How to Start a Business in Richmond, Virginia

To start a business in Richmond, Virginia, you’ll need to register your LLC or corporation with the Virginia State Corporation Commission (VSCC) and pay the state filing fees. From there, you’ll need to fulfill a series of local and county requirements, including obtaining any necessary business licenses or permits, registering with the Virginia Department of Taxation, and applying for a Certificate of Occupancy.

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Guide to Starting a Business in Richmond, Virginia

When you’re ready to start your Richmond, Virginia business, you’ll need to complete the following tasks:

1. File your initial formation documents
2. Get an EIN (Employer Identification Number)
3. Register your business with the Virginia Department of Taxation
4. Apply for a Business, Professional, and Occupational License (BPOL) Tax
5. Obtain Business Licenses or Permits

1. File your Initial Formation Documents

The first step to starting your business in Richmond, Virginia, is to file your initial formation paperwork with the Virginia State Corporation Commission (VSCC) and pay the necessary filing fees.

2. Get an EIN (Employer Identification Number)

You will need an Employer Identification Number (EIN) before you can register with the Virginia Department of Taxation. An EIN is a nine-digit number the IRS uses to identify your business for tax purposes. If you don’t already have one, you can apply for an EIN with the IRS. There is no filing fee.

Note: Our How to Start a Business in Virginia page provides more detailed information about EINs and how we can assist you.

3. Register with the Virginia Department of Taxation

You will need to register your business with the Virginia Department of Taxation if any of the following are true:

1. Your business sells taxable goods (i.e., clothing, electronics, restaurant food & drink)
2. You provide lodging accommodations such as hotels, bed & breakfasts, or campgrounds.
3. You offer taxable services (ex, auto repairs, dry cleaning, or hair care)
4. You employ Virginia residents
5. Your business files a corporate income or pass-through entity income tax

Note: You will need to register even if your business only sells goods online.

New businesses are required to register online by going to the Virginia Tax Online Services for Businesses page. From there, you’ll select “New Business? Register your business here” and complete the application. There is no filing fee.

For more information, go to the Virginia Department of Taxation website. You can also watch their instructional video.

4. Apply for a Business, Professional, & Occupational License (BPOL) Tax

The Business, Professional, & Occupational License (BPOL) is a local tax levied on most businesses (including home-based businesses) for the privilege of doing business in Richmond, VA.

Here are some key characteristics of the BPOL tax:

• The tax is calculated based on a business’s gross receipts. For example, if your total gross receipts are greater than $5000 but less than $100,000, you’ll pay just a flat fee of $30.
• New businesses are required to apply for a Business, Professional, & Occupational License with the City of Richmond within 30 days after opening your business.
• Businesses must renew their BPOL and pay the associated tax by March 1st each year.

For more information, check out the City of Richmond Business, Professional, & Occupational License Tax page.

5. Obtain Business Licenses and Permits

Whether you plan on purchasing a commercial building, renting a small space, or conducting business from your home, you’ll likely be required to obtain one or more business licenses or permits.

Here’s a list of the most common types of business licenses and permits the City of Richmond requires:

• A Certificate of Occupancy ($263) confirms that your location meets all applicable codes and safety regulations, ensuring it is safe for staff and potential customers to enter.
• A Certificate of Zoning Compliance ensures the purpose of your building or space aligns with local zoning regulations, which dictate how land can be used within the City of Richmond. The filing fee will depend on the type of business you own. For example, a daycare center will pay $50, while a retail space that utilizes 5,000 square feet (or less) will pay $300.
• A professional or occupational license may be required, depending on the type of services your business provides. For example, body piercers, interior designers, nail technicians, martial art instructors, and tattoo artists all require a professional or occupational license. Fees will vary depending on your profession. For example, landscape architects will pay $75, while a wax technician will pay a minimum of $95.

For more information, you can visit the City of Richmond website (Certificate of Occupancy & Zoning) or the Virginia Department of Professional and Occupational Regulation (DPOR) website for professional or occupational licenses.