How to Start a Government Contracting Business in Virginia: Free SWaM Certification, eVA and SBSD

Virginia state agencies, public colleges and many local governments buy goods and services through a small set of channels. If you want to sell to them, three steps matter most: get certified in the Small, Women-owned and Minority-owned (SWaM) program run by the Virginia Department of Small Business and Supplier Diversity (SBSD), register as a vendor in eVA, and set up a properly formed entity with the right local license. This guide covers those steps in the order you should do them.

What You Need Before You Start

Gather these documents first. Most delays happen because one record is missing when you start an application.

• A business name that is available on the State Corporation Commission (SCC) business search, and a decision on whether to form an LLC or a stock corporation
• A federal Employer Identification Number (EIN) from the IRS
• An operating agreement (LLC) or bylaws and stock records (corporation) showing who owns the business and in what percentages
• Records showing that the owners, not outside managers, run daily operations and make management decisions
• Financial records for the past three years, or since formation if you are newer, because SWaM size tests use average annual gross receipts
• A Virginia registered agent, if you form an entity (see Step 1)
• A list of the NAICS codes that describe the work you plan to bid on
• Veteran documentation from the Virginia Department of Veterans Services, if you plan to claim a veteran designation

Step 1: Form Your Entity With the SCC

Virginia has no general state business license. The SCC forms entities and issues no business license, so your entity filing is the first state filing you will make. File online through the SCC Clerk's Information System (CIS) at cis.scc.virginia.gov, or use the forms and guidance on the SCC business page.

If you form an LLC

The LLC filing is the Articles of Organization (Form LLC1011). The fee is $100. Online filings can be expedited for an added charge: next-day service costs $50 or $100 (submit by 2:00 PM Eastern for a response by 4:00 PM the next business day), and same-day service costs $200 (submit by 10:00 AM Eastern for a response by 4:00 PM). Expedited service is online only and nonrefundable.

Your name must include "limited company," "limited liability company," "LC," "L.C.," "LLC" or "L.L.C." and must be distinguishable from names already on file. You can reserve a name for $10 for 120 days.

A Virginia entity must keep a registered agent who is a Virginia resident with a Virginia street address for the registered office, is available during business hours, and is either a member of the Virginia State Bar or a member, manager, officer, trustee or general partner of the entity. An entity cannot serve as its own agent.

Virginia LLCs file no annual report. Instead, they pay a $50 annual registration fee to the SCC. It is due the last day of the 12th month after the month the LLC was organized, and every year after that. The SCC assesses the fee about two months ahead of the due date. A late payment adds a $25 penalty, and the LLC is canceled at the end of the third month after the due date. Put this date on your calendar the day you form.

If you form a corporation

The corporate filing is the Articles of Incorporation (Form SCC619), with a $75 filing fee. Corporations pay an annual report and annual registration fee of $100 for up to 5,000 authorized shares, plus $30 for each additional 5,000 shares. Check the SCC annual fee schedule for current amounts. The annual registration fee is due the last day of the formation month. The annual report is due the last day of the 12th month after formation and may be filed no earlier than three months before that date.

If you trade under a different name

An assumed name (DBA) is filed with the SCC, not the circuit court. The Assumed Name Certificate costs $10 and does not require a newspaper publication. Use the same name consistently across your SWaM application, eVA profile and bids, because mismatched names cause review delays.

Step 2: Check Your Local BPOL License

Virginia's business license is a local tax, not a state one. The Business, Professional and Occupational License (BPOL) tax is authorized under Va. Code 58.1-3700 et seq. and is administered by each city or county, usually through the Commissioner of the Revenue. Localities set their own rates and filing deadlines, so do not assume the rate in one place applies anywhere else.

Not every locality levies a general BPOL. Va. Code 58.1-3704 allows a locality to levy none. Stafford, Rockingham, Bedford County, Washington County, Montgomery County, Louisa and Fluvanna are examples of counties without a general county license. Towns can displace the county tax within their boundaries. Confirm your exact obligation with the Commissioner of the Revenue where your office, or where you do business, is located.

Population also sets a floor on what a locality can require. A locality with more than 50,000 people cannot require a license for gross receipts under $100,000. A locality with 25,000 to 50,000 people cannot require one for gross receipts under $50,000. No floor applies to a locality under 25,000 people. Localities over 50,000 may waive the license for businesses up to $200,000 in gross receipts, but confirm that ceiling with your locality before you rely on it.

Two special cases are worth checking. If you are a federal research and development prime contractor, BPOL law sets a special rate of 3 cents per $100 of federal funds (Va. Code 58.1-3706 D), but confirm how your locality applies it. If your government work is construction, contractor license classes apply from 2025-07-01: Class C covers contracts over $1,000 to under $30,000, Class B covers $30,000 to under $150,000, and Class A covers $150,000 or more. Confirm current requirements with the Department of Professional and Occupational Regulation (DPOR).

Step 3: Get SWaM Certification From SBSD

SWaM certification is the single most useful credential for Virginia public buying. SBSD certifies four categories: Small, Women-owned, Minority-owned and Military Family-owned businesses. The definitions are strict, so read them against your own ownership records before you apply.

• Small business: at least 51 percent independently owned and controlled by U.S. citizens or legal resident aliens. Together with affiliates, it must have 250 or fewer employees, or average annual gross receipts of $10 million or less over the previous three years. The owners must control management and daily operations.
• Micro business: a certified small business with no more than 25 employees and no more than $3 million in average annual revenue over the three years before certification.
• Women-owned and minority-owned: at least 51 percent ownership and control of management and daily operations by those owners.

SBSD says SWaM certification carries no charge. Check the SBSD application page for current terms and for how long a certification lasts before you plan your renewal calendar. You can reach SBSD in Richmond at 804-786-6585 or through sbsd.virginia.gov.

Firms based outside Virginia may qualify under SBSD's policy for non-Virginia businesses. Ask SBSD how that policy applies to your company before you assume you are eligible or excluded.

Veteran designations are separate

Service-disabled veteran-owned status is not an SBSD certification. It is a designation that appears in the SWaM database for veterans certified by the Virginia Department of Veterans Services, and SBSD describes that service as no charge. Veterans can apply for small, women-owned or minority-owned certification with SBSD either before or after they receive the veteran designation.

Federal approvals for SBA 8(a), Economically Disadvantaged Women-Owned Small Business (EDWOSB) and Women-Owned Small Business (WOSB) status are issued by the federal government. If you hold one, give SBSD a copy of the SBA letter, and SBSD adds the designation to your profile.

Step 4: Register in eVA

eVA is Virginia's electronic procurement portal, run by the Department of General Services (DGS). Registration is free. Once you are registered, you appear on bidder lists and receive notices of opportunities from state agencies, public colleges and many local governments. Register at eva.virginia.gov.

Do not assume you will pay nothing to transact. eVA has a transaction fee schedule on its billing page. Check that page before you bid so you can price your proposals accurately.

Register in eVA now, even before SWaM approval arrives. The registration takes little time, and a complete profile is what buyers see when they search for vendors.

Step 5: Learn How Virginia Buys

Purchase size determines the method. eVA shows these thresholds:

Purchase size	How it is bought
Up to $10,000	Small purchase, where a single small-business quote may be used
Over $10,000 to $100,000	Unsealed bidding
Over $100,000	Sealed solicitation

Under Va. Code 2.2-4310, public bodies must include SBSD-certified businesses on their solicitation lists. They must also run written programs to help small, women-owned, minority-owned, service-disabled veteran-owned and military family-owned businesses, and employment services organizations, take part in procurement. State agencies report their progress to SBSD. In practice, certification helps you get on lists and into the right solicitations, but it does not guarantee an award.

Step 6: Know Which Designations Apply to You

Disadvantaged Business Enterprise (DBE) is a federal program, not a Virginia one. It applies to projects funded by the U.S. Department of Transportation and other federal sources, and it is governed by 49 CFR Parts 26 and 23. Virginia's Unified Certification Program has two certifying agencies: SBSD and the Metropolitan Washington Airports Authority. Certification from either is accepted throughout Virginia. Certified firms file annual documents before their anniversary date and report changes within 30 days.

If you sell to state agencies without federal transportation money, you need SWaM certification, not DBE certification. Many firms that bid on state work never need DBE at all.

Federal Contracts

Federal contracting is outside the scope of this guide. For federal opportunities, register in the System for Award Management at sam.gov, and review SBA resources, including the Richmond district office at sba.gov/district/richmond. Federal certifications such as 8(a), EDWOSB and WOSB come from the SBA, as described in Step 3.

IT and Cybersecurity Consulting

We did not find a state license for IT or cybersecurity consulting. Contracts for these services generally go through eVA and the Virginia Information Technologies Agency (VITA). Cleared-facility rules come from the federal Defense Counterintelligence and Security Agency (DCSA), and this guide does not cover them. Northern Virginia has a high concentration of federal contractors, so many buyers and competitors in that region have federal experience. For a full walk-through of forming a consulting firm, see our guide to starting a consulting business in Virginia.

Common Mistakes to Avoid

• Treating service-disabled veteran-owned as an SBSD certification. It is a designation tied to Department of Veterans Services certification.
• Assuming every locality requires a BPOL license. Some levy none, and the population floors can exempt small businesses.
• Filing your DBA with the circuit court. Virginia assumed names are filed with the SCC for $10.
• Forgetting the LLC annual registration fee. The $50 fee has a deadline and a $25 late penalty, and a late LLC can be canceled.
• Claiming ownership on paper without control. Owners must control management and daily operations, and SBSD looks at this closely.
• Applying for DBE when you need SWaM. DBE applies to federally funded transportation work.
• Waiting to register in eVA. Registration is free, and buyers cannot send you notices if you are not in the system.
• Missing DBE change reports. Certified firms must report changes within 30 days.

What to Expect

Results depend on your industry, your buyers and how competitive your categories are. Based on how the program is designed, a complete application, an accurate eVA profile and a steady bid habit are the factors most likely to help you get on solicitation lists and into bid competitions. Certification and registration do not guarantee contracts, and no official source promises a specific number of awards or a specific time to first contract. Plan your cash flow for a long sales cycle, especially on sealed solicitations over $100,000.

Recommended Sequence

1. Confirm your name with the SCC, then file your entity and any assumed name.
2. Get your EIN and organize ownership and control records.
3. Check your local BPOL obligation with your Commissioner of the Revenue.
4. Apply for SWaM certification and, if applicable, the veteran designation.
5. Register in eVA and complete your profile.
6. Track bid notices, and calendar your SCC, SBSD and any DBE deadlines.

Important Disclaimer

This article is informational, not legal or tax advice. Program rules, fees and deadlines change. Confirm current figures with the named agency before you file or pay. For complex ownership structures, multi-state operations, or contract terms, consult a qualified Virginia attorney and a CPA.