Virginia Beach Town Center business district at golden hour showing modern office buildings where many small businesses operate

How to Start a Business in Virginia Beach, Virginia

Why Virginia Beach for Your Business

Virginia Beach is the most populous city in Virginia, with a population of approximately 460,000 residents. It is also one of the most economically diverse cities in the Mid-Atlantic region, offering a rare combination of military, tourism, agriculture, and professional services sectors — all within one city’s limits.

The military presence here is substantial. Naval Air Station Oceana is the East Coast’s Master Jet Base, home to thousands of active-duty personnel and a dense network of defense contractors, logistics firms, and support service businesses. Joint Expeditionary Base Little Creek–Fort Story anchors special operations and amphibious warfare training, bringing additional spending and employment into the local economy. Together, these installations generate billions in direct economic activity and create sustained demand for everything from housing and retail to IT services and professional consulting.

Tourism adds another massive layer. Virginia Beach’s oceanfront draws more than $3 billion in annual tourism spending, supporting a year-round ecosystem of hotels, restaurants, entertainment venues, retail, and personal services. Even businesses with no direct connection to the beach benefit from this consumer base — a city of 460,000 with that level of tourism inflow creates robust demand across nearly every sector.

For entrepreneurs, the city’s economic development infrastructure makes Virginia Beach one of the more welcoming jurisdictions in Hampton Roads. The primary point of contact for new and growing businesses is Launch Virginia Beach, located at 4525 Main Street Suite 700. You can reach the team by phone at (757) 385-6464 or by email at [email protected]. They offer free consultations, connect founders to financing resources, and can help you navigate local incentive programs.

The HIVE is another key community asset — a coworking and innovation space that hosts entrepreneurs, remote workers, and growing startups looking for flexible workspace and peer connections.

On the tax side, Virginia Beach has structured several incentives specifically aimed at attracting new businesses:

  • New business flat rate: Qualifying businesses with gross receipts over $200,000 pay a flat $50 BPOL (Business, Professional, and Occupational License) tax for the first two years of operation, regardless of actual receipts.
  • BPOL rebate: Certain qualifying new businesses can receive a 90% BPOL rebate for up to 15 years — an extraordinary incentive for businesses planning significant long-term growth.
  • No city income tax: Virginia Beach does not levy a local income tax on individuals or businesses.
  • State corporate income tax: Virginia’s flat corporate income tax rate is 6%.

The metro context matters too. Virginia Beach sits within the Hampton Roads metropolitan area, which encompasses more than 1.8 million people — making it one of the largest metro regions in the Southeast and the largest in Virginia. Access to this regional workforce, customer base, and supply chain is a significant advantage for any business operating here.

Choose Your Business Structure

Before you register with any government agency, you need to select the legal structure for your business. This decision affects your personal liability exposure, tax obligations, and administrative requirements from day one.

Limited Liability Company (LLC)

The LLC is the most popular structure for new small businesses in Virginia Beach. It combines personal liability protection with pass-through taxation and relatively simple administration. In Virginia, you form an LLC by filing Articles of Organization with the State Corporation Commission (SCC). The filing fee is $100. After formation, LLCs must pay a $50 annual registration fee each year to maintain good standing.

Sole Proprietorship

A sole proprietorship requires no SCC filing — you are simply operating as yourself. However, if you plan to conduct business under any name other than your legal name, you must file a fictitious name (trade name) registration. In Virginia Beach, the Commissioner of Revenue handles this, and the fee is $10. A sole proprietorship provides no liability protection; your personal assets are fully exposed to business debts and legal claims.

Corporation

A Virginia corporation is formed by filing Articles of Incorporation with the SCC. The filing fee is $75. Corporations are subject to more complex governance requirements than LLCs, including holding annual meetings, maintaining minutes, and issuing stock. However, corporations have certain advantages for businesses seeking outside investment.

S-Corporation

An S-Corp is not a separate entity type at the state level — it is a federal tax election. You first form either a corporation or an LLC with the SCC, then file IRS Form 2553 with the Internal Revenue Service to elect S-Corp status. This allows corporate profits to pass through to shareholders’ personal tax returns, avoiding double taxation at the corporate level. The IRS Form 2553 must typically be filed within 75 days of the start of the tax year in which you want the election to take effect.

Register with the State

Once you have chosen your structure, registration with Virginia’s state government is your next major step.

State Corporation Commission

All LLCs and corporations must register through the SCC’s Clerk’s Information System (CIS) portal at cis.scc.virginia.gov. You can complete the entire filing online, pay with a credit card, and receive your SCC registration documents electronically. If you have questions about the filing process or your entity’s status, the SCC can be reached directly:

  • SCC main line: (804) 371-9733
  • Toll-free: (866) 722-2551

After your entity is formed, you will receive a Certificate of Organization (for LLCs) or Certificate of Incorporation (for corporations) from the SCC. Keep these documents — you will need them when you apply for your business license and when opening a business bank account.

Virginia Department of Taxation

Any business that will collect sales tax, withhold employee income tax, or pay corporate income tax must register with the Virginia Department of Taxation at tax.virginia.gov. Registration is free and can be completed online.

Virginia Beach’s total sales tax rate is 6%, broken down as follows:

  • 4.3% — Virginia state sales tax
  • 0.7% — local sales tax
  • 1% — regional tax (includes 0.7% Hampton Roads Transit contribution)

This rate applies to most tangible personal property sales in Virginia Beach. Services are generally not subject to sales tax unless specifically enumerated by Virginia law. If you are selling goods at retail — in a store, online, or at events — you must collect and remit this tax.

Federal Employer Identification Number (EIN)

If your business will have employees, operate as a corporation or partnership, or open a business bank account, you will need a federal EIN. You can apply for an EIN at no cost at irs.gov/ein. The online application takes approximately 15 minutes, and your EIN is issued immediately upon completion. A sole proprietor with no employees may use their Social Security Number instead, but many accountants and bankers recommend obtaining an EIN anyway to separate personal and business tax identities.

Get Your Virginia Beach Business License (BPOL)

Every business operating in Virginia Beach — including home-based businesses, contractors, and online businesses with a Virginia Beach address — must obtain a BPOL license before commencing operations. This is not optional, and the city enforces it.

Who to Contact

The Commissioner of Revenue oversees business licensing through the Business License Division:

  • Phone: (757) 385-4515
  • Email: [email protected]
  • Address: 2401 Courthouse Drive, VA Beach VA Building 1

The In-Person Interview Requirement

Virginia Beach has a unique and important requirement: revenue agents interview ALL applicants in person before a license is issued. You cannot simply submit a form online and receive a license. You must appear at the Commissioner’s office, where a revenue agent will review your business activity, ask questions about your gross receipts, and determine your license classification.

This interview serves an important function — it ensures that your business is classified correctly under the BPOL tax schedule, which directly affects the tax rate you pay.

How the BPOL Tax Works

The BPOL tax is levied on gross receipts, not net income. This is a critical distinction. You pay based on the total revenue your business takes in, before subtracting expenses, salaries, rent, or any other costs. A business with high revenues but thin margins still owes BPOL tax on the full top-line amount.

Key operational details:

  • Minimum tax: $50 for businesses with gross receipts under $100,000
  • Initial estimate: When you first apply, you estimate your gross receipts through December 31 of the current year. Your initial license is based on this estimate.
  • License expiration: All BPOL licenses expire on December 31 of the year issued.
  • Renewal deadline: Renewals are due by March 1 of the following year.
  • Payment portal: VBePay is the city’s online payment system for business license fees and taxes.

New Business Incentive — Flat $50 Rate

As noted earlier, qualifying new businesses with gross receipts anticipated to exceed $200,000 pay a flat $50 BPOL tax for the first two years of operation. This is a meaningful incentive — a business with $500,000 in gross receipts in its first year that would otherwise owe several hundred dollars in BPOL tax instead pays only $50.

The 90% BPOL Rebate

Certain categories of qualifying businesses — particularly those in targeted industries or meeting specific job creation thresholds — can apply for a 90% rebate on their BPOL tax for up to 15 years. For a business paying significant BPOL taxes annually, this rebate can represent tens of thousands of dollars in savings over the incentive period. Contact Launch Virginia Beach at (757) 385-6464 or [email protected] to find out if your business qualifies.

Zoning and Permits

A BPOL license is not the only permit you may need. Depending on your business type and location, additional approvals are required before you can legally open your doors.

Zoning Verification

The Virginia Beach Planning Department must verify that your intended business use is permitted at your chosen location. Before signing a lease or purchasing property, confirm that your business type is an allowed use under the applicable zoning district. Virginia Beach has several major commercial districts, including:

  • Oceanfront — Tourism-oriented retail, hospitality, entertainment
  • Town Center — Office, mixed-use, professional services, retail
  • Lynnhaven-Hilltop — Suburban retail, restaurants, service businesses
  • Pembroke — Mixed commercial and office

Each district has its own zoning ordinances governing what types of businesses can operate, signage rules, parking requirements, and building standards. A business that is perfectly legal in Town Center may require a special use permit in a residential-adjacent zone.

Home-Based Business Restrictions

Virginia Beach allows home-based businesses but imposes specific restrictions. No customers may visit regularly, no employees other than household members may work on site, and there must be no outward appearance of commercial activity. Signage is prohibited. Violations of home occupation rules can result in zoning citations and fines.

Certificate of Occupancy

If you are occupying a commercial space — particularly if any tenant improvements, build-out, or change of use is involved — you will likely need a Certificate of Occupancy from the city before operating. This verifies that the space meets building code requirements for your intended use.

Health Department

Businesses in food service, personal care (salons, spas, tattoo studios), childcare, or healthcare must be inspected and licensed by the Virginia Beach Department of Public Health before opening.

ABC License

Any business that will sell or serve alcoholic beverages — a restaurant, bar, brewery, winery, retail liquor store, or event venue — must obtain a license from the Virginia Alcoholic Beverage Control Authority (ABC). Virginia Beach’s ABC regulations are enforced both at the state level and locally, and the approval process can take several months.

DPOR Contractor License

Contractors performing construction, renovation, electrical, plumbing, HVAC, or similar work in Virginia Beach must be licensed through the Virginia Department of Professional and Occupational Regulation (DPOR). Virginia recognizes three contractor license classes:

  • Class A — Unlimited project value; requires higher experience and financial thresholds
  • Class B — Mid-range projects
  • Class C — Smaller projects with lower thresholds

Operating as an unlicensed contractor in Virginia is a Class 1 misdemeanor for the first offense and can escalate to a Class 6 felony for subsequent violations.

Open a Business Bank Account

Separating your personal and business finances is not just good accounting practice — it is essential for maintaining the liability protection that your LLC or corporation provides. Courts have pierced the corporate veil in cases where business owners consistently commingled personal and business funds.

What to Bring

When you visit a bank or credit union to open your business account, bring:

  • Your EIN confirmation letter from the IRS
  • Your SCC registration documents (Certificate of Organization or Certificate of Incorporation)
  • Your Virginia Beach BPOL business license
  • A government-issued photo ID

Banks and Credit Unions Serving Virginia Beach

Several financial institutions are well-established in the Virginia Beach business community:

  • TowneBank — A Hampton Roads-based community bank with a strong local presence and business banking services tailored to the region
  • Atlantic Union Bank — A Virginia-focused regional bank with multiple Virginia Beach locations and a full suite of small business products
  • Langley Federal Credit Union — A credit union with strong ties to the military and aerospace communities in Hampton Roads, offering business accounts to qualifying members

Business Resources in Virginia Beach

You do not have to navigate the startup process alone. Virginia Beach has a strong ecosystem of support organizations serving entrepreneurs at every stage.

Hampton Roads SBDC

The Small Business Development Center (SBDC) serving Hampton Roads provides free one-on-one business advising, low-cost training workshops, market research assistance, and help with business plan development and loan preparation. SBDC advisors are experienced professionals, and their services are available at no cost thanks to federal and state funding.

Launch Virginia Beach

The city’s own economic development office — reachable at 4525 Main Street Suite 700, (757) 385-6464, or [email protected] — is your direct connection to city incentive programs, site selection assistance, and connections to state-level resources through the Virginia Economic Development Partnership.

The HIVE

Virginia Beach’s innovation and coworking hub provides flexible workspace, programming, and community for startups and entrepreneurs. Whether you need a desk for a day or a dedicated space for a growing team, The HIVE is worth exploring early in your journey.

SCORE Hampton Roads

SCORE is a nationwide network of volunteer business mentors, most of them retired executives and entrepreneurs. The Hampton Roads chapter offers free confidential mentoring sessions, workshops, and online resources. Mentoring is available in person, by phone, or via video.

Boots to Business

Virginia Beach’s large military population makes Boots to Business particularly relevant here. This SBA-funded program, offered in partnership with the Veterans Business Outreach Center (VBOC), provides entrepreneurship training for transitioning service members, veterans, and military spouses. If you or a family member has served, this program is a strong starting point.

Virginia Business One Stop

The Commonwealth of Virginia operates a centralized online portal at business.virginia.gov where you can research state licensing requirements, register your business, and access compliance information. It does not replace city-level licensing (your BPOL must still be obtained through the Commissioner of Revenue), but it is the best single source for understanding your state-level obligations.

Putting It All Together

Starting a business in Virginia Beach follows a logical sequence. Begin by choosing your legal structure and registering with the SCC at cis.scc.virginia.gov. Apply for your EIN at irs.gov/ein and register with the Virginia Department of Taxation at tax.virginia.gov if you will collect sales tax or have employees. Then schedule your in-person interview with the Commissioner of Revenue’s Business License Division at (757) 385-4515 to obtain your BPOL license.

While you are working through licensing, verify your zoning approval with the Planning Department, secure any required Health Department or ABC permits, and confirm your DPOR license status if you are in contracting or a regulated trade. Once licensed, open your business bank account and connect with Launch Virginia Beach and the Hampton Roads SBDC.

Virginia Beach’s combination of a large and diverse local economy, significant military community, booming tourism sector, and genuine startup support infrastructure makes it one of the stronger environments in Virginia for new business formation. The in-person interview requirement and the structured BPOL incentives for qualifying new businesses reflect a city that takes business attraction seriously — and gives entrepreneurs real reasons to set up shop here.