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.