How to Get a Business License in Arlington, Virginia
Getting a business license in Arlington, Virginia means working through the Arlington County Commissioner of Revenue — not a city hall. Arlington is a county. There are no incorporated cities or towns within it. Every business operating inside Arlington County lines, from Fortune 500 subsidiaries in National Landing to freelancers billing clients from a home office in Clarendon, is subject to the same Business, Professional, and Occupational License (BPOL) requirement.
The process runs through the CAPP portal — the Customer Assessment and Payment Portal available at arlingtonva.us. It’s one of the more modern and user-friendly county licensing systems in Virginia. Applications, payments, renewals, and auto-debit all happen online.
The two things that catch people most often: the $0 filing requirement (businesses under $10,000 in receipts owe nothing but must still register and file), and the tangible personal property return (a separate May 1 deadline that operates entirely apart from the BPOL process). Both are explained below.
Arlington Business License Basics
Arlington County requires every person in business in Arlington to obtain a BPOL license before commencing operations. This requirement is broader than most people expect. It is not limited to commercial storefronts, brick-and-mortar businesses, or companies with multiple employees. It applies to:
- Corporations and LLCs of any size
- Sole proprietors
- Home-based businesses of every kind
- Freelancers and independent contractors working from home
- Airbnb hosts generating rental income
- Anyone receiving gross receipts for services, goods, or rental activities in Arlington
Arlington has explicitly stated that every independent contractor working from home is subject to BPOL, because the home residence is a definite place of business for BPOL purposes. This is not an interpretation — it is a stated position of the county. Operating without a license is a criminal offense under Virginia Code §58.1-3700.
The practical significance for Arlington’s business community: tens of thousands of people work as independent consultants, federal contractors, and remote workers from Arlington residences. Most of them are subject to BPOL. Many of them don’t know it. If you moved to Arlington to go independent after leaving a federal job or a contracting firm, your business income triggers the obligation from day one.
The good news is that the process is manageable. The CAPP portal is genuinely modern and user-friendly. And if your annual gross receipts are $10,000 or less, your tax liability is zero — you file, you’re compliant, and you owe nothing.
Commissioner of Revenue, Business Tax Division Phone: (703) 228-3060 Email: [email protected] Portal: arlingtonva.us (CAPP)
Step 1: Register Your Business Entity
Before you apply for your Arlington business license, complete your state-level registrations.
LLC or Corporation: Register with the Virginia State Corporation Commission at cis.scc.virginia.gov. LLCs: $100 filing fee, $50/year annual registration. Corporations: $75 filing fee. You’ll receive a Virginia SCC ID number.
Trade name: If operating under a business name other than your legal name, register the fictitious name with the Virginia SCC ($10).
Federal EIN: Obtain your Employer Identification Number free at irs.gov/ein. You need this before applying for your Arlington license.
Virginia Department of Taxation: Register at tax.virginia.gov for sales tax, employer withholding, and any other applicable state taxes.
Step 2: Apply Through the CAPP Portal
With your SCC registration and EIN in hand, apply for your Arlington BPOL license through the CAPP portal.
CAPP portal: arlingtonva.us Phone: (703) 228-3060 Email: [email protected]
The portal handles new applications, renewals, payments, and account management. You can set up auto-debit so renewals are handled automatically. For businesses that have never been through a county BPOL system, this level of digital integration is genuinely convenient.
Timing: You must register within 75 days of commencing operations. This is more generous than many Virginia localities — Fairfax City and Chesterfield require registration within 30 days. If you miss the 75-day window, a 10% penalty plus interest applies from the date you should have filed.
Fee Structure and BPOL Rates
Arlington uses a tiered structure based on gross receipts.
Flat-fee tiers:
| Gross Receipts | Annual License Fee |
|---|---|
| $10,000 or less | $0 — but you MUST still register and file |
| $10,001 – $50,000 | $30 |
| $50,001 – $100,000 | $50 |
Rate-based tiers (over $100,000 — rate applied to TOTAL gross receipts):
| Business Category | Rate per $100 |
|---|---|
| Contractors | $0.16 |
| Retail | $0.20 |
| Wholesale | $0.08 |
| Services | $0.35 |
| Financial | $0.36 |
| Professional services | $0.36 |
| Entertainment | $0.25 |
| Residential rental | $0.28 |
| Commercial rental | $0.43 |
| Builders | $0.16 |
| Parking | $0.36 |
| Gas stations | $0.10 |
| Coin machines | $0.35 |
| Lodging | $0.36 |
Critical calculation note: For businesses above $100,000, the rate applies to total gross receipts — not the amount over $100,000. There is no $50 base fee plus a rate on excess. If a professional services firm has $250,000 in receipts, the tax is $250,000 ÷ 100 × $0.36 = $900. This calculation trips up new filers who assume a tiered structure continues above $100K.
Worked examples:
- Consultant, $80,000 receipts: $50 flat fee
- Contractor, $150,000 receipts: $150,000 ÷ 100 × $0.16 = $240
- Professional services, $400,000 receipts: $400,000 ÷ 100 × $0.36 = $1,440
Northern Virginia Rate Comparison:
| Jurisdiction | Professional Services Rate |
|---|---|
| Arlington County | $0.36 per $100 |
| Alexandria (City) | $0.58 per $100 |
| Fairfax County | $0.31 per $100 |
| Manassas (City) | $0.13 per $100 |
Arlington is mid-range for Northern Virginia. Its professional rate is lower than Alexandria and higher than Fairfax County. For most business types, the location advantages — Metro access, Amazon HQ2 spillover, federal contracting proximity, and the high-income consumer base — justify the rate.
Installment option: If your annual BPOL tax is between $100 and $5,000, you may split payment: half due at filing, half by June 1.
Contractors — Special Requirements
If your business is a contractor — building, renovation, electrical, plumbing, HVAC, landscaping, or any licensed trade — additional requirements apply beyond the standard BPOL application.
Virginia Workers’ Compensation: Contractors must comply with Virginia Workers’ Compensation insurance requirements. Arlington County reports contractor names and addresses to the Virginia Workers’ Compensation Commission, which then verifies compliance. If you don’t have the required workers’ compensation coverage, this creates a separate legal problem beyond the business license.
State contractor license: Provide your Virginia DPOR (Department of Professional and Occupational Regulation) contractor license number with your BPOL application. Virginia requires contractors to hold the appropriate DPOR license for their trade. Operating as a contractor in Arlington without a valid DPOR license — even if you have the BPOL — is a separate violation of Virginia law.
Out-of-area contractors: If you are based outside Arlington County but perform contracting work inside county limits, you may need an Arlington BPOL for that work. Contact the Commissioner at (703) 228-3060 to confirm whether the scope and value of your Arlington work triggers the local licensing requirement.
The contractor BPOL rate in Arlington is $0.16 per $100 gross receipts — lower than the $0.35 services rate and the $0.36 professional services rate.
Business Tangible Personal Property
This is a separate return — not part of the BPOL process — and it is the deadline that Arlington business owners most frequently miss, especially in the first year.
What’s covered: Office furniture, computers, laptops, monitors, printers, equipment, machinery, and tools used in your business. Items held as inventory for resale are generally excluded. The assessment covers personal property owned as of January 1 of each year.
Rate: $5.00 per $100 of assessed value. This is among the highest tangible personal property tax rates in Virginia, and it applies to the assessed (depreciated) value of your equipment, not the original purchase price. The assessment uses depreciation schedules, so older equipment has a lower assessed value.
Cost examples:
- Home office setup (laptop, monitor, desk, chair) at $8,000 assessed value: $400
- Small consulting firm with $20,000 in assessed equipment: $1,000
- Business with $50,000 in assessed furniture and equipment: $2,500
Deadlines:
- Return due: May 1 (for property as of January 1 of that year)
- Payment due: September 5
How to file: Through the CAPP portal at arlingtonva.us — the same system you use for your BPOL license. The return and the payment are separate actions on separate dates. Submitting the return in May does not automatically trigger the September payment — you need to pay separately by September 5.
Missing the May 1 return results in a statutory assessment by the Commissioner. Statutory assessments use default depreciation assumptions that may not reflect your actual equipment values, and they typically produce higher assessments than an accurate filing would. File on time with accurate information.
If you have minimal equipment — a freelancer with only a laptop, for example — the tangible property tax is relatively modest. But the obligation to file the return exists regardless of your equipment’s value.
Renewal and Closing Your License
Renewals: Due March 1 each year. A 10% late penalty applies to renewals received after March 1. File and pay through the CAPP portal. The portal will notify you when your renewal is due, but the obligation exists regardless of whether you receive that notice. Set a February calendar reminder every year — don’t rely on the county to remind you.
Failure to receive a renewal notice does not excuse late filing. If you’ve moved, changed your email address, or otherwise didn’t receive a renewal packet, you are still responsible for filing by March 1.
Installment payment reminder: For taxes between $100 and $5,000, the installment option allows you to split payment — half at filing, half by June 1. If you elect the installment, the June 1 deadline is also firm. A 10% penalty applies to the unpaid half if it’s not received by June 1.
Closing your business: Notify the Commissioner of Revenue in writing when your business closes or you leave Arlington. Your account stays open until you formally close it — the county does not assume you’ve ceased operations based on reduced receipts or inactivity. If you move out of Arlington and fail to close your account, you will continue to receive renewal notices and assessments.
Refund: A refund may be available for the unused portion of BPOL tax if your business ceases operations mid-year. Contact the Commissioner’s office at (703) 228-3060 to inquire about refund eligibility and procedure.
What Freelancers and Remote Workers Need to Know
This section is specifically for the large population of consultants, contractors, freelancers, and remote workers living in Arlington. The county is full of people who left federal or contractor jobs to go independent — and who don’t realize their business income triggers BPOL.
The rule: If you receive gross receipts for services, products, or rental income and you are based in Arlington County, you have a definite place of business in Arlington. You need a BPOL license regardless of where your clients are located.
What “filing at $0” means: If your annual gross receipts are $10,000 or less, your BPOL tax is $0. But you are still required to register and file. You’ll have an account in the CAPP system, and you’ll renew each March 1. There is no revenue threshold below which you are exempt from the filing requirement — only from the tax.
What happens if you don’t file: Operating without a license is a criminal offense. Beyond the legal exposure, the Commissioner can assess taxes back to when you commenced operations, plus the 10% penalty plus interest.
Contact Summary
| Contact | Details |
|---|---|
| Commissioner of Revenue, Business Tax Division | (703) 228-3060 |
| Business license email | [email protected] |
| CAPP portal | arlingtonva.us |
| Virginia SCC | cis.scc.virginia.gov |
| Virginia Dept. of Taxation | tax.virginia.gov |
| Arlington Economic Development BizLaunch | arlingtoneconomicdevelopment.com |
The Process in Order
- Register your LLC or corporation with the Virginia SCC at cis.scc.virginia.gov
- Obtain your EIN at irs.gov/ein
- Register with the Virginia Department of Taxation at tax.virginia.gov
- Apply for your Arlington BPOL license through the CAPP portal at arlingtonva.us within 75 days of starting operations
- Set a May 1 calendar reminder for your Business Tangible Personal Property return
- Set a September 5 calendar reminder for tangible property payment
- Set a March 1 calendar reminder for annual BPOL renewal
The CAPP portal makes the mechanics manageable. The rates are mid-range for Northern Virginia. The two things that will bite you if you ignore them: the $0 filing requirement for low-revenue businesses, and the tangible property return that operates on a completely separate calendar from your BPOL. Handle both, and you’re compliant.