How to Get a Business License in Portsmouth, Virginia
Getting a Business License in Portsmouth, Virginia
Portsmouth uses a mandatory two-step licensing process that requires applicants to visit two separate offices — in a specific order — before a business license is issued. Step 1 is a zoning clearance through the Planning Department. Step 2 is the license application itself, which is processed in person only by the Commissioner of Revenue. Online applications are not accepted.
Understanding this sequence before you begin saves significant time. Starting with the Commissioner’s office before completing zoning clearance will not work — the Commissioner requires your approved zoning clearance as a prerequisite for accepting your license application.
The Two-Step Process: An Overview
Step 1 — Zoning Clearance Planning Department, 801 Crawford Street, 4th Floor, Portsmouth, VA 23704 Phone: (757) 393-8836 Walk-in: 8 AM–4 PM, Monday through Friday
Step 2 — Business License Commissioner of Revenue — Business License Tax Department 801 Crawford Street, Portsmouth, VA 23704 Phone: (757) 393-8714 | Fax: (757) 393-8604
Both offices share a building address at 801 Crawford Street, but they are separate departments. You must complete Step 1 and receive written clearance before Step 2 will begin.
Step 1: Zoning Clearance
Why Zoning Clearance Is Required
Before Portsmouth will issue a business license, it must confirm that your proposed business activity is permitted at your chosen location under the city’s zoning ordinance. This applies universally — commercial storefronts, office spaces, and home-based businesses all must go through this step.
How to Apply
Submit the Zoning Business License Clearance Application, available at: portsmouthva.gov/2227
Walk-in hours: 8 AM–4 PM, Monday through Friday
The application is processed at the Planning Department, 4th Floor, City Hall, 801 Crawford Street.
The $15 Fee — Do Not Pay at This Step
The zoning clearance application has a fee of $15 (or per City Code Appendix A). Do not submit the $15 fee with your zoning application. The fee is paid to the Commissioner of Revenue when you complete Step 2. Bring the $15 to that appointment, not to the Planning Department.
Documents to Bring to the Zoning Office
- Written description of your intended business use — Be specific. “Italian restaurant with alcohol service” is useful; “food business” is not.
- Valid government-issued photo ID
- Proof of residency — Required if applying for a home occupation. This confirms you live at the address where you want to operate.
- Lease agreement or location documentation — A signed lease, property deed, or other documentation establishing your right to occupy the business address.
Home Occupation Businesses
Home-based businesses in Portsmouth are classified as home occupations under the zoning ordinance. To qualify, you must prove residency at the address. The zoning ordinance places limits on home occupations, typically restricting the nature of the business activity, prohibiting certain commercial uses in residential zones, limiting signage, and controlling customer traffic at the residence.
Properties with Outstanding Zoning Violations
If your proposed business location has any outstanding zoning violations on file with the city, the Planning Department will not approve your zoning clearance until those violations are corrected. Verify the compliance status of any address before entering into a lease or purchase agreement for business purposes.
If Your Business Use Is Not Permitted at Your Location
If the Planning Department determines that your proposed use is not permitted at your chosen address, you have four options — all handled through the Planning Department on the 4th Floor of City Hall:
- Select a different site that is already zoned to permit your use
- Apply for a Use Permit — allows certain conditional uses in zones where they are not permitted by right; requires review and approval
- Apply for a Zoning Variance — provides relief from specific requirements; requires a hearing before the Board of Zoning Appeals
- Pursue a Zoning Designation change — a formal rezoning of the property; the longest pathway but sometimes the only viable option
Additionally, depending on your location and use, the city may require a site plan review before granting clearance. The Planning Department will tell you whether this applies to your situation.
Step 2: Business License Application — In Person Only
No Online Option
Portsmouth does not accept business license applications online, by mail, or by fax. You must appear in person at the Commissioner of Revenue’s office.
Location and Contact
Commissioner of Revenue — Business License Tax Department 801 Crawford Street Portsmouth, VA 23704 Phone: (757) 393-8714 Fax: (757) 393-8604
Plan for One Hour
Portsmouth explicitly states that applicants should allow a minimum of one hour for this appointment. Arriving with incomplete documents will result in a return visit.
What to Bring
- Approved zoning clearance from Step 1 (the Planning Department’s written approval)
- Valid DMV photo ID for all parties — all business owners named on the application must present valid photo ID
- SCC certificate — Certificate of Registration from the Virginia State Corporation Commission (for LLCs, corporations, and partnerships)
- Federal EIN
- Corporate charter or partnership agreement (if applicable to your entity type)
- Estimated gross receipts for the current calendar year through December 31
- Applicable permits — health department permit, contractor license, or other required credentials
- Fee payment
- $15 zoning clearance fee — paid here at the Commissioner’s office, not at the Planning Department
Business Information Request Form
The Commissioner’s office uses a Business Information Request form during the in-person application. This form is available to review and pre-fill at portsmouthva.gov/197 so you can prepare before your appointment.
Fee Structure
Under $100,000 in Gross Receipts
Flat fee: $50
Over $100,000 in Gross Receipts
Rate-based calculation. For retail businesses, the rate is $0.20 per $100 of gross receipts. Other classifications have different rates — the Rate Sheet at portsmouthva.gov/197 lists current rates by classification.
Complete Forms Checklist
All of the following forms are available at portsmouthva.gov/197:
| Form | Purpose |
|---|---|
| Business License Application Checklist | Overview of what to bring and steps to complete |
| Business Information Request | Primary form completed during in-person appointment |
| Rate Sheet | Current BPOL tax rates by business classification |
| Important Notice | Key notices regarding compliance requirements |
| Exemption Application | For businesses claiming a license tax exemption |
| Out of City Contractor Forms | For contractors based outside Portsmouth |
| Contractor Affidavit | Contractors confirming license and insurance status |
| Workers’ Compensation Certificate | Proof of workers’ comp coverage or exemption |
| Meal Tax Bond Form | For businesses collecting Portsmouth meals tax |
| Admission Tax Registration | For businesses charging admission fees |
| STR Certificate of Registration | For short-term rental operators |
| Trustee Filing Form and Rate Sheet | For businesses remitting trust taxes |
| Out of Business Form | Filed when closing or ceasing operations in Portsmouth |
Review the forms list before your appointment. If your business type requires any of the specialized forms — contractor forms, meal tax bond, admission tax, STR certificate — bring the completed forms or be prepared to complete them during your visit.
Contractor-Specific Requirements
Contractors performing work in Portsmouth must provide additional documentation beyond the standard license application:
- Out of City Contractor Forms (if based outside Portsmouth)
- Contractor Affidavit — confirming Virginia contractor license status
- Workers’ Compensation Certificate — proof of active workers’ comp coverage or documentation of exemption
- Virginia State Contractor’s License (number and class)
Meal Tax and Trust Tax Registration
If your business is subject to Portsmouth’s meals tax, admission tax, or short-term rental tax, you must register for these taxes through the Commissioner of Revenue — typically at the same in-person appointment where you obtain your business license.
- Meal Tax Bond Form — required for restaurants and food service businesses before collecting meals tax from customers
- Admission Tax Registration — for venues and events charging admission
- STR Certificate of Registration — for operators of short-term rentals (Airbnb, VRBO, etc.)
The Trustee Filing Form and Rate Sheet governs remittance of these trust taxes after you begin collecting them. Trust taxes collected from customers belong to the city — they are held in trust by the business and remitted on the city’s schedule.
Business License Renewal
Portsmouth business licenses must be renewed annually by March 1. The renewal process requires you to report your actual prior-year gross receipts and calculate the applicable renewal fee.
Late renewals are subject to penalties. Missing the March 1 deadline is avoidable — note it at the time of your initial application.
When You Close Your Business
If you close your Portsmouth business during the year, complete and submit the Out of Business Form (available at portsmouthva.gov/197) to the Commissioner of Revenue. Report your actual gross receipts through your closing date. Notifying the city promptly stops the accrual of tax obligations and removes your business from the renewal roll.
Summary: Portsmouth Business License Checklist
- Confirm business entity is registered with Virginia SCC (if applicable)
- Obtain Federal EIN
- Download Zoning Business License Clearance Application at portsmouthva.gov/2227
- Visit Planning Department (801 Crawford Street, 4th Floor) walk-in 8 AM–4 PM M-F
- Bring: business use description, valid photo ID, residency proof if home-based, lease/location docs
- Receive written zoning clearance from Planning Department
- If not permitted: pursue Use Permit, Variance, Zoning Designation change, or new site (all through Planning 4th Floor)
- Review all forms at portsmouthva.gov/197 before Commissioner appointment
- Schedule in-person Commissioner appointment — block at least one hour
- Bring to Commissioner: approved zoning clearance, DMV photo ID all parties, SCC cert, EIN, corporate docs, estimated receipts, applicable permits, fee + $15 zoning fee
- Pay business license fee: $50 flat (under $100K) or rate × receipts (over $100K; $0.20/$100 for retail)
- Complete Business Information Request and any specialized forms (contractor, meals tax, STR, etc.)
- Note renewal deadline: March 1 annually
- File Out of Business Form when closing
Contact Information at a Glance
Planning Department (Step 1 — Zoning Clearance) 801 Crawford Street, 4th Floor Portsmouth, VA 23704 Phone: (757) 393-8836 Walk-in: 8 AM–4 PM, Monday–Friday Application: portsmouthva.gov/2227
Commissioner of Revenue (Step 2 — Business License, In Person Only) 801 Crawford Street Portsmouth, VA 23704 Phone: (757) 393-8714 Fax: (757) 393-8604 Forms: portsmouthva.gov/197
Renewal deadline: March 1