How to Start a Business in Manassas, Virginia
If you’re looking at Northern Virginia locations for your business and you’re factoring in cost, Manassas deserves a serious look. This independent city — separate from Prince William County in every meaningful tax and licensing sense — charges contractors $0.13 per $100 in gross receipts where Fairfax County charges $0.16. Retail pays $0.17 here versus $0.20 there. For a business generating $500,000 in annual receipts, that difference compounds quickly.
But the cost angle is only part of the story. Manassas has the busiest general aviation airport in Virginia, a revitalized historic downtown drawing steady foot traffic, and direct VRE commuter rail service to Washington, DC. It’s 30 miles from the capital and positioned inside the Northern Virginia tech and defense corridor. The people living here — median household income of $117,919 — have serious spending power.
The one thing you must get right before you file anything: Manassas is NOT part of Prince William County. They share a border and a name, but they are separate jurisdictions with separate licensing systems, separate BPOL rates, and separate Commissioners of Revenue. If your business address is in Manassas city limits, you license through the city. Full stop.
Why Manassas for Your Business
Manassas is an independent city of approximately 42,772 residents (2020 census) in Northern Virginia, part of the Washington-Arlington-Alexandria DC metropolitan area. It sits 30 miles southwest of Washington, DC with access via I-66, US-29, VA-234, and VA-28 — plus Virginia Railway Express commuter rail service with a Manassas station providing direct service to Union Station in DC.
The independent city distinction matters enormously. Manassas has its own Commissioner of Revenue, its own BPOL rates, and its own zoning rules. It is the county seat of Prince William County but is not part of that county for tax or licensing purposes. Nearby Manassas Park is also a separate independent city. When people ask “should I file in Manassas or Prince William County?” the answer is simple: wherever your business address is. Don’t assume.
The airport is a genuine differentiator. Manassas Regional Airport is the busiest general aviation airport in Virginia — 415+ based aircraft, 26 on-site businesses, charter companies, flight schools, and avionics services. Aviation-related businesses, aerospace support services, and anyone needing private aviation access will find Manassas uniquely positioned.
The industry base creates real opportunity. Key industries in Manassas include advanced manufacturing, aerospace and defense, healthcare, and professional and technical services. Major employers include Micron Technology, BAE Systems, Novetta, and Lockheed Martin — the kind of anchor tenants that generate demand for a wide ecosystem of support businesses. If you’re in IT, defense contracting, facilities management, staffing, or professional services, the pipeline of potential clients in Manassas and the surrounding corridor is substantial.
The downtown is working. The historic downtown around the Manassas Museum and Harris Pavilion has been genuinely revitalized — restaurants, shops, arts venues, and event programming that draws regular foot traffic. This isn’t a speculative bet on future redevelopment. It’s an active commercial district.
The consumer base is strong. Median household income of $117,919 puts Manassas residents firmly in the upper tier of Virginia consumers. The city’s position in the DC metro area means workers here earn and spend at Northern Virginia levels.
The Manassas Economic Development Department operates at choosemanassas.org and provides startup resources, site selection assistance, and information on incentive programs. The Economic Development Authority offers loans, grants, and bond financing for qualifying businesses.
Virginia is a right-to-work state. There is no city income tax in Manassas. The Virginia corporate income tax is a flat 6%.
Choose Your Business Structure
Your entity type determines how you’re taxed, how you’re protected, and what paperwork you file. Most Manassas small businesses are LLCs.
LLC (Limited Liability Company): File Articles of Organization with the Virginia State Corporation Commission (SCC) at cis.scc.virginia.gov. Filing fee: $100. Annual registration fee: $50 per year. The LLC shields your personal assets from business debts and gives you flexibility on how you’re taxed — as a sole proprietor, partnership, S-Corp, or C-Corp. Most small business owners in Virginia choose the LLC.
Sole Proprietorship: No SCC filing required unless you’re operating under a trade name (a name other than your own legal name). If you use a fictitious business name, register it with the SCC for $10. No liability shield — your personal assets are exposed.
Corporation: File Articles of Incorporation with the SCC. Filing fee: $75. Better suited for businesses seeking outside investment or planning to issue stock.
S-Corp Election: Not a separate entity type — it’s a federal tax election you make by filing IRS Form 2553. This election is made after you form your LLC or corporation.
For LLC formation help, see How to Start an LLC in Virginia. To compare formation services, see Best LLC Services in Virginia.
Register with the State
Virginia SCC Registration
Once you’ve chosen your entity type, register at cis.scc.virginia.gov. LLCs: $100. Corporations: $75. Processing typically takes one to three business days online.
Federal Employer Identification Number (EIN)
Apply for your EIN free at irs.gov/ein. Issued instantly online. You’ll need it for your bank account, payroll, and business license application. See Get an EIN in Virginia.
Virginia Department of Taxation
Register for sales tax, employer withholding, and any other applicable state taxes at tax.virginia.gov.
Sales Tax Note — Manassas is Northern Virginia: The sales tax rate in Manassas is 6% — made up of 4.3% state, 1% local, and 0.7% Northern Virginia Transportation Authority regional tax. This is higher than the 5.3% rate that applies to most of Virginia outside the NoVA region. Budget accordingly and make sure your point-of-sale systems are set to the correct rate.
Get Your Manassas Business License
Every business operating in Manassas city limits must obtain a Business, Professional, and Occupational License (BPOL) from the Commissioner of the Revenue before commencing operations. Operating without a license is a Class 1 misdemeanor under Virginia Code §58.1-3700, punishable by a fine of up to $500.
Commissioner of the Revenue 9027 Center Street, Room 104 Manassas, VA 20110 Mailing: PO Box 125, Manassas, VA 20108-0125 Phone: (703) 257-8214
New Applications: Apply in person or by mail. New applications cannot be filed online.
Required Information: Trade name, business location, mailing address, detailed description of business activity, type of ownership, estimated gross receipts, federal tax ID number, and start date. Corporations and LLCs must be registered with the Virginia SCC.
Delinquent Taxes: A license cannot be issued until all delinquent city taxes are satisfied — that includes business license, personal property, meals, and transient taxes. If you have any outstanding city tax balances, clear them before you apply.
Renewals: Renewal is due March 1 each year. A 10% late filing penalty applies to applications received after March 1. Renewals can be filed and paid online through the self-service portal at selfservice.manassasva.gov/CSS/ — which makes the annual filing genuinely convenient. Note: failure to receive a renewal notice does not relieve your obligation to file on time.
BPOL Tax Rates — Lower Than Most NoVA Jurisdictions
Manassas BPOL rates are a real cost advantage for businesses comparing Northern Virginia locations. Here are the current rates, with a direct comparison to Fairfax County:
| Business Type | Manassas Rate | Fairfax County Rate |
|---|---|---|
| Contractors | $0.13 per $100 | $0.16 per $100 |
| Retail merchants | $0.17 per $100 | $0.20 per $100 |
| Real estate and professional service | $0.33 per $100 | $0.36 per $100 |
| Financial service | $0.35 per $100 | — |
| Repair, personal and business service | $0.22 per $100 | — |
| Commission merchant | $0.22 per $100 | — |
| Wholesale merchant | $0.05 per $100 | — |
Manassas is consistently cheaper than Fairfax County and Arlington across all major business categories. For a contractor generating $400,000 in gross receipts, the Manassas rate saves $120 per year compared to Fairfax County. That gap widens with revenue.
How BPOL is Calculated: Divide your gross receipts by 100, then multiply by the applicable rate. Example: a retail business with $300,000 in gross receipts pays $300,000 ÷ 100 × $0.17 = $510.
Zoning and Permits
Before your business license can be issued, certain permits may be required depending on your location and business type.
Home-Based Businesses: If you’re operating from a residence, you must obtain a Home Occupation Permit or Non-Residential Use Permit from the Community Development department before applying for your business license.
Community Development 9027 Center Street, Room 202 Manassas, VA 20110 Phone: (703) 257-8273
Permits are issued after zoning requirements are verified. Standard restrictions on home occupations apply — limitations on signage, customer traffic, employees on-site, and activities that would affect the residential character of the neighborhood.
Commercial Locations: Verify zoning compliance for your intended business use at the address you’re considering. Not every use is permitted in every zone.
Food Businesses: A Health Department permit is required before you can open. Contact the Prince William Health District for requirements and inspection scheduling.
Licensed Trades: Contractors must hold a Virginia DPOR contractor license in addition to the Manassas BPOL license.
Alcohol: An ABC license from the Virginia ABC Authority is required for any business serving or selling alcohol. Manassas also charges additional city alcoholic beverage surcharges:
- Beer and wine on-premises: $75
- Beer and wine off-premises: $75
- Mixed beverages (seating 50–100): $200
- Mixed beverages (seating 101–150): $350
- Mixed beverages (seating 151+): $500
These surcharges are in addition to the ABC license and the standard BPOL license.
Business Resources in Manassas
Manassas Economic Development Department choosemanassas.org The city’s Economic Development Authority offers loans, grants, and bond financing for qualifying businesses. The economic development staff can assist with site selection, permitting navigation, and connecting businesses with state and federal incentive programs.
Prince William Chamber of Commerce A regional business network connecting Manassas businesses with the broader Northern Virginia business community. Events, advocacy, and peer connections.
SBDC at George Mason University Free one-on-one consulting and business workshops through George Mason’s Small Business Development Center. Useful for business planning, financial projections, and government contracting guidance.
SCORE Northern Virginia Free mentoring from retired executives and experienced business owners. Available in-person and virtually.
Virginia Business One Stop business.virginia.gov — the state’s consolidated portal for registrations, licenses, and permits. Useful for understanding state-level requirements across multiple agencies.
Key Contacts at a Glance
| Department | Address | Phone |
|---|---|---|
| Commissioner of Revenue (BPOL) | 9027 Center Street, Room 104 | (703) 257-8214 |
| Community Development (Zoning) | 9027 Center Street, Room 202 | (703) 257-8273 |
| Virginia SCC | cis.scc.virginia.gov | — |
| Virginia Dept. of Taxation | tax.virginia.gov | — |
Summary: Starting a Business in Manassas
Manassas is a genuinely competitive location for Northern Virginia businesses — lower BPOL rates than Fairfax County or Arlington, a revitalized downtown with real foot traffic, and direct rail access to DC. The process is straightforward if you understand one critical fact: Manassas is an independent city. You file here, not with Prince William County.
The steps are: form your entity with the Virginia SCC → get your EIN → register with the Virginia Department of Taxation → verify zoning and obtain any required permits → apply for your BPOL license with the Commissioner of the Revenue in person or by mail → set a calendar reminder for March 1 renewals.
For home-based businesses, secure your Home Occupation Permit from Community Development (Room 202) before you approach the Commissioner (Room 104). For food businesses, add Health Department to your checklist. For alcohol, add ABC licensing and budget the city surcharges.
The Economic Development Authority at choosemanassas.org is worth a call early in the process — they can point you toward available incentives and help you understand site-specific requirements before you sign a lease.
Manassas isn’t the highest-profile Northern Virginia city, but that’s part of the value proposition. The costs are real, the infrastructure is solid, and the client base — anchored by major aerospace and defense employers with strong household incomes — is exactly what many service businesses need.