If you're opening a shop, a web‑store, or any kind of venture in the Old Dominion, the first thing on most people’s to‑do list is a business license. It sounds bureaucratic, but the process is pretty straightforward once you know the basics.
Virginia requires a license for most commercial activities—retail, food service, construction, professional services, you name it. The state itself issues a general Virginia Business License through the Department of Taxation, but many cities and counties add their own permits. For example, if you plan to serve coffee in Richmond, you’ll need both the state license and a local health permit. The rule of thumb: if you’re earning money on the road, you’ll need a license somewhere.
1. Choose Your Business Structure – Whether you’re a sole proprietor, LLC, or corporation, the structure determines the forms you file. An LLC is popular because it separates personal assets from business liabilities.
2. Register Your Business Name – Do a name search on the Virginia State Corporation Commission (SCC) website to make sure the name isn’t taken. Then file the Articles of Incorporation (for corporations) or Articles of Organization (for LLCs).
3. Get a Federal EIN – The IRS gives you an Employer Identification Number for free. You’ll need it for tax filings and to open a business bank account.
4. Fill Out the State License Form – The Virginia Department of Taxation’s Business License Application (Form VAT‑605) is the core document. It asks for your EIN, legal name, address, and a description of what you’ll be doing.
5. Pay the Fee – Fees vary by county and business type, usually between $15 and $50 for the state portion. Local governments may add their own charges, so check the city or county website.
6. Submit the Paperwork – You can file online through Virginia’s online portal or mail the completed form to the Department of Taxation. Most filings are processed within 5‑7 business days.
7. Get Your License Plate / Certificate – Once approved, you’ll receive a license certificate and, if required, a metal plate to display at your storefront.
Virginia business licenses are renewed annually. The state sends a reminder in the fall, but it’s wise to mark your calendar. If you move, change your business name, or expand services, update the Department of Taxation right away—otherwise you could face penalties.
Common slip‑ups include forgetting to register for local permits, mixing up the state fee with the city fee, and not keeping the EIN handy when filling out the forms. A quick double‑check against the Virginia Tax website can save you headaches.
The Virginia Small Business Development Center (SBDC) offers free counseling. Their staff can walk you through the paperwork, answer questions about industry‑specific permits, and even help you draft a simple business plan.
Local chambers of commerce are also great for networking and getting tips on local compliance. If you’re unsure whether your specific activity needs a permit, call the city clerk’s office—you’ll get a straightforward answer in a few minutes.
Bottom line: getting a Virginia business license isn’t rocket science. Follow the steps, pay the fee, keep your info up to date, and you’ll be ready to focus on what really matters—growing your business.
Find out exactly how long it takes to get a business license in Virginia, what steps are involved, and tips for a smooth process. Real timelines and practical advice.
Read More