Chesapeake, VA Business License Guide

Last updated: September 2025

This is a practical, no-fluff hub for getting fully licensed to do business in Chesapeake, Virginia. It covers the Chesapeake business license (BPOL), zoning and occupancy, state and federal registrations, local taxes, real timelines, typical costs, and where to get help. Everything links to official sources so you can verify quickly.

Quick help box

At-a-glance: Do you need a Chesapeake business license?

The City of Chesapeake requires most businesses operating in city limits to obtain a local business license, known in Virginia as a BPOL (Business, Professional and Occupational License). The exact rules and thresholds depend on your business type and where you operate (inside Chesapeake vs. based elsewhere doing work in Chesapeake). See the city’s official licensing pages for current local rules: Chesapeake Commissioner of the Revenue – Business Taxes and Licensing.

Virginia’s overarching statute sets standard maximum rates and situsing rules (who pays, where, and for what). Helpful statewide background is here: Virginia Code § 58.1‑3706 – BPOL license tax; rate limitations and Virginia Code § 58.1‑3703.1 – Administrative provisions (situs and thresholds).

Table: Who needs a Chesapeake business license (BPOL)?

Situation Do you need a Chesapeake license? Why this matters Official resource
You operate your business from a location in Chesapeake (office, storefront, shop, warehouse, home) Almost always yes (BPOL) Local gross receipts licensing applies to businesses with a definite place of business in the city Chesapeake Commissioner of the Revenue – Business Taxes and Licensing
You’re based outside Chesapeake but do paid work inside Chesapeake (e.g., contractor, mobile services) Often yes, after certain gross receipts thresholds in Chesapeake Virginia law taxes by “situs” of activity; contractors without a Chesapeake office may owe BPOL in Chesapeake after local thresholds Virginia Code § 58.1‑3703.1 (situs rules)
You sell taxable goods in Chesapeake (online or in-person) You must register for Virginia sales tax; city license rules still apply if you have a Chesapeake business location Combined sales tax in Chesapeake is 6.0% Virginia Tax – Retail Sales and Use Tax
You’re a home-based business in a residential zone Yes, and you may need a Home Occupation approval Zoning controls customer visits, signage, parking, and activities Chesapeake Development & Permits – Zoning
You handle food, alcohol, childcare, health care, or building trades Yes + separate state/local permits Multiple agencies license and inspect VDH Chesapeake, Virginia ABC, DPOR

Reality check: Don’t assume “I’m small, so I’m exempt.” Virginia and Chesapeake base licensing on activity and gross receipts. Even low-revenue firms often must register, though some may pay a nominal license fee instead of a percentage tax below local thresholds. Always confirm current Chesapeake thresholds and BPOL rates on the city’s site: Chesapeake Commissioner of the Revenue – Business Taxes and Licensing.

Step-by-step: Get fully licensed in Chesapeake

Start with the steps that can block your license if you skip them. Zoning clearance and entity registration are the usual chokepoints.

1) Confirm zoning and occupancy first (before you sign a lease or open doors)

What to do if this doesn’t work:

  • If a site isn’t zoned for your use, ask Development & Permits about alternatives: another zoning district, a conditional use permit, or a different site. If your lease is contingent on approval, use that to switch spaces without penalty.

2) Create and register your business entity with the Virginia SCC

  • Choose your structure (LLC, corporation, etc.) and register with the Virginia State Corporation Commission (SCC). This is required if you form an LLC/corp and strongly recommended for liability protection.
  • File online at the SCC’s Clerk’s Information System (CIS). Official site: SCC CIS – File or Search Business.
  • Current SCC fees:
    • LLC formation filing fee: $100.
    • Annual LLC registration fee: $50.
    • Trade name (fictitious name) filing fee: $10 (filed with SCC since 2019).

    Source: SCC – Business Entity Fees.

  • If you’ll use a “doing business as” (DBA) name, file the fictitious name with SCC before applying for your local BPOL so your name matches across records: SCC – Fictitious Names.

What to do if this doesn’t work:

  • If you’re unsure which structure to use, this is the moment to check with a Virginia business attorney or CPA. For free orientation help (not legal advice), contact: Hampton Roads SBDC – No-cost advising.

3) Get your EIN (federal tax ID) from the IRS

  • Apply online. It’s free and immediate: IRS – Apply for an EIN.
  • The EIN is required if you have employees, a multi-member LLC, a corporation, or most business bank accounts.
  • IRS Business & Specialty Tax Line for questions: 800-829-4933 (free; official number: IRS Contact – Business Tax).

What to do if this doesn’t work:

  • If the online EIN application times out or you’re a non-U.S. owner without an SSN/ITIN, use the IRS Form SS-4 and call the IRS for help: IRS – Form SS‑4.

4) Register for Virginia state taxes

What to do if this doesn’t work:

5) Obtain specialty permits and inspections (only if your business type requires them)

What to do if this doesn’t work:

6) Apply for your Chesapeake Business License (BPOL)

  • You generally must apply within a short time of starting business in Chesapeake and renew annually. The license is based on gross receipts (or purchases for some wholesalers) and varies by business classification.
  • Chesapeake uses the state’s BPOL framework. Virginia caps the maximum tax rates for common categories (localities can set rates at or below these):
    • Retail: up to $0.20 per $100 of gross receipts.
    • Contracting: up to $0.16 per $100.
    • Repair, personal, business services: up to $0.36 per $100.
    • Professional, financial, real estate services: up to $0.58 per $100.
    • Wholesale merchants: up to $0.05 per $100 of purchases (note: based on purchases, not gross receipts).

    Source (state caps): Virginia Code § 58.1‑3706.

  • Local thresholds and fee schedules (whether you pay a flat “license fee” below a certain amount of gross receipts, and when the percentage rates kick in) are set by Chesapeake. For the current Chesapeake-specific thresholds, class definitions, and rate table, use the city’s official page: Chesapeake Commissioner of the Revenue – Business Taxes and Licensing.
  • Be ready to report your estimated current-year gross receipts when you first apply, and actual gross receipts when you renew.
  • If you are an out-of-town contractor working in Chesapeake without a definite place of business in the city, Virginia law may require you to obtain a license in Chesapeake once your Chesapeake-sourced gross receipts exceed set thresholds. See statewide situs rules: Virginia Code § 58.1‑3703.1. For how Chesapeake applies this rule, contact the Commissioner of the Revenue via the business licensing page above.

What to do if this doesn’t work:

  • If the classification of your business is unclear (e.g., is it “professional services” or “business services”?), ask the Commissioner’s Office in writing for the applicable classification and rate. Keep the reply in your files.

7) Open your Chesapeake local tax accounts (if applicable to your industry)

Some taxes are administered locally in addition to the BPOL license. Depending on what you do, you may need to register and file for:

What to do if this doesn’t work:

  • If you’re unsure whether a local tax applies (e.g., are smoothies “meals”? does your Airbnb count as lodging?), ask the Commissioner of the Revenue or the City Treasurer to classify your activity before you begin collecting.

8) Keep your renewals, filings, and records straight

What to do if this doesn’t work:

  • If cash flow is tight and you’re facing a late filing or payment, call the appropriate office before the deadline to discuss options. Some agencies may waive penalties for first-time filers who show good faith and correct quickly.

Key taxes and rates in Chesapeake (verify each link for the current rate)

Virginia and Chesapeake publish rates on official pages. Use the links below to confirm current amounts before you set your prices or file returns.

Table: Core business taxes you’ll encounter

Tax Chesapeake/State Rate Details Who administers it Source
Retail sales & use tax Combined rate 6.0% (state 4.3% + local 1% + Hampton Roads regional 0.7%) Virginia Department of Taxation Virginia Tax – Retail Sales and Use Tax
BPOL (Business license) Rate depends on classification and local thresholds; Virginia caps apply (e.g., professional services up to $0.58 per $100 gross receipts) City of Chesapeake – Commissioner of the Revenue Chesapeake – Business Taxes & Licensing; state caps: Va. Code § 58.1‑3706
Meals tax Rate set by City; collected locally in addition to state sales tax on prepared food City of Chesapeake Chesapeake – Meals Tax
Lodging (hotel/transient occupancy) tax Rate set by City; applies to short stays City of Chesapeake Chesapeake – Lodging/Hotel Tax
Business tangible personal property tax Local rate per $100 of assessed value (equipment, furniture, etc.) City of Chesapeake – Commissioner of the Revenue Chesapeake – Business Tangible Personal Property
Virginia unemployment insurance Employer UI tax rate varies; new employer rate subject to annual schedule Virginia Employment Commission VEC – Employer Taxes & Rates
Employer withholding tax Based on wages; register with Virginia Tax and follow current withholding tables Virginia Department of Taxation Virginia Tax – Withholding

Note: BPOL rates and local thresholds are set by Chesapeake ordinance and can change. Always confirm the city’s current BPOL rate table and threshold rules: Chesapeake Commissioner of the Revenue – Business Taxes and Licensing.

Real-world examples (Chesapeake scenarios)

These examples reflect typical local sequencing and timing. Always confirm with the official pages linked.

  • Example A: Retail boutique opening in Greenbrier
    • Secure a lease contingent on zoning approval.
    • Confirm the space is zoned for retail; if it needs a new Certificate of Occupancy after a fit-out, factor in inspection time.
    • Form an LLC with SCC ($100), obtain an EIN (free), and register for Virginia sales tax (Chesapeake is 6.0%).
    • Apply for your BPOL with the Commissioner of the Revenue. Classification likely “retail.”
    • Set up your point-of-sale to collect 6.0% sales tax.
    • If you’ll offer packaged snacks, ensure they’re taxed correctly. Many groceries are taxed differently (Virginia has reduced rates for qualifying food/grocery; see: Virginia Tax – Food Tax Rate).
    • Renew BPOL annually and file sales tax monthly or quarterly per Virginia Tax’s schedule.

    What to do if this doesn’t work:

    • If the store build-out triggers code upgrades you didn’t budget for (e.g., occupancy or ADA compliance), ask Development & Permits about alternatives or phased openings.
  • Example B: Home bakery in Great Bridge, selling at weekend markets
    • Review Chesapeake’s home occupation rules (limits on customer traffic, signage, equipment).
    • If you produce food at home, confirm what’s allowed under Virginia’s cottage food rules and when a VDH permit is needed; see: VDH – Food Safety.
    • Register with Virginia Tax (sales tax). Set up a BPOL license with classification guidance from the Commissioner.
    • Keep a mileage log and sales records for markets inside and outside Chesapeake (situs matters).

    What to do if this doesn’t work:

    • If your home kitchen can’t meet requirements for the products you want to sell, look for a permitted commissary kitchen and adjust your BPOL as needed.
  • Example C: Out-of-town Class B contractor taking jobs in Chesapeake
    • Confirm DPOR licensing class and specialties: DPOR – Contractors.
    • Register with Virginia Tax if you sell taxable materials or hire employees.
    • Track Chesapeake-sourced gross receipts. Under Virginia situs rules, if you exceed local thresholds while working in Chesapeake, you may need a Chesapeake BPOL even without a Chesapeake office. See: Virginia Code § 58.1‑3703.1.
    • Check whether you need Chesapeake building permits for your jobs: Chesapeake Development & Permits.

    What to do if this doesn’t work:

    • If you get conflicting guidance between jurisdictions, ask for the Commissioner’s written determination for Chesapeake and keep it in your audit file.

Typical timelines (what’s fast vs. what takes time)

Actual times vary with season and workload. Start items that require reviews and inspections as early as possible.

Table: Realistic timelines in Chesapeake

Task Typical timeline Notes/Source
Virginia LLC filing (online) Same day to 1–2 business days SCC CIS
EIN (online) Immediate (same session) IRS EIN
Zoning/occupancy check 3–10 business days (varies) Chesapeake Development & Permits
Food facility plan review/permit 2–6+ weeks depending on scope Chesapeake Health District
BPOL license issuance Often 1–5 business days after complete application; longer if classification/zoning unresolved Chesapeake Commissioner of the Revenue
ABC license 6–12+ weeks Virginia ABC – Licenses

What to do if this doesn’t work:

  • If a critical approval is stuck, ask the agency if there’s a missing document or inspection you can schedule sooner. Many delays trace back to incomplete submissions.

Cost checklist (first year)

Costs depend on your business type and location. The figures below are from official state sources where available; city-specific license taxes vary by classification and gross receipts. Always confirm Chesapeake’s current BPOL rates and local taxes before filing.

Table: Common start-up and annual costs (Virginia/Chesapeake)

Item Amount Source
Virginia LLC formation filing $100 SCC – Business Entity Fees
Virginia LLC annual registration $50 per year SCC – Annual Fees
Fictitious name (DBA) filing $10 SCC – Fictitious Names
IRS EIN $0 IRS – Apply for an EIN
Virginia sales tax registration $0 Virginia Tax – Register a Business
BPOL license (Chesapeake) Amount depends on business classification, gross receipts, and local thresholds Chesapeake – Business Taxes & Licensing
Meals/lodging/admissions local tax accounts $0 to set up; you remit taxes collected City of Chesapeake – Local Taxes
Food facility permits (if applicable) Fee varies by facility type Chesapeake Health District – Food Safety
Contractor DPOR license Fee varies by class DPOR – Contractors
Workers’ comp insurance (if required) Premium varies Virginia WCC – Employer Coverage

Required documents (by scenario)

Gather these before you apply to avoid back-and-forth.

Table: Document checklist

Scenario Bring these items
New LLC/corporation in Chesapeake SCC Articles (or CIS printout), EIN letter, lease or proof of address, zoning/occupancy info, estimated gross receipts, photo ID
Home-based business Proof of residence, home occupation compliance, EIN (if needed), SCC docs (if entity), estimated gross receipts
Retail selling taxable goods Virginia sales tax account number, POS plan for tax collection, SCC/EIN, lease/CO
Restaurant/food truck/caterer VDH plan/permit status, commissary agreement (if mobile), sales tax account, SCC/EIN, BPOL application
Contractor doing jobs in Chesapeake DPOR license, SCC/EIN, project list and Chesapeake-sourced revenue tracking, BPOL application (if threshold met), building permit info if needed

Common mistakes to avoid

  • Skipping zoning and occupancy checks before signing a lease.
  • Applying for BPOL before you set up your SCC entity or DBA—names won’t match.
  • Misclassifying your business (e.g., calling a professional service “general services”) and getting a surprise rate later.
  • Not tracking where revenue is earned. Out-of-city contractors can owe BPOL in Chesapeake once they cross local thresholds.
  • Collecting the wrong tax rate at the register. Chesapeake’s total sales tax is 6.0%; prepared meals also incur a local meals tax on top of state sales tax—confirm the meals tax rate on the city’s page.
  • Missing renewals and returns. Local penalties and interest add up fast.

What to do if this doesn’t work:

  • If you’ve made an error, correct it early and document what you changed. Ask the relevant office about penalty abatement if this is your first miss and you fix it promptly.

Inclusivity, diversity, and accessibility resources (Virginia-focused)

What to do if this doesn’t work:

  • If you’re not sure which certification fits your situation, start with SBSD (SWaM) and the SBDC advisor. They’ll help you sequence state vs. federal certifications and gather documents.

Renewal calendar, recordkeeping, and compliance

  • Set reminders for:
    • City BPOL renewal and payments (confirm current Chesapeake deadline).
    • Business tangible personal property filings (Chesapeake deadlines posted on the city site).
    • Virginia sales tax returns (monthly/quarterly based on volume), employer withholding deposits, UI quarterly wage reports.
    • SCC annual registration fees for your entity ($50 for LLC, due annually on your registration month).
  • Keep:
    • Signed lease and any Certificates of Occupancy.
    • Zoning/home occupation approval.
    • Copies of BPOL applications/renewals and any written classification rulings.
    • Sales tax reports and reconciliation to POS.
    • Payroll records, workers’ comp policy, and unemployment filings.

What to do if this doesn’t work:

  • If you inherit messy records mid-year, create a “month zero” file: reconcile bank statements to sales tax filings and payroll. Correct going forward and discuss any necessary amended filings with each agency before year-end.

Where to get help in Chesapeake (official and free)

Table: Chesapeake and Virginia help desk

Topic Who to contact Official link
Business License (BPOL), business tangible personal property Chesapeake Commissioner of the Revenue Chesapeake – Business Taxes & Licensing
Zoning, building permits, certificates of occupancy, sign permits Chesapeake Development & Permits Chesapeake – Development & Permits
Local meals/lodging/admissions taxes City of Chesapeake (local tax pages) Chesapeake – Local Taxes
State entity filings (LLC/corp), annual registration fees Virginia SCC SCC CIS
Sales tax, employer withholding Virginia Department of Taxation Virginia Tax – Businesses
Unemployment insurance Virginia Employment Commission VEC – Employers
Workers’ compensation Virginia Workers’ Compensation Commission Virginia WCC
Health permits (restaurants, food trucks) Chesapeake Health District VDH – Chesapeake
Alcoholic beverage licenses Virginia ABC Authority Virginia ABC – Licenses
Free business advising Hampton Roads SBDC Hampton Roads SBDC
Government contracting Virginia APEX Accelerators Virginia APEX Accelerators

FAQs: Chesapeake business licensing (state-specific)

Reality checks, warnings, and practical tips

  • Budget time for inspections. Health and fire reviews add weeks, especially for first-time restaurants and event venues.
  • Plan for cash flow at renewal time. BPOL is based on gross receipts—not profit—so your tax can feel high in tight months.
  • Keep source-of-revenue records. If you work across cities (e.g., mobile services, contracting), track Chesapeake vs. non-Chesapeake receipts. It matters for BPOL situs.
  • Quote prices correctly. If you sell prepared food, your customer pays state sales tax plus local meals tax. Get the exact meals tax rate from the city page before you print menus.
  • Use written determinations. If you have a borderline classification, ask for the Commissioner’s written interpretation. It reduces audit risk later.

What to do if this doesn’t work:

  • If costs or timelines grow beyond your budget, pause expansion, open in phases, or switch to a lower-regulation product/service while you secure approvals for the full scope.

Table: Quick comparison of steps vs. agencies

Step Agency What you’ll do Link
Zoning/occupancy Chesapeake Development & Permits Confirm use, CO, and sign permits Chesapeake – Development & Permits
Entity formation Virginia SCC Form LLC/corp ($100 for LLC), file DBA ($10) SCC CIS
EIN IRS Get federal tax ID ($0) IRS – EIN
State tax registration Virginia Department of Taxation Sales/use, withholding, other taxes Virginia Tax – Businesses
Specialty permits VDH, ABC, DPOR, Fire Food permits, ABC, contractor license, inspections VDH Chesapeake, ABC, DPOR
Local BPOL Chesapeake Commissioner of the Revenue Apply for business license; renew annually Chesapeake – Business Taxes & Licensing
Local industry taxes City of Chesapeake Meals, lodging, admissions Chesapeake – Local Taxes

What if you sell both goods and services?

If you’re a hybrid business (e.g., you sell products and charge for installation), classification and tax handling can be tricky. Virginia allows localities to classify based on the “predominant” business activity or split classification where appropriate. Sales tax applies to taxable goods; BPOL applies to gross receipts per classification.

  • Keep invoices that clearly split taxable goods (sales tax) and services (often not subject to sales tax but subject to BPOL).
  • Ask the Commissioner whether you need multiple BPOL classifications.
  • Read Virginia’s guidance on BPOL situsing and classification: Va. Code § 58.1‑3703.1.

What to do if this doesn’t work:

  • If your mix changes seasonally, request an adjustment at renewal or keep supporting detail for how you allocated receipts during the year.

If you only sell online

  • If you have a business location in Chesapeake (even a home office), the city’s BPOL rules still apply.
  • If you warehouse and ship from Chesapeake, you’re clearly “in” Chesapeake for BPOL and Virginia sales tax nexus. If you ship from outside Virginia but have economic nexus, Virginia’s rules on remote sellers apply; see: Virginia Tax – Remote Sellers and Marketplace Facilitators.
  • If you sell into other states, check each state’s sales tax rules.

What to do if this doesn’t work:

  • If your platform (e.g., marketplace) collects sales tax for you, make sure you still comply with BPOL and other local requirements where you have a business location.

If you’re buying an existing Chesapeake business

  • Don’t assume the old BPOL transfers. You’ll apply for a new license in your name.
  • Check for unpaid city taxes or code issues that could become your problem after closing.
  • Get copies of the current Certificate of Occupancy, health permits (if any), and any written BPOL classification determinations.

What to do if this doesn’t work:

  • Make the sale contingent on you getting zoning/health approvals and a new BPOL. If approvals fail, you can walk away.

Final quick-reference tables

Table: What triggers extra permits?

Activity Extra permit(s) Source
Preparing or selling open food VDH food facility permit; inspections VDH – Chesapeake
Alcohol service or retail Virginia ABC license Virginia ABC – Licenses
Building out or changing use of a space Building permits; possible new CO Chesapeake – Development & Permits
Exterior sign Sign permit Chesapeake – Sign Permits
Construction trades DPOR contractor license DPOR – Contractors

Table: Good-to-know Virginia rules

Topic Current detail Official source
Minimum wage $12.00/hour (2025) Virginia DOLI – Minimum Wage
Workers’ comp coverage Required for most employers with 3+ employees Virginia WCC
Sales tax filing Monthly/quarterly based on liability; e-file via Virginia Tax Virginia Tax – Sales & Use
Business name/DBA File with SCC; fee $10 SCC – Fictitious Names
LLC annual fee $50 due annually SCC – Annual Fees

What to do if you get a notice or audit

  • Don’t ignore it. Most notices have a response deadline—watch the date in bold.
  • Pull your filings and records for the period, and compare to your bank/POS data.
  • If it’s a classification or situs question, attach the written guidance you received earlier.
  • If you need time, ask the office for an extension before the deadline.
  • Consider having an accountant respond on your behalf for complex cases.

What to do if this doesn’t work:

  • If you disagree with a determination, use the appeal process described in the notice and in Virginia’s BPOL administrative provisions: Va. Code § 58.1‑3703.1.

Source notes and verification

Every figure or claim above ties to an official source:

What to do next (your action list)

  • Verify your zoning/occupancy for your address.
  • Form your entity with the Virginia SCC and file your DBA if needed.
  • Get your EIN from the IRS.
  • Register for Virginia taxes (sales/use, withholding, etc.).
  • Apply for specialty permits (health, ABC, DPOR) if needed.
  • Apply for your Chesapeake BPOL with the Commissioner of the Revenue.
  • Set up any local industry taxes (meals, lodging, admissions).
  • Put renewal and filing deadlines on your calendar.

About this guide

This guide focuses strictly on Chesapeake, Virginia, and links to official city and Commonwealth sources for verification. Where city-specific dollar amounts or deadlines can change (like BPOL thresholds, meals/lodging tax rates, and filing due dates), we point you directly to the city’s official pages to confirm current figures. State-level numbers (e.g., SCC filing fees, minimum wage, and the Chesapeake sales tax rate of 6.0%) reference official Virginia or federal sites.

If you find a broken link or a change in a local rate or deadline, check the main city portal and search for your topic: City of Chesapeake – Official Site.

Disclaimer

Program rules, tax rates, deadlines, and fees change. Chesapeake may update local BPOL rates, thresholds, and due dates. Virginia may update tax rules, wage laws, or filing systems. Always verify the latest requirements directly with the City of Chesapeake, the Virginia Department of Taxation, the Virginia SCC, the Virginia ABC, DPOR, and any other agency that regulates your business. This guide is for general information only and is not legal, tax, or compliance advice.