Prince William County Business License: No Tax Under $500,000 in Receipts, Rates, Towns and the 30-Day Rule
Prince William County Business License: No Tax Under $500,000 in Receipts, Rates, Towns and the 30-Day Rule
If your business in Prince William County brings in less than $500,000 a year, you owe $0.00 in Business, Professional and Occupational License (BPOL) tax. That does not mean you can skip the paperwork. Building trade contractors must hold a license regardless of size, the 30-day deadline applies to every new business that owes tax, and the county will not issue a license to anyone who is behind on other county taxes. This guide covers how the county's business license works, what it costs at each rate, when it is due, and where the towns of Dumfries, Haymarket, Occoquan and Quantico run their own systems.
Disclaimer: This is informational content, not legal or tax advice. Rates, deadlines and thresholds change with county budgets. Confirm current figures with the Tax Administration Division before you file, and talk to a qualified attorney or CPA if your situation is complicated.
What BPOL Is and Why Virginia Has No State Business License
Virginia has no general state business license. The State Corporation Commission (SCC) forms your entity and issues no business license. The license most owners are looking for is BPOL, a local license tax authorized under Va. Code 58.1-3700 and following. Each locality decides whether to levy it, and state law lets a locality levy no general license at all (Va. Code 58.1-3704). Prince William County levies a BPOL tax, but a neighboring locality may levy none, so check the rules where each of your locations sits.
The county's license is a tax on gross receipts, not a flat fee. Your rate depends on your business category, and you pay it on the receipts you report for the prior year.
The $500,000 Threshold
The license tax is due only where prior-year gross receipts or wholesale purchases are $500,000 or more. For a business in its first year, the test uses expected receipts or purchases. This threshold applies to license years beginning in 2019 and after. Below $500,000, the tax is $0.00.
Three points matter at this threshold:
- Building trade contractors are required to hold a license even when the tax is $0.00. Other businesses below the threshold may still apply for one.
- You need a separate license for each county location, each home-based business and each outside contractor working in the county.
- State law sets a floor for localities. A locality with more than 50,000 people cannot require a license for businesses with gross receipts under $100,000. Prince William County had a population of 502,966 in Census Vintage 2025, so the $100,000 floor applies to it, but the county's own $500,000 threshold is higher. Localities over 50,000 people may also waive the license for smaller businesses up to a ceiling set by state law. Confirm the current waiver ceiling with the Tax Administration Division rather than relying on an older figure.
Prince William County BPOL Rates Per $100
These are the county's rates per $100 of gross receipts, except the wholesale rate, which applies to purchases. They are county rates, not statewide rates. Confirm the current schedule with the Tax Administration Division before you calculate your license.
| Business category | Rate |
|---|---|
| Professional services | 0.33 |
| Financial services | 0.33 |
| Real estate services | 0.33 |
| Retail | 0.17 |
| Wholesale (applied to purchases) | 0.05 |
| Contractors, builders and developers (including out-of-state and out-of-county contractors) | 0.13 |
| Hotels, motels and lodging | 0.26 |
| Repair, personal, business and other services | 0.21 |
| Direct sellers | 0.17 |
| Public utility (electric and natural gas 0.50) | 0.29 |
| Federal research and development prime contractor funds | 0.03 |
Flat-Rate Licenses
Some businesses pay a flat license instead of a rate on receipts:
- Mixed drink restaurants with up to 100 seats: $200
- Mixed drink restaurants with 101 to 150 seats: $350
- Mixed drink restaurants with 151 seats or more: $500
- Non-profit and private clubs: $500
- Peddlers, itinerant merchants and event sponsors: $500
Contractors Working Outside the County
A Prince William contractor may subtract receipts above $25,000 from jobs in other Virginia localities that tax those receipts. You must report the work to that locality and attach a copy of that filing to your Prince William return (Va. Code 58.1-3715). Keep the other locality's filing with your records, since the county may ask for it.
Deadlines: The 30-Day Rule and March 1 Renewal
- New businesses: Apply and pay within 30 days of starting. The first payment is based on an estimate, and the county trues it up in year two.
- Renewal: Due March 1 each year. March 1 fell on a Sunday in 2026, so the 2026 renewal is due March 2.
- Renewal notices: The county mails them in January. Do not wait for a notice to arrive, since the due date does not move if one goes astray.
- Late penalty: A 10 percent penalty, plus 10 percent a year in interest that starts on the first day of the following month.
- Delinquency hold: The county will not issue a license while your county taxes, business personal property or food and beverage tax are delinquent. Clear those balances first.
- Transfers: The license is non-transferable. A buyer of your business does not inherit your license.
Documents to Have Ready
Gather these before you apply:
- SCC charter: Your articles of organization or articles of incorporation. If you have not formed the entity yet, see how to start an LLC in Virginia.
- Assumed-name certificate: If you trade under a name other than your legal name, file an assumed-name certificate with the SCC. It costs $10, and you file it with the SCC, not the circuit court.
- Zoning approval: A zoning approval and a final occupancy permit, or a Home Occupancy Certificate if you run a home-based business. For home occupation requirements, contact Zoning at 703-792-6830.
- Contractor insurance: Required for contractors applying for a license.
- Other licenses: Any required state or local license for your trade. Contractor classes since July 1, 2025 are Class C for jobs over $1,000 to under $30,000, Class B for $30,000 to under $150,000, and Class A for $150,000 or more. The Department of Professional and Occupational Regulation (DPOR) issues contractor licenses.
Who Is Exempt From the License
Some businesses in the county do not owe the BPOL license, including farmers selling what they grow, insurance companies, newspapers, non-profit organizations, banks, television and radio broadcasters, and manufacturers selling wholesale. An exemption from the license does not remove your filing obligations. You still need a business personal property account if you own equipment, furniture or other tangible property used in the business.
Dumfries, Haymarket, Occoquan and Quantico
Four towns in the county run their own business licenses, and the county BPOL does not apply inside them (Va. Code 58.1-3711). If your business operates inside one of these towns, you apply to the town. Businesses in these towns still file business tangible personal property with the county.
| Town | License administered by | Rates and fees |
|---|---|---|
| Dumfries | Town of Dumfries (county BPOL does not apply) | Rates and fees: contact the town |
| Haymarket | Town of Haymarket (county BPOL does not apply) | Rates and fees: contact the town |
| Occoquan | Town of Occoquan (county BPOL does not apply) | Rates and fees: contact the town |
| Quantico | Town of Quantico (county BPOL does not apply) | Rates and fees: contact the town |
Business Personal Property and Other County Taxes
Business personal property is a separate tax from the BPOL license, and most businesses with equipment, furniture or inventory-related property need an account even if they owe no license tax. The county's rates for the main categories are below. Confirm each rate and its unit on the county schedule before you file.
| Tax | Rate |
|---|---|
| Business tangible personal property, general class (per $100) | $4.15 (a higher FY2027 rate was proposed; check with the county) |
| Trade or business tangible property under Va. Code 58.1-3506(A)(26) | $3.70 |
| Research and development | $1.00 |
| Machinery and tools | $2.00 |
| Heavy construction machinery | $3.70 |
| Vehicle license tax, cars and trucks | $33 |
| Vehicle license tax, motorcycles | $20 |
Business personal property returns are due April 15, and payment is due October 5.
Other county and state taxes that affect many local businesses:
- Food and Beverage Tax: 3 percent since January 1, 2026. A repeal was proposed in the FY2027 budget, so check with the county before you assume the tax will continue.
- Transient occupancy tax: 8 percent. Check the current rate with the county.
- Sales tax: 6.0 percent. Virginia Tax administers the state portion, and you can find the sales and use tax permit information at tax.virginia.gov/sales-and-use-tax.
Where to Get Answers
- Tax Administration Division, Department of Finance: 5 County Complex Court, Prince William, VA 22192. Mail: P.O. Box 2467, Woodbridge, VA 22195-2467. Phone: 703-792-6710. Email: [email protected]. Taxpayer Portal: tax.pwcgov.org
- Zoning (home occupations and occupancy): 703-792-6830
- State Corporation Commission, Clerk's Office: scc.virginia.gov/businesses. Search and filings are through the SCC Clerk's Information System
- Virginia Tax: tax.virginia.gov
- Small business help: Virginia Small Business Development Center network
Final reminder: This guide is informational, not legal or tax advice. Confirm the threshold, rates, deadlines and penalties with the Prince William County Tax Administration Division, and consult a qualified attorney or CPA for complex situations, such as multi-location operations, contractors working across several localities, or a business that straddles a town boundary.