Business Overview
Virginia offers diverse business opportunities in defense, technology, financial services, and logistics. The state provides access to federal government markets, a highly educated workforce, and competitive business costs. Its strategic East Coast location and port facilities support international trade.
Key Facts & Figures
| Category | Details |
| Capital | Richmond |
| Major Cities | Virginia Beach, Norfolk, Chesapeake, Richmond, Newport News |
| State Sales Tax Rate | 5.3% (includes 1% local tax) |
| Local Sales Tax Rate | Up to 0.7% additional regional taxes |
| Corporate Income Tax | Progressive from 6% to 8.5% |
| Physical Nexus Threshold | Physical presence through employees, offices, or inventory |
| Economic Nexus Threshold | $100,000 in annual sales or 200 transactions |
Did you know?
Virginia hosts the largest concentration of technology companies and defense contractors in the United States.
Setup & Compliance
Virginia provides streamlined business registration with moderate regulatory requirements.
Setting Up a Virginia Business:
- Select Your Business Structure: Consider tax implications and liability protection needs.
- Register Your Business: File formation documents with the Virginia State Corporation Commission.
- Register for Tax Accounts: Register with the Department of Taxation for sales tax and withholding.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- Register as an Employer: Register with the Virginia Employment Commission if hiring employees.
Key Compliance Requirements:
- Annual Reports: Virginia entities must file annual reports with the State Corporation Commission.
- Annual Registration Fee: Businesses pay annual registration fee based on entity type.
- Sales Tax Collection: Collect and remit 5.3% state sales tax (includes 1% local) plus additional regional taxes.
- Corporate Income Tax: Corporations pay 6% corporate income tax.
- Business, Professional and Occupational License (BPOL): Many localities require BPOL tax based on gross receipts.
Hiring & Payroll
Virginia balances business interests with moderate worker protections.
Virginia Payroll Requirements:
- Unemployment Insurance: Rates from 0.1% to 6.2% on first $8,000 of wages.
- State Income Tax Withholding: Required with progressive rates.
- Workers’ Compensation: Required for most employers.
Virginia Employment Laws:
- Minimum Wage: $12.00 per hour (as of 2023).
- No state-mandated paid sick or family leave.
- New hire reporting within 20 days.
- Final paycheck due on next regular payday.
- Virginia is an at-will employment state with right-to-work laws.
State Incentives
Virginia provides strategic economic incentives to attract and support business growth.
Key Business Incentives:
- Virginia Jobs Investment Program: Workforce training support.
- Major Headquarters Workforce Grant: Incentives for large business investments.
- Research and Development Tax Credit: Supports innovative company development.
Small Business & Startup Support:
- Virginia Small Business Development Center: Comprehensive business consulting.
- Minority Business Loan Program.
- Technology Commercialization Assistance Program.
Regulatory Considerations
Virginia maintains a comprehensive regulatory approach supporting diverse industries.
Key Business Regulations:
- Data Privacy: Laws protecting consumer and business information.
- Environmental Compliance: Regulations for government contractors and technology sectors.
- Professional Licensing: Mandatory for various service professions.
Additional Regulatory Areas:
- Government Contractor Compliance.
- Technology and Defense Industry Regulations.
Business Overview
Virginia offers diverse business opportunities in defense, technology, financial services, and logistics. The state provides access to federal government markets, a highly educated workforce, and competitive business costs. Its strategic East Coast location and port facilities support international trade.
Key Facts & Figures
| Category | Details |
| Capital | Richmond |
| Major Cities | Virginia Beach, Norfolk, Chesapeake, Richmond, Newport News |
| State Sales Tax Rate | 5.3% (includes 1% local tax) |
| Local Sales Tax Rate | Up to 0.7% additional regional taxes |
| Corporate Income Tax | Progressive from 6% to 8.5% |
| Physical Nexus Threshold | Physical presence through employees, offices, or inventory |
| Economic Nexus Threshold | $100,000 in annual sales or 200 transactions |
Did you know?
Virginia hosts the largest concentration of technology companies and defense contractors in the United States.
Setup & Compliance
Virginia provides streamlined business registration with moderate regulatory requirements.
Setting Up a Virginia Business:
- Select Your Business Structure: Consider tax implications and liability protection needs.
- Register Your Business: File formation documents with the Virginia State Corporation Commission.
- Register for Tax Accounts: Register with the Department of Taxation for sales tax and withholding.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- Register as an Employer: Register with the Virginia Employment Commission if hiring employees.
Key Compliance Requirements:
- Annual Reports: Virginia entities must file annual reports with the State Corporation Commission.
- Annual Registration Fee: Businesses pay annual registration fee based on entity type.
- Sales Tax Collection: Collect and remit 5.3% state sales tax (includes 1% local) plus additional regional taxes.
- Corporate Income Tax: Corporations pay 6% corporate income tax.
- Business, Professional and Occupational License (BPOL): Many localities require BPOL tax based on gross receipts.
Hiring & Payroll
Virginia balances business interests with moderate worker protections.
Virginia Payroll Requirements:
- Unemployment Insurance: Rates from 0.1% to 6.2% on first $8,000 of wages.
- State Income Tax Withholding: Required with progressive rates.
- Workers’ Compensation: Required for most employers.
Virginia Employment Laws:
- Minimum Wage: $12.00 per hour (as of 2023).
- No state-mandated paid sick or family leave.
- New hire reporting within 20 days.
- Final paycheck due on next regular payday.
- Virginia is an at-will employment state with right-to-work laws.
State Incentives
Virginia provides strategic economic incentives to attract and support business growth.
Key Business Incentives:
- Virginia Jobs Investment Program: Workforce training support.
- Major Headquarters Workforce Grant: Incentives for large business investments.
- Research and Development Tax Credit: Supports innovative company development.
Small Business & Startup Support:
- Virginia Small Business Development Center: Comprehensive business consulting.
- Minority Business Loan Program.
- Technology Commercialization Assistance Program.
Regulatory Considerations
Virginia maintains a comprehensive regulatory approach supporting diverse industries.
Key Business Regulations:
- Data Privacy: Laws protecting consumer and business information.
- Environmental Compliance: Regulations for government contractors and technology sectors.
- Professional Licensing: Mandatory for various service professions.
Additional Regulatory Areas:
- Government Contractor Compliance.
- Technology and Defense Industry Regulations.
