How to Start a Business in Chesterfield County, Virginia
Why Chesterfield County for Your Business
Chesterfield County is the Richmond metro’s largest suburb — approximately 370,000 residents south of the James River, making it one of the most populous jurisdictions in Virginia. It is growing fast, with a business cost structure that rewards small businesses, a manufacturing base that is completely BPOL-exempt, and an Economic Development office with real financial tools to recruit companies.
The headline cost advantage: the $500,000 BPOL deduction. Chesterfield structures its BPOL as a deduction, not a cliff — businesses above $500,000 pay the applicable rate only on receipts above $500,000. A business with $600,000 in receipts pays the BPOL rate on $100,000, not on $600,000. This deduction structure means about two-thirds of Chesterfield businesses pay only the annual license fee, with no percentage tax at all.
And one category pays nothing at all: manufacturing firms are completely exempt from BPOL in Chesterfield. They file a Machinery & Tools (M&T) return instead, but they owe no business license tax.
Then there is the transformation happening along the I-95 corridor: Live! Casino & Hotel Virginia — a $1.4 billion resort development — broke ground in March 2025. A temporary casino opened in January 2026 with 900 slot machines, 33 table games, and approximately 500 jobs. The permanent resort is scheduled to open in 2027. The economic spillover from this development into southern Chesterfield’s commercial corridors has already begun.
Commercial Corridors
Chesterfield County stretches from the James River south through suburban residential and commercial territory to the I-85 corridor. The major commercial arteries are:
Midlothian Turnpike (Route 60): The primary commercial spine of western Chesterfield, running from the Richmond City line through Midlothian. Dense retail, restaurant, and service business corridors, anchored by major shopping centers and the Chesterfield Towne Center mall area.
Hull Street Road (Route 360): The southern commercial corridor serving the growing residential areas of southern Chesterfield. Significant new development driven by residential growth.
I-95 and I-85 corridors: The industrial and logistics spine of eastern and southern Chesterfield. Manufacturing facilities, warehouse and distribution operations, and the Live! Casino development. Access to the broader Southeast via I-95.
Chester and Colonial Heights area: Commercial areas near the I-95/Route 10 interchange serving the county’s eastern population.
The Live! Casino Effect
The Live! Casino & Hotel Virginia project is the most significant economic development event in Chesterfield in recent memory. The $1.4 billion permanent resort — expected to include hotel rooms, entertainment venues, restaurants, and a full gaming floor — will generate sustained demand for hospitality, food and beverage, retail, construction, staffing, and supporting services in the surrounding corridor.
For entrepreneurs evaluating southern Chesterfield locations, the casino development represents a multi-year demand creation event. Businesses in hospitality, food service, retail, and supporting commercial categories should evaluate proximity to the I-95 corridor site as part of their location analysis.
The 5-Year BPOL Waiver
Chesterfield Economic Development offers qualifying businesses a 5-year BPOL waiver or reduction as part of its incentive toolkit. This is not available in most Virginia localities. If your business qualifies — typically based on job creation, capital investment, or targeted industry criteria — you could eliminate your BPOL obligation entirely for the first five years of operation.
This incentive is not automatic. You apply through Chesterfield Economic Development at chesterfieldfits.com. The application process involves a business plan review and documentation of your projected employment and investment. Contact Economic Development before you sign a lease if you think your business might qualify.
Chesterfield EDA also offers Machinery & Tools (M&T) tax rebates for qualifying manufacturers and industrial operations — another tool in addition to the manufacturing BPOL exemption.
Choose Your Business Structure
Your entity type is decided at the state level before you approach Chesterfield County.
LLC (Limited Liability Company) — The standard choice for most Chesterfield businesses. Pass-through taxation, liability protection, minimal administrative requirements.
- Virginia SCC filing fee: $100
- Annual registration fee: $50/year
- Processing time: 1–3 business days online
See How to Start an LLC in Virginia.
Corporation — Consider for businesses planning outside investment, employee equity programs, or eventual acquisition.
- Virginia SCC filing fee: $75
- S-Corp election: IRS Form 2553
See How to Start a Corporation in Virginia.
Sole proprietorship — No SCC filing unless using a trade name.
- Trade name (fictitious name): $10 with Virginia SCC
Compare formation services at Best LLC Services in Virginia.
Register with the State of Virginia
Virginia SCC — Entity Registration
Register at cis.scc.virginia.gov. This must be completed before your Chesterfield license application.
Federal EIN
Obtain at irs.gov/ein. Free. Same-day. Required for business banking and your Chesterfield application. See Get an EIN in Virginia.
Virginia Sales Tax Registration
Register at tax.virginia.gov. Chesterfield County sales tax rate: 6.0% (4.3% state + 1% local + 0.7% Central Virginia regional).
Virginia Department of Taxation — Business Registration
Register your business for employer withholding (if you will have employees), sales and use tax, and other applicable state tax accounts.
Get Your Chesterfield Business License
All businesses operating in Chesterfield County must apply for and pay for a business license within 30 days of commencing operations. This is a shorter window than some Virginia localities (Henrico, for example, requires the license before you open, but does not impose a separate 30-day clock; Arlington provides 75 days). In Chesterfield, the 30-day deadline is firm.
Commissioner of the Revenue P.O. Box 124 Chesterfield, VA 23832
Online: Citizen Portal at chesterfield.gov
Hours: Monday–Friday, 8:30 AM – 5:00 PM
License validity: January 1 through December 31 each calendar year.
Late penalty: 10% of tax owed plus interest on the unpaid balance.
Prerequisites Before You Apply
The Commissioner verifies compliance before issuing a license. Have these in place:
- SCC registration — your Virginia entity must be registered
- Zoning approval — verify your business use is permitted at your location through Chesterfield County’s Department of Planning
- Required state and federal licenses — DPOR licenses for contractors, engineers, architects, and regulated professions; ABC license for alcohol service; food handler certifications as applicable
Zoning approval process: Contact Chesterfield County Department of Planning to confirm your specific address and business type are zoned for your intended use. This is a prerequisite — the Commissioner will not issue a license without it. Allow a few business days for zoning confirmation.
For home-based businesses: a home occupation permit is required. Apply through Planning before or concurrently with your Commissioner application.
The $500,000 Deduction — How It Works
Chesterfield’s BPOL structure uses a deduction, not a threshold. Understanding this distinction matters:
Under $10,000 gross receipts: No fee. No percentage tax.
$10,000 to $500,000 gross receipts: Annual license fee only. No percentage tax.
Over $500,000 gross receipts: The first $500,000 is deducted. The BPOL rate applies only to the amount above $500,000.
This deduction structure is more favorable than a simple cliff would be. If your business has $600,000 in gross receipts, you pay the BPOL rate on $100,000 — not on $600,000. A cliff system at $500,000 would mean crossing the threshold triggers tax on the full amount; Chesterfield’s deduction means only the excess is taxed.
Example:
A retail business with $750,000 in gross receipts:
- First $500,000: deducted
- Taxable amount: $250,000
- Tax at retail rate: calculated on $250,000 only
Contact the Commissioner’s office for the specific rate applicable to your business classification, as rates vary by category.
About two-thirds of Chesterfield businesses qualify for the fee-only tier (under $500,000), paying no percentage tax at all.
First-year estimate: Estimate your expected gross receipts for the first license period. At renewal, you report actual prior-year receipts and the deduction and tax are recalculated.
Manufacturing — Complete BPOL Exemption
If your business is primarily manufacturing, you are completely exempt from BPOL in Chesterfield County.
Instead of filing a BPOL return, manufacturing businesses file a Machinery & Tools (M&T) return with the Commissioner. The M&T return covers your industrial equipment and machinery — it is a separate tax category but not a business license tax.
For manufacturing businesses evaluating the Richmond metro, this exemption — combined with the M&T rebate incentive available through Chesterfield EDA and the county’s I-95 industrial corridor — makes Chesterfield a compelling cost-effective location. The I-95/I-85 corridor provides logistics connectivity, and the growing industrial and warehouse base creates a supporting ecosystem.
Contact Chesterfield EDA at chesterfieldfits.com before committing to a manufacturing location — the 5-year M&T rebate can be stacked with the manufacturing BPOL exemption for a substantial cost advantage in early years.
Industry-Specific Requirements
Food service: Health permit required from the Chesterfield Health Department. Food service businesses must also register for Chesterfield’s meals tax — the local tax on prepared food and beverages sold for immediate consumption. Apply for your health permit concurrent with your Commissioner application since the inspection timeline adds time.
Contractors: Virginia DPOR license required (dpor.virginia.gov). Provide your state contractor license with your Commissioner application. Workers’ compensation insurance documentation is required if you have employees.
Alcohol service: Virginia ABC license required from abc.virginia.gov. Allow 30–60 days.
Going-out-of-business sales: A separate Going Out of Business Sale Permit is required before you can hold a liquidation or closing sale. Apply through the Commissioner’s office before advertising or conducting the sale.
Closing your business: If you cease operations, notify the Commissioner in writing. Your account does not automatically close. Non-notification results in statutory assessments under Virginia Code §58.1-3519 — the county will continue to expect annual filings and will issue estimated bills if you do not respond. BPOL licenses are neither refundable nor prorated.
Business Tangible Personal Property Tax
The Business Tangible Personal Property (BTPP) return is a separate filing from your BPOL license with a critical shared deadline.
BTPP return due: March 1 — the same day as your BPOL renewal.
These are two separate filings. Submitting your BPOL renewal does not satisfy the BTPP requirement. Submitting your BTPP return does not satisfy the BPOL renewal requirement. Both must be filed separately, and both are due March 1.
What BTPP covers: Furniture, fixtures, computers, office equipment, machinery, tools, and business personal property owned as of January 1. Inventory is not taxed.
File through the Citizen Portal at chesterfield.gov or by mail to the Commissioner’s office.
Late penalty: Applies separately to each filing. Missing either deadline results in penalties and interest.
The dual March 1 deadline is the single most common compliance mistake for Chesterfield businesses. Set two separate reminders.
Business Resources
Chesterfield Economic Development Website: chesterfieldfits.com Phone: Contact through chesterfield.gov
The EDA actively recruits businesses to Chesterfield and administers the incentive programs (5-year BPOL waiver, M&T rebates). If you are making a significant location decision or your business might qualify for incentives, contact EDA before committing to a location.
MyBizStartsHere Website: mybizstartshere.com
Chesterfield’s own startup guide and resource portal — a county-specific resource that walks entrepreneurs through the Chesterfield-specific steps and requirements. Rare among Virginia localities to have this level of dedicated new business support. Start here before you start anywhere else.
Richmond Region SBDC Free consulting for Richmond metro small businesses. Business planning, licensing guidance, financial projections, loan preparation.
SCORE Richmond Chapter score.org — free one-on-one mentoring from retired executives and experienced entrepreneurs.
Greater Richmond Partnership Regional economic development intelligence for the four-jurisdiction Richmond metro. First point of contact for businesses researching the broader Richmond area.
Costs and Timeline Summary
| Step | Cost | Timeline |
|---|---|---|
| Virginia SCC LLC filing | $100 | 1–3 business days |
| Registered agent (annual) | $0–$150/yr | Immediate |
| Federal EIN | Free | Same day |
| Zoning approval | Free | 3–7 business days |
| Chesterfield business license (under $500K) | Fee only, no percentage tax | Within 30 days of opening |
| BPOL renewal | Varies (deduction applies) | March 1 each year |
| BTPP return | Varies by assessment | March 1 each year |
| Home occupation permit (if home-based) | Contact Planning | 5–10 business days |
Total estimated startup licensing costs for most Chesterfield businesses: $100–$300 (primarily SCC and EIN fees; most businesses under $500K pay fee-only for BPOL).
Timeline: Home-based service businesses: 2–3 weeks (including zoning approval). Physical storefronts: 3–4 weeks. Food businesses requiring health permits: 5–6 weeks.
Opening Your Chesterfield Business
Chesterfield County is the Richmond metro’s largest and one of its fastest-growing jurisdictions, with a cost structure that genuinely favors small businesses. The $500,000 BPOL deduction, manufacturing exemption, 5-year BPOL waiver availability, and the Live! Casino economic transformation of the I-95 corridor make Chesterfield worth serious evaluation for a wide range of business types.
The process: register your entity with the Virginia SCC, get your EIN, confirm zoning approval for your location, then apply and pay your license within 30 days of opening. Use MyBizStartsHere (mybizstartshere.com) as your Chesterfield-specific checklist.
The two compliance dates to engrave in your calendar: March 1 for both your BPOL renewal AND your Business Tangible Personal Property return — two separate filings, same deadline.
For LLC formation: How to Start an LLC in Virginia. For your federal EIN: Get an EIN in Virginia. For formation service comparisons: Best LLC Services in Virginia.