Starting a service business in Virginia

Form your business in Virginia

You form a Virginia LLC by filing Articles of Organization (form LLC1011) with the SCC Clerk's Office, through the Clerk's Information System (CIS) online, or by paper form. The SCC charges $100, as listed on the SCC's LLC forms and fees page in October 2026. You can reserve a name for 120 days first for $10 if you need time.

Ongoing state filings

Each year a Virginia LLC pays an annual registration fee to the SCC. For an LLC the fee is $50, due by the last day of the month in which the LLC was organized, as listed by the SCC in October 2026. The SCC sends the assessment two months before the due date, and you cannot pay before you are assessed. If the fee is still unpaid three months after the due date, the SCC cancels the LLC.

Using a business name (DBA)

Operating under any name other than your own or your LLC's legal name requires a certificate of assumed or fictitious name. The SCC lists separate forms for a business conducted by an individual and by an entity, both filed with the Commission online or on paper, and the filing fee is $10 as listed in October 2026. The SCC warns that using a fictitious name without filing can mean a misdemeanor conviction with a fine of up to $2,500, jail time or both, and that you may not maintain an action in Virginia courts.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

Virginia's Board for Contractors, under the Department of Professional and Occupational Regulation (DPOR), licenses anyone who, for a price, builds, removes, repairs or improves a structure attached to real property. The class depends on the money. Under Va. Code § 54.1-1100, a Class C license covers a single contract over $1,000 but under $30,000, with total work under $250,000 in 12 months; Class B runs from $30,000 to under $150,000 per contract or $250,000 to under $1 million a year; Class A is $150,000 or more per contract or $1 million or more a year. Electrical, plumbing and HVAC contractors also need a master tradesman on the license. The same board licenses individual tradesmen: electricians, plumbers, HVAC technicians and gas fitters, among others. Because the threshold is so low, a handyman, deck builder or roofer taking a $1,500 job is in licensing territory, while recurring services such as mowing or house cleaning do not fit the statute's definition of contracting. Localities add their own business licenses and permits.

• Virginia DPOR, Board for Contractors: Class A, B and C contractor licenses
• Virginia DPOR, Tradesmen program: Electricians, plumbers, HVAC technicians and gas fitters

Workers' compensation

The Virginia Workers' Compensation Commission says a business with more than two employees regularly employed in Virginia must carry workers' compensation coverage, so the third regular worker triggers the requirement. The Commission reads employee broadly: part-time, seasonal and temporary workers, minors, trainees and working family members all count. For contractors there is a second trap: when you hire subcontractors, their employees count toward your total, whether or not the subcontractor has its own coverage. The Commission also notes it offers no waiver or exemption form for a sole proprietor or other business that is not required to carry coverage, so there is no certificate to hand a general contractor who asks.

More on coverage: business insurance for contractors.

Sales tax on services

Virginia Tax describes the retail sales and use tax as a tax on the sale, lease and rental of tangible personal property, on accommodations, and on certain taxable services, unless an exemption applies. Most home services are not on that short list, but the parts, products and materials you sell can be. Rates depend on where the sale happens: 5.3% in most of the state, with higher combined rates in regions that add regional taxes, such as Northern Virginia and Hampton Roads. If you sell taxable items, register online as a dealer; Virginia Tax issues a 15-digit sales tax account number and a Certificate of Registration (Form ST-4) that you must display at your registered location, and returns must be filed electronically.

Recording business calls in Virginia

Virginia follows one-party consent. Va. Code § 19.2-62(B)(2) says it is not a criminal offense to intercept a call or conversation when you are a party to it or one party has given prior consent. You can record your own business calls; when customers may call from all-party states, use a recorded notice, as covered in our guide to recording business calls.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

Virginia runs from Atlantic beaches to Blue Ridge mountains, and the work follows. Hampton Roads and the Eastern Shore watch hurricane season and nor'easters, which bring tree, roof and water damage calls. Northern Virginia's dense suburbs keep cleaning, lawn and home maintenance companies busy year round with steady recurring work, while the Shenandoah Valley and Southwest Virginia see real snow and ice, so snow removal and heating service matter there. Humid summers stretch the lawn, mosquito and HVAC seasons from spring well into fall.

Class C starts at $1,000 per contract

Virginia's contractor licensing threshold is far lower than many states'. Under Va. Code § 54.1-1100, Class C covers a single contract or project over $1,000 and under $30,000. If you plan to do small repairs, decks, fences, gutters or remodeling, get the license before you quote, because the requirement applies to bidding and accepting work, not just finishing it.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Virginia questions