Business License Tax

Overview

  • All business owners, including owners of home-based businesses, are subject to a gross receipts tax. 
  • Business license tax rates vary according to classification, and levies are based on gross receipts.
  • The tax for the first year of business is $30 (with the exception of out-of-county contractors who pay based on an estimate of first-year receipts). Thereafter, the tax is based on the prior year's gross receipts.
  • If gross receipts are no more than $200,000, the tax due is $30. 
  • Businesses with gross receipts over $200,000 pay on a rate per $100 based on the classification of business activities.
  • Home-based businesses in Loudoun County with annual receipts of no more than $10,000 are not required to pay the $30 license fee but are required to register for business personal property taxes.
  • View a sample of the current year business license (PDF).
  • For assistance with business tax requirements, call the business tax division at 703-777-0260, option 2.

Registering Your Business

New Businesses

  • Business owners are required to register the business with the Commissioner of the Revenue within 30 days of commencing business operations in Loudoun County.
  • Businesses located within an incorporated town within Loudoun County should contact the town regarding a business license, but should also register with the county for business personal property taxes.
  • By applying for a Loudoun County business tax account, you are registering your activity for taxation based on the annual gross receipts generated by your business and registering to report business personal property located in Loudoun County for assessment. 
  • In some cases, a business may have equipment but no attributable income or income but no taxable equipment, depending on situs of the business activity or equipment.
  • Business Tax staff may contact you for additional information to properly classify the business activity.
  • Registration for a new business is accepted online. 

Annual Renewal

  • Business owners must renew their business license each year by reporting the business's prior-year gross receipts. The renewal should be completed online. Both filing and payment are due by the March 1 deadline. Late filing penalties may be assessed for renewals submitted after March 1.
  • Any changes in ownership structure, business activities, or business address should be made in writing to the Commissioner of the Revenue since these changes may affect your license tax liability.

Contractor Requirements

Contractors must register with the Virginia Department of Professional and Occupational Regulation (DPOR) and should provide a copy of their current state license or license number, and a copy of the Contractor's Certification of Workers' Compensation Insurance Acknowledgement letter.

The Code of Virginia §58.1-3714(B) requires the Commissioner of the Revenue to obtain proof that workers’ compensation coverage has been maintained for employees and, §54.1-1111(B) requires a contractor to provide proof they are properly licensed by DPOR before a Business, Professional, and Occupational License (BPOL) can be issued. The contractor may provide a workers’ compensation verification form (61-a), or input worker’s compensation insurance information at the VWC website and provide a copy of the acknowledgement letter.

Contractors that do not provide proof of a DPOR license, or verification of worker’s compensation insurance are still liable for BPOL taxes, but will not be issued a business license.

If a contractor is not required to carry a DPOR license, please submit a Contractors Affidavit (PDF) form.

Contractors can submit supporting documentation using the following methods:

Business Tax Division
Commissioner of the Revenue
P.O. Box 8000
Leesburg, VA 20177