Virginia Business License: No State License, the Local BPOL License and State Agency Permits
Virginia has no general state business license. The State Corporation Commission (SCC) forms businesses and issues no license. The license most owners need is local: the Business, Professional and Occupational License (BPOL) tax, issued by the city or county Commissioner of the Revenue or finance office. Not every locality levies a general BPOL license, though. Some levy none at all, so the first question is whether yours does. See which Virginia localities have no business license tax.
If you are wondering how to get a business license in Virginia, the answer has three layers: a local license where one applies, state agency licenses if your trade is regulated, and state registrations such as SCC filings and a sales tax account. This guide covers each layer, the timing and the costs. It is general information, not legal or tax advice.
Need help with formation?
You can file with the SCC yourself through its online system, or use a service. We may earn a commission if you buy through these links.
Northwest Registered Agent
A registered agent service for entities that need a Virginia agent with a Virginia street address. Ask about renewal pricing before you sign up, because it is an ongoing cost on top of SCC fees.
BetterLegal
An online formation and filing service. It charges its own fee on top of the state filing fee, so compare the total with filing directly at the SCC portal.
The three layers of Virginia business licensing
Most owners deal with the first and last layers. The middle layer applies only if your trade or activity is regulated.
- Local BPOL license. Issued by the city, county or town where the locality levies one. Covered in the sections below.
- State occupational and agency licenses. Each is issued by a state agency and has its own page on this site:
- Contractors and tradesmen: Department of Professional and Occupational Regulation (DPOR). Contractor classes are covered below.
- Child day centers and family day homes: Department of Education.
- Assisted living and adult day care: Department of Social Services.
- Private security: Department of Criminal Justice Services (DCJS).
- Alcohol sales or service: Virginia ABC.
- Food businesses: Virginia Department of Health (VDH) or the Virginia Department of Agriculture and Consumer Services (VDACS). Virginia has no statewide food-handler card rule, but food establishments must have a Certified Food Protection Manager.
- State registrations, which are not licenses. An SCC filing forms your entity but does not license your business. A sales tax account with Virginia Tax is a separate step if you sell taxable goods or services. The base sales tax rate (state plus local) is 5.3 percent, and some localities charge more. Read the sales tax registration and rates guide.
Two things people often look for do not exist at the state level: a general state business license and a state towing board.
Do I need a business license in Virginia?
You probably need a local license if your business is in a locality that levies a BPOL tax, and you may need a state agency license if your trade is regulated. Whether a general local license applies depends on your locality, which is why you should confirm it with the Commissioner of the Revenue or finance office before you open.
Which locality licenses your business
The locality that licenses you depends on where you do business, not only where you sell.
- A business with a definite place of business is licensed in that locality. Each place of business needs its own license, and each business needs its own license.
- A seller with no definite place of business is licensed where the owner lives. This covers many home-based and online sellers (Va. Code 58.1-3703.1(A)(1)).
- Towns. When a town taxes the same activity, the town license replaces the county license (Va. Code 58.1-3711). Businesses inside a town deal with the town for the license, but still register for business personal property with the county.
- Contractors working in another locality owe that locality a license only when their business there exceeds $25,000 in a year (Va. Code 58.1-3715).
When to apply for a business license in Virginia
Apply before you start doing business. If you were licensed the year before, the license is due by March 1. A locality may set a later date, up to May 1. Localities set their own deadlines, so confirm yours with the Commissioner of the Revenue or finance office.
Under state law, a late filing or late payment carries a penalty of 10 percent. If both the filing and the payment are late, only the late filing penalty applies.
Virginia business license cost
Your locality may charge nothing, a small flat fee, or a rate per $100 of gross receipts, and the amount may depend on how large your business is. There is no single statewide price, so do not rely on a rate from a neighboring county. These rules apply in every locality:
- State law caps the license fee at $50 in a locality with more than 25,000 people and at $30 in a smaller locality (Va. Code 58.1-3703(A)).
- A locality with more than 50,000 people cannot require a license on gross receipts under $100,000. For a locality with 25,000 to 50,000 people, the floor is $50,000. Below 25,000 people, no statutory floor applies.
- Localities with more than 50,000 people may waive the license for smaller businesses up to a receipts ceiling. Confirm the current ceiling with your Commissioner of the Revenue.
- A license fee cannot be charged on receipts that a license tax already covers.
State law also sets maximum rates, which are ceilings, not the rates your locality charges. Your locality sets its actual rate, and it may be lower.
| Business category | State ceiling |
|---|---|
| Contracting | 0.16 per $100 of gross receipts |
| Retail | 0.20 per $100 of gross receipts |
| Financial, real estate and professional services | 0.58 per $100 of gross receipts |
| Repair, personal, business services and all other | 0.36 per $100 of gross receipts |
| Wholesale | 0.05 of purchases |
For the rate your locality actually charges, start with how BPOL tax works by locality and the local guides. The locality guides on this site cover Fairfax County, Loudoun County, Prince William County, Spotsylvania County, Stafford County, Arlington, Alexandria, Manassas and Fredericksburg.
Contractor licensing with DPOR
If you do contracting work, DPOR licensing applies on top of any local license. Since 2025-07-01, the DPOR license classes are:
- Class C: over $1,000 to under $30,000
- Class B: $30,000 to under $150,000
- Class A: $150,000 or more
Twelve-month totals also count toward these classes, so check with DPOR how your projects are measured before you bid. Unlicensed contracting is a Class 1 misdemeanor under Va. Code 54.1-1115, and it carries a fine of up to $500 per day. For the full requirements, read the DPOR contractor license guide.
Forming your entity and filing with the SCC
SCC filings are not business licenses, but most owners file them at the same time as their licenses. File online through the SCC Clerk's Information System at cis.scc.virginia.gov. The costs are:
- LLC Articles of Organization (Form LLC1011): $100. Online expedited service is available for next day ($50 or $100) or same day ($200). Expedited service is nonrefundable.
- Corporation Articles of Incorporation (Form SCC619): $75.
- LLC annual registration fee: $50. A Virginia LLC files no annual report. The fee is due the last day of the 12th month after the month the LLC was organized, then every year. A late payment adds a $25 penalty, and the LLC is canceled at the end of the third month after the due date.
- Corporation annual report and fee: based on authorized shares, at $100 for up to 5,000 shares plus $30 for each additional 5,000 shares. Check the SCC annual fee schedule for the current figures.
- Name reservation: $10 for 120 days.
- Assumed name (DBA): $10, filed with the SCC, not the circuit court. There is no newspaper publication.
A Virginia entity must keep a registered agent who is a Virginia resident with a Virginia street address, available during business hours. The agent must also be a Virginia State Bar member or a member, manager, officer, trustee or general partner of the entity. An entity cannot serve as its own agent.
Apply for a business license in Virginia: the steps
- Identify your activity and check whether a state agency license applies, such as DPOR, DCJS, Virginia ABC, the Department of Education, the Department of Social Services, VDH or VDACS.
- Contact the Commissioner of the Revenue or finance office in each place you operate. Ask whether a general BPOL license applies, what the fee or rate is, and what the deadline is.
- If you are forming an entity, file with the SCC at cis.scc.virginia.gov.
- Open a sales tax account with Virginia Tax at tax.virginia.gov if you sell taxable goods or services.
- File the local license application and pay the fee before you open.
Frequently asked questions
Do I need a license for a home business?
Possibly. If your locality levies a BPOL tax and you have no definite place of business, you are licensed where you live (Va. Code 58.1-3703.1(A)(1)). Whether your home office counts as a definite place of business is a question for your Commissioner of the Revenue. Home businesses can also face zoning rules from your county or city, which are separate from licensing.
Do I need one if I sell online?
Online sellers with no definite place of business are licensed where the owner lives, so the rule works the same way as for a home business. Online sales can also require a sales tax account with Virginia Tax, which is a separate step. Confirm both with the agencies that handle them.
Does an LLC need a state license?
No. An LLC needs no state business license. It forms with the SCC for $100, pays a $50 annual registration fee and files no annual report. The LLC still needs the local BPOL license where one applies, plus any state agency license its trade requires. SCC registration is not a license.
What if my county has none?
Some localities levy no general license. Stafford County, Rockingham County, Bedford County, Washington County, Montgomery County, Louisa County and Fluvanna County are examples of counties without a general county license. Check the list of localities with no business license tax and confirm with your Commissioner of the Revenue. Two caveats apply. A town inside your county may levy its own license, and state agency licenses apply no matter what your locality does.
Get the answer for your situation
This guide is informational, not legal or tax advice. Licensing depends on your locality, your trade and your entity type. For complex situations, such as several locations, a contractor working across localities or a regulated trade, consult a qualified attorney or CPA. The Virginia Small Business Development Center network can also help you work through the steps.