How to Get a Business License in Richmond, Virginia
Richmond’s Business License: What You Need to Know First
Every business operating within Richmond city limits is required to obtain a business license from the Department of Finance Revenue Administration before commencing operations — or within a defined period of beginning. This requirement is established under Richmond City Code Article XV, which implements Virginia’s statewide Business, Professional, and Occupational License (BPOL) tax system authorized by Virginia Code §58.1-3700.
The Richmond business license is both a registration and a tax mechanism. The registration component confirms that your business is authorized to operate in the city. The tax component assesses a levy on your gross receipts based on your business classification. For many Richmond businesses, the tax amount is zero — thanks to the city’s generous $500,000 exemption threshold — but the registration requirement applies regardless.
Understanding the distinction between registration and taxation is the most important foundation for navigating Richmond’s licensing process correctly.
The $500,000 BPOL Exemption
Richmond doubled its BPOL exemption threshold from $250,000 to $500,000 in gross receipts. This is one of the highest exemption thresholds among Virginia’s cities.
The practical result: any Richmond business with annual gross receipts below $500,000 owes no BPOL tax on those receipts. According to analysis from Keiter CPA, approximately 70% of Richmond businesses qualify for this exemption — meaning the vast majority of small businesses in the city pay no gross receipts tax to Richmond.
You must still register and obtain a license even if you qualify for the exemption. The $500,000 threshold eliminates the tax, not the obligation to be licensed. Operating without a license while your receipts are below $500,000 is still a violation of Richmond City Code Article XV. The license simply costs you nothing in tax at that revenue level.
Where to Apply
In Person: City Hall 900 E. Broad Street, 1st Floor Richmond, VA 23219
By Phone: RVA 311 at (804) 646-7000
Appointments: Richmond offers both in-person appointments and virtual appointments through an online calendar. Virtual appointments allow you to complete much of the process without traveling to City Hall. Check rva.gov for current scheduling options.
Before You Apply: Prerequisites
State Registration
If your business is structured as an LLC, corporation, or other formal entity, register with the Virginia SCC at cis.scc.virginia.gov before applying for your Richmond license. LLC formation costs $100; corporations cost $75.
Federal EIN
Obtain your federal Employer Identification Number from the IRS at irs.gov (free). Your EIN is required on the business license application.
Zoning Clearance
Richmond requires zoning approval before issuing a business license. The zoning review is handled by the Department of Planning and Development Review (PDR). Contact PDR to confirm that your proposed business use is permitted at your location under Richmond’s zoning ordinance.
This step applies to commercial locations, leased office space, and home-based businesses. Do not sign a lease or commit to a location before confirming zoning clearance — zoning issues after a lease is signed create costly complications.
All City Taxes Must Be Current
The Department of Finance will not issue or renew a business license if you have outstanding delinquent tax obligations to the city. Resolve any open balances before submitting your application.
Application Documents and Checklist
Richmond makes a Business License Application Checklist PDF available on rva.gov. Download and review this checklist before your appointment. Arriving without required documents will delay processing.
Core documents typically required:
- Completed business license application form
- Federal EIN
- Virginia SCC registration documentation (for LLCs, corps, and other entities)
- Zoning approval or clearance from PDR
- DPOR license documentation (for contractors and licensed professions)
- Workers’ compensation certificate (for contractors)
- Additional documentation for specialized business types (see below)
Business Classifications Under Richmond’s BPOL System
The BPOL tax rate that applies to your business above the $500,000 threshold depends on your classification. Richmond assigns every business to a classification based on its primary activity.
Standard Classifications
- Retail merchant
- Wholesale merchant
- Professional services
- Financial services and real estate
- Contracting
- Repair and personal services
Each Location and Each Activity Separately
If your business operates from multiple locations within Richmond, each location requires its own separate business license. Similarly, if your business conducts multiple types of activities that fall into different classifications, each activity may be separately subject to licensing and taxation.
Multi-Activity Election
When a business conducts activities that span multiple classifications, Richmond allows the business to make a multi-activity election, which affects how the tax is calculated across those activities. Ask the Department of Finance whether this election is appropriate for your business situation.
Beginner’s Adjustment
New businesses applying for their initial license may qualify for a beginner’s adjustment, which accounts for the fact that projected first-year receipts are estimates. The adjustment ensures that new businesses are not overtaxed based on projections that may not materialize.
The $30 New-Business Discount
Richmond offers a discounted license fee of $30 for new businesses during their first two years of operation, applicable to businesses with $250,000 or more in gross receipts. This discount has been retroactively verified. When you apply, ask the Department of Finance to confirm current eligibility requirements and confirm that the discount applies to your situation.
Special Business Types and Additional Requirements
Contractors
Contractors must submit:
- Proof of a valid DPOR (Department of Professional and Occupational Regulation) state contractor license
- A current workers’ compensation certificate
Non-city contractors — businesses based outside Richmond — must obtain a Richmond business license if they perform work within the city on projects valued at $25,000 or more.
Restaurants and Food Service
Food service businesses must obtain:
- A Health Permit from the city health department
- Registration for Richmond’s meals tax (applies to prepared food and beverage sales)
These requirements exist alongside and in addition to the BPOL license.
Peddlers and Solicitors
Door-to-door vendors and itinerant merchants must hold a peddler’s license and carry liability insurance that names the City of Richmond as a co-insured party. This insurance requirement is specific and must be documented before the license is issued.
Taxi and Limousine Services
Taxi and limousine operators must obtain a DMV “For Hire” vehicle tag in addition to the city business license.
Public Dance Halls
Operators of public dance halls must pay a nonrefundable fee of $100 at the time of application.
Business Tangible Personal Property
Richmond businesses that own tangible personal property used in their trade or business — equipment, computers, furniture, tools, machinery — must file a Business Tangible Personal Property return with the city. This filing is due by March 1 each year.
The tangible personal property obligation is separate from the BPOL license. Many new business owners are surprised by the first assessment notice. File the return on time to avoid penalties, even if you believe your property value is modest.
Annual Renewal Deadline
All Richmond business licenses must be renewed annually. The renewal deadline is March 1. The renewal tax is calculated based on the prior calendar year’s actual gross receipts.
The March 1 deadline also governs the Business Tangible Personal Property return. Both obligations fall on the same date — mark your calendar well in advance.
Late Payment Penalties and Interest
Missing the March 1 renewal deadline triggers both a penalty and ongoing interest:
- Penalty: $10 or 10% of the tax due, whichever is greater
- Interest: 10% annually
Even a small unpaid balance generates the minimum $10 penalty immediately upon missing the deadline, then begins accruing interest at 10% per year until paid. There is no grace period.
Online Payment
Richmond accepts online payment for BPOL taxes and other city tax obligations through the Richmond payment portal available at rva.gov. Online payment is available for renewals and can simplify the annual process.
Pop-Up and Temporary Businesses
If you are operating a temporary or pop-up business — a seasonal café, market vendor, holiday retail pop-up — and you will be open before March 1, apply for your business license before starting operations. Contact RVA 311 at (804) 646-7000 to confirm the appropriate process for your situation.
Purchasing an Existing Richmond Business
If you are buying an existing Richmond business, note that business licenses are not transferable. The prior owner’s license does not carry over to you. You must apply for a new license in your own name as the new owner, with your own registration information.
Step-by-Step Application Checklist
- Form your business entity at the Virginia SCC (cis.scc.virginia.gov) if applicable. LLC: $100. Corporation: $75.
- Obtain your federal EIN from irs.gov.
- Register with Virginia Department of Taxation for applicable state taxes.
- Obtain zoning clearance from PDR for your business location.
- Obtain DPOR license if required for your profession or trade.
- Ensure all delinquent city taxes are paid.
- Download the Business License Application Checklist PDF from rva.gov.
- Schedule an in-person or virtual appointment through the online calendar on rva.gov.
- Submit your application with all required documents at City Hall, 900 E. Broad Street, 1st Floor, Richmond, VA 23219, or via virtual appointment.
- Pay the applicable fee at submission (or confirm the $0 tax for exempt businesses; fee may still apply for registration).
- Confirm whether the $30 new-business discount applies for your first two years.
- File your Business Tangible Personal Property return by March 1.
- Renew your BPOL license annually by March 1.
Frequently Asked Questions
Does the $500,000 exemption mean I don’t need a license?
No. The exemption eliminates the tax on receipts below $500,000, but it does not eliminate the obligation to register and obtain a business license. Every business in Richmond must hold a valid license.
What if I operate from home?
Home-based businesses in Richmond are subject to BPOL licensing and zoning requirements. Contact PDR to confirm that your home occupation is permitted at your address under Richmond’s zoning ordinance before applying for your license.
Can I pay online?
Yes. Richmond accepts online payment through the payment portal at rva.gov.
What happens if I miss the March 1 deadline?
You will owe a penalty of $10 or 10% of the tax due (whichever is greater) plus interest at 10% annually on the unpaid balance.
Who do I call with questions?
Contact RVA 311 at (804) 646-7000. Staff can direct your call to the appropriate division within the Department of Finance Revenue Administration.
Contact and Resource Summary
Department of Finance Revenue Administration City Hall, 900 E. Broad Street, 1st Floor Richmond, VA 23219
Phone: RVA 311 at (804) 646-7000
Online Portal and Forms: rva.gov
Renewal and Tangible Property Deadline: March 1 annually
Late Penalty: $10 or 10%, whichever greater; 10% annual interest