How to Get a Business License in Danville, Virginia
Danville Business License Basics
All businesses located or operating in Danville must have a city business license before commencing operations. The Commissioner of the Revenue administers licensing, and the process is more straightforward than most Virginia cities — but several details trip people up if they’re not known in advance.
Commissioner of the Revenue: James M. Gillie
- Office: 2nd Floor, Charles Harris Financial Building, 311 Memorial Drive, Danville, VA 24541
- Phone: (434) 799-5145
The most important thing to understand about Danville’s licensing:
The license covers the full calendar year January 1 – December 31 and is NOT prorated. Start your business in July, August, or November — you still pay the full fee for that calendar year. There is no partial-year rate. This surprises people who expect to pay a prorated amount for the months they’re actually operating.
Cost structure:
- Under $100,000 in annual gross receipts: flat $50 fee — regardless of business type
- Over $100,000: license fee calculated based on a rate specific to your business classification
- Taxi services and junkyards have separate fee structures (contact the Commissioner)
Other facts:
- New businesses: fee based on estimate of gross revenue for the initial year
- Reconciliation: final levy calculated against actual results at year-end — may result in additional tax or refund
- Renewals: due annually with the Commissioner
Step 1: Register Your Business Name
Before applying for the city license, register your business name with the Virginia State Corporation Commission.
Virginia SCC
- Website: scc.virginia.gov
- Phone: (866) 722-2551 (toll-free)
This applies whether you are forming an LLC, a corporation, a partnership, or a sole proprietor operating under a trade name. Your SCC registration establishes your business as a legal entity in Virginia and is required documentation when you apply for the city license.
If you haven’t yet obtained your Federal Employer Identification Number (EIN), do that simultaneously — apply free at irs.gov/ein. The EIN is also required for the city license application.
Step 2: Zoning Approval
Zoning clearance is required before the Commissioner will issue a business license. This step must come before the license application.
Community Development Department Contact Community Development to verify that your specific address is properly zoned for your intended business type. Zoning requirements vary across the city — the River District downtown has different commercial zoning than areas near industrial parks or residential neighborhoods.
One Stop Permitting Center For qualifying businesses, Danville assigns a dedicated coordinator to help navigate the entire permitting and licensing process from start to finish. This is Danville’s version of a concierge service for new businesses. Contact the City of Danville Economic Development at discoverdanville.com to request a coordinator before you start.
Your coordinator can help you with:
- Zoning verification
- Building permits
- Inspections scheduling
- Sign approvals
- Coordination between departments
Design Commission review Some locations require review by a Design Commission before permits are issued. Not every address requires this — ask the Inspections Division whether your specific location requires Design Commission review. Knowing this upfront prevents delays later in the process.
Step 3: Apply at the Commissioner’s Office
Once you have your SCC registration, EIN, and zoning approval, apply for the business license in person.
Where: 311 Memorial Drive, 2nd Floor, Danville, VA 24541
What to bring:
- SCC registration documents (Certificate of Organization for LLC, Articles of Incorporation for corporation)
- Zoning approval from Community Development
- All state licenses required for your business type (DPOR, Health Department, etc.)
- Government-issued photo ID
- Estimated gross receipts for the current calendar year
Provide at application:
- Business name (legal name and trade name if different)
- Business address in Danville
- Nature and description of business activity
- Estimated gross receipts through December 31 of the current year
Costs and Fee Reconciliation
Under $100,000 in annual gross receipts: Flat $50 fee — regardless of whether you are a retailer, professional, contractor, or service business.
Over $100,000: The fee is calculated as a rate per $100 of gross receipts based on your specific business classification. Classification is determined by the Commissioner based on your business activity description.
New businesses: Your first-year fee is based on your estimated gross receipts for the current calendar year (from your start date through December 31). If you estimate $80,000, you pay the flat $50.
Reconciliation: At year-end, your actual gross receipts are reported. If actuals exceed the estimate and push you over $100,000, an additional assessment may apply. If actuals were lower, you may receive a refund or credit toward the following year.
No proration: The license covers January 1 – December 31 regardless of when you start. A business that opens November 1 pays the same fee as a business that opens January 1. Factor this into your startup budget.
Special Requirements by Business Type
Danville’s Commissioner of the Revenue requires specific additional documentation based on your business activity. These requirements are enforced — bring the right documents or the license will not be issued.
Restaurants, food trucks, grocery stores, convenience stores
- Health permit from the Virginia State Health Department required before the city license is issued
- Phone: (434) 766-9828
- The health permit must be in hand at the time of application
Food trucks — two separate inspections required Food trucks in Danville face an additional requirement that does not apply to brick-and-mortar food businesses:
- Health permit from the Virginia State Health Department — same as restaurant requirement
- Fire Department inspection — City of Danville Fire Department
- Contact: Shelby Irving at (434) 799-5226
Both inspections must be completed and documentation presented to the Commissioner before the license is issued. The Fire Department inspection is specific to food trucks — it is not required for fixed-location restaurants. Plan for both inspections in your timeline before your planned opening date.
Prepared food and beverages — meals tax registration Any business selling prepared food or beverages must sign up for meals tax registration with the Commissioner of Revenue’s office at the time of licensing.
Alcohol
- ABC permit from the Virginia ABC Board
- Phone: (800) 552-3200 | abc.virginia.gov
- Budget 30–60 days for ABC approval
Retail businesses
- Register with the Virginia Department of Taxation at tax.virginia.gov
- Phone: (804) 367-8037
Contractors
- Virginia State Contractor’s License required for any individual job with costs exceeding $1,000
- Must be bonded for $5,000 — Class A contractors are exempt from the $5,000 bond requirement
- DPOR (Department of Professional and Occupational Regulation) issues Class A, B, and C contractor licenses based on project size and scope: dpor.virginia.gov
- Provide a copy of your state contractor license when applying for the city business license
- This is a stricter threshold than many entrepreneurs expect — virtually any trade work job triggers the licensing requirement
Daycare centers (5 or more children) Contact Social Services for specific requirements applicable to childcare facilities before applying for the city license.
Barbershops and beauty salons
- Shop or Salon License from the Department of Cosmetology (through DPOR)
- Every individual stylist working at the shop must present their valid state license when the owner applies for the city business license — not just the shop owner or manager
- This requirement applies to all employees performing cosmetology services at the time of application
- If any stylist cannot produce their state license, the license issuance will be delayed until all licenses are provided
- Build extra lead time into your timeline for collecting individual employee license documentation
Permits and Inspections
The Inspections Division issues separate permits for building, electrical, mechanical, signage, and plumbing work. Any construction, renovation, or significant buildout at your business location requires permits from Inspections — these are separate from the business license and from zoning approval.
What typically requires an Inspections permit:
- Interior construction or renovation
- New or modified electrical service
- HVAC installation or modification
- New plumbing
- Signage installation
- Any exterior structural work
Asbestos remediation: Forms and plan review may be required for older buildings, particularly in the downtown River District and other areas with historic building stock.
Signage: Must be reviewed and approved by the Community Development Department before fabrication or installation. Do not assume your sign is compliant — submit for approval first.
Design Commission: Not every location requires Design Commission review — but some do. Confirm with the Inspections Division whether your address is in a district that requires it.
Renewal and Closing
Annual renewal: All business licenses must be renewed annually with the Commissioner of the Revenue. Renewal is based on prior year’s actual gross receipts. The same no-proration rule applies at renewal — the license covers the full calendar year.
Reporting actual receipts: At renewal, you report what your business actually earned in the prior calendar year. If your actual gross receipts exceeded your initial estimate and triggered a higher rate, you’ll owe the difference. If actual receipts were lower, you may receive a credit.
Closing your business: Notify the Commissioner of the Revenue when you cease operations in Danville. Tax liability does not end automatically — the city will continue to assess you until you formally declare the business closed. Put the notification in writing, include your business name and license number, and specify the date operations ceased. Keep a copy for your records.
Permits and Inspections Contact
Inspections Division
- Building, electrical, mechanical, signage, plumbing permits
- Contact through the city’s permit portal or Danville Economic Development
Contact and Resources
Commissioner of the Revenue
- Phone: (434) 799-5145
- Address: 2nd Floor, Charles Harris Financial Building, 311 Memorial Drive, Danville, VA 24541
Health Department (food business permits)
- Phone: (434) 766-9828
Fire Department (food truck inspections)
- Contact: Shelby Irving
- Phone: (434) 799-5226
One Stop Permitting Center
- Through City of Danville Economic Development
- discoverdanville.com
City of Danville Economic Development
- discoverdanville.com — One Stop Permitting Center, incentive programs, site selection
Danville Pittsylvania County Chamber of Commerce
- Business networking and advocacy for the Danville region
SBDC
- Free consulting through the Virginia SBDC network
SCORE
- Free mentoring from retired executives
Virginia Business One Stop
- virginia.gov — statewide registration portal and state tax registration