Business License FAQ's

          1. Do I need a business license?
             2. Is there a minimum amount of income I can receive before I must obtain a license?
             3. What steps are needed before I can obtain a business license?
             4. How do I apply for a Business License?
             5. How much will the license cost?
             6. If I am operating the business from my home, do I need to contact zoning?
             7. Can I apply for a business license by mail?
             8. When does the license have to be renewed?
             9. Do I need an employer Identification Number? 
           10. What form do I file to obtain a Sales Tax Identification Number with the Virginia Department of
                 Taxation?
           11. How do I obtain a Virginia Contractor's License?

1. Do I need a business license? Generally, if you are receiving monetary compensation for products sold or services rendered you will need a Gloucester County business license.  Manufacturers are exempt from business license.

2. Is there a minimum amount of income I can receive before I must obtain a business license? If you are receiving income for products sold or services rendered you must obtain a business license. Direct Sellers are exempt from the business license fee if their gross receipts are less than $4,000 per year.

3. What steps must I take before I can apply for a business license? (1.) Contact the Office of Community Development and Codes Compliance (Zoning) to obtain approval to operate your business or home occupation in Gloucester County. Zoning is located at 6582 Main Street. (2.) Contact the Gloucester Health Department if you will sell food or beverages. The Health Department is located at 7384 Carriage Court. (3.) If you will use a trade name (fictitious name), you are required to register that name in the Gloucester County Clerk's Office located at 7400 Justice Drive.

4. How do I apply for a business license? After the above steps are completed applicants must apply for a business license either by mail or in person at 6489 Main Street, Suite 137 Gloucester, VA 23061. Download Business License Application

5. How much will the Business License cost? Business License fees are based on the gross receipts per calendar year. The minimum business license fee is $50.00. For all estimated gross receipts of $50,000 or less the fee will be $50.00. For gross receipts greater than $50,000 the fee is based on a percentage of the gross receipts. See the back of the business license application for the fee schedule.

6. If I am operating the business from my home, do I need to contact zoning? Yes, everyone must contact zoning before a business license will be issued. If the business is being conducted from your home you must get permission for a home occupation.

7. Can I apply for a business license by mail? You can apply for a business license through the mail as long as you attach the zoning permit, if the business is located in Gloucester County, and a copy of the trade name certification and/or State Corporation Commission certificate, if applicable. Enclose a check made payable to Gloucester County. Mail the information to: Kevin A. Wilson, Commissioner of the Revenue, 6489 Main Street, Suite 137, Gloucester, VA 23061.

8. When does the license have to be renewed? Business Licenses expire December 31 of each year. Business License Renewals are due by March 1 of each year. All current businesses will receive the renewal information in the mail in early January.

9. Do I need an employer Identification Number? You must obtain an employer identification number if you:
      - have employees
      - operate your business as a Corporation or a partnership
      - file any of these tax returns: Employment, Excise, or Alcohol, Tobacco, and Firearms
      - withhold taxes on income, other than wages, paid to a non resident alien
      - Involved with any of the following types of organizations:
               - Trusts, except certain grantor-owned revocable trusts, IRA's, Exempt Organization Business
                  Income Tax Returns
               - Estates
               - Real Estate Mortgage investment conduits
               - Non-Profit organizations
               - Farmers' cooperatives
               - Plan administrators

For information on obtaining an employer identification number visit www.irs.gov.

10. What form do I file to obtain a Sales Tax Identification Number from Virginia Department of Taxation? Contact the Commissioner of Revenue's Office or visit the Virginia Department of Taxation  at www.tax.virginia.gov.  You can also file the form on-line.

11. How do I obtain a Virginia Contractors license? You must register with the State Board of Contractors to obtain a Virginia Contractor's License. Contact the Board for Contractors by phone at (804) 367-8511 or mail to: Department of Professional and Occupational Regulation, Board for Contractors, 3600 West Broad Street, P.O. Box 11066, Richmond, VA 23230-1066. Visit the Virginia Board for Contractors for further information at www.state.va.us/dpor.

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Updated By: Kristin Powell
Last Update: 05/09/2008