How to Start a Business in Portsmouth, Virginia

Skip the paperwork

Let a pro file your Virginia business for you

Filing in Virginia means state registration, an EIN, and a registered agent. These two services handle all of it — here's our honest take on when to use each.

Top pick · Best value

Northwest Registered Agent

$39 + state fee

Keeps your home address private
Free registered agent for year one
Real US-based support, no upsell maze

Best for: most Virginia founders — privacy and value without the markup.

Form my Virginia LLC →

BetterLegal

Fastest setup · premium

Business filed in about 2 business days
Bundles your EIN + operating agreement
One streamlined, hands-off checkout

Best for: founders who need it done fast with everything bundled.

Set up with BetterLegal →

Affiliate partners — we may earn a commission at no extra cost to you. Pricing is set by each provider and may change.

Starting a Business in Portsmouth, Virginia

Portsmouth sits across the Elizabeth River from Norfolk, part of the densely connected Hampton Roads metro area that collectively forms one of the largest urban regions on the East Coast. With a population of approximately 97,000, Portsmouth punches above its size — it is home to the Norfolk Naval Shipyard, which despite its name is physically located in Portsmouth. The shipyard is the oldest and largest US Navy shipyard in the country, making Portsmouth a critical hub of defense industry employment, contracting, and supply chain activity.

Beyond the shipyard economy, Portsmouth’s revitalizing Olde Towne district and High Street corridor offer commercial opportunities for retail, food service, and professional services targeting both residents and visitors drawn to the waterfront. The city actively supports new business formation through its Economic Development office.

Economic Development Resources

Before you start the formal licensing process, Portsmouth’s Economic Development office offers free resources to help you plan.

Portsmouth Economic Development Phone: (757) 393-8804 Website: www.AccessPortsmouthVA.com

The office provides a free SmartStart Business Guide — a step-by-step document covering business formation, licensing requirements, tax obligations, and available resources specific to Portsmouth. Request a copy from the Economic Development office or download it from AccessPortsmouthVA.com. This guide is an underutilized resource that can save you significant time and prevent common errors in the startup process.

Business Structure and State Registration

Before you interact with Portsmouth’s local licensing offices, your business should be properly structured at the state level.

Sole proprietorships are the simplest structure — no state filing required, though you may need to register a trade name if you operate under a name other than your own.

LLCs, corporations, and partnerships must register with the Virginia State Corporation Commission (SCC) before applying for local licenses. The SCC processes registrations online at scc.virginia.gov. You’ll receive a certificate of registration that you’ll need when you apply for your Portsmouth business license.

Federal EIN: If you have employees or operate as a multi-member LLC or corporation, you need a Federal Employer Identification Number from the IRS. Even sole proprietors sometimes prefer an EIN to avoid using a Social Security Number on business documents. Apply at irs.gov — it takes minutes and there is no fee.

Trade names: If your business operates under any name other than the legal entity name on file with the SCC (for LLCs/corporations) or your own legal name (for sole proprietors), register that trade name with the Clerk of the Circuit Court.

The Portsmouth Licensing Process: Two Steps, Two Offices

Portsmouth requires every new business to complete two separate steps before receiving a business license. These steps are handled by different offices and cannot be combined or reversed.

Step 1: Zoning Clearance (Planning Department) Step 2: Business License (Commissioner of Revenue — in person only)

Both offices are located at or near 801 Crawford Street, but they operate independently. You must complete Step 1 and receive your zoning clearance before Step 2 will process your license application.

Step 1: Zoning Clearance

Every business in Portsmouth — including home-based businesses — must obtain a Zoning Business License Clearance before applying for a city business license.

How to Apply

Submit the Zoning Business License Clearance Application, available at: portsmouthva.gov/2227

Walk-in hours are 8 AM to 4 PM, Monday through Friday.

The $15 Fee — Important Instruction

The zoning clearance application carries a $15 fee (or per City Code Appendix A). However, do NOT submit the $15 with your zoning application. The fee is paid to the Commissioner of Revenue when you submit your business license application in Step 2. Bring it to that appointment, not to the Planning Department.

What to Bring to the Zoning Office

A written description of your intended business use (be specific — “retail clothing store,” “mobile dog grooming,” “residential property management,” not just “business”)
Valid government-issued photo ID
Proof of residency (if applying for a home occupation)
Lease agreement or documentation of your business location (property deed, signed lease, etc.)

Home Occupation Rules

If you plan to operate from your home, Portsmouth defines home occupations under its zoning ordinance. Typical restrictions limit the type and intensity of business activity, prohibit certain uses entirely, limit signage, and restrict the number of customers visiting the residence. You must demonstrate residency at the address to qualify. The zoning office can walk you through specific home occupation standards during your visit.

Properties with Outstanding Violations

If your proposed business location has any outstanding zoning violations on file with the city, your zoning clearance application will not be approved until those violations are resolved. Check the status of any property before signing a lease or purchasing it for business use.

If Your Use Is Not Permitted

If the zoning office determines that your proposed business use is not permitted at your chosen location, you have several options — all of which go through the Planning Department on the 4th Floor of City Hall:

Select a different site that is zoned appropriately for your use
Apply for a Use Permit (allows certain uses in zones where they are not permitted by right)
Apply for a Zoning Variance (relief from specific dimensional or use requirements)
Pursue a Zoning Designation change (rezoning the property — a longer process)

A site plan review may also be required depending on your use and location. The Planning Department will advise you on which pathway applies to your situation.

Step 2: Business License Application — In Person Only

Portsmouth processes business license applications in person only. There is no online submission option. Plan accordingly.

Commissioner of Revenue — Business License Tax Department 801 Crawford Street Portsmouth, VA 23704 Phone: (757) 393-8714 Fax: (757) 393-8604

Plan to spend at least one hour at this appointment. The city explicitly states you should allow one hour minimum. Bring everything on the list below — missing documents will require a return visit.

What to Bring

Your approved zoning clearance from Step 1
Government-issued photo ID for all business owners/parties involved
SCC certificate (for LLCs, corporations, partnerships)
Federal EIN
Corporate charter or partnership agreement (if applicable)
Estimated gross receipts for the current year
Any applicable permits (health department, contractor license, etc.)
Fee payment — see fee structure below
The $15 zoning clearance fee (paid here, not at the Planning Department)

Business License Fee Structure

Under $100,000 in estimated gross receipts: Flat fee of $50

Over $100,000 in estimated gross receipts: Rate-based calculation. For retail businesses, the rate is $0.20 per $100 of gross receipts. Rates vary by business classification — the Commissioner’s office can confirm the applicable rate for your business type.

Forms Available

The following forms are available at portsmouthva.gov/197:

Business License Application Checklist
Business Information Request form (completed during your in-person visit)
Rate Sheet (current BPOL tax rates by classification)
Important Notice
Exemption Application
Out of City Contractor Forms
Contractor Affidavit
Workers’ Compensation Certificate
Meal Tax Bond Form
Admission Tax Registration
Short-Term Rental (STR) Certificate of Registration
Trustee Filing Form and Rate Sheet
Out of Business Form

Reviewing these forms before your appointment helps you understand what information you’ll need and speeds up the in-person process.

Trust Taxes: Meals, Lodging, and Admissions

If your business collects money subject to Portsmouth’s trust taxes, you must register for those taxes as part of the licensing process.

Meals tax applies to food and beverage sales at restaurants and prepared food establishments. Businesses collecting meals tax must obtain a Meal Tax Bond Form and register before collecting.

Admission tax applies to businesses charging for admission to events or venues.

Short-term rental hosts must obtain a STR Certificate of Registration from the Commissioner’s office.

Trust tax forms and registration are handled at the same Commissioner of Revenue office during your in-person appointment.

Health Department Permits

Businesses involving food preparation, food service, childcare, or certain personal services must obtain a permit from the Portsmouth Health Department before or alongside the business license.

Portsmouth Health Department 1701 High Street Portsmouth, VA 23704 Phone: (757) 393-8585

Contact the Health Department early in your planning process — health department inspections and permit approvals can take time, and you will need this permit in hand (or confirmed in process) before you can fully open a food service establishment.

Contractor-Specific Requirements

Contractors operating in Portsmouth face additional documentation requirements. At your Commissioner of Revenue appointment, contractors must provide:

Completed Out of City Contractor Forms (available at portsmouthva.gov/197)
Contractor Affidavit
Workers’ Compensation Certificate (or documentation of exemption)
Virginia State Contractor’s License

These forms exist because Portsmouth tracks contractors who perform work in the city but may be based elsewhere, ensuring proper tax registration and insurance compliance.

Business License Renewal

Portsmouth business licenses renew annually. The renewal deadline is March 1. Late renewals are subject to penalties. Mark this date on your calendar at the time of your initial application.

Understanding the Portsmouth Business Economy

Portsmouth’s economic base creates specific opportunities worth understanding when planning your business.

Defense and shipyard economy: The Norfolk Naval Shipyard employs tens of thousands of workers and generates substantial demand for housing, food service, professional services, and retail. Businesses serving this workforce — particularly in areas convenient to the shipyard — have a built-in customer base.

Olde Towne revitalization: The Olde Towne historic district along the Elizabeth River waterfront has attracted restaurants, galleries, boutiques, and entertainment venues as part of ongoing revitalization. Foot traffic in this district is growing, and the city has been active in supporting commercial development here.

Regional connectivity: Portsmouth’s position within the Hampton Roads metro means your potential customer base extends well beyond the city’s 97,000 residents. Access to Norfolk, Chesapeake, and the broader metro via the Downtown Tunnel and High Rise Bridge makes Portsmouth a viable location for businesses serving the wider region.

Port access: Portsmouth has proximity to the Port of Virginia and is connected to regional industrial corridors, making it suitable for logistics, warehousing, and distribution operations.

Summary: Portsmouth Business Startup Checklist

Use this checklist to track your progress through the startup process:

Key Contacts at a Glance

Portsmouth Economic Development Phone: (757) 393-8804 Website: www.AccessPortsmouthVA.com

Planning Department (Zoning Clearance — Step 1) 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 (Business License — In Person Only) 801 Crawford Street, Portsmouth, VA 23704 Phone: (757) 393-8714 | Fax: (757) 393-8604 Forms: portsmouthva.gov/197

Portsmouth Health Department 1701 High Street, Portsmouth, VA 23704 Phone: (757) 393-8585