Arlington, Virginia, is a great place to settle down and start a business. There are plenty of industries to enter, and the city makes getting a business license straightforward and allows you to sign up for a business license online and renew it online as well – make sure this gets done before March 1st. The purpose of the license is to function as a form that allows the country to ensure that your company is operating safely, in accordance with county laws, and for tax purposes.
If you're looking to start a business in Arlington, keep reading for everything you need to know.
How to Get a Business License in Arlington Virginia
Step 1: Start a Business
Step 2: Apply for a Business License
Step 3: Renew Your Arlington Business License
Contents
What Is a Business License in Arlington?
In Arlington, business licenses allow the town to keep track of a company’s operations and collect taxes. These licenses also show the public that a company is up to county standards for safety, zoning, and education (for professionals). While the state of Virginia doesn’t have laws requiring a business license, Arlington requires all companies to have one. Failing to meet license requirements can result in fees and penalties.
Who Needs a Business License in Arlington Virginia?
Everyone who plans on doing business in Arlington needs a license. According to Chapter 11 of Arlington’s code, the Commissioner of Revenue is responsible for issuing these licenses, and they’re needed for businesses like Airbnb operations, contractors, doctors, LLCs, small business owners, and even people who sell products online from their homes.
There are also specialized licenses that people will need based on their line of work, so it’s always important to check and see if you need any special licenses. For example, contractors, lawyers, insurance agents, brokers, and other jobs that require additional education and specializations require licenses. You may also need federal business licenses to sell tobacco, liquor, or firearms.
How Much Does an Arlington Business License Cost?
The cost of an Arlington business license depends on the company’s tax rate, which is based on gross receipts. For example, companies that make less than $10,000 don’t owe a tax, but businesses that make between $10,001 and $50,000 owe a flat fee of $30 when it’s time to renew the license. It’s also important to note that companies that make between $50,001 and $100,000 pay a flat fee of $50.
The last bracket is for companies that make more than $100,000. In this case, the Arlington business tax is a rate that depends on the business activities. You can learn more about how these tax rates work here.
What Does a Business License Look Like?
Business licenses are documents that reflect the approval of the county for a company to do business. Therefore, it looks like a professional document, and it’s similar in size and shape to a college degree or other types of professional licenses. While it’s a piece of paper, many people frame and display the license in their Arlington business.
How to Get a Business License in Arlington Virginia
It’s not hard to get a business license in Arlington, and you can even get started online. Still, you need to start a business first, so we’ll take you through the steps you need to follow to start a business in Arlington, Virginia.
Step 1: Start a Business
The first thing you need to do if you want a business license is to start a business. You can start a small business, LLC, partnership, or any other type of business to get started. We recommend starting an LLC because it helps with taxes and shields you from liability. Essentially, it separates your personal assets from your business assets.
Regardless of the type of business, you’ll need to register the name, purchase the necessary domains, and come up with a plan. You then have to fill out any necessary forms and appoint a registered agent if you have an LLC.
Step 2: Apply for a Business License
The Arlington business license application is available online, but it’s important to understand everything you need to fill out. For example, your company will have to meet several requirements before you’re eligible for a license. These requirements include:
- Personal information and business details
- Zoning permits, even if you plan on selling online from your home; in this case, you may also need to fill out restriction forms
- Social security number or EIN
- Driver’s license, passport, or other forms of ID
- Address and contact information
Depending on the type of license you’re applying for, you may also need more information.
Step 3: Renew Your Arlington Business License
Arlington requires you to renew your business license once per year. This needs to be done before March 1st, and you can do so online by 11:59 pm. You can renew your Arlington business license through the Customer Assessment Payment Portal (CAPP). During the renewal process, you’ll have to pay the flat fee assigned to your business (based on income) or pay a fee that’s based on your revenue if you make more than $100,000.
Important Business License Tax Questions
Still have questions? Find answers below.
What Is the LLC Tax Rate in Virginia?
LLCs in Virginia are subject to low taxes compared to some other states. Companies need to pay the 15.3% self-employment tax (Medicare 2.9% and Social Security 12.4%) as well as Virginia’s corporate income tax of 6%. Most locations in Virginia also have a sales tax rate of 5.3%. LLCs will also have to pay taxes in accordance with their income bracket.
What Taxes Do Small Businesses Pay in Virginia?
Small businesses in Virginia pay many of the same taxes that LLCs and individuals pay. Owners of small businesses will have to pay the self-employment tax, which is 15.3%, and taxes on any income they make based on their tax bracket. Companies also have to pay a business license tax that can be a flat fee (if less than $100,000), and freelancers or private contractors will have to pay state income tax.
Does Virginia Have a State Tax Rate?
Yes, Virginia has a state tax rate. The tax rate depends on an individual’s income and ranges from 2% to 5.75%. This tax is paid by individuals, businesses, and contractors.
Get Licensed in Arlington Today!
Starting a new business is a wonderful way to challenge yourself, make money, and support a family. However, you need to make sure that you’re following all the rules if you want to avoid penalties.
In Arlington, you’ll need a business license for most businesses, so it’s a good idea to apply for your license right after you start your company. That said, if you get everything done before the first of March, you won’t have any issues.