Henrico County Business License: Application and BPOL Guide
Henrico County Business License: Application and BPOL Guide
If you're doing business in Henrico County, Virginia, you almost certainly need to register with the Commissioner of the Revenue and pay the county's Business, Professional, and Occupational License (BPOL) tax. This guide walks through who needs a Henrico County business license, how to apply, what the BPOL tax actually costs, and the deadlines you can't afford to miss.
Who Needs a Henrico County Business Permit
Virginia counties, including Henrico, require most businesses operating within their borders to register for a local henrico county business permit before opening. This applies whether you're running a retail store, a professional service (attorney, contractor, consultant), a home-based business, or a contractor working job sites in the county. Henrico's requirement mirrors what you'll find in neighboring jurisdictions like Chesterfield County and the City of Richmond, local registration and BPOL tax are separate from, and in addition to, your state-level business registration with the Virginia State Corporation Commission (SCC).
Some limited exemptions exist. Businesses with gross receipts under a certain threshold (see below) may still need to register but owe no tax. Certain nonprofits and specific regulated professions have different rules. Because exemptions and classifications change and depend on your exact business activity, verify your specific situation directly with Henrico's Commissioner of the Revenue rather than assuming you're exempt.
Step 1: Form Your Business Entity First
Before you can register locally, you need your business legally formed. If you're operating as an LLC or corporation, you must first register with the Virginia State Corporation Commission, which issues your entity's official formation documents and SCC ID number. Sole proprietors and general partnerships skip SCC registration but may still need to file a trade name (DBA) certificate if operating under a name other than the owner's legal name.
You'll need your SCC entity ID, EIN (Employer Identification Number from the IRS), and business address on hand before starting the Henrico application.
Step 2: Register With Henrico County's Commissioner of the Revenue
Henrico County's henrico county business license registration is handled through the Commissioner of the Revenue's office, not the Circuit Court or a separate licensing department. You can register:
- Online through Henrico's Business Tax portal on the county website (henrico.us)
- In person at the Commissioner of the Revenue's office at the Henrico Government Center (4301 East Parham Road, Henrico, VA 23228)
- By mail using the paper business license application form
The application asks for your business name, entity type, SCC ID (if applicable), NAICS/business classification code, physical business location, mailing address, and projected or actual gross receipts. New businesses typically register within 30 days of starting operations in the county, check the current application for the exact deadline language, since local ordinances get amended.
Step 3: Understand the Henrico BPOL Tax
The henrico bpol tax is Henrico County's annual business license tax, calculated as a percentage of your business's gross receipts from the prior year (or, for new businesses, estimated receipts for the first year). BPOL rates in Virginia are set locally and vary by business classification, retail, professional services, contractors, repair services, and wholesale merchants are typically taxed at different rates per $100 of gross receipts.
Key things to know about how BPOL works in Henrico:
- Flat fee vs. percentage tax: Businesses under a certain gross receipts threshold typically owe only a flat registration fee rather than a percentage-based tax. Above that threshold, the tax is calculated per $100 of gross receipts at a rate that depends on your business classification.
- Classification matters: A retail business, a contractor, and a professional service firm are taxed at different rates. Misclassifying your business can mean overpaying or underpaying, and underpayment can trigger penalties later.
- Annual renewal: BPOL isn't a one-time fee. You must renew and report gross receipts every year, even if your revenue was zero.
Because Henrico's specific rate table and gross receipts thresholds are set by county ordinance and can be revised, do not rely on a specific dollar figure or percentage from memory or a third-party site. Pull the current BPOL rate schedule directly from the Commissioner of the Revenue's published rate table before calculating what you owe.
Henrico County's Commissioner of the Revenue: henrico.us/finance/commissioner-of-the-revenue, this is the authoritative source for current BPOL rates, thresholds, and forms.
Step 4: Filing Deadlines and Renewal
Henrico's BPOL tax filing deadline for existing businesses is typically March 1 each year, consistent with most Virginia localities that follow a calendar-year BPOL cycle, but confirm this exact date on the county's current business tax page, since some Virginia jurisdictions use different renewal dates. New businesses generally must register within 30 days of commencing operations, and the license (or the tax based on estimated receipts) is often due at that time regardless of the calendar filing cycle.
Missing the deadline typically triggers:
- A late filing penalty (often a percentage of tax due)
- Interest accrual on unpaid tax
- Potential referral for collection if left unresolved
If you're not sure whether you've missed a deadline, call the Commissioner of the Revenue's office directly, Henrico staff can tell you your account status and whether penalties have already accrued.
Additional Permits You May Need
A Henrico business license and BPOL registration cover the county's general business tax requirement, but they don't cover every permit your business might need. Depending on your industry, you may also need:
- Zoning approval, Henrico's Planning Department confirms your business location is zoned for your intended use, especially important for home-based businesses and retail storefronts
- Health permits, required for food service, salons, and similar businesses, issued through the Virginia Department of Health or Henrico Health District
- Building/occupancy permits, required if you're renovating or occupying a new commercial space
- State professional licenses, contractors, cosmetologists, real estate agents, and other regulated professions need licenses from the relevant Virginia licensing board, separate from local registration
- State sales tax registration, if you sell taxable goods or services, register with Virginia Tax for a sales tax certificate
Check with Henrico's Planning and Zoning office early if you're setting up a physical location, zoning issues are one of the most common reasons a new business gets delayed before opening.
Home-Based Businesses in Henrico
Running a business from a residential address in Henrico County still requires BPOL registration in most cases, plus a separate Home Occupation Permit through the county's zoning process. Home occupation rules typically restrict things like customer traffic, signage, employee counts, and noise. If you're considering a home-based business in Virginia, confirm Henrico's specific home occupation restrictions before assuming your business model qualifies.
Costs to Budget For
When budgeting for your Henrico business license and BPOL tax, plan for:
- The BPOL flat fee or percentage-based tax (varies by classification and gross receipts, confirm current amount with the county)
- Any applicable zoning or home occupation permit fee
- State-level fees already paid to the SCC for entity formation (a separate cost, not part of Henrico's fee)
- Industry-specific permit fees (health, building, professional licensing)
Because these figures change and vary by business type, get a written fee quote or confirmation from the Commissioner of the Revenue's office rather than budgeting off an estimate.
Where to Get Help
For questions specific to your account, classification, or amount owed, contact Henrico County's Commissioner of the Revenue's Business Tax Division directly, they can pull up your account, confirm your classification, and walk through what you owe. For broader questions about structuring your business correctly from the start, a Virginia-licensed attorney or CPA familiar with local BPOL taxation can help you avoid misclassification and penalties down the line.
This article is for informational purposes only and does not constitute legal or tax advice. BPOL rates, thresholds, and filing deadlines are set by Henrico County ordinance and are subject to change. Confirm current requirements with the Henrico County Commissioner of the Revenue and consult a qualified attorney or CPA for guidance specific to your business.