YOU NEED TO KNOW ABOUT STARTING A BUSINESS IN CHESTERFIELD
are certain procedures you need to follow when starting
a business. This brochure gives an easy-to-understand, brief
overview of starting a business in Chesterfield County.
It is NOT intended for use without involvement by or discussion
with your Certified Public Accountant, attorney and other
important financial advisors. The forms and deadlines discussed
here incur substantial penalties if not timely filed. Always
consult professional advisors before starting any business
venture. The use of this information without their substantial
input can be hazardous to your wealth.
one of the most important steps is choosing the type of
entity structure for your business, as it will determine
how you will keep your records and how you will be taxed.
sole proprietorship is a type of business entity which is
unincorporated and consists of one person, who pays tax
on all income and is personally liable for all losses and
partnership is an entity formed by two or more persons contributing
abilities, money, and other assets. In a general partnership,
the partners are liable for all debts. Each partner pays
tax on his or her share of the income.
corporation is a separate legal entity from its owners.
The three main characteristics of a corporation are 1) limited
liability, owners can only lose their investment in the
corporation, 2) easy transfer of ownership through the sale
of stock and, 3) continuity of existence. A corporation
can be either an "S" corporation or a "C"
corporation. An S corporation has fewer than 75 stockholders
and income tax is paid once, at the individual level. If
a corporation is not an S corporation, it is a C corporation.
A C corporation, on the other hand, is taxed at the corporate
level and stockholders are also taxed on any dividends taken
limited liability company (LLC) income tax is paid by the
"members," not the company. With an LLC, the personal
liability of its owners is more limited and, unlike an S
corporation, an LLC can have more than 75 stockholders,
which may be corporations and foreigners.
COMMON FEDERAL AND STATE FORMS
SS-4 is used to obtain a Federal Employer Identification
Number (EIN) and is filed with the Internal Revenue
of Assumed Name needs to be filed with the Clerk
of the Circuit Court in the city or county in which
your business is located if it will have a name other
than the legal business name.
of Incorporation and a charter fee need to be filed
with the State Corporation Commission.
of Organization and a filing fee need to be filed
with the State Corporation Commission.
VEC-FC-27 needs to be filed with the Virginia Employment
Commission if your business is subject to unemployment
R-1 needs to be filed with the Virginia Department
of Taxation if corporate income tax, sales tax, employer
withholding tax or any other state tax applies to the
operation of the business.
2553 needs to be filed with the IRS by the 75th
day of an S corporation’s existence.
FORMS DO YOU NEED?
SS-4, if you have at least one employee; sole proprietorships
are not required to file with the State Corporation Commission
or with the Clerk of the Circuit Court, unless you need
to file a Certificate of Assumed Name; Form VEC-FC-27 and
Form R-1, if applicable
SS-4; a partnership also must file Articles of Partnership
with the Clerk of the Circuit Court where the business will
be located; and, if applicable, Certificate of Assumed Name,
Form VEC-FC-27 and Form R-1
SS-4; Articles of Incorporation; Form R-1 and if applicable,
Certificate of Assumed Name, VEC-FC-27, and Form 2553 (If
"S" status elected)
SS-4; Articles of Organization; and if applicable, Certificate
of Assumed Name; Form R-1 and Form VEC-FC-27
FOR A LOCAL BUSINESS LICENSE
your business will operate in Chesterfield County, you need
to complete an application for a Chesterfield County business
license, available from the Office of the Commissioner of
Revenue. Before applying for a business license, you must
have filed a Certificate of Assumed Name, if necessary,
with the Clerk of the Circuit Court. You must send along
with the business license, a Business Liscense Classification
Questionnaire (BLCQ), which asks questions about the nature
of your business and its location. Chesterfield rigorously
enforces zoning laws, and this is a part of the BLCQ requirement.
It is generally a good idea to appear in person at the business
license depatment to ensure that the business is properly
tax liability will be based on either a flat rate or an
amount per $100, depending on the type of business. Usually,
the total tax owed is calculated based on a business’ gross
receipts or gross purchases from the previous year. Persons
starting new businesses, will need to estimate gross receipts
or purchases for the year. There are six basic classifications
of business types whech are not subject to flat rate of
tax. These are, in order of tax rate, from highest to lowest:
professional service, personal service and commission merchant,
retail merchant, contractor and wholesale merchant. However,
if your business falls under one of these categories and
you do not expect the year’s gross receipts or purchases
to exceed $10,000, you do not have to file a business license.
The flat rates also vary by business classification. It
is acceptable for a business to have more than one business
license, for each segment of the business, which would be
subject to various tax rates. Business licenses expire on
December 31 and you must renew them each year on March 1.
you might also want to contact other state agencies, such
as the Alcoholic Beverage Control Board, Department of Health,
Department of Housing and Community Development, Virginia
Department of Occupational Regulation, Department of Labor
and Industy, and some other departments which may have other
requiremaents for your particular type of business.
PERSONAL PROPERTY TAX
must also file, by March 1, a Chesterfield County Return
of Business Tangible Personal Property. On the form you
will list all furniture, equipment, tools, office machines,
signs, and other property used in the operation of your
business. The bill for the tax, due June 5, will be sent
to you, based on the purchase cost of the property and the
time you have owned it. You not only pay tax the year you
purchase property, but for each year it remains in use.
in Chesterfield are exempt from business licenses, but must
still pay business personal property tax on all machinery
WHAT IS THIS PLACE CALLED CHESTERFIELD COUNTY?
County was formed in 1748 and named for Philip Stanhope,
the Fourth Earl of Chesterfield, was home to the first iron
furnace in America in 1619 at Falling Creek.
the first county in the state to sell revenue bonds for
a centralized water system. Today, Chesterfield County is
a thriving area supported by manufacturing and distribution
facilities, regional headquarters, as well as several large
office parks and many retail locations. Chesterfield County
is also home to many established and new residential areas.
Chesterfield County Department of Economic Development is
dedicated to providing businesses with assistance in locating.
The office coordinates meetings with people, such as real
estate agents, landowners, and government representatives,
who can help you find an appropriate place for your kind
INTERNAL REVENUE SERVICE
FEDERAL TAX FORMS
DEPARTMENT OF TAXATION (Richmond District Office)
OF THE REVENUE
OF THE CIRCUIT COURT
748-1754 or (804) 748-1282
(804) 748-1366 or (804) 748-1755