How to Start a Business in Richmond, Virginia: A Step-by-Step Guide
If you are starting a small business in Richmond, Virginia, understanding local registration requirements, business planning basics, and financial setup is critical. This resource hub walks you through foundational steps including LLC formation, zoning compliance, pricing strategy, and early-stage money management.
Step 1: Choose a Business Structure in Virginia
Your business structure determines your legal liability and how you are taxed. Most small business owners in Richmond choose an LLC for liability protection and simplicity.
Step 2: Register an LLC with the Virginia State Corporation Commission (SCC)
First time fee: $100
Annual renewal fee: $50
To file, you’ll need a Registered Agent with a Virginia street address, (this can be you!)
Step 3: Apply for an EIN (Employer Identification Number)
An EIN is issued by the IRS and identifies your business for tax purposes. Applying for an EIN through the IRS website is free.
Step 4: Obtain a Richmond Certificate of Zoning Compliance (CZC)
Before operating in Richmond, most businesses must obtain a Certificate of Zoning Compliance (CZC). A CZC confirms your business activity is permitted at your specific address. Zoning fees vary depending on property type and business activity. Approval timelines vary and may take several weeks. Without zoning approval, Richmond will not issue a business license.
Step 5: Register for a Richmond Business License (BPOL)
BPOL stands for Business, Professional, and Occupational License. Most businesses operating in the City of Richmond must register for BPOL. Even small or home-based businesses generally need BPOL registration. As of 2026, businesses with gross receipts that fall between $5,000 and $500,000 pay annual fee of $30 for BPOL.
Step 6: Open a Business Bank Account
After forming your LLC and obtaining an EIN, open a separate business bank account. This allows you to separate business and personal finances, track income and expenses clearly, and simplify tax reporting. Mixing personal and business funds can create accounting and liability issues.
Frequently Asked Questions About Starting a Business in Richmond
Do I need an LLC to start a business in Virginia?
No. You can operate as a sole proprietor. However, an LLC provides liability protection and is commonly chosen by small business owners.
How long does zoning approval take in Richmond?
Timelines vary based on property type and application volume. It can take several weeks.
Do I need an EIN if I do not have employees?
If you form an LLC, you will typically obtain an EIN even if you do not hire employees. This helps deliniate your from your business and uphold legal liability.
Can I run a business from my home in Richmond?
Yes, but you must obtain zoning approval to confirm the business activity is permitted at your address
Ready to start your business with a solid foundation?
The information provided on this page is for educational purposes only and does not constitute legal, tax, or financial advice. Use of these resources does not create a client relationship. Laws and regulations vary by state and may change. You are responsible for verifying information before making business decisions. No guarantees of results are made or implied.