Steps to Launching a Business :: VBgov.com

Steps to Launching a Business

New business owners should always seek the guidance of a professional tax consultant, accountant, and/or attorney to verify all legal requirements are met before operating a business. A little effort now can save you a lot later!

1- Choose a Business Structure

This decision impacts taxes, the relationships between owners, and, legal liability. If the company is sued for personal injury, can the plaintiff sue you personally and take your house, car, and bank accounts? These are important considerations.

Sole Proprietorships are usually owned by a single person or a couple. You're personally liable for all business debts, can freely transfer all or part of the business, and for taxes, you can report profit or loss as personal income.

Limited Liability Companies (LLC's) are very popular. You have limited legal liability like a full corporation however, for taxes they're more like Sole Proprietorships or Partnerships.

General Partnerships let you share profit, loss, and managerial duties among the partners, and each is personally liable for any debt entirely. Members file an informational tax return and income/loss is filed personally. ("Joint Ventures" are short-term partnerships.)

Visit our Business Structure page to view additional business structure considerations.

2 - Register your Business

Virginia offers an online registration system on this website that can accomplish this task for most users. If your business structure is too complicated for the online system, or if you are starting a non-profit organization, the forms must be filled out and filed manually with the State Corporation Commission, a lawyer can help you with this.

(Special Note: Business One Stop auto-fills State Corporation Commission forms for you to print and file. However, if you are registering a new LLC or corporation in Virginia and only need to file your Articles of Organization or Incorporation, you can file those Articles electronically.

3 - Obtain an Employer ID Number

The same way a person has a Social Security Number, a business has federal and state tax numbers. The online registration tool can assist you with obtaining your federal and state tax id’s. Federal Information on business taxation and view forms required for each type of business structure. In Virginia some types of businesses require specific tax registration.

4 - Write your Business Plan

A business plan is an essential roadmap for business success. This living document can assist you in mapping out a strategy. Visit our Creating a Business Plan page for more information.

5 - Apply for a Business License

All business entities must contact the Virginia Beach Commissioner of the Revenue’s office prior to opening a business. Revenue Agents of the Commissioner of the Revenue’s office interview all applicants for a business license and determine the industry classification. In accordance with Virginia State law, manufacturing and some nonprofit entities may qualify as tax exempt, but all entities must register with the Commissioner of the Revenue regardless of status. To ensure compliancy with state and local tax laws, certain classifications require additional licenses, permits or documentation to obtain a business license. Certain documentation may be required to be submitted annually. ALL BUSINESS LICENSE APPLICATIONS MUST BE APPROVED BY THE ZONING DIVISION OF THE DEPARTMENT OF PLANNING.

6 - Obtain a Zoning Appeal

With the exception of City-owned rights-of-way, all of the land in the City of Virginia Beach has a designated Zoning District. These districts are defined in the City of Virginia Beach’s Zoning Ordinance which describes the regulations applicable to each district. Regulations include minimum yard requirements (or building setbacks), landscaping requirements, and allowable land uses for each district.

7 - Finance your Business

The City of Virginia Beach offers a variety of incentives to qualifying new or expanding businesses to help defray costs for building or energy-efficiencies improvements. Also, businesses can capitalize on a number of various incentives and loans offered by the Commonwealth of Virginia, the Virginia Port Authority, YesOceana, and SBA. For more information, visit our Financing Your Business page or our Economic Development Incentives page.

8 - Get Business Resources

Small businesses are big business for the City of Virginia Beach and a key component to creating a vibrant, successful, and global community. As one of America’s largest cities, Virginia Beach understands the greatness obtained from embracing a diversity of people and business. By creating a dynamic framework where new ideas blend with the existing environment, we can ensure a sustainable and successful future. Part of that framework includes having a business community that represents all of the community. For information about resources, visit our Business Resources page.