Home | Welcome | News | Tourism | EconDev | Search

Commissioner of The Revenue 

City of Portsmouth Logo Scenes of Portsmouth
  Navigation Background Revenue Home | Audits | Business Taxes | Contact Us | DMV Select | Links | Mission Statement |
Personal Property Tax | State Income Tax | Tax Relief Program

[Business Taxes] | Business Taxes | Business Tangible Personal Property Tax | Business and Professional License | FAQ | Fiduciary Taxes | Forms | Home Based Business

 

 

Business and Professional License

General Information

All businesses and professional operations must purchase a business license before commencing operation in the City of Portsmouth, including home based businesses. (City Ordinance Section 20-6) City Business, Professional and Alcoholic Beverage Licenses expire December 31st of that calendar year.

In order to obtain a Portsmouth City Business License, you must have a definite place of business. A definition of a business is an office or location where a regular and continuous course of dealing with the public occurs. In the City of Portsmouth, zoning laws may prohibit your business from operating at certain locations, such as a residence. The address for your business must be approved by our Permits & Inspections department. A lease or some type of written documentation must be presented for this approval.

Any person, partnership, limited liability partnership, limited liability company or corporation using the name which does not identify the owner of the business must register a trade name with the Portsmouth Circuit Court. Registering this name does not prevent your business name from being used by another business. It is done to assist the public by providing information as to the person with whom the public will be dealing. There is a fee to register this name. This fee is paid to the Portsmouth Circuit Court.

(top)

Cost of Business Licensure

The cost of the business license is based upon your estimate of total gross receipts from the day the business opens to December 31st of the same year.  There are usually Three (3) general terms that apply to new Businesses: New License, First Renewal License, Annual Renewal License.

If the estimate is less than $100,000, the license will cost $50.00 which is the minimum tax. If, however, the estimate is greater than $100,000, a tax rate will be applied to your estimate. There are different rates for different types of businesses as follows:

License Category*

Rates

 

 

Finance,Real Estate and Professional Services

58 cents per $100

Business Services

36 cents per $100

Personal Services

36 cents per $100

Repair Services

36 cents per $100

Contractor

16 cents per $100

Retail Sales

20 cents per $100

Wholesale Merchant

15 cents per $100 of gross purchases.

Rental License

$12.00 per unit per year ($1.00/Month)

Direct Seller License

20 cents per $100 gross receipts with no threshold.

Some types of businesses (such as contractors, restaurants, beauty shops, nail and tanning salons, etc.) may have additional requirements from other city departments, such as the Department of Public Health, or from the state agencies, such as the Virginia Department of Professional and Occupational Regulation, before a City of Portsmouth license can be issued.

(top)

Business License Applications

Business license applicants must apply in person. Allow at least one hour to complete the application process. New Businesses must obtain a zoning permit, 4th floor, and a tax clearance from the City Treasurers office before visiting our office. Any business renewing their license must obtain just a tax clearance. To help streamline your application process, be sure to bring these important documents with you:

Bring Identification (picture ID - all parties)
Bring Corporate Charter (if applicable)
Bring Partnership Agreement (if applicable)
Bring Estimate of Gross Receipts through December 31st
Bring required Permits/Licenses (if applicable)
Bring required receipts, certificates, and forms from the applicable agencies
Fee Required.

 (top)

Other numbers to call when you need to:

Incorporating

Virginia State Corp. Commission

804-371-9733

Set up Corporate & Personal Income tax, Sales & Use tax & Employee Withholding

Virginia Dept. of Taxation
Koger Center, Bldg. 7, Ste. 101
Norfolk, VA 23502

757-455-3810

Obtaining a Federal ID Number

Internal Revenue Service

800-829-1040

Registering for UEI

Virginia Employment Commission

757-455-3900

Obtaining a Class A, B, C, Contractors License and/or permits

Virginia State Board of Contractors

804-367-8500

Obtaining a State Licensure

Virginia Dept. of Occupational and Professional Regulation

804-367-8500

ABC License

Virginia Alcohol & Beverage Control

757-424-6700

(top)

 
City of Portsmouth, Virginia - All rights reserved.

last updated March, 2006