Virginia lesson 5 of 6
Virginia state taxes, licences and BPOL
Virginia does not charge LLCs a state-level franchise tax, but do not mistake that for no tax bill. Members pay Virginia individual income tax on their share of profit, and many localities layer a business licence tax on top of that.
State-level treatment
Virginia has no annual franchise tax on LLCs. A single member LLC is disregarded and a multi-member LLC is generally taxed as a partnership for both federal and Virginia purposes unless you elect corporate treatment. Resident members pay Virginia individual income tax, with a top marginal rate of 5.75 percent, on their share of the LLC's profit. If the LLC elects to be taxed as a C corporation, Virginia's corporate income tax rate applies instead.
The BPOL tax
Many Virginia counties and independent cities charge a Business, Professional and Occupational License (BPOL) tax, calculated on gross receipts rather than profit. Rates and thresholds are set locally, and some smaller localities do not levy it at all, so check with the county or city where your LLC operates.
BPOL is administered by the locality, not by the SCC or Virginia Tax. A federal EIN and an SCC filing do not register you for it automatically.
Sales tax and payroll
If you sell taxable goods or certain services, register with Virginia Tax for a sales tax certificate. If you hire employees, register for employer withholding and unemployment insurance through the Virginia Employment Commission.
Key takeaways
- No state franchise tax on Virginia LLCs, but resident members owe up to 5.75 percent individual income tax on their share of profit.
- BPOL is a local gross-receipts licence tax that many counties and cities charge, administered outside the SCC.
- Sales tax and payroll registrations are separate steps with Virginia Tax and the Virginia Employment Commission.
Frequently asked questions
Does Virginia have an LLC franchise tax like California?
No. Virginia has no state-level annual franchise tax on LLCs. The main ongoing state-level cost to the SCC is the $50 annual registration fee.
Is BPOL charged everywhere in Virginia?
No. It is set locality by locality. Some counties and cities charge it on gross receipts above a threshold, others charge a flat fee, and a few do not levy it. Confirm with your specific county or city commissioner of the revenue.
Official sources
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Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Articles of Organization (Form LLC-1011), act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team