, Revenue Administration, Business Unit. It is not issued by a Commissioner of the Revenue. You can visit the first-floor service counter at City Hall, 900 E. Broad Street, or call 804-646-7000, or dial 311.
Deadlines, penalties and when to apply
Apply before you open. The city's tax page says a new business must obtain the license within 30 days of opening. The city's application checklist says the license is needed before you begin, and a 10 percent penalty applies if it is not obtained within a month. Treat the earlier requirement as your deadline.
For licenses you already hold, the key dates and charges are:
- Renewal and tax are due March 1. If March 1 falls on a weekend, the deadline moves to the next workday.
- Licenses expire December 31.
- Late payment carries a penalty of 10 percent or $10, whichever is greater.
- Interest accrues at 10 percent a year.
- Installment payments are not available.
New businesses estimate gross receipts through December 31 and then true up to actual receipts. That true-up can mean additional tax or a refund. No license is issued until all city taxes are paid and your filings are current.
Renewing your Richmond business license
Renewals are filed online through the RVA Business Portal at rvapay.rva.gov/BPP, which launched in January 2025. The city does not issue paper renewal forms. Do not look for a generic payment portal at rva.gov, because renewals go through the RVA Business Portal.
Before March 1, confirm your gross receipts for the prior year, make sure any city taxes are paid, and keep a record of your confirmation. The portal is the fastest way to see whether your filings are current, which is the condition for issuing the license.
New applications: what to prepare
Start with zoning, because the Business Unit expects to see it with your application. Work through these steps in order:
- Zoning approval. Obtain a Certificate of Zoning Compliance through the city's Online Permit Portal. A home occupation costs $50. A short-term rental certificate costs $600 and is valid for two years, but confirm current requirements with Zoning Administration at 804-646-6340. Restaurants and day nurseries need a certificate of occupancy instead.
- Trade name. If you will operate under a name other than your legal name, register it with the State Corporation Commission (SCC) for $10. Assumed names are filed with the SCC, not with the circuit court. You can search existing entity names at https://cis.scc.virginia.gov/.
- Entity documents. An LLC files Articles of Organization (Form LLC1011) for $100 and then pays a $50 annual registration fee to the SCC. It files no annual report. Confirm the filing requirements for other entity types on the SCC site at https://www.scc.virginia.gov/businesses/.
- Application. Complete the New Business License Checklist and Application and submit it at the Business Unit counter. Bring a photo ID, your EIN or SSN, the SCC documents if you are an entity, and your zoning certificate.
Requirements that depend on your business
- Restaurants need a health permit. Virginia has no statewide food handler card rule, but food establishments are required to have a Certified Food Protection Manager.
- Alcohol sellers need an ABC license in addition to the city license.
- Contractors need Virginia contractor registration for jobs of $1,000 or more, along with proof of workers' compensation coverage. Since July 1, 2025, Virginia contractor license classes are Class C for work 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 with the Department of Professional and Occupational Regulation (DPOR) which class applies to you.
- Out-of-city contractors that perform more than $25,000 of Richmond work in a calendar year must report that work and be licensed.
- Sidewalk vendors need liability insurance that names the city as co-insured.
- Nonprofits register with proof of 501(c)(3) status.
- Short-term rentals that are lodging need a business license as well as the zoning certificate. In BPOL law, "short-term rental" means equipment rental, not vacation lodging, so check which meaning applies to your situation.
New-to-Richmond incentive
City Code 26-874 gives relief to a qualifying business that opened in Richmond within the last two years. Such a business may have its BPOL tax exempted or refunded for two years, paying only the $30 license. The incentive excludes peddlers, itinerant merchants, contractors, mergers, name changes and related businesses. Apply through RVA 311 with the New Business Incentive Application.
Other city taxes that often apply
- Business personal property tax: $3.70 per $100 of assessed value. The return is due March 1, and the tax is due June 5.
- Machinery and tools: $2.30 per $100 of assessed value.
- Meals tax: 7.5 percent, due on the 20th of each month.
- Lodging tax: 8 percent. Short-term rentals are also taxed at 8 percent, and booking platforms collect that tax. A short-term rental also needs a business license.
- Sales tax: 6.0 percent, made up of 4.3 percent state, 1.0 percent local and 0.7 percent Central Virginia regional. Sales tax permits come from Virginia Tax at https://www.tax.virginia.gov/, and details are at https://www.tax.virginia.gov/sales-and-use-tax.
Virginia context: there is no state business license
Virginia has no general statewide business license. The SCC forms entities but issues no business license. Richmond's license is a local Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 et seq. Not every locality levies a general license, and Va. Code 58.1-3704 allows a locality to levy none. A business that moves from Richmond to a neighboring county may therefore face different rules and rates. Regulated trades and professions are also licensed by state boards, such as DPOR, the Department of Health Professions, VDACS and ABC.
Checklist before you open or renew
- Estimate your gross receipts and identify the rate category for each activity.
- Obtain zoning approval or a certificate of occupancy.
- Register any trade name with the SCC for $10.
- Gather your photo ID, EIN or SSN, and SCC documents.
- Apply at the Business Unit counter, or renew in the RVA Business Portal, before March 1.
- Calendar March 1 for renewal and tax, and December 31 for license expiration.
This guide is informational only and is not legal or tax advice. Rates, thresholds and deadlines change, so confirm current figures with the Richmond Department of Finance, Business Unit (804-646-7000 or 311) and with the SCC. For complex situations, such as multiple locations, entity structuring or disputes over classification, consult a qualified attorney or CPA.