Hanover County and Ashland Business License: No General County License, Contractors at 0.10 Over $100,000
Hanover County and Ashland Business License: No General County License, Contractors at 0.10 Over $100,000
Hanover County does not require a general business license. A retail shop, professional practice or service business in Hanover pays no county license tax. Every business still registers with the Commissioner of the Revenue and files personal property tax on its equipment. The county license tax applies only to contractors, electric contractors, plumbers and steam fitters with gross receipts over $100,000. The county's introduction to the license also mentions painters, so ask the Commissioner's office whether a painting business falls under it.
The Town of Ashland issues its own business license. Inside town limits, the county contractor license does not apply to the same privilege, although a business still registers with the county and files personal property tax.
Disclaimer: This page is informational content, not legal or tax advice. Fees, thresholds and deadlines change, so confirm each figure with the agency named here before you file or pay. For a complex situation, consult a qualified attorney or CPA.
Does Hanover County Virginia require a business license?
Not in general. Virginia has no general state business license. The State Corporation Commission (SCC) forms LLCs and corporations but issues no business license. The business license that Virginia localities levy is the Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 et seq. It is a local tax administered by each city or county, and not every locality levies a general BPOL. Va. Code 58.1-3704 allows a locality to levy none.
Hanover has a population of 116,423, which is above 50,000. State law does not let a locality of that size require a license on gross receipts under $100,000, and Hanover's contractor threshold matches that floor. The county's license is therefore limited to specific trades. For the statewide picture of localities with no business license tax, see the statewide guide to no-license localities on this site.
Business registration and personal property tax
Every business in Hanover registers with the Commissioner of the Revenue, Business Property Division. The Business Registration Form is in the Commissioner's form library. Contact the office at:
- Address: Chenault-Weems Building, 7507 Library Drive, Hanover, VA 23069
- Mail: P.O. Box 129
- Business property questions: 804-365-3377
- License questions: 804-365-6129
- Online portal: taxes.hanovercounty.gov
Registration is separate from the tax on your equipment. The county taxes business personal property, machinery and tools, and merchants' capital at the rates below. The business personal property return is due May 1. Confirm that date with the Commissioner's office before you file.
| Tax | County rate | Assessment basis |
|---|---|---|
| Business personal property | $3.57 per $100 | 10 percent of capitalized cost |
| Machinery and tools | $3.57 per $100 | 10 percent of capitalized cost |
| Merchants' capital | $1.90 per $100 | 10 percent of market value |
| Data center | $0.45 | Confirm on the county tax-rate page |
| Transient occupancy (lodging) | 8 percent | Confirm on the county tax-rate page |
The county's tax-rate page lists no meals tax. Confirm that with the Commissioner before assuming a restaurant or caterer owes none. Sales tax in Hanover is 6.0 percent, the Central Virginia regional rate. If you sell taxable goods, register for a sales tax permit with Virginia Tax at tax.virginia.gov/sales-and-use-tax.
Hanover County contractor license
The license applies to a contractor, electric contractor, plumber or steam fitter with gross receipts over $100,000 who meets one of these tests:
- has a definite place of business in Hanover County
- has no place of business anywhere and lives in Hanover County
- is a contractor covered by Va. Code 58.1-3715
Once receipts exceed $100,000, the tax is $0.10 per $100 of all receipts. The tax applies to all receipts, not only the portion above $100,000. To calculate it, multiply gross receipts by 0.001.
| Gross receipts | License required? | Tax at $0.10 per $100 |
|---|---|---|
| $90,000 | No | None |
| $100,000 | No, because the threshold is over $100,000 | None |
| $150,000 | Yes | $150 |
| $400,000 | Yes | $400 |
Out-of-county contractors
A contractor licensed in another locality is exempt until receipts earned in Hanover reach $25,000. Track Hanover receipts from the first job so you know when the exemption ends.
Timing and renewal
A new contractor must get the license before operating in the county. Renewal is due by March 1. Apply through the customer portal at taxes.hanovercounty.gov.
State registration and the affidavit
If you are not registered with the state as a Class A, B or C contractor, you sign an affidavit stating that the Commissioner explained state registration is needed for jobs of $1,000 or more. Since 2025-07-01, the state classes are:
| State class | Contract size |
|---|---|
| Class C | Over $1,000 to under $30,000 |
| Class B | $30,000 to under $150,000 |
| Class A | $150,000 or more |
Confirm your class with the Department of Professional and Occupational Regulation (DPOR) before you bid large jobs.
Town of Ashland business license
Ashland has a population of 7,982 and its own business license. Inside town limits, the county contractor license does not apply to the same privilege (Va. Code 58.1-3711). A business in Ashland still registers with the county and files personal property tax. Based on the town's website and its 2026 renewal form, confirm these figures with the town before you pay:
- A flat $30 for receipts under $1,000,000
- 0.07 per $100 on receipts above $1,000,000 up to $25 million
- Receipts under $1,000: file with no fee
- Renewal due May 1, with a 10 percent penalty and monthly interest after June 1
- Card payments carry a 4 percent fee
The higher receipt bands on the renewal form are hard to read, so this page leaves them out. Ask the Finance Department for the complete schedule.
Contacts: Finance Department, 804-798-8650, 121 Thompson Street, Ashland. Zoning review runs through Planning at 804-798-1073.
Ashland also levies a 6 percent meals tax and an 8 percent lodging tax, plus a tourism district fee for hotels over 40 rooms.
Nearby Richmond-region counties
Rules differ across the region. Use this table to see what to ask each county. These are summaries, so confirm each one with the county named.
| County | Summary | Confirm with |
|---|---|---|
| Goochland | No tax under $50,000; low class rates | Goochland County |
| Powhatan | Flat $50 license; no gross receipts tax | Powhatan County |
| New Kent | No tax under $10,000; $50 minimum from $10,000 to $49,999; due May 1 with Treasurer billing | New Kent Treasurer |
| Charles City | $30 business permit instead of a gross receipts tax | Charles City County |
Henrico and Chesterfield are covered on their own pages on this site.
Forming an LLC or corporation with the SCC
The SCC handles entity filings but issues no business license, so the county and town steps above still apply. Current fees:
| Item | Fee | Notes |
|---|---|---|
| LLC Articles of Organization (Form LLC1011) | $100 | File online through the SCC Clerk's Information System at cis.scc.virginia.gov |
| LLC annual registration fee | $50 | No annual report. Due the last day of the 12th month after the month the LLC was organized, then yearly. A late payment adds a $25 penalty. |
| Corporation Articles of Incorporation (Form SCC619) | $75 | Corporations also file an annual report |
| Corporation annual report and registration fee | $100 for up to 5,000 authorized shares, plus $30 for each additional 5,000 shares | Check the SCC annual fee schedule |
| Assumed name (DBA) Certificate | $10 | Filed with the SCC, not the circuit court. No newspaper publication. |
| Name reservation | $10 | Holds the name for 120 days, renewable in the 45 days before it expires |
Expedited LLC filings are available online only and are nonrefundable: next day for $50 or $100 (submitted by 2:00 PM Eastern), or same day for $200 (submitted by 10:00 AM Eastern). An LLC name must include a designation such as LLC or L.L.C. Every Virginia entity needs a registered agent who is a Virginia resident with a Virginia street address, is available during business hours, and is either a Virginia State Bar member or a member, manager, officer, trustee or general partner of the entity. An entity cannot serve as its own agent.
Your filing checklist
- Identify your business type. A retail, professional or service business in Hanover needs no county license, but it still registers with the Commissioner of the Revenue.
- If you are a contractor, compare gross receipts with $100,000. Above that line, get the license before you operate.
- Confirm your state class with DPOR. If you are not registered as Class A, B or C, plan to sign the affidavit.
- If your work is inside Ashland, get the town license from the Finance Department and still register with the county.
- Form your entity with the SCC if you need one, and calendar the $50 LLC annual registration fee.
- Calendar the key dates: business personal property May 1 (confirm), Ashland renewal May 1, and contractor renewal March 1.
- Register for a sales tax permit with Virginia Tax if you sell taxable goods.
When to get professional help
Registration for a single-county service business is usually straightforward. An attorney can advise on entity structure, liability and contract terms. A CPA can help you plan for personal property tax on equipment and for income tax on the business. This page is informational content, not legal or tax advice, and every figure above should be confirmed with the agency named before you act on it.