The Complete Guide to Virginia Business Licenses
Virginia does not issue a general state business license, but most localities require a Business, Professional and Occupational License (BPOL). Add state tax registration and any professional license, and you have the full picture for a new Virginia business.
Step 1: Form the LLC
File Articles of Organization with the State Corporation Commission for $100. Instead of an annual report, Virginia LLCs pay a $50 annual registration fee by the end of their anniversary month — an LLC that leaves it unpaid is automatically canceled. See the Virginia LLC guide for every formation step.
Step 2: Local BPOL license
Most Virginia cities, counties and towns require a BPOL license, issued by the local Commissioner of the Revenue or business license office. Virginia law caps what small businesses pay:
- License fee: at most $50 in localities with more than 25,000 people, and at most $30 in smaller ones.
- Gross-receipts tax: localities with more than 50,000 people cannot charge the BPOL tax (beyond the fee) on businesses under $100,000 in gross receipts — $50,000 for localities of 25,000–50,000 — and larger localities may waive licensing entirely up to $200,000.
- Above those thresholds, the tax is a percentage of gross receipts that varies by locality and business category.
Apply before you open and renew every year, usually by March 1.
Step 3: Register with Virginia Tax
New Virginia businesses register online with Virginia Tax for retail sales and use tax and employer withholding. Use your sales tax number on resale certificates when buying inventory — see our resale certificate guide. Employers also register with the Virginia Employment Commission for unemployment insurance.
Step 4: Professional and contractor licenses (DPOR)
The Department of Professional and Occupational Regulation (DPOR) licenses contractors, electricians, plumbers, real estate professionals, cosmetologists and many other occupations. Health professions are licensed by the Department of Health Professions, and alcohol sales by Virginia ABC.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | State Corporation Commission | $100; $50 annual registration fee |
| BPOL license | Local Commissioner of the Revenue | Fee capped at $30–$50; tax above thresholds |
| Sales tax and withholding | Virginia Tax | Online registration |
| Professional or contractor license | DPOR | Varies |
Frequently Asked Questions
Does Virginia require a business license?
Virginia has no general state business license, but most cities, counties and towns require a local BPOL license, and regulated professions are licensed by DPOR.
How much is a BPOL license in Virginia?
State law caps the license fee at $50 in localities over 25,000 people and $30 in smaller ones. The gross-receipts tax only applies above $100,000 in receipts in localities over 50,000 people ($50,000 in mid-sized ones).
When do I renew my Virginia BPOL license?
BPOL licenses are renewed every year, usually by March 1. Check your locality for its exact deadline.
How much does it cost to form an LLC in Virginia?
The Articles of Organization cost $100, and the annual registration fee is $50.
Does a Virginia LLC need a business license?
Most do. Forming the LLC registers the company, and the LLC then needs a local BPOL license, state tax registration and any DPOR license its work requires.