Bookkeeping and payroll for small businesses across central Virginia.

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Do I need a business license to operate in Richmond?

Yes. If you’re operating a business within Richmond city limits, you need a Business Professional and Occupational License, commonly called a BPOL. This applies whether you’re running a restaurant, contracting business, retail shop, or service company.

Richmond requires every business to register and pay an annual license fee based on gross receipts. The fee structure varies by business classification. Retailers, contractors, and service providers each fall under different categories with different rates. The city calculates your fee as a percentage of your prior year’s gross receipts, so accurate monthly bookkeeping matters for getting this number right.

New businesses get a bit of a break in the first year since there’s no prior gross receipts to calculate from. You’ll pay a flat fee initially, then file based on actual receipts when renewal comes around.

The deadline for renewal is March 1 each year. Miss it and you’ll face late penalties that add up quickly. The city doesn’t send friendly reminders, so you need to track this yourself or work with a Tri-Cities bookkeeper who can keep you on schedule.

Beyond the basic business license, some industries need additional permits. Restaurants need health department permits and potentially an ABC license if serving alcohol. Contractors may need state licensing depending on the trade. Auto shops and salons have their own regulatory requirements. The BPOL is the baseline, but it’s not always the only thing you need.

If you’re operating from home, you still need the license. Working remotely doesn’t exempt you from registration requirements. If you’re generating income from business activity in Richmond, the city expects you to be licensed.

The application process is straightforward. You can apply through the Richmond Commissioner of the Revenue office. Have your business structure documentation ready, along with your federal EIN if you have one.

Getting set up correctly from the start saves headaches later. A missed license can create problems when you’re trying to bid on projects, open business bank accounts, or apply for financing. Staying compliant is easier than fixing compliance gaps after the fact.

Greater Richmond's Small Business Bookkeeper

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More Questions

How do I separate my personal and business expenses?

Open a separate business bank account and get a business credit card for business purchases only. The setup is simple. Building the habit of keeping transactions in the right accounts is the harder part.

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Can QuickBooks handle payroll for my business?

Yes, QuickBooks Payroll handles wages, tax calculations, filings, and direct deposit for most small businesses. Whether it's the right choice depends on your employee count and how much time you want to spend managing it yourself.

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Should I use cash basis or accrual accounting for my business?

Most small businesses do fine with cash basis because it's simpler and matches what you see in your bank account. Accrual makes more sense when you need an accurate picture of profitability across longer billing cycles or carry significant inventory.

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What's the best way to track subcontractor payments?

Collect a W-9 before the first payment, set up each sub as a vendor in your accounting software, and code every payment to the job it belongs to. This setup gives you accurate job costs and makes 1099 filing straightforward.

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What's the difference between catch-up bookkeeping and cleanup bookkeeping?

Catch-up bookkeeping addresses a time gap when your books stopped being maintained. Cleanup bookkeeping fixes quality issues like miscategorized transactions and accounts that don't reconcile. Many businesses need both.

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What does a fractional CFO do and do I need one?

A fractional CFO provides part-time strategic financial guidance like cash flow forecasting, budgeting, and financial planning. You likely need one when you're making growth decisions that require more than historical bookkeeping can tell you.

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Virginia bookkeeping firm focused on small businesses. Bookkeeping, payroll, and fractional CFO services from a local Richmond team. A decade of working with businesses like yours. QuickBooks ProAdvisor certified.

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