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 business 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 at a rate per $100 based on the classification of business activities.
Home-based businesses in Loudoun County with annual gross receipts of no more than $10,000 are not required to pay the $30 license fee but must report annually and are required to register for business personal property taxes.
Businesses located within one of the seven incorporated towns should contact the town regarding any business license requirements but should register with the county for business personal property tax reporting.
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 tax reporting.
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 activities of the business.
Registration for a new business is accepted online.
- The online registration process is a multi-step process. After the initial step to validate the FEIN or SSN, you are required to log in using the account number provided and complete the next steps.
You may review the Business Tax forms available online from the Commissioner of the Revenue for additional information and documents that may be required for registration and renewal.

Annual Renewal

Business owners must renew their business license each year by reporting the prior-year gross receipts of the business. 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 tax liability.

Contractor Requirements

Contractors must register with the Virginia Department of Professional and Occupational Regulation (DPOR) and provide a copy of their current state contractor’s license or license number when registering for local business license taxes. Contractors must also comply with the requirement of the Virginia Workers' Compensation Commission to maintain workers compensation coverage insurance and a provide a copy of the Virginia Worker’s Compensation Commission form 61a when registering or renewing a business license, as proof of valid insurance.

Prior to issuing a business license the Code of Virginia §58.1-3714(B) requires the Commissioner of the Revenue to obtain proof annually that workers’ compensation coverage has been maintained, 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 must provide a workers’ compensation verification form 61-a annually when filing the business license renewal.

Contractors that do not provide proof of a DPOR license, and 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: