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1. I am starting a small home-based business. Do I need a business license?

Most businesses located in Loudoun County, including those that are home-based, are subject to a gross receipts tax. An ordinance was adopted by the Loudoun County Board of Supervisors which eliminates the payment of a license fee for home-based businesses with gross receipts of ten thousand dollars ($10,000.00) or less starting in 2023. Gross receipts are the income of a business before any deductions are made. New businesses are required to register with the Commissioner of the Revenue within 30 days of commencing operations. Filing for business license and business personal property must be completed annually. A business may register online at www.loudoun.gov/efile. Forms and step-by-step instructions are available on the Starting a Business in Loudoun County webpage.

2. Are there any exclusions or deductions from Business Professional Occupational License (BPOL) taxes?

Yes. See the pertinent section of the state code here.

3. What if I don't know what my gross receipts were by the March 1 business license filing and payment deadline?

Virginia Code § 58.1-3703.1 A 2 c authorizes the Commissioner of the Revenue to grant a business license filing extension prior to the due date for reasonable cause. Reasonable cause being a failure to file despite the exercise of ordinary business care and prudence. The reason for failing to file must be such that a prudent businessperson would have acted similarly under the circumstances. The extension may be granted upon payment of a reasonable estimate of the license tax due. Please contact the office by phone or e-mail should you require a BPOL filing extension.

4. Can I obtain a listing of Loudoun County businesses, including address and telephone number, from the Commissioner of the Revenue?

Information is maintained by the Commissioner of the Revenue for the purposes of tax administration and most of that information is protected from disclosure by law. The Code of Virginia, § 58.1-3 is very specific with regard to privacy of tax information and only allows local tax officials to disclose "whether a person, firm or corporation is licensed to do business in that locality."

Due to the volume of requests for information maintained by the Commissioner of the Revenue and the Commissioner's authority under Virginia Code, the Commissioner has available a list of persons, firms and corporations licensed to do business in Loudoun County. This list contains only the owner name of all currently licensed businesses. This list is available here.

A list of businesses whose owners have opted to have their information released is available upon request. If you would like a copy of the list, please contact the Business Tax Division in the Commissioner of the Revenue’s office by email or by phone at 703-777-0260.

You should be aware that the Commissioner of the Revenue's office licenses building trades contractors with projects in Loudoun County, regardless of where the business is physically located. In addition, the office only licenses businesses that are located in Loudoun County, but are outside the incorporated limits of Hamilton, Hillsboro, Lovettsville, Leesburg, Middleburg, Purcellville and Round Hill. You may wish to contact each of these incorporated towns to obtain information regarding businesses that are licensed and physically located within each town's respective corporate limits.

5. If I rent office space, have a virtual office or a mailbox address, but conduct my business from my home, what is my “definite place of business” for purposes of local business license taxes?

Gross receipts for the purposes of local business licenses taxes in Loudoun County are attributed to a “definite place of business”. Va. Code § 58.1-3700.1 defines definite place of business as an office or a location at which occurs a regular and continuous course of dealing for thirty consecutive days or more. Virtual offices and mailbox addresses are not “definite places of business” and should not be used to register a business or attribute gross receipts for business license purposes. In these instances, the business owner’s home is their definite place of business and should be used for business registration and gross receipts reporting purposes.

6. Are payroll protection proceeds or grants, loans or aid due to the COVID-19 pandemic includable as taxable gross receipts for Loudoun County business license tax purposes?

No. According to the Virginia Administrative Code (VAC) 23VAC10-500-90 (2), monies received as “proceeds of a loan transaction are not gross receipts arising from the exercise of a licensable privilege in the ordinary course of business”. In addition, grants or payroll protection program (PPP) funds are not receipts from the exercise of a licensed privilege within a locality.