Lynchburg VA Business License: No License at $150,000 or Less and a May 1 Deadline
If your business has gross receipts or purchases of $150,000 or less, the City of Lynchburg does not issue you a business license. That means no license, no license fee and no license tax. Above $150,000, the whole base is taxed, not just the amount over the line. Renewals and payments are due May 1, not March 1.
This guide explains how the Lynchburg VA business license works, what the rates are, when filings are due, what penalties apply, and how to apply through the Commissioner of the Revenue. It also covers the related local taxes and short-term rental registration that business owners often run into at the same time.
Informational content only: this guide is not legal or tax advice. Rates and rules can change, so confirm your numbers with the Commissioner of the Revenue before you file. If your situation involves multiple entities, several locations or a mix of taxable activities, talk to a qualified attorney or CPA.
Virginia has no state business license
Virginia does not issue a general state business license. The State Corporation Commission (SCC) forms entities such as LLCs and corporations, and it issues no business license. The license most businesses run into is local. The Business, Professional and Occupational License (BPOL) is a local license tax under Va. Code 58.1-3700 et seq., administered by each city or county, usually through the Commissioner of the Revenue.
Not every Virginia locality levies a general BPOL tax. Va. Code 58.1-3704 allows a locality to levy none, and some towns and counties run their own systems. The rules in Lynchburg do not automatically apply to a business in a neighboring locality, so check the locality where you actually operate.
The $150,000 threshold and why it matters
Lynchburg had a population of 81,347, which puts it over 50,000. State law bars a locality of that size from requiring a license for gross receipts under $100,000, and it allows localities over 50,000 to waive the license up to a higher ceiling. Lynchburg chose $150,000 as its line. Since January 1, 2023, the city has issued no business license to a business with gross receipts or purchases of $150,000 or less. The state floor is $100,000, so the $150,000 figure is the city's own choice. Confirm the current waiver ceiling with the Commissioner of the Revenue if your numbers are close to any line.
The threshold is not a deduction. The city's form reads '$150,001 and greater', which means once you pass $150,000, the entire base is taxed. Consider two professional firms:
- A firm with $149,000 in gross receipts owes nothing.
- A firm with $151,000 owes about $830, because the full $151,000 is taxed at 0.55 per $100.
Moving from $149,000 to $151,000 in receipts takes the firm from no tax to about $830. If you are near $150,000, track receipts carefully through the year rather than estimating at the end.
The threshold affects only the business license. It does not remove the other local and state taxes covered later in this guide, such as sales tax or business personal property tax.
Lynchburg business license rates
Lynchburg taxes gross receipts at a rate per $100 for your business category. The rates below come from the city's 2026 renewal form. Confirm them against the current form before you calculate.
| Business category | Rate (2026 renewal form) |
|---|---|
| Retail merchant | 0.19 per $100 of gross receipts |
| Contractor | 0.15 per $100 of gross receipts |
| Repair, personal, business and other services | 0.34 per $100 of gross receipts |
| Financial, real estate and professional | 0.55 per $100 of gross receipts |
| Wholesale merchant | $20 plus 0.26 per $100 of gross purchases |
| Telephone companies | One-half of 1 percent of gross receipts |
The wholesale structure is a flat $20 plus a percentage of purchases, so it does not work like the other rates and should not be read as a typical figure. Classify your business correctly before you file, because a wrong category produces a wrong rate.
Worked examples
- A retail business with $200,000 in gross receipts owes $380 ($200,000 divided by $100, times 0.19).
- A professional firm with $151,000 in gross receipts owes about $830.
- A professional firm with $149,000 in gross receipts owes nothing.
Deadlines: May 1, not March 1
Under City Code Sec. 36-126.6(c)(2), an existing business must file the application and pay in full by May 1. March 1 is not the deadline. The timing for a business that starts during the year depends on when it opens:
- Existing businesses: the application and full payment are due May 1.
- New businesses starting after January 1: pay within 30 days of beginning business or by May 1, whichever is later.
Estimating receipts as a new business
A new business estimates gross receipts from its start date to the end of the year. The city later corrects the tax to actual receipts. If your estimate was too high, the city does not send a refund. It gives a credit against next year's tax. Ask the Commissioner how that credit works if actual receipts come in at $150,000 or less, since the no-tax line changes the result.
Late filing and late payment penalties
- Late filing: the greater of $10 or 10 percent of the tax.
- Late payment: 10 percent of the tax.
- Interest: the rate is not printed on the renewal form, so check with the Commissioner of the Revenue.
Filing on time avoids both penalties, so mark May 1 on your calendar well before the date.
How to apply
Office: Commissioner of the Revenue, 900 Church Street, Lynchburg, VA 24504. Mail goes to P.O. Box 858, Lynchburg, VA 24505. The business license line is 434-455-3880, and hours are 8:30 to 5:00 on weekdays.
Online: File and pay through CityLink at webapps.lynchburgva.gov/citylink. A PIN is required to use the portal.
Mail or email: You can also send the renewal form by mail or email to the Commissioner's office.
New businesses: Use the combined Letter of Zoning Approval and Business License Application, found on the city's Business Licenses and Zoning Approval Forms page.
Which form to use
- Combined Letter of Zoning Approval and Business License Application: for new businesses.
- Home-based business or food truck form: food trucks must use this form even if the owner lives outside Lynchburg.
- Commercial location form: for a business operating from a commercial site.
- Local or out-of-town contractor forms: each contractor packet includes the city's own workers' compensation form.
- Commercial Zoning Approval form: for a use that needs a certificate of occupancy but no license, such as a business under $150,000.
Zoning comes first for many businesses
City Code Sec. 36-126.6(b)(1) bars a license for a business on a vacant lot or in a building without a certificate of occupancy. Check zoning and occupancy before you apply. For zoning questions, call the Zoning Administrator at 434-455-3915.
Other local taxes that often come up
A business license is only one piece. Depending on your business, you may also owe:
- Meals tax: 6.5 percent, due on the 20th of each month.
- Lodging tax: 6.5 percent plus $1 per room per night.
- Amusement tax: 7 percent.
- Business personal property tax: $3.80 per $100 of assessed value. The itemized list is due February 15, and a late list carries the greater of 10 percent or $10. Bills are due June 5 and December 5.
- Machinery and tools: a $3.00 rate. Confirm the basis and filing details with the Commissioner of the Revenue.
- Sales tax: 5.3 percent, with no regional add-on in Lynchburg. Sales tax permits are handled through Virginia Tax at tax.virginia.gov/sales-and-use-tax.
Lynchburg short-term rental registration
Short-term rentals must register with the city for $150 per property. A $500 civil penalty applies to owners who do not register. The rules allow four unrelated occupants at most. Exemptions apply to hosts who hold a real estate license and to lodging that already holds a license. Confirm which city office handles registration and how to file before you list a property, and check the exemptions against your own situation.
Watch the terminology. In BPOL law, 'short-term rental' means equipment rental, not home-sharing. A short-term rental registration and a BPOL question about equipment rental are different matters, so do not apply one definition to the other.
Nearby localities
Rules change quickly across county and town lines in the Lynchburg area. Confirm each locality directly.
| Locality | What to confirm |
|---|---|
| Campbell County | A $20, $30 or $40 fee applies under $100,000, then class rates. Due May 1. The county posts two rate sets, so this guide prints no rates. Confirm which set applies to you. |
| Town of Altavista | Has its own license, due May 1. The town's meals tax is 8 percent. |
| Town of Amherst | Has its own license, due May 1. |
| Town of Appomattox | Licenses businesses. Confirm the rules and deadline with the town. |
| Brookneal, Amherst County and Appomattox County | Check with the locality for licensing rules and deadlines. |
Whether a business inside a town also owes the county tax is unclear. Ask the Commissioner of the Revenue for the locality where you operate.
Quick checklist
- Total your gross receipts or purchases for the year. At $150,000 or less, the city issues no license.
- If you are over $150,000, find your category and apply its rate to the full base.
- New businesses: file and pay within 30 days of starting, or by May 1, whichever is later.
- Existing businesses: file and pay through CityLink by May 1.
- Confirm zoning and certificate of occupancy before you apply.
This guide is informational and is not legal or tax advice. Confirm current rates, deadlines and penalties with the Commissioner of the Revenue at 434-455-3880 before you file, and consult a qualified CPA or attorney for complex situations.