Starting a service business in Virginia comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in VA costs $100, ongoing reporting is $50/yr, sales tax is 5.3% + local, and personal income tax runs 2%–5.75%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Virginia owners off guard.
Most new registrations come out of Virginia Beach, Norfolk, Chesapeake and the rest of Virginia — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | VA cost |
|---|---|
| LLC / entity filing (one-time) | $100 |
| Annual / periodic report | $50/yr |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the VA Secretary of State and the Virginia Department of Taxation.
Choose your structure and file with the VA Secretary of State ($100). Get your free EIN from the IRS the same day.
Register for Virginia sales tax with the Virginia Department of Taxation, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Sales tax certificate; BPOL license (local).
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$100
Annual Report
$50/yr
Sales Tax
5.3% + local
Income Tax
2%–5.75%
Choose business structure
File with VA State Corporation Commission
Get EIN
Register for state taxes
Get local BPOL license
Open business bank account
Virginia uses BPOL (Business Professional Occupational License) tax at the local level
Annual registration fee is $50
A local tax based on gross receipts — most Virginia localities impose it.
Online LLC filings with the VA Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Virginia and still invoice customers legally. An LLC ($100 to file, $50/yr) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Virginia sales tax is 5.3% + local. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the Virginia Department of Taxation before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies VA tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.