How to Get a Business License in Henrico County, Virginia
The $1 Million Exemption — What It Means for You
The most important fact about getting a business license in Henrico County:
Businesses with gross receipts under $1,000,000 pay zero BPOL tax.
This is Henrico’s business license threshold — raised from $500,000 to $1,000,000 in 2024, a change that benefited more than 1,300 additional businesses. It is the highest BPOL exemption in the Richmond metro. Richmond City’s threshold is $100,000. Chesterfield County’s is $500,000. Henrico’s is $1,000,000.
What this means practically: the overwhelming majority of Henrico small businesses owe no business license tax at all. If your annual gross receipts are under one million dollars, your BPOL obligation is $0.
However — you must still obtain the license and file.
The exemption means no tax. It does not mean no license requirement. Businesses that skip the application because they are “under the threshold” are operating without a required license. This creates compliance problems, late penalties when eventually discovered, and a county record gap that complicates renewals.
Above $1,000,000 in gross receipts:
- Most business categories: $0.20 per $100 of gross receipts
- Contractors: $0.15 per $100 of gross receipts
- No Merchants’ Capital Tax (unlike Richmond City)
Step 1: Register Your Business Entity
Before applying for your Henrico business license, complete your state-level entity registration.
LLC or Corporation — Register with the Virginia SCC
File at cis.scc.virginia.gov.
- LLC: $100 filing fee, $50/year annual registration fee, 1–3 business day processing
- Corporation: $75 filing fee
- Trade name (sole proprietor or fictitious name): $10 registration with SCC
Your SCC registration number and Certificate of Organization are required for the Henrico application.
Federal EIN
Obtain at irs.gov/ein. Free. Same-day processing. Required for the application. See Get an EIN in Virginia.
Virginia Department of Taxation
Register for sales tax and other applicable state taxes at tax.virginia.gov. Henrico sales tax rate: 6.0%.
Step 2: Complete Your Application
Henrico’s online application at henrico.gov is the most efficient option — available 24/7, no travel required. You can also apply in person at either Government Center.
Online: henrico.gov
Western Government Center: 4301 E Parham Road, Room 136 Henrico, VA 23228
Eastern Government Center: 3820 Nine Mile Road Henrico, VA 23223
Email: [email protected] Phone: (804) 501-4310
The Two-Form Requirement
You need to complete two forms:
- New Business License Application — the primary application
- Business License Questionnaire — determines your business classification and applicable BPOL rate
The Questionnaire is not optional. It asks about the nature of your business activities, where work is performed, revenue sources, and other factors that determine which BPOL category applies to you. If you have a business with multiple revenue streams — say, a contractor who also sells materials — the Questionnaire helps determine how your gross receipts are classified.
If you have questions about specific answers on the Questionnaire, email [email protected] before submitting. Getting the classification right matters for businesses above $1 million, because different categories carry different rates.
Home-Based Businesses
If you operate from a home address in Henrico County, complete the home-based section of the Questionnaire. A critical distinction:
Answer the questions about work performed at your home, not at client locations. A management consultant who works from a home office in Henrico but travels to clients’ offices is still a home-based business for Henrico purposes — the address of your principal place of business determines the classification, not where the work output is ultimately delivered.
You do not need a separate home occupation permit as a pre-condition for your Henrico business license. The county handles home-based business review internally after you submit your application.
Mobile Food Units
Mobile food unit operators have an additional requirement: each location where you intend to regularly operate must be individually approved by the Permit Center with written property owner permission. Begin the location approval process for each planned site at the same time you submit your license application. Waiting until after your license is issued adds unnecessary delay.
Obtain License Before Operating
Your business license must be obtained before you commence operations. There is no grace period. If you are already operating without a license in Henrico, contact the Revenue Division immediately at [email protected].
Step 3: Zoning Review — How Henrico Does It Differently
Most Virginia localities require you to obtain zoning approval or a zoning clearance letter before submitting your business license application. Henrico takes a different approach:
Henrico reviews zoning AFTER you submit your application.
The Permit Center handles zoning review internally once your application is received. For most straightforward business types — retail at appropriately-zoned commercial space, professional services at a commercial address, home-based businesses — the review is routine and you will simply receive your license.
If a zoning issue exists, the Permit Center contacts you. This means you do not need to make a separate trip to a zoning office before you can even apply for your license.
For mobile food units: Location approvals happen separately (see above) and do require individual Permit Center approval with property owner permission for each operating location.
If your business type raises zoning questions — unusual uses, home-based businesses in areas with HOA overlays, or operations that don’t fit standard commercial categories — consider contacting the Permit Center at (804) 501-4310 proactively before you apply.
Fees and Rate Structure
Under $1,000,000 gross receipts: $0 BPOL tax. License still required.
At $1,000,000 and above:
| Business Category | Rate per $100 Gross Receipts |
|---|---|
| Most business categories | $0.20 |
| Contractors | $0.15 |
Rate calculation example:
A retail business with $1,500,000 in gross receipts: $1,500,000 ÷ 100 × $0.20 = $3,000
The rate applies to total gross receipts, not just the amount above $1 million.
First-year businesses: You will estimate your expected gross receipts for the license year. At renewal (March 1 of the following year), you report actual prior-year receipts and any tax due is reconciled. If your first-year estimate resulted in an overpayment, the difference is credited. If you underestimated and crossed $1 million, additional tax applies at renewal.
Richmond comparison:
A professional services firm with $800,000 in gross receipts:
- Henrico County: $0
- Richmond City (at Richmond’s professional rate, above $100K threshold): approximately $4,640
This cost differential is why Henrico is the first choice for most Richmond metro small businesses from a pure BPOL perspective.
Business Tangible Personal Property — The Second Return
Your BPOL license is not the only business tax filing in Henrico. The Business Tangible Personal Property (BTPP) return is a separate obligation with a different deadline.
What it covers: Furniture, fixtures, computers, office equipment, machinery, tools, and other business personal property owned as of January 1. Inventory is not taxed.
Filing deadline: May 1, for property owned as of January 1 of that year.
Why this matters: Missing the May 1 deadline results in a statutory assessment — Henrico estimates the value of your equipment and issues a bill, potentially at an inflated amount. File on time, even if your equipment value is modest.
How to file: Online at henrico.gov or at either Government Center.
The tangible property return and your BPOL renewal are two separate filings. Submitting your BPOL renewal by March 1 does not satisfy the May 1 BTPP deadline, and vice versa.
Renewal Requirements
BPOL renewals are due March 1 each year.
At renewal, you report your actual prior-year gross receipts. If you are under $1 million: $0 tax, but you must still file. If you are over $1 million: tax calculated at the applicable rate.
Late penalty: Standard Virginia late filing penalty applies.
Non-filers: If you do not file a renewal, Henrico will issue an estimated assessment. File on time to avoid the assessment process.
Renewals apply even at $0 tax. This is the most common source of confusion. Being under the threshold does not exempt you from the filing requirement — it only exempts you from the tax payment.
Closing your business: If you cease operations in Henrico, contact the Revenue Division at [email protected] to close your account. Accounts do not automatically close when you stop filing.
Rate Comparison: Richmond Metro
For businesses choosing between Richmond metro locations, the BPOL picture looks like this:
| Jurisdiction | BPOL Exemption Threshold | Professional Rate Above Threshold |
|---|---|---|
| Henrico County | $1,000,000 | $0.20/$100 |
| Chesterfield County | $500,000 (deduction) | Varies by category |
| Richmond City | $100,000 | ~$0.58/$100 |
| Hanover County | Varies | Varies |
For businesses under $1 million in gross receipts, Henrico is definitively the lowest-cost jurisdiction in the Richmond metro for BPOL purposes.
Local Contacts and Resources
Revenue Division, Business Section — Henrico County Email: [email protected] Phone: (804) 501-4310 Online: henrico.gov Western Government Center: 4301 E Parham Road, Room 136, Henrico, VA 23228 Eastern Government Center: 3820 Nine Mile Road, Henrico, VA 23223
Henrico Economic Development Authority henrico.gov — incentive programs, workforce data, site selection support. Contact EDA for information on available commercial properties and economic development resources.
Richmond Region SBDC Free consulting for Richmond metro entrepreneurs. Business planning, financial modeling, licensing guidance.
SCORE Richmond Chapter score.org — free one-on-one mentoring from experienced business professionals.
Greater Richmond Partnership Regional economic development intelligence for the four-jurisdiction Richmond metro area.
Virginia SCC cis.scc.virginia.gov — entity registration.
Virginia Department of Taxation tax.virginia.gov — sales tax and state business registration.
Bottom Line
Getting a business license in Henrico County is straightforward: register with the Virginia SCC, get your EIN, then submit your New Business License Application and Business License Questionnaire online at henrico.gov or by email to [email protected]. The county handles zoning review internally after your application — you do not need a separate pre-approval.
Most businesses will owe $0 in BPOL tax under the $1 million exemption. But you still need to file the license application and file your annual renewal by March 1. The exemption covers tax; it does not eliminate the compliance obligation.
Remember the second deadline: your Business Tangible Personal Property return is due May 1, separate from your March 1 BPOL renewal.
For LLC formation: How to Start an LLC in Virginia. For a full picture of starting in Henrico: How to Start a Business in Henrico County. For statewide context: Virginia Business License Guide.