How to Start a Business in Henrico County, Virginia

Why Henrico County for Your Business

There is a number you need to know before you do anything else: $1,000,000.

That is Henrico County’s BPOL exemption threshold. Businesses with gross receipts under one million dollars pay zero business license tax in Henrico County. Not a reduced rate. Not a minimal fee. Zero.

This is not a typo, and it is not a temporary promotion. As of FY2025, Henrico raised its exemption from $500,000 to $1,000,000 — a move that benefited over 1,300 additional businesses. For context: Richmond City’s threshold is $100,000. Chesterfield County’s is $500,000. Henrico’s is $1,000,000.

If you are choosing between Richmond metro locations and your business will generate under $1 million in annual gross receipts — which describes the overwhelming majority of small businesses — Henrico’s cost structure is unmatched in the region.

The Numbers in Context

A professional services firm generating $800,000 in annual gross receipts pays:

• Henrico County: $0
• Chesterfield County: $0 (under $500K deduction tier — actually $0 as well through deduction)
• Richmond City: approximately $4,640 (at Richmond’s professional rate, above the $100K threshold)

The Henrico advantage is most pronounced for businesses in the $100,000–$1,000,000 range — the sweet spot for established small businesses that have grown past true startup scale but are not yet large companies.

Henrico also has no Merchants’ Capital Tax — another cost that businesses in Richmond City face. And no county income tax.

Geography and Corridors

Henrico County wraps around Richmond City on the north, east, and west — Virginia’s 5th most populous county at approximately 340,000 residents. The county has two distinct economic personalities:

West End (Short Pump and Innsbrook): This is the commercial and professional heart of Henrico. Innsbrook is a 775-acre master-planned business park with over 6 million square feet of office space and more than 500 companies — one of the most productive office parks in Virginia. Short Pump is one of Virginia’s highest-grossing retail corridors, anchored by a major regional mall and surrounded by dense commercial development along West Broad Street (US-250).

East End and Airport Corridor: Richmond International Airport (RIC) is located entirely within Henrico County, making the East End the center of logistics, manufacturing, warehousing, and distribution operations for the Richmond metro. The Mechanicsville Turnpike and Nine Mile Road corridors serve industrial and commercial uses that support the broader regional supply chain.

The practical result: whether you are opening a professional services firm, a tech startup, a retail business, or a logistics operation, Henrico has an appropriate corridor and a cost structure that makes sense.

Innsbrook in Detail

Innsbrook deserves specific mention. The 775-acre park along the US-250 West Broad corridor near I-295 is the primary address for technology companies, consulting firms, financial services businesses, and corporate headquarters in the Richmond metro. Major tenants and neighbors include healthcare, defense, and professional services companies. The park’s infrastructure, amenity base, and critical mass of professional tenants make it a credible location for businesses that need a professional office presence without a downtown Richmond premium.

For businesses targeting Richmond-area corporate and government clients, an Innsbrook address is immediately recognizable and adds credibility.

Richmond International Airport (RIC)

The airport is in Henrico. For businesses with meaningful air travel needs — logistics, distribution, businesses serving clients across the Southeast — this geographic fact matters. The economic development zone around RIC attracts warehouse and fulfillment operations, air freight forwarders, hospitality businesses serving travelers, and supporting commercial uses.

Choose Your Business Structure

Your business structure is a state-level decision that you make before you approach Henrico County for a business license.

LLC (Limited Liability Company) — The standard choice for most Henrico small businesses. Provides liability protection with pass-through taxation and minimal administrative overhead.

• Virginia SCC filing fee: $100
• Annual registration fee: $50/year
• Filing time: 1–3 business days online

See How to Start an LLC in Virginia for the full process.

Corporation — Consider for businesses planning to raise outside investment, issue stock options to employees, or eventually seek acquisition. Virginia corporate income tax is 6% (flat rate).

• Virginia SCC filing fee: $75
• S-Corp election: IRS Form 2553

See How to Start a Corporation in Virginia.

Sole proprietorship — No SCC filing required unless you are using a trade name. No liability protection. Appropriate for low-risk, early-stage testing.

• Trade name registration: $10 with Virginia SCC

Compare formation services at Best LLC Services in Virginia.

Register with the State of Virginia

Virginia SCC — Entity Registration

Register your LLC or corporation at cis.scc.virginia.gov. This must be completed before you apply for your Henrico business license.

Federal EIN

Obtain your Employer Identification Number at irs.gov/ein. Free. Processed same-day. Required for business banking, payroll, and your Henrico license application. See Get an EIN in Virginia.

Virginia Sales Tax Registration

If your business sells tangible personal property or certain services, register for sales tax at tax.virginia.gov.

Henrico County sales tax rate: 6.0% (4.3% state + 1% local + 0.7% Central Virginia regional).

Virginia Department of Taxation — Business Registration

Register your new business with the Virginia Department of Taxation at tax.virginia.gov. This covers employer withholding if you have employees, sales tax, and other state-level obligations.

Get Your Henrico County Business License

All businesses operating in Henrico County must obtain a business license before commencing operations. This applies regardless of whether you will owe any BPOL tax — even businesses under the $1 million threshold must obtain the license and file.

Revenue Division, Business Section Email: [email protected] Phone: (804) 501-4310

Application locations:

• Online: henrico.gov (preferred — available 24/7)
• Western Government Center: 4301 E Parham Road, Room 136, Henrico, VA 23228
• Eastern Government Center: 3820 Nine Mile Road, Henrico, VA 23223

Application forms required:

1. New Business License Application — the primary application form
2. Business License Questionnaire — determines your BPOL classification and rate

The Questionnaire is as important as the Application. Your answers determine which rate category applies to your business, which in turn determines your tax obligation above $1 million. If you have questions about how to answer specific questions — particularly for businesses with multiple revenue streams or a home-based component — contact [email protected] before submitting.

SCC registration prerequisite: Complete your Virginia SCC registration before submitting your Henrico application. The county needs your SCC registration information.

License must be obtained before operating. There is no grace period.

Home-Based Businesses in Henrico

Henrico’s questionnaire handles home-based businesses specifically. When completing the home-based section:

Answer the questions about work done at your home, not work done at client sites. A consultant who works from home but visits client offices is still home-based for Henrico purposes — the physical address of your principal place of business is what matters, not where the work product is ultimately delivered.

Home-based businesses do not need a separate home occupation permit as a pre-condition for the BPOL application — the questionnaire process handles the classification.

Mobile Food Units

Mobile food unit operators face an additional step: each location where you regularly operate must be individually approved by the Permit Center with written property owner permission. This applies even after your main business license is issued. If you plan to operate a food truck from multiple fixed locations in Henrico, begin the location approval process for each site at the same time you apply for your license.

Zoning Review — Henrico’s Streamlined Process

Henrico’s zoning process is notably more business-friendly than most Virginia localities: the Permit Center reviews zoning AFTER you submit your application, not before.

In most Virginia cities and counties, you must obtain zoning approval or a zoning clearance letter before you can apply for a business license. In Henrico, you submit your application, and if there is a zoning question, the Permit Center contacts you. This post-application review process eliminates a step and reduces the time between deciding to open your business and having a valid license.

If your business is straightforward — professional services, retail at an appropriately-zoned commercial address, home-based consulting — you will likely never hear from the Permit Center after application. The review happens internally and is a routine verification step.

If a zoning issue exists, the Permit Center will contact you directly. Do not assume silence means approval — follow up if you have not received your license confirmation within a reasonable time.

The $1 Million BPOL Exemption — Full Detail

Under $1,000,000 in gross receipts: $0 BPOL tax.

You still must obtain the license and file. The exemption means you owe no tax, not that you have no obligations. Businesses that skip filing because they are “under the threshold” will face penalties and the county will lose track of their account — creating problems at renewal and potentially triggering compliance follow-up.

At and 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

Rate calculation example (retail at $1.5 million):

$1,500,000 ÷ 100 × $0.20 = $3,000

The rate applies to the full gross receipts amount — not just the amount above $1 million. This is the standard BPOL calculation method in Virginia.

History: Henrico raised the exemption from $500,000 to $1,000,000 in 2024 as part of a broader effort to reduce business costs. The same initiative also reduced rates for Research & Development, Machinery & Tools (M&T), and data center equipment — reflecting Henrico’s active courtship of technology and advanced manufacturing businesses. The $1M exemption benefited more than 1,300 additional businesses.

No Merchants’ Capital Tax: Richmond City imposes a Merchants’ Capital Tax on inventory at commercial locations. Henrico does not. For retail businesses with significant inventory, this is a material cost difference.

First-year businesses: Estimate your expected gross receipts for the first license year. At March 1 renewal, you report actual prior-year receipts and the tax is reconciled. If your estimate was too high, the county reconciles downward; if too low (and you crossed $1 million), additional tax applies.

Renewals due March 1. Even if you owe $0, you must file by March 1.

Business Tangible Personal Property Tax

Separate from your BPOL license, Henrico County taxes business tangible personal property — the physical assets of your business other than real estate.

What is taxed: Furniture, fixtures, computers, equipment, machinery, tools, and other business equipment. Inventory is not taxed.

Filing deadline: May 1, for property owned as of January 1.

Payment deadline: Follows after the return is processed — contact the Revenue Division for current payment dates.

Why this matters: Missing the May 1 deadline results in a statutory assessment — the county estimates the value of your property and bills you, potentially at an inflated figure. File on time, even if you have minimal equipment.

File your tangible personal property return at henrico.gov (online) or through either Government Center.

Business Resources in Henrico

Henrico Economic Development Authority henrico.gov — business incentives, workforce data, site selection support, economic analysis.

Henrico EDA actively recruits businesses to the county and can provide data on available commercial space, workforce demographics, utility infrastructure, and incentive programs. If you are making a significant location decision, a consultation with EDA before signing a lease is worth the time.

Business Watch Program Henrico Police Department partnership with local businesses — crime prevention, communication networks, rapid response coordination. Especially relevant for retail and commercial businesses concerned about security.

Richmond Region SBDC Free consulting for Richmond metro entrepreneurs. Business plan development, financial projections, market analysis, and guidance navigating state and local licensing.

Contact through the Greater Richmond SBDC network.

SCORE Richmond Chapter score.org — free one-on-one mentoring from experienced executives and entrepreneurs. Excellent for first-time business owners working through the startup process.

Greater Richmond Partnership The regional economic development organization for the four-jurisdiction Richmond area (Richmond City, Henrico, Chesterfield, Hanover). Provides regional business intelligence and serves as a first point of contact for businesses exploring the Richmond metro.

Costs and Timeline Summary

Step	Cost	Timeline
Virginia SCC LLC filing	$100	1–3 business days
Registered agent (annual)	$0–$150/yr	Immediate
Federal EIN	Free	Same day
Henrico business license (under $1M)	$0 tax	3–7 business days
BPOL renewal (under $1M)	$0	March 1 each year
Sales tax registration	Free	Same day
Tangible personal property return	Varies by assessment	Due May 1

Total estimated startup licensing costs for most Henrico businesses: $100–$250 (primarily SCC and EIN fees; BPOL tax is $0 under $1M).

Timeline: Home-based and service businesses: 1–2 weeks. Physical locations with standard commercial zoning: 2–3 weeks. Food businesses requiring Health Department permits: 4–6 weeks for full clearance.

Opening Your Henrico County Business

Henrico’s combination of the $1 million BPOL exemption, streamlined post-application zoning, and the commercial infrastructure of Innsbrook and Short Pump makes it the most cost-effective and operationally straightforward place to start a business in the Richmond metro for most small businesses.

The process is direct: register your entity with the Virginia SCC, get your EIN, then submit your New Business License Application and Business License Questionnaire to the Revenue Division at [email protected] or online at henrico.gov. The Permit Center handles zoning review after your application, so you do not need a separate pre-approval before filing.

Remember the two ongoing compliance obligations that are separate from your BPOL renewal: the May 1 tangible personal property return and your annual BPOL renewal by March 1, even if you owe $0 tax.

For LLC formation guidance: How to Start an LLC in Virginia. For your federal EIN: Get an EIN in Virginia. For formation service comparisons: Best LLC Services in Virginia.