How to Start a Catering Business in Virginia: ABC Caterer License $1,990, $4,000 a Month Gross Sales

October 29, 2026

Catering looks simple from the outside: cook good food, deliver it on time, get paid. The paperwork is where new caterers lose time. Virginia has no single catering license. Instead, the requirements are split across several agencies. The State Corporation Commission (SCC) forms your company, your local health department permits the kitchen, your locality may levy a local business license tax, Virginia Tax collects sales tax, and the Virginia Alcoholic Beverage Control (ABC) Authority licenses you if you plan to serve alcohol. This guide covers those steps in the order you should handle them.

Disclaimer: This is informational content, not legal or tax advice. Fees and rules change. Confirm every figure with the agency named before you spend money, and consult a qualified attorney and CPA for your situation.

What You Need Before You Start

Gather these items before you file anything:

• A business name that is distinguishable from names already on file with the SCC
• A Virginia registered agent with a Virginia street address
• A base kitchen you control, or a written agreement with a shared or commissary kitchen
• A floor plan and equipment list for the health department plan review
• A menu with ingredients and major allergens listed for every standard dish
• Insurance quotes for commercial auto, general liability and product liability
• A decision on whether you will serve alcohol, because the ABC license has its own sales test
• A budget that covers the filing, permit and license fees below, plus your local license tax

Step 1: Form Your Company With the SCC

Most caterers form a Virginia limited liability company (LLC). The Articles of Organization (Form LLC1011) cost $100 and are filed through the SCC Clerk's Information System at cis.scc.virginia.gov. You can find general business guidance at the SCC business page.

Your name must include one of these: "limited company," "limited liability company," "LC," "L.C.," "LLC" or "L.L.C." If you need time to decide, you can reserve the name for $10 for 120 days. The reservation can be renewed in the 45 days before it expires.

Online filings can be expedited. Next-day service costs $50 or $100 (submit by 2:00 PM Eastern for a response by 4:00 PM the next business day). Same-day service costs $200 (submit by 10:00 AM Eastern for a response by 4:00 PM). Expedited service is online only and nonrefundable.

Virginia requires a registered agent with these traits: a Virginia resident with a Virginia street address for the registered office, available during business hours, and either a member of the Virginia State Bar or a member, manager, officer, trustee or general partner of the LLC. The LLC cannot serve as its own registered agent.

Virginia LLCs file no annual report. Instead, they pay a $50 annual registration fee to the SCC. It is due the last day of the 12th month after the month the LLC was organized, and every year after that. The SCC assesses the fee about two months ahead. A late payment adds a $25 penalty, and the LLC is canceled at the end of the third month after the due date.

If you will operate under a trade name that differs from your LLC name, file an Assumed Name Certificate with the SCC for $10. It is filed with the SCC, not the circuit court, and no newspaper publication is required.

Step 2: Secure Your Kitchen and the Health Department Permit

Food preparation needs a food permit from your local Virginia Department of Health (VDH) office. The process runs in order:

1. Plan review. Submit your plans and pay the $40 plan review fee to the local health department before you build out or set up the kitchen.
2. Permit application. Submit the permit application with its $40 fee at least 30 days before you plan to open.
3. Inspection. Pass the health inspection before you begin paid operations.

VDH's published steps describe food permits for establishments. They do not present a separate, stand-alone catering license from VDH. Ask your local health department how catering from your base kitchen is classified, and whether the event work (transport, holding, and on-site setup) needs anything beyond the kitchen permit.

Home Kitchens Do Not Work for Catering

Many people try to cater from a home kitchen first. Virginia's home-based food exemption in Va. Code 3.2-5130 C 3 covers only foods that need no time or temperature control, such as certain baked goods and dry mixes. Those foods must be sold directly to individuals for personal consumption, not for resale. Catered meals need temperature control and are sold to event hosts, so they fall outside that exemption. The limit comes from the rule's scope, not from a sales cap. Plan for a permitted kitchen from day one.

Shared and Commissary Kitchens

A shared or commissary kitchen operates under its own permit. Before you sign, ask the health department two questions. First, do you need a permit in your own name? Second, does the kitchen's permit cover your menu, your prep methods and your event deliveries? Get written quotes for kitchen time, because rates vary widely by market and equipment.

Step 3: Staff, Food Manager Certification and Allergens

Virginia has no statewide food handler card. Food establishments do need a Certified Food Protection Manager (CFPM). At least one employee with supervisory authority must hold a CFPM certificate from an ANSI-accredited program, unless an exemption under 12VAC5-421-55 B or Va. Code 35.1-25 applies. Ask your health department whether an exemption could apply to you before you assume it does.

Updated food regulations took effect September 10, 2026. They include a written major allergen disclosure requirement covering nine allergens, including sesame. For event work, build this into your menu process now. List allergens for every dish, keep the list current when recipes change, and make sure your event staff can answer allergen questions from the written information.

If you hire, plan for these labor rules:

• Minimum wage: $12.77 in 2026, $13.75 in 2027 and $15.00 in 2028.
• Workers' compensation: Required at three or more employees under Va. Code 65.2-101.
• Penalty exposure: Failing to carry required coverage can bring a penalty of up to $250 a day, capped at $50,000 under Va. Code 65.2-805.

Step 4: Check Your Local Business License (BPOL)

Virginia has no general statewide business license, and the SCC issues none. The business license you may need is the Business, Professional and Occupational License (BPOL) tax. BPOL is a local tax under Va. Code 58.1-3700 et seq., administered by each city, county or town, usually through the Commissioner of the Revenue.

BPOL is not universal. Va. Code 58.1-3704 allows a locality to levy no general license at all. Some counties have none, including Stafford, Rockingham, Bedford County, Washington County, Montgomery County, Louisa and Fluvanna. Towns can displace the county tax, so check the town and county where you operate. Localities also set their own rates and filing deadlines, so do not assume one locality's rate applies elsewhere.

Population also limits what a locality can require. A locality over 50,000 people cannot require a license for gross receipts under $100,000. A locality with 25,000 to 50,000 people cannot require one for gross receipts under $50,000. Under 25,000 people, no floor applies. Localities over 50,000 people may waive the license for gross receipts up to $200,000, but confirm that ceiling with your Commissioner of the Revenue.

Separately, counties may levy a meals tax of up to 6 percent under Va. Code 58.1-3833, and cities set their own meals tax. Check with your locality, because a meals tax is a different charge from BPOL.

Step 5: Register for Sales Tax

Catered meals are taxable prepared food. Virginia's base sales tax is 5.3% (state plus local). Some localities charge more: 6% in the regional-tax localities, 6.3% in eight localities, and 7% in the Historic Triangle (James City County, Williamsburg and York County). Groceries are taxed at 1%.

Register through Virginia Tax using the sales and use tax page. Because your kitchen and your events may sit in different localities, confirm with Virginia Tax which locality's rate applies to each event. Do not assume the rate follows the kitchen, the client or the venue until the agency confirms it. Your accountant should review how you invoice and report these sales.

Step 6: The ABC Caterer License (Only If You Serve Alcohol)

If you plan to serve alcohol, you need an ABC license. The mixed beverage caterer's license requires the following under 3VAC5-50-170:

• An established place of business
• Catering gross sales that average at least $4,000 per month
• Compliance with local sanitation, health and building rules
• All local permits

The license lets you buy spirits from ABC and wine and beer from wholesalers, then serve them on-premises at events. You must keep separate records for this activity under 3VAC5-70-90. The state annual fee is $1,990. Localities may also levy a local license tax, capped at $500 under Va. Code 4.1-231.1 and 4.1-233.1. Local fees are maximums, so confirm your locality's actual charge.

A limited caterer's license under Va. Code 4.1-206.3 costs $550 from the state, plus a local cap of $100. It permits up to 12 events a year. Choose it if your event calendar is light.

The $4,000 Monthly Sales Test Changes Your Sequence

The mixed beverage license depends on average monthly catering sales of at least $4,000. A brand-new caterer usually has no sales history, so plan the sequence. Many start with food-only events while building revenue. If you need alcohol sooner, the limited caterer's license may cover a limited number of events. Once your records show consistent sales, you can evaluate the full mixed beverage license.

Two more points matter here. The food-to-beverage ratio for caterers is set by ABC regulation, so confirm the current requirement with ABC before you plan menus. Also, ABC issues banquet licenses for one-off events at $40 per event or $300 for the year. Banquet licenses belong to event hosts, not caterers, so ask ABC which license fits your arrangement. Ask ABC for its current processing time and application fee, since those can change.

Step 7: Price Your Insurance

Get quotes for three coverages before your first booking:

• Commercial auto, if your staff or you deliver food or equipment in a vehicle used for business
• General liability, for injuries and property damage at client venues
• Product liability, for claims tied to the food you serve, including foodborne illness

Premiums vary by menu, event volume and claims history, so ask at least three brokers for written quotes. Many venues require proof of coverage before they will allow you on site.

Fee and Timeline Summary

Item	Cost	Where to confirm
LLC Articles of Organization (Form LLC1011)	$100	SCC
Expedited LLC filing (online only)	$50 or $100 next day, $200 same day	SCC
Name reservation	$10 for 120 days	SCC
LLC annual registration fee	$50 per year, no annual report	SCC
Assumed Name Certificate	$10	SCC
Health department plan review	$40	Local health department
Health department permit application	$40, filed at least 30 days before opening	Local health department
ABC mixed beverage caterer's license	$1,990 state annual fee plus local tax up to $500	ABC
ABC limited caterer's license	$550 state plus local cap of $100, up to 12 events a year	ABC
ABC banquet license	$40 per event or $300 annual	ABC
BPOL local license tax	Set locally, and some localities levy none	Commissioner of the Revenue
Sales tax	5.3% base, up to 7% in certain localities	Virginia Tax

For timing, plan at least 30 days between your health permit application and your opening date. Start the SCC filing early, because the LLC must exist before you open accounts and sign contracts in its name.

Expected Results

A complete setup may help you avoid the most common reasons caterers lose early bookings: a kitchen that cannot pass inspection, an event you cannot legally serve, or a menu that fails a client's allergy questions. These outcomes depend on your planning, your locality and your ability to keep your records current. No setup guarantees a specific revenue level or a timeline. Use the $4,000 monthly sales figure as the benchmark for the ABC license and the 30-day permit window as the minimum timing for the health permit, and check your own projections against both.

Common Mistakes to Avoid

• Cooking at home for paid catering. The home-based exemption does not cover catered meals.
• Assuming there is one Virginia catering license. Your setup involves the SCC, a health permit, BPOL, sales tax and possibly ABC.
• Assuming BPOL applies everywhere. Some localities levy none, and towns can replace county taxes.
• Charging sales tax based on where you serve. Confirm the locality rule with Virginia Tax before you invoice.
• Booking alcohol service before the ABC license is approved. Do not promise bar service until you hold the right license.
• Skipping the CFPM. A supervisory employee with a CFPM certificate is required unless an exemption applies.
• Using generic allergen lists. Build allergen disclosure into each event menu, including sesame.
• Hiring a third employee without workers' compensation. The requirement applies at three or more employees.
• Using a home-kitchen plan for a commissary rental. The shared kitchen's permit may not cover your menu.

Next Steps

1. Confirm your locality's BPOL status and meals tax with your Commissioner of the Revenue.
2. Reserve your name or file the Articles of Organization with the SCC.
3. Contact the local health department about plan review, permit classification and CFPM requirements.
4. Ask ABC whether you should start with food-only service or apply for a license now.
5. Register for sales tax with Virginia Tax and confirm the rate for events in each locality you serve.
6. Get insurance quotes and review them with a licensed broker and your CPA.

This article is informational content, not legal or tax advice. Verify each fee, deadline and requirement with the agency named before you act, and consult a qualified attorney or CPA for complex situations, including choosing a business structure and handling alcohol licensing.