Virginia Beach Commissioner of Revenue office building where entrepreneurs apply for business licenses

How to Get a Business License in Virginia Beach, Virginia

What Is the Virginia Beach Business License?

Every business operating within the city limits of Virginia Beach must obtain a business license before commencing operations. This requirement applies to businesses of all sizes and types — from a sole proprietor running a home-based consulting practice to a multi-location retail chain with hundreds of employees.

Virginia Beach’s business license system is governed by Virginia Code §58.1-3700 and Virginia Beach City Code Chapter 34. The license is formally known as the BPOL license — short for Business, Professional, and Occupational License — and the tax associated with it is calculated based on your gross receipts, not your profits.

There is no blanket exemption for small businesses, home-based businesses, or online-only operations with a Virginia Beach address. If you are doing business in Virginia Beach, you need this license.

Special License Types

Beyond the standard BPOL license, Virginia Beach also requires:

  • Community Event license — Required for organizers of community events, festivals, and temporary commercial activities operating within city limits
  • Short-Term Rental (STR) registration — Property owners renting their home or a unit on platforms such as Airbnb or VRBO must register as a short-term rental operator with the city

Exceptions

Virginia law and Virginia Beach’s local ordinance provide a limited number of exceptions to the BPOL requirement. These include certain agricultural activities, nonprofits meeting specific criteria, and businesses with minimal nexus in the city. If you believe your business may qualify for an exception, contact the Commissioner of Revenue’s Business License Division at (757) 385-4515 or [email protected] before operating — do not assume an exception applies without confirmation.

Step 1 — Register with the State Corporation Commission

Before applying for your Virginia Beach business license, you must establish your business entity at the state level. The State Corporation Commission (SCC) is Virginia’s business registration authority.

  • LLC: File Articles of Organization at cis.scc.virginia.gov — $100 filing fee, $50 annual registration fee thereafter
  • Corporation: File Articles of Incorporation at cis.scc.virginia.gov — $75 filing fee
  • Sole proprietor operating under a trade name: File a fictitious name registration — $10 fee
  • S-Corp election: After forming your LLC or corporation with the SCC, file IRS Form 2553 with the Internal Revenue Service to elect S-Corp tax treatment

Once your SCC filing is approved, you will receive a Certificate of Organization or Certificate of Incorporation. You will need this document when you apply for your BPOL license, so print or save a copy.

Step 2 — Obtain Required State Licenses (If Applicable)

Depending on your industry, you may need a state-issued professional license from the Virginia Department of Professional and Occupational Regulation (DPOR) before the Commissioner of Revenue will issue your Virginia Beach business license.

Contractor License Classes

Contractors performing construction, renovation, or trade work must be licensed through DPOR. Virginia classifies contractors into three tiers based on project size and annual volume:

  • Class A: Projects valued at $120,000 or more per contract, or annual volume of $750,000 or more. This is the highest-tier license and requires the most substantial financial and experience documentation.
  • Class B: Projects valued between $10,000 and $120,000 per contract, or annual volume between $150,000 and $750,000.
  • Class C: Projects valued up to $10,000 per contract, or annual volume up to $150,000. This is the entry-level contractor license.

When you apply for your BPOL license as a contractor, the Commissioner’s office will verify your DPOR license class and classification. Bring your DPOR license documentation to your application appointment.

Other regulated professions — including real estate agents, engineers, architects, cosmetologists, and home inspectors — also require DPOR licensure before a Virginia Beach business license will be issued.

Step 3 — Apply at the Commissioner of Revenue’s Office

Where to Apply

Virginia Beach business license applications are processed in person at:

2401 Courthouse Drive, VA Beach VA Building 1

The In-Person Interview

Virginia Beach requires that all applicants be interviewed in person by a revenue agent before a BPOL license is issued. This is not a formality — revenue agents conduct substantive interviews to determine the correct classification for your business activity and to establish your estimated gross receipts for the license year.

During the interview, the agent will ask about the nature of your business, the services or products you offer, your expected revenue, and your business structure. They use this information to assign the correct BPOL tax rate category under the city’s fee schedule.

What to Bring

Prepare the following documents before your appointment:

  1. Government-issued photo ID — driver’s license or passport
  2. SCC registration documents — your Certificate of Organization or Certificate of Incorporation from cis.scc.virginia.gov
  3. EIN confirmation — your federal Employer Identification Number letter from the IRS
  4. DPOR license — if you are in a regulated profession or contracting trade
  5. Lease or property documents — evidence of your business location (lease agreement, deed, or proof of address for home-based businesses)
  6. Estimated gross receipts — your best estimate of total revenue you expect to generate through December 31 of the current year

Come prepared with a realistic estimate of your expected gross receipts. The revenue agent may ask how you arrived at your estimate, and providing a well-reasoned projection — based on contracts in hand, historical data, or industry benchmarks — will help the process go smoothly.

Step 4 — Pay Your BPOL Tax

How the Tax Is Calculated

The BPOL tax is based on gross receipts — your total top-line revenue before any deductions for expenses, cost of goods sold, payroll, or other costs. This is an important distinction from income taxes, which are based on profits. A business with $800,000 in gross receipts but $750,000 in expenses still pays BPOL tax on the full $800,000.

Minimum Tax

The minimum BPOL tax in Virginia Beach is $50. This minimum applies to businesses with gross receipts under $100,000. If your receipts exceed $100,000, your tax is calculated using the applicable rate for your business classification.

Tax Rates by Classification

BPOL tax rates are set by the Virginia Beach City Council within limits established by Virginia state law. The state caps for common business categories are:

  • Contracting: 16¢ per $100 of gross receipts
  • Retail: 20¢ per $100 of gross receipts
  • Financial services / Professional services: 58¢ per $100 of gross receipts
  • Services (general): 36¢ per $100 of gross receipts

Virginia Beach applies rates at or below these state caps. The revenue agent conducting your interview will confirm the exact rate applicable to your business category.

Payment

After your interview and license issuance, payment is made through VBePay, the city’s online payment portal. You can also pay in person at the Commissioner’s office.

Step 5 — Renewals and Annual Filing

License Year and Expiration

All Virginia Beach BPOL licenses expire on December 31 of the year issued. A license obtained in June covers activity only through December 31 of that year. You must renew annually.

Renewal Deadline

Renewals are due by March 1 of the following year. At renewal, you report your actual gross receipts from the prior year and pay the applicable tax based on those actual figures (reconciling any difference from the initial estimate).

VBePay

The city’s VBePay portal allows you to renew your license, report gross receipts, and pay BPOL taxes online without visiting the Commissioner’s office in person. Renewal notices are typically sent to the address on file for your business.

BPOL Incentives for New Businesses

Virginia Beach has structured two significant incentive programs within its BPOL framework that can substantially reduce your tax burden in the early years of operation.

Flat $50 Rate — First Two Years

Qualifying new businesses that anticipate gross receipts exceeding $200,000 pay a flat $50 BPOL tax for the first two years of operation, regardless of actual receipts. For a business generating $400,000 in gross receipts that would otherwise owe $800 or more in BPOL taxes (at a 20¢/$100 retail rate), this flat rate represents meaningful savings while the business is still finding its footing.

90% BPOL Rebate — Up to 15 Years

Certain qualifying businesses can receive a 90% rebate on their BPOL tax liability for up to 15 years. This is one of the most aggressive local tax incentives in Hampton Roads. The rebate is typically tied to specific economic development priorities, including job creation, capital investment, or operation in a targeted business sector.

To determine whether your business qualifies for either incentive, contact Launch Virginia Beach directly:

Do not wait until after you have applied for your license to ask about these incentives. Apply for any applicable incentive program before or concurrent with your BPOL application to ensure proper crediting.

Additional Permits and Taxes

The BPOL license is your primary business operating permit, but several other local approvals may be required depending on what your business does.

Virginia Beach Health Department

Any business involved in food preparation, food service, personal care services (salons, barbershops, nail salons, tattoo studios), childcare, or healthcare must be inspected and approved by the Virginia Beach Department of Public Health before opening. The health permit is separate from and in addition to your BPOL license.

Virginia ABC License

Restaurants, bars, breweries, wineries, and any other business that sells or serves alcoholic beverages must obtain a license from the Virginia Alcoholic Beverage Control Authority. The ABC licensing process can take 90 days or more, so apply early.

Fire Inspection

Certain occupancy types — particularly restaurants, assembly venues, and childcare facilities — require a fire safety inspection from the Virginia Beach Fire Marshal’s office before opening.

Sign Permit

Installing exterior signage on a commercial property generally requires a sign permit from the city’s Planning Department. There are size, placement, and lighting restrictions that vary by zoning district. Review these requirements before ordering signs.

Meals Tax

Virginia Beach levies a meals tax of 5.5% on prepared food and beverages sold at restaurants, caterers, and food trucks. If you are in the food service business, you are responsible for collecting this tax from customers and remitting it to the city. Meals tax registration is separate from your BPOL license.

Transient Occupancy Tax

Hotels, motels, bed and breakfasts, and short-term rentals are subject to Virginia Beach’s transient occupancy tax of 8% plus $2 per night per room. If you operate a lodging business — including a short-term rental on platforms like Airbnb — you must register to collect and remit this tax.

Home Business License in Virginia Beach

Running a business from your home in Virginia Beach is permitted under the city’s home occupation regulations, but specific restrictions apply:

  • No customers or clients may visit the home on a regular or frequent basis
  • No employees other than household members may work at the home
  • There must be no outward appearance that a business is being conducted — no signs, no commercial vehicles parked outside, no unusual traffic or noise
  • Storage of business inventory or equipment must not occupy more than 25% of the home’s floor area

Home-based businesses are still required to obtain a BPOL license and are still subject to the in-person interview requirement. A home business does not exempt you from any city licensing obligations — it simply describes where the business operates.

Summary Checklist

  1. Choose your business structure (LLC, corporation, or sole proprietorship)
  2. Register with the SCC at cis.scc.virginia.gov and obtain your Certificate of Organization or Incorporation
  3. Apply for your federal EIN at irs.gov/ein
  4. Obtain your DPOR license if required for your profession or trade
  5. Schedule and complete your in-person interview at 2401 Courthouse Drive, VA Beach VA Building 1
  6. Pay your BPOL tax through VBePay
  7. Obtain any required ancillary permits (Health, ABC, fire inspection, sign permit)
  8. Register for meals tax or transient occupancy tax if applicable
  9. Renew your BPOL license annually by March 1

For questions at any point in the process, contact the Commissioner of Revenue’s Business License Division at (757) 385-4515 or [email protected]. For information about incentive programs, reach out to Launch Virginia Beach at (757) 385-6464 or [email protected].