How to Get a Business License in Fredericksburg, Virginia
Getting a business license in Fredericksburg, Virginia is a two-step process — and step one is not the business license application. Step one is the Certificate of Zoning Use.
That certificate comes from the city’s Community Development department, not the Commissioner of the Revenue. It confirms your business location is properly zoned for your intended use. Without it, the Commissioner’s office will not process your application. This is the step that surprises people, especially those who’ve licensed businesses in other Virginia cities where zoning verification is informal or optional.
Once you have the zoning certificate, step two — the actual license application — is straightforward. The fee structure is among the most small-business-friendly in Virginia (businesses under $50,000 in gross receipts pay a flat $25), and the BPOL rates have held at 50% of Virginia’s statutory maximums since 1986. No increases in nearly 40 years.
One more thing before you go: Fredericksburg is an independent city. If your address is in Spotsylvania County or Stafford County — even if you think of yourself as being “in Fredericksburg” — you file with your county, not the city. Verify your jurisdiction before you apply.
The Two-Step Process: Zoning First, Then License
Step 1: Certificate of Zoning Use — from the City’s Community Development department
Step 2: Business License Application — to the Commissioner of the Revenue
You cannot reverse these steps. The Commissioner requires the Certificate of Zoning Use as part of the license application. There is no workaround.
Independent city clarification: Fredericksburg city limits are distinct from Spotsylvania County and Stafford County. If your business address is inside city limits, you’re in the right place. If your address is in Spotsylvania or Stafford — regardless of what city it “feels like” or how the address reads — you file with your county’s Commissioner of Revenue.
Step 1: Certificate of Zoning Use
The Certificate of Zoning Use confirms that your business location is zoned for your type of business. It is issued by the City’s Community Development department.
What it covers:
- Confirms your business use is permitted in the zone where your address is located
- For home-based businesses, confirms that a home occupation is permitted at your residential address, with any applicable restrictions on signage, customer traffic, and employees on-site
- Changing business types at an existing location may require a new certificate
Process: Contact Community Development directly with your business address and a description of your intended business activity. They will review the zoning and issue the certificate.
Do not submit your business license application until you have this certificate in hand. The Commissioner’s office will not process applications without it, and returning incomplete submissions costs you time.
Step 2: Business License Application
With the Certificate of Zoning Use secured, submit your application to the Commissioner of the Revenue.
Commissioner of the Revenue 715 Princess Anne Street, Room 102 Fredericksburg, VA 22401 Mailing: PO Box 644, Fredericksburg, VA 22401 Phone: (540) 372-1004
Office Hours — Important: Monday 8 AM – 12 PM only (not all day). Tuesday–Wednesday 8 AM – 4 PM. Friday 8 AM – 4 PM. If you plan to come in on Monday, arrive before noon. The limited Monday hours are unusual and catch people off guard.
What to submit:
- Business License Application PDF (available at fredericksburgva.gov)
- Certificate of Zoning Use
- Estimated gross receipts through December 31 of your start year (new businesses) or prior year gross receipts (renewals)
- Federal EIN (or SSN for sole proprietors)
- Description of business activities
- Business physical address and mailing address
- Virginia SCC registration number (required for LLCs and corporations)
Proof of License: The paid receipt from the Office of the Treasurer serves as your proof of business license. Keep it at your place of business.
New Business Timing: Estimate your gross receipts through December 31 of your first year. The following year, the actual receipts are reconciled and your license fee adjusted.
Fee Structure and BPOL Rates
Fredericksburg uses a tiered fee structure that is particularly favorable to small and new businesses.
Tier 1: Gross receipts $50,000 or less Flat $25 fee — no rate-based calculation. A brand-new business that makes $45,000 in its first year pays $25 total.
Tier 2: Gross receipts $50,001–$200,000 $25 flat fee plus the applicable tax rate applied to gross receipts.
Tier 3: Gross receipts over $200,000 Applicable tax rate applied to total gross receipts — no flat fee component.
BPOL Tax Rates (unchanged since 1986, at 50% of Virginia maximums):
| Business Type | Rate per $100 Gross Receipts |
|---|---|
| Contractors | $0.08 |
| Out-of-area contractors | $0.08 |
| Retail merchants | $0.10 |
| Wholesale merchants | $0.025 |
| Business/personal/repair services | $0.18 |
| Photographers | $0.18 |
| Professional services | $0.29 |
| Landlords (on gross rental income over $50,000) | $0.16 |
Calculation Examples:
A business service company with $175,000 in gross receipts (Tier 2): $25 + ($175,000 ÷ 100 × $0.18) = $25 + $315 = $340
A retail business with $300,000 in gross receipts (Tier 3): $300,000 ÷ 100 × $0.10 = $300
A contractor with $80,000 in gross receipts (Tier 2): $25 + ($80,000 ÷ 100 × $0.08) = $25 + $64 = $89
A professional services firm with $400,000 in gross receipts (Tier 3): $400,000 ÷ 100 × $0.29 = $1,160
These rates are substantially below the Virginia statutory maximums and below what many comparable independent cities charge.
Business Tangible Personal Property
Every business in Fredericksburg must file a Business Tangible Personal Property return — this is separate from the business license and is often overlooked.
The Commissioner of Revenue assesses tax on equipment, furniture, and fixtures used in your business. You file the return, the Commissioner assesses the value, and the Treasurer sends the bill.
Payment due dates: First half on December 5, second half on June 5.
For current tangible personal property tax rates, check fredericksburgva.gov.
Local Excise Taxes
Beyond the BPOL license and tangible personal property, Fredericksburg levies several local excise taxes. If your business falls into these categories, register with the Commissioner at the time of your license application.
Meals Tax: 6% Filed and paid monthly. Applies to all prepared food and beverages sold at retail — restaurants, food trucks, catering, cafes, delis. If you sell prepared food, this applies.
Lodging Tax: 8% Filed and paid monthly. Applies to hotels, bed and breakfasts, short-term rentals (including Airbnb and VRBO).
Admissions Tax: 7% Filed monthly. Applies to entertainment venues and ticketed events.
Short-Term Rental Tax: 1% Filed quarterly. Separate from the lodging tax.
Cigarette Tax Stamps: Contact the Commissioner for requirements.
Restaurant owners need to model three recurring tax obligations: BPOL on gross receipts, 6% meals tax filed monthly, and sales tax on retail items. The meals tax alone on a restaurant with $800,000 in annual revenue is $48,000 per year. Factor it into your pro forma.
Amendments, Changes, and Closing
Changing your business: If your address, ownership, or business type changes, complete an Amendment to Business License form. You may need a new Certificate of Zoning Use if your business type changes. Contact the Commissioner’s office to obtain the amendment form.
Closing your business: Submit the Amendment to Business License form with your closure information. You remain liable for BPOL taxes through the date you formally notify the city. Simply stopping operations does not end your tax obligation — Fredericksburg does not know your business has closed until you tell them.
Annual renewals: Renewal notices are mailed each year. Renewals are due March 1. If you don’t receive a notice — because you moved, changed contact information, or the notice was lost — your obligation to file does not change. Set a calendar reminder for February.
Out-of-Area Contractors
Contractors based outside Fredericksburg but performing work inside city limits are subject to Fredericksburg BPOL on the work done within city limits. The rate for out-of-area contractors is $0.08 per $100 of gross receipts — the same as local contractors.
Contact Summary
| Department | Location | Phone |
|---|---|---|
| Commissioner of Revenue (BPOL) | 715 Princess Anne St, Room 102 | (540) 372-1004 |
| Real Estate Section | 715 Princess Anne St, Room 107 | (540) 372-1207 |
Remember the Monday hours: 8 AM – 12 PM only. Tuesday–Wednesday and Friday: 8 AM – 4 PM.
Business license application: fredericksburgva.gov Virginia SCC (entity registration): cis.scc.virginia.gov SBDC consulting: University of Mary Washington SBDC SCORE mentoring: score.org
The Process in Order
- Confirm your business address is inside Fredericksburg city limits (not Spotsylvania or Stafford County)
- Register your LLC or corporation with the Virginia SCC (if applicable)
- Obtain your federal EIN
- Contact Community Development to initiate your Certificate of Zoning Use
- Receive your Certificate of Zoning Use
- Download the Business License Application PDF from fredericksburgva.gov
- Complete the application with your Certificate of Zoning Use and estimated gross receipts
- Submit to the Commissioner of the Revenue, Room 102, 715 Princess Anne Street
- If visiting in person on a Monday, arrive before noon
- Register for applicable excise taxes (meals, lodging, admissions) at the time of application
- Receive your paid receipt from the Treasurer — this is your proof of license
- File your Business Tangible Personal Property return separately
- Renew by March 1 each year
Fredericksburg has built a licensing system that genuinely accommodates small businesses — a $25 flat fee for those under $50K in receipts, BPOL rates locked at half the state maximum for nearly four decades, and a two-step process that, once you know the sequence, is predictable and manageable. The Certificate of Zoning Use requirement adds a step, but it also prevents the kind of surprises that happen when businesses discover their location isn’t zoned for their use after they’ve already signed a lease.