How to Get a Business License in Chesterfield County, Virginia
Business License Basics
Most businesses operating in Chesterfield County must obtain a business license from the Commissioner of the Revenue. The license is valid from January 1 through December 31 of the calendar year.
Commissioner of the Revenue P.O. Box 124 Chesterfield, VA 23832 Fax: (804) 796-3236
Citizen Portal: chesterfield.gov
Hours: Monday–Friday, 8:30 AM – 5:00 PM
One major exception: Manufacturing businesses are exempt from BPOL. If your business is primarily manufacturing, you do not obtain a business license through the Commissioner — you file a Machinery & Tools (M&T) return instead. See the Manufacturing section below.
Operating without a license is a violation of the Chesterfield County Code. Unlike some Virginia localities that provide a grace period, Chesterfield requires you to apply and pay within 30 days of commencing operations.
Step 1: Complete Prerequisites
The Commissioner verifies compliance before issuing a business license. Before you submit your application, have these in place:
SCC registration: If you are operating as an LLC, corporation, or other formal entity, complete your Virginia SCC registration at cis.scc.virginia.gov. Your SCC registration number is required on the application.
Zoning approval: Obtain zoning confirmation from Chesterfield County’s Department of Planning that your business use is permitted at your specific address. This is not optional — the Commissioner verifies zoning compliance before issuing a license. Contact Planning at chesterfield.gov to begin the zoning review.
- Home-based businesses require a home occupation permit from Planning.
- Contact Planning early — zoning confirmation can take several business days.
Required state and federal licenses:
- Contractors: Virginia DPOR license (dpor.virginia.gov)
- Food service: Health permit from Chesterfield Health Department
- Alcohol service: Virginia ABC license (abc.virginia.gov)
- Other regulated professions: applicable state board licenses
Do not wait for these to be in hand before contacting the Commissioner — but the Commissioner will not finalize your license until compliance is verified.
Step 2: Apply Within 30 Days
You must apply for your license and pay the applicable fee within 30 days of commencing business operations. The 30-day window is strictly enforced.
Late penalty: 10% of the tax owed plus interest on the unpaid balance. The penalty applies to the tax portion — businesses in the fee-only tier (under $500,000) pay a late fee on the annual license fee itself.
How to apply:
Online: Citizen Portal at chesterfield.gov — the fastest method. Available 24/7.
By mail: Complete the application and mail with payment to P.O. Box 124, Chesterfield, VA 23832.
In person: Commissioner’s office (contact chesterfield.gov for current office locations and hours).
A business representative must be authorized to submit the application on behalf of the entity. Sole proprietors sign personally. LLC members/managers or corporate officers sign for entities.
Documents needed:
- Completed business license application
- Federal EIN (or SSN for sole proprietors)
- Virginia SCC registration number and Certificate of Organization
- Zoning approval confirmation
- Required state/federal licenses as applicable
Step 3: The $500,000 Deduction — How the Tax Is Calculated
Chesterfield’s BPOL structure uses a deduction, not a threshold. The distinction matters:
Under $10,000 in gross receipts: No fee. No tax.
$10,000 to $500,000 in gross receipts: Annual license fee only. No percentage tax on gross receipts.
Over $500,000 in gross receipts: The first $500,000 is deducted from your gross receipts. The BPOL rate applies only to the amount above $500,000.
This is not a cliff. Crossing $500,000 does not trigger tax on your entire gross receipts — it triggers tax on only the excess above $500,000. This deduction structure is deliberately more favorable to growing businesses than a simple threshold would be.
Example:
A consulting firm with $600,000 in gross receipts:
- Gross receipts: $600,000
- Deduction: $500,000
- Taxable amount: $100,000
- Tax: calculated at the applicable rate on $100,000 only
A second example (from the spec, for retail):
A retail business with $750,000 in gross receipts pays the retail BPOL rate on only $250,000 (the $500K in excess of the deduction).
Rates vary by business classification. Contact the Commissioner’s office for the rate applicable to your specific business type. Common categories include retail, contractors, professional services, financial services, wholesale, and others.
First-year businesses: Estimate your expected gross receipts for the license period. At March 1 renewal, you report actual prior-year receipts. If you estimated too high, the difference is credited; if too low and you owed tax, additional tax is assessed.
About two-thirds of Chesterfield businesses fall in the fee-only tier, paying no percentage BPOL tax.
Special Situations
Manufacturing — BPOL Exempt
Manufacturing businesses in Chesterfield are completely exempt from BPOL. If your business is primarily manufacturing, you do not apply for a business license through the Commissioner.
Instead, manufacturing businesses file a Machinery & Tools (M&T) return covering industrial equipment and machinery. This is a separate tax category with its own rate and filing process — but it is not a business license tax.
Manufacturing businesses should also contact Chesterfield Economic Development (chesterfieldfits.com) about the M&T tax rebate program — up to 5 years of rebates for qualifying manufacturing operations.
Going-Out-of-Business Sales
If you intend to hold a liquidation sale, closing sale, or going-out-of-business sale, you must obtain a Going Out of Business Sale Permit from the Commissioner before advertising or conducting the sale. This permit requirement applies separately from your annual BPOL license. Apply through the Commissioner’s office at chesterfield.gov.
Closing Your Business
If you cease operations in Chesterfield County, notify the Commissioner in writing. Your BPOL account does not close automatically when you stop operating or stop filing.
Non-notification results in statutory assessments under Virginia Code §58.1-3519. The Commissioner will continue to expect annual filings and will issue estimated bills based on your prior business history if you do not formally close your account. These assessments carry penalties and interest.
BPOL licenses are not refundable and not prorated. If you close your business partway through the year, you do not receive a refund for the unused portion of the license year. Factor this into your timing if you are planning to close.
Written closure notice should include:
- Business name and license number
- Date operations ceased
- Contact information
- Request to close the account
Mail to P.O. Box 124, Chesterfield, VA 23832, or use the Citizen Portal at chesterfield.gov if online closure is available.
The Dual March 1 Deadline
This is the most significant compliance pitfall for Chesterfield businesses:
March 1 is the deadline for TWO separate filings:
- BPOL renewal — your annual business license renewal with prior-year gross receipts
- Business Tangible Personal Property (BTPP) return — the separate tax return for business personal property
These are two completely separate filings. Submitting your BPOL renewal does not satisfy the BTPP requirement. Submitting your BTPP return does not satisfy the BPOL renewal. Both must be filed independently through the Citizen Portal or by mail.
Both carry separate late penalties if missed.
What BTPP covers: Furniture, fixtures, computers, office equipment, machinery, tools, and other business personal property owned as of January 1. Inventory is not taxed.
Setting two separate calendar reminders for March 1 — one for BPOL and one for BTPP — is the practical approach. The Commissioner does not combine them into a single notice.
Economic Development Incentives
5-Year BPOL Waiver
Chesterfield Economic Development offers qualifying businesses a 5-year BPOL waiver or reduction as part of its business recruitment incentive toolkit.
This incentive is available to qualifying businesses — typically based on job creation, capital investment, targeted industry classification, or a combination. It is not automatic and must be applied for through Chesterfield Economic Development, not the Commissioner’s office.
Contact: chesterfieldfits.com
If you are making a significant location decision and your business might qualify (substantial hiring, meaningful capital investment, advanced manufacturing, logistics, technology), contact EDA before you sign a lease and before you file your license application. The incentive application process is separate from the standard licensing process.
M&T Tax Rebate
Manufacturing and industrial businesses may qualify for a Machinery & Tools tax rebate of up to 5 years through Chesterfield EDA. This stacks with the manufacturing BPOL exemption — qualifying manufacturers can eliminate both their BPOL obligation and a portion of their M&T tax liability during the incentive period.
Contact chesterfieldfits.com for qualification criteria and application process.
Contractor-Specific Requirements
Contractors face additional requirements in Chesterfield:
Virginia DPOR license: Required before the Commissioner will issue your business license. Provide your state contractor license number and expiration date on the application.
Workers’ compensation: If you have employees, provide proof of workers’ compensation coverage. If you are a sole proprietor without employees and exempt from coverage requirements, complete the applicable workers’ comp waiver documentation.
Out-of-county contractors: If you are primarily based outside Chesterfield but doing work here, you still need a Chesterfield business license for work performed in the county. The 30-day application deadline applies from the date you commence work in Chesterfield.
Comparison: Richmond Metro BPOL
| Jurisdiction | Structure | Practical Effect |
|---|---|---|
| Henrico County | $1M exemption threshold | Under $1M = $0 tax |
| Chesterfield County | $500K deduction | $500K deducted before rate applies |
| Richmond City | $100K threshold | Rate on full amount above $100K |
For businesses above $500,000 in gross receipts, the Chesterfield deduction structure means you are only ever taxed on receipts above $500,000 — no matter how large your business grows, the first $500,000 is always excluded from the tax calculation.
Local Contacts and Resources
Commissioner of the Revenue P.O. Box 124, Chesterfield, VA 23832 Fax: (804) 796-3236 Citizen Portal: chesterfield.gov Hours: Monday–Friday, 8:30 AM – 5:00 PM
Chesterfield Economic Development Website: chesterfieldfits.com For incentive programs (5-year BPOL waiver, M&T rebates), site selection, workforce data.
MyBizStartsHere Website: mybizstartshere.com Chesterfield County’s dedicated startup guide — walk through all county-specific requirements and resources. Start here before contacting any individual office.
Chesterfield County Department of Planning For zoning approvals, home occupation permits. chesterfield.gov
Chesterfield Health Department For food service health permits and inspections.
Virginia Department of Professional and Occupational Regulation (DPOR) dpor.virginia.gov — contractor and professional licenses.
Virginia ABC abc.virginia.gov — alcohol beverage licenses.
Richmond Region SBDC Free consulting for Richmond metro entrepreneurs.
SCORE Richmond Chapter score.org — free one-on-one mentoring.
Greater Richmond Partnership Regional economic development intelligence.
Bottom Line
Getting a business license in Chesterfield County requires three things in the right order: complete your SCC registration, get zoning approval, then apply and pay within 30 days of opening through the Citizen Portal at chesterfield.gov.
The $500,000 deduction means about two-thirds of Chesterfield businesses pay only the annual license fee with no percentage tax. Manufacturing businesses skip BPOL entirely. Businesses that might qualify for the 5-year waiver should contact Chesterfield EDA at chesterfieldfits.com before filing.
Remember the dual March 1 deadline: your BPOL renewal and your Business Tangible Personal Property return are both due on the same day, but they are two separate filings. Miss either one and the penalties are separate.
For LLC formation: How to Start an LLC in Virginia. For a full picture of starting in Chesterfield: How to Start a Business in Chesterfield County. For statewide context: Virginia Business License Guide.