How to Start a Business in Hampton, Virginia
Why Hampton, Virginia Is a Strategic Location to Launch a Business
Hampton sits at the tip of the Virginia Peninsula where the James River meets the Chesapeake Bay, anchoring the western edge of the Hampton Roads metropolitan area. The metro region is home to more than 1.8 million people — the largest metro area in Virginia and one of the largest on the East Coast — giving Hampton businesses access to a massive regional customer and labor base without the land costs associated with the region’s more densely developed cities.
Hampton’s population of approximately 135,000 makes it one of Virginia’s largest cities, and its economic makeup is unlike most American cities its size. The presence of major federal installations shapes the local economy fundamentally: NASA Langley Research Center and Joint Base Langley-Eustis together employ tens of thousands of workers and generate substantial spillover demand for commercial goods and services. Fort Monroe, the former Army installation on the point, has been redeveloped as a national monument with significant residential and commercial activity.
Hampton University, a historically Black university (HBCU) with deep roots in the city, contributes students, faculty, staff, and cultural events to the local economy. The Coliseum Central area along Mercury Boulevard is Hampton’s major commercial corridor and hosts regional retail and hospitality operations. The Power Plant redevelopment project represents a major ongoing investment in mixed-use commercial space. Phoebus is a walkable, historic neighborhood with an active small business community.
For entrepreneurs researching the Hampton Roads market, Hampton offers competitive commercial real estate costs relative to Virginia Beach and Norfolk, a federal contractor workforce with consistent purchasing power, and direct access to the Hampton Roads shipping network.
Step 1: Choose and Register Your Business Structure with the SCC
Virginia business entities are formed by filing with the State Corporation Commission (SCC) through the online portal at cis.scc.virginia.gov.
Filing fees:
- LLC: $100
- Corporation: $75
- Trade name (DBA): $10
Most small businesses choose an LLC for the combination of liability protection and pass-through federal taxation. Corporations are preferred when outside investment or stock-based compensation structures are anticipated. Sole proprietors and general partnerships operating under a name other than the owner’s legal name must file a trade name certificate.
Once registered, the SCC provides a certificate of organization or certificate of incorporation that establishes your entity’s legal existence in Virginia.
Step 2: Obtain a Federal Employer Identification Number
Obtain a free EIN from the IRS at irs.gov/ein. The online application issues your EIN immediately. You need an EIN to open a business bank account, hire employees, file business taxes, and complete Hampton’s business license application.
Step 3: Register with Virginia Department of Taxation
File Form R-1 with the Virginia Department of Taxation to establish your business tax accounts. This registration covers income tax withholding if you have employees, sales and use tax if you sell taxable goods or services, and other state-administered taxes.
Hampton is an independent Virginia city, so you will use Hampton’s FIPS code when designating your locality on state forms.
Step 4: Complete the Certificate As Requirement — Partnerships and Sole Proprietors
This step is unique to Hampton and is a hard prerequisite that must be completed before applying for your business license with the Commissioner of Revenue.
Partnerships and sole proprietors doing business under a trade name must file a “Certificate As” with the Clerk of the Circuit Court FIRST.
Clerk of the Circuit Court 101 Kings Way, Court House Hampton, VA 23669 Phone: (757) 727-6105
The Certificate As filing establishes your business name on the public record in Hampton’s Circuit Court. Only after this filing is complete should you bring a copy to the Commissioner of Revenue when applying for your business license.
This sequence matters. Attempting to apply for your Hampton business license before completing the Certificate As will result in your application being rejected or delayed.
If you are forming an LLC or corporation registered with the SCC, the Certificate As requirement typically does not apply in the same way — the SCC registration serves a similar function. Confirm with the Commissioner’s office if you are uncertain about your specific situation.
Step 5: Check Zoning, Health Department, and Court Order Prerequisites
Hampton requires that certain prerequisites be met before a business license will be issued. These include:
Zoning clearance: Your business location must be zoned appropriately for your type of business. Contact Hampton’s Department of Planning to verify that your intended use is permitted at your address before signing a lease or committing to a location.
Health Department approval: If your business involves food service, childcare, healthcare, or other regulated activities, you may need approval from the Hampton Health Department before the Commissioner of Revenue will issue your license.
Outstanding court orders: If there are any outstanding court orders relevant to your business or its principals, these must be resolved before a license is issued.
Gathering these clearances in advance speeds the licensing process and avoids surprises at the point of application.
Step 6: Obtain State and Professional Licenses
The Virginia Department of Professional and Occupational Regulation (DPOR) licenses dozens of professions and business types in Virginia, including contractors, real estate agents, engineers, architects, cosmetologists, veterinarians, and many others.
DPOR: (804) 367-8500 | dpor.virginia.gov
Your Hampton city business license is separate from any required DPOR license. Operating in a DPOR-regulated profession without the appropriate state license is illegal regardless of whether you hold a local business license.
Property bondsmen have an additional requirement: obtaining a certificate from Circuit Court #4 at (757) 726-6920 before applying for a license with the Commissioner of Revenue.
Step 7: Apply for Your Hampton Business License
With your SCC registration, EIN, Certificate As (if applicable), and all prerequisites satisfied, you are ready to apply for your Hampton business license.
Commissioner of Revenue, Business License Division 1 Franklin Street Hampton, VA 23669 Phone: (757) 727-6700
Mailing address: P.O. Box 636, Hampton, VA 23669
Online: va.accessgov.com/hampton
Two License Types: Peddler’s and Vendor’s
Hampton issues two types of business licenses, and the Deputy Commissioner determines which type applies to your business based on your business activities. You do not self-select your license type. The Deputy Commissioner will evaluate your application and classify you appropriately.
- Peddler’s license: Generally applies to businesses that sell goods by moving from place to place or that operate without a fixed location.
- Vendor’s license: Generally applies to businesses operating from a fixed location.
When you apply, describe your business activities accurately and completely. The Deputy Commissioner’s classification determines your license type and the applicable fee rate.
License Fees
Under $100,000 in gross receipts: $50 flat fee
For businesses with gross receipts over $100,000, the rate depends on your business classification. Virginia state law sets maximum rates per $100 of gross receipts by category:
- Contracting: up to 16 cents per $100
- Retail: up to 20 cents per $100
- Professional and financial services: up to 58 cents per $100
- Services: up to 36 cents per $100
Your actual Hampton rate will be at or below these state statutory caps.
Licenses Are Not Pro-Rated
An important financial planning note: Hampton business licenses are not pro-rated. If you open your business in October, your license covers from your start date through December 31 of the same year — but you pay the full fee, not a fraction. The license is valid for the calendar year regardless of when during the year it was issued.
Plan your opening date accordingly if the licensing cost is a factor in your timing.
File and Pay Before Your First Day of Business
Hampton requires that you obtain your business license before the first day you conduct business. Do not open and file later — obtain the license, pay the fee, and then open.
Step 8: Commercial Businesses Must Submit a Police Emergency Contact Form
If you are operating a commercial business in Hampton, you are required to submit a Police Emergency Contact Form. This form provides Hampton police with emergency contact information for your business in case of alarm activations, after-hours incidents, or emergencies requiring contact with a business owner or responsible party.
Obtain this form from the Commissioner of Revenue’s office at the time of license application or download it through the city’s business resources.
Home Occupations in Hampton
Operating a business from your home in Hampton requires both a business license from the Commissioner of Revenue and zoning approval for the home occupation. Zoning rules for home occupations restrict activities that would change the residential character of the neighborhood — typically limiting client visits, outside employees, equipment, signage, and traffic.
Do not assume your home occupation is automatically permitted. Check with Hampton’s zoning department before beginning home-based business activities.
Renewal Process
Existing Hampton businesses renew their business license before March 1 of each year. The renewal is based on prior year gross receipts. Submit your renewal through the online portal at va.accessgov.com/hampton or by mail to P.O. Box 636.
Mid-Year Business Closures and Refunds
If you close your business mid-year, Hampton may issue a refund of the unused portion of your license fee. Contact the Commissioner of Revenue’s office to initiate the refund process when you close.
Virginia Sales Tax in Hampton
Hampton is an independent city within the Hampton Roads region. The Virginia sales tax rate applicable in Hampton includes both the statewide base and any applicable regional taxes.
Professional Regulatory Resources
In addition to DPOR, Hampton businesses may interact with these regulatory agencies:
- Virginia ABC Authority: Licensing for restaurants, bars, wineries, breweries, and other alcohol-serving or manufacturing operations
- Virginia Department of Social Services: Childcare facility licensing
- Virginia Department of Health: Food service permits, well and septic approvals for applicable facilities
- U.S. Small Business Administration (SBA): Federal contracts, especially relevant given the proximity to NASA Langley and Joint Base Langley-Eustis
Hampton Small Business Resources and Economic Development
Hampton’s proximity to federal research and military installations creates specific opportunities for businesses in aerospace, defense contracting, information technology, logistics, and professional services. The city’s economic development office can provide introductions to procurement contacts at NASA Langley and the joint base.
The Hampton Roads region also has an active SBDC (Small Business Development Center) network offering free one-on-one business consulting, workshops, and financial guidance. SCORE mentors with federal contracting experience are available through the Hampton Roads chapter.
Coliseum Central Business Improvement District and Phoebus Main Street are neighborhood-level organizations that support local businesses with marketing, events, and advocacy.
Ongoing Compliance After Opening
After obtaining your initial Hampton business license, ongoing obligations include:
- Annual renewal: before March 1 based on prior year gross receipts
- Personal property tax: Hampton assesses business personal property taxes on furniture, fixtures, machinery, equipment, and other tangible personal property used in your business
- Meals and lodging taxes: if applicable to your business type
- State withholding and sales tax: remitted to the Virginia Department of Taxation on your assigned schedule
- SCC annual registration: maintain good standing with the SCC by paying annual fees or filing annual reports for your entity type
Hampton Business Formation Checklist
- Register business entity with Virginia SCC at cis.scc.virginia.gov
- Obtain EIN from irs.gov/ein (free)
- Register with Virginia Department of Taxation on Form R-1
- If partnership or sole proprietor: file Certificate As with Clerk of Circuit Court at 101 Kings Way, Hampton, VA 23669, (757) 727-6105 FIRST
- Verify zoning clearance for your business location
- Obtain any required Health Department approvals
- Obtain required state professional licenses from DPOR: (804) 367-8500
- Property bondsmen: obtain certificate from Circuit Court #4 at (757) 726-6920
- Apply for Hampton business license before first day of business — Commissioner of Revenue, 1 Franklin Street, (757) 727-6700, or online at va.accessgov.com/hampton
- Submit Police Emergency Contact Form for commercial businesses
- Renew annually before March 1
The Commissioner of Revenue Business License Division is your primary contact for Hampton business licensing. Reach them at 1 Franklin Street, Hampton, VA 23669, by phone at (757) 727-6700, or online at va.accessgov.com/hampton.