There are many things to consider when beginning a business.

  • Is a business license required in Floyd County? The County has no business license requirement per se, but the Town of Floyd does (Contact townmanager@swva.net or 540 745-2565.)
  • Depending on the type of business, you may be required to obtain additional licenses and/or permits.
    • For example, if you are planning to operate the business under a name other than your own, you will need to register with the Floyd County Clerk of Court.
    • If the business is anything other than a sole proprietorship, you will also need to register with the State Corporation Commission.
    • If you are establishing a place of business, you will need a Commercial Entrance Permit from the Virginia Department of Transportation. Contact Will Dotson at (276) 730-0021 or Paul Brown (540) 381-7194.
  • In addition, you must file for business personal property taxes and/or machinery and tools tax at the County Commissioner of Revenue’s office.

The following information is a summary of information relevant to beginning a new business in Floyd County. Also be sure to check out this site on starting a business in Virginia.


Business Personal Property Tax

Regardless of gross income/purchases, if the business had tangible personal property and that property was located in Floyd County on January 1 of the current year, a Return of Tangible Personal Property must be filed by May 1 of the current year with the Commissioner of Revenue (540 745-9345).

Applicants may file for Personal Property tax either by mail or in person at the Commissioner of Revenue’s office at the Floyd County Courthouse.

The Code of Virginia §58.1-3500, states that, “Tangible personal property shall consist of all personal property not otherwise classified by §58.1-1100 as intangible personal property or by §58.1-3510 as merchants capital.” §58.1-3503(17) defines tangible personal property as; “All tangible personal property employed in a trade or business.” This includes desks, chairs, computers and all other tangible personal property used in a business.

Company-owned vehicles are subject to the filing requirement for motor vehicles with the Commissioner of Revenue (540 745-9345).

The current tax rate for personal property is $2.55 per $100 of assessed value. The method of valuing business personal property shall be determined by means of a percentage or percentages of the original cost.
For more information on Business Personal Property tax requirements, go to http://www.floydcova.org/government/commissioner_revenue.shtml


Other Licenses, Permits, Registrations, and Tax Requirements

Trade Name Registration

Any business operating under a name other than that of the owner must register with the Clerk of Court. When registering a trade name it is recommended that the charter and fictitious names book be reviewed to determine if the name is already in use within the County. The Virginia Code requires registration so that information regarding the names used are available to the public. If incorporating, a company must register with the Virginia State Corporation Commission before it can register a “doing business as” trade name with the Clerk’s office.

Registration of a trade name with the County does not protect the use of the name. However, names of companies incorporated in the Commonwealth of Virginia are protected. A corporate name may not be the same as, or confusingly similar to, that of any other corporation doing business in Virginia. Trade name registration takes place Monday through Friday 8:30 a.m. through 4:15 p.m. and Saturday 8:30 to Noon in the Clerk of the Circuit Court office in the Floyd County Courthouse.

For more information, call 540 745-9330 or visit

: Floyd County Courthouse; 
100 East Main Street
, Room 200
; Floyd, Virginia 24091


Contractor Licenses

State contractor licenses are required for all practicing electricians, mechanics, plumbers and home improvement contractors.

For more information, contact: Virginia Department of Professional and Occupational Regulation (DPOR) at: http://www.dpor.virginia.gov/boards/contractors or 804 367-8511


Food Service Permit

The Floyd County Health Department issues permits for food service establishments. The department conducts pre-opening and routine inspections to ensure compliance with state regulations.

For more information, contact:
 Division of Environmental Health
; Floyd County Health Department
 at 540 745-2141 or see www.vdh.state.va.us


Home Child Care Facility Permits, Day Care Centers

Any person who provides child care for up to five children in their home for compensation must obtain a Home Child Care Facility Permit

For more information, contact:
 Floyd County Social Services at 540 745-9316.


Alcoholic Beverage License

Retail outlets (convenience stores, drug stores, grocery stores, hotels and restaurants) selling alcoholic beverages must be licensed by the Virginia ABC Board.

Roanoke Regional office is 540 562-3604 
http://www.abc.state.va.us


Certificate of Authority for Firms Incorporated Outside of Virginia

A Corporation incorporated outside of Virginia but doing business in Virginia must obtain a Certificate of Authority. This certificate and a recently certified copy of its certificate or articles of incorporation must be filed with the Virginia State Corporation Commission. Payment of the following fees is also required:

Entrance Fee: The entrance fee for a stock corporation is based on the number of authorized shares of stock shown in the charter. The rates are $50 for every 25,000 shares of stock or fraction thereof up to 1 million shares, and $2,500 for more than 1 million shares of stock. Nonstock corporations and foreign corporations organized without capital stock pay a $50 entrance fee.

Filing Fee: The fee for obtaining a Certificate of Authority is $25.

For more information, contact:


Virginia State Corporation Commission

Clerk’s Office

P.O. Box 1197

Richmond, Virginia 23218

Tel: 804-371-9733

http://www.scc.virginia.gov


Incorporation

To become incorporated in the Commonwealth of Virginia, an organization must file articles of incorporation with the Virginia State Corporation Commission and pay the required fees. Statutory references can be found in the Code of Virginia Stock Corporation Act. Titles 13-1-601 through 13.1-780.

General guidelines include the following:

– Incorporations do not have to be Virginia residents.

– To get started, corporations are not required to have stockholders or minimum paid-in cash.

– The corporate name must include the word “corporation,” “company,” “incorporated,” or “limited.”

– The corporate name cannot be the same as, or similar to, the corporate name of another registered Virginia business.

– Businesses incorporated in Virginia must maintain a registered office within the state.

– Corporations doing business in Virginia must submit an annual report to the Virginia State Corporation Commission.

The following fees apply to Virginia Corporations:

Entrance Fee: The entrance fee for a stock corporation is based on the number of authorized shares of stock shown in the charter. The rates are $50 for every 25,000 shares of stock or fraction thereof up to 1 million shares, and $2,500 for more than 1 million shares of stock. Nonstock corporations and foreign corporations organized without capital stock pay a $50 entrance fee.

Filing Fee: The fee for obtaining a Certificate of Authority is $25.


Partnerships

General partnerships and limited partnerships are formed through legal agreements that comply with the Virginia Code section 50-73.1-73.77. Applications must be filed and recorded through the Virginia State Corporation Commission. The Virginia State Corporation Commission then notifies the Clerk’s Office of the Fairfax County Circuit Court.

Fees are as follows: 
$100 filing fee made payable to State Corporation Commission.
Plus recording fee made payable to the Clerk’s Office of the Floyd County Circuit Court.

Submit checks and applications to:


Virginia State Corporation Commission

P. O. Box 1197

Richmond, Virginia 23218-1197

Tel: 804-371-9733

Toll free in Virginia: 866-722-2551

http://www.scc.virginia.gov


Employer Identification Number

Required if any of the following conditions exist:
– Business is incorporated;
– Business is a nonprofit organization;
– Business is a partnership;
– Business is a plan administrator;
– Business is a trust or estate;
– Business pays wages to one or more employees;
– Business is required to pay excise or highway use taxes;
– Business is required to file any document with the Internal Revenue Service; or
– Business is required to withhold taxes on income (other than wages) paid to nonresident alien (unless specifically exempt by special visa).

For more information, contact:


Internal Revenue Service

http://www.irs.gov


Sales and Use Tax (Floyd County and Virginia)

Floyd County, and all other cities and counties in Virginia, levy a 1 percent sales and use tax. This tax is collected at the point of sale and at the same time as the state’s sales tax.

The Virginia Department of Taxation uses Federal Information Processing Standards (FIPS) codes to identify where a business is located and where their sales take place. FIPS codes are a standardized set of numeric codes to ensure uniform identification of geographic entities such as cities, counties and towns. Use the Virginia Department of Taxation’s FIPS Lookup tool to determine your correct code.

Distributors do not pay the tax on items purchased for resale. Research and development firms do not pay the tax on items used directly and exclusively in research. Manufacturers receive exemptions for items used in production. Other exemptions include custom computer software, certain advertising materials and pollution control devices. Business entities may be required to collect as well as pay this tax.

For more information, contact:


Virginia Department of Taxation

804-367-8037


Miscellaneous License/Permits

Pawn brokers and precious metal dealers as well as music event organizers may need local government permits.

For more information, contact:

Floyd County Administrator’s Office

120 W. Oxford St

Floyd, Virginia 24091

540 745-9300


Transient Occupancy

Businesses in Floyd providing short-term accommodations, such as hotels, bed & breakfasts, short-term rental cabins and events should notify the Floyd County Commissioner of Revenue’s office (540 745-9345). Such businesses must collect and pay a 5% transient occupancy tax to the Floyd County Treasurer’s office 540 745-9357.