Obtaining a business license in Virginia is essential for legally operating your business. The agency you apply with will depend on where your business is located and what business activities it engages in. Once your application is approved, you will receive your Virginia Business License and any additional permits/licenses, allowing you to operate your business legally in Virginia. Below, we’ve detailed common ways in which your business type can dictate the licenses you’ll be required to obtain:
-
Sales Tax Certificate of Registration: If you plan to start a business in Virginia or participate in activities that might require collecting sales tax, you will need to get a sales tax certificate of registration from the Virginia Department of Taxation.
-
Financial, Insurance, and Business Licenses: Depending on your niche, you may be required to obtain additional licensing that’s specific to your industry.
VA Business License Requirements
There are seven states in which all businesses need to obtain state business licenses, in addition to any required local licenses. Virginia isn’t one of those states and doesn’t have a statewide business license requirement. To obtain a Virginia Business License, start by identifying your specific license needs, such as a sales tax certificate. Costs vary depending on the type of license or permit as well as the licensing jurisdiction.
Using dpor.virginia.gov, determine which other licenses may be applicable and submit the appropriate information to apply for those licenses.
- Apply for a sales tax permit and state tax account if engaging in the sale or rental of tangible goods. Register with the Department of Taxation to collect sales tax.
- Apply for federal licenses as necessary.
The business license application typically requires basic information such as your LLC name, EIN Number, business address, and contact information.
Local Licensing Example: Norfolk
In Norfolk, all business and professional operations must purchase a business license before starting. The cost of a business license is based on the estimated annual revenues of the business. Businesses under $100,000 will be assessed a minimum business license fee of $50. Businesses over $100,000 have a tax rate based on the type of business activities.