How to Obtain an Business License in Norfolk, Virginia
Whether you are opening a new store in the Ghent Historic District or a small transcribing firm out of your basement, new business owners in Norfolk, Virginia, will need to get a business license from the city before operation begins. The licenses expire every year on December 31.
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Instructions
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Check the zoning of the address you are planning to open the business at. If the location you want to open your business isn't zoned for the type of operation you want to open, you won't be able to get a license. The city of Norfolk's zoning department can be reached at 757-664-4752. There also is a link on the city of Norfolk's zoning website that takes you to a zoning use map of the city. If you decide to visit the zoning enforcement office, it is located in the city hall building at 810 Union Street. Bring documents, such as a lease, to show you have a right to use the property.
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Be aware that certain businesses cannot be run out of your home. Any business that will have clients visiting your home or will involve the storage of merchandise or equipment cannot be run from your home. In addition, you cannot use more than 15 percent of your residence for the business, and only people living in your house can work for the business. Detached structures such as a shed cannot be used for the home business. Merchandise sale and food processing also are prohibited in a home business. In 1992, a zoning amendment was made that prohibited certain types of businesses to be run out of a residence, including beauty shops, massage parlors, nursing home operations, contracting and subcontracting businesses, small electronic repair shops, janitorial and landscape services, auto repair and towing and retail or wholesale businesses with showrooms.
Also, if you do not own the home you are planning to run the business from, you will need to obtain a permission letter from the owner, which you may need for zoning or for the business license application.
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Estimate the cost of your business license. If you estimate that your business will make less than $100,000 gross revenue from the day you open until December 31, your flat fee will be $50. (The exception is for wholesale; see below.)
If you believe you will make more that $100,000 in gross receipts, you will have to estimate what your business license will cost. For contractors, the cost is 16 cents per $100 gross receipts; retail is 20 cents per $100 gross receipts; repair, personal and business services is 36 cents per $100 gross receipts; for financial, real estate and other professional services, the rate is 58 cents per $100 gross receipts.
Wholesale business owners will pay a flat fee of $50 plus 15 cents per $100 gross purchases.
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If your business is not run under a name that easily identifies the owner, you must register a trade name with the Norfolk Circuit Court. You will have to pay a fee -- which in 2010 was $10 -- to the court. For example, if the company is your name, you won't have to register the name. If your company's name is Running Wild, you will need to register the name so that the public can find out who the people are that he or she will be dealing with.
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Investigate whether your business will need bonds, health certificates or need to fulfill other types of requirement from state or other city departments. Since these types of requirements are varied and too specific per business, there are just too many to list. Contact the city's business license department at 757-664-7886 if you need guidance.
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Apply for the business license with the city of Norfolk. There is an application available online and it's free. Of you can download a PDF version, fill it out and mail it to the Commissioner of the Revenue, P.O. Box 2260, Norfolk, VA 23501-2260. You will receive notification from the city and then finish have to finish the process in person.
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Complete your application process in person. This should take about an hour. Bring your business license application and picture identification for all parties applying for the business license. If you have a corporate charter or partnership agreement, you will need to bring those documents as well. If you had to get any permits, licenses, receipts, certificates or forms from departments such as zoning or the health department, make sure to bring those along too.
You should have estimated what your gross receipts will be through December 31 so that you know how much you should pay for your license. Also don't forget to bring your checkbook. Also bring a lease or permission letter from a homeowner if this is a home-based business in a residence you do not own.
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