Start a Business
Starting a business takes more than a great idea — it takes planning, resources, and the right connections. The steps below walk you through the process, from early planning to opening day, with tools and local support to help you keep moving forward. Follow the steps below to take the next step in starting your business.
TABLE OF CONTENTS
Research & Plan
Congratulations on taking the first step towards building your dream business! Starting a business involves planning, making key financial decisions, and completing a series of legal activities. Research and planning are the cornerstones of any successful business venture, providing the roadmap that guides you through the complexities of the marketplace, helping you navigate challenges and capitalize on opportunities.
Why is research and planning so crucial? Consider it the groundwork for your business’s future success. By delving into market trends, consumer behavior, and competitive landscapes, you gain invaluable insights that shape your strategy and set you apart from the competition. But remember, you’re not alone on this journey. Our Small Business Solutions tab offers a wealth of resources and tools designed to support you every step of the way. Whether it’s accessing the expertise of the Small Business Development Center or leveraging consulting and training programs, we’re here to help you turn your vision into reality.
Navigate legal requirements
Choose your Business Structure
A business becomes a ‘legal entity’, meaning that it can own property, can hold bank accounts, and pays taxes almost exactly as if it were a living citizen of the Commonwealth of Virginia. There are several types, however, each with its own benefits and limitations. While it can be changed later, it is far easier to make this decision correctly before going further. The ‘right choice’ for you is truly dependent on your needs. Get to know the types and make a good decision for yourself. This decision impacts taxes, the relationships between owners, and legal liability. Consulting with business counselors, attorneys, and accountants can prove helpful.
Common Business Structures
- Sole Proprietorships are usually owned by a single person or a couple. You’re personally liable for all business debts, can freely transfer all or part of the business, and for taxes, you can report profit or loss as personal income.
- Limited Liability Companies (LLCs) are very popular. You have limited legal liability like a full corporation; however, for taxes, they’re more like Sole Proprietorships or Partnerships.
- General Partnerships let you share profit, loss, and managerial duties among the partners, and each is personally liable for any debt entirely. (“Joint Ventures” are short-term partnerships.)
- C-Corporations are distinct legal entities, taxed separately from their ownersand are generally not favored to own assets that substantially appreciate in value. While they protect against personal liability, they do not have many of the tax and operating advantages of an LLC or limited partnership, except that lower tax rates may apply to annual net income below $75,000.
- S-Corporations are not taxed as a separate legal entity and protect their owners against personal liability, but there are limitations on the number and type of eligible stockholders. They also have certain less favorable tax and operating advantages than LLCs.
- Benefit Corporations are a form of stock corporation that incorporates aspects of nonprofit organizations.
Register your business and its name
Virginia offers the Business One Stop tool that can make it easier and accomplish these tasks for most users for a small fee. You may also file directly with the State Corporation Commission. Virginia’s Business Information Hotline can assist: 866-248-8814.
- Check to make sure your company name isn’t taken, and register your name and trademarks with the federal government.
- For more information about the registration process, including information for more complex business structures complete with forms and look-up tables, this commission is the authority.
- For most businesses, the online registration tool, Virginia Business One Stop, can handle this part for you.
You should always consult a lawyer if you still have questions.
Get Your Tax Numbers
In the same way a person has a Social Security Number, a business has federal and state tax numbers. The Business One Stop tool, mentioned above, can assist you with obtaining your federal and state tax IDs.
Register straight with the source:
- To obtain a Federal Employer Identification Number (FEIN), visit the Internal Revenue Service (IRS) for specific forms for each business structure.
- To obtain a Virginia Tax identification number, complete the Business Registration Application with the Virginia Department of Taxation.
**The above information is compiled from Virginia’s Business One Stop.
Apply for Funding
Explore financing options to support your business at every stage. Our funding resources page highlights local, regional, and state programs, along with incentives and tools that can help turn your idea into a reality. Click the button below to get started.
Secure a Location
Finding the right space is a critical step in launching your business. Visit our location assistance page to explore available sites and buildings, understand zoning considerations, and connect with staff who can help you identify the best fit. Click the button below for guidance.
Verify Zoning & Obtain Business License
Buena Vista makes starting a business in the City easy, with just two simple requirements:
- Complete Business Zoning Verification: Determine whether your business location is zoned appropriately by completing the zoning verification process online. Simply visit our Online Portal and submit your application. There is a nominal fee of ten dollars ($10.00) for verification.
If you have any questions or need assistance, feel free to reach out to the Department of Community Development.
- Obtain a Business License: Once you’ve verified your zoning, it’s time to obtain your business license from the Commissioner of Revenue by visiting their office. Your business license fee will be calculated based on your first year’s anticipated revenue (gross receipts) and the rate for your specific business classification. The minimum license fee is $30.00.
Be sure to bring the following documents and information:
- Zoning verification
- Your name and the business name
- Business mailing address
- Business location address
- Business phone number
- Federal identification number (Virginia’s Business One Stop) or your social security number
- A realistic estimate of your gross receipts for the first year of business
- Photo identification
- Know your business classification to determine your license fee. Rates vary depending on the nature of your business.
|
Business Type |
Rate |
|
Contractor |
$0.16/$100 |
|
Retail Sales |
$0.20/$100 |
|
Repair, Personal, Business, and Other Services |
$0.36/$100 |
|
Financial, Real Estate, and Professional Services |
$0.58/$100 |
|
Wholesale |
$0.05/$100 |
|
Telephone & Telegraph Service |
$0.005/Gross Receipts |
|
Carnivals |
$250.00/per day |
|
1-3 Machines |
$50.00 |
|
Over 3 Machines |
$100.00 |
|
Peddlers; Itinerant Merchants |
$500.00 |
|
Tobacco |
$10.00 |
|
Pistol |
$20.00 |
|
Distiller, Winery, Brewery, and Beer Wholesaler |
$500.00 |
|
Wine AND Beer On Premises |
$75.00 |
|
Wine OR Beer On/Off Premises |
$50.00 |
|
Wholesale Wine Off Premises |
$50.00 |
|
Mixed Beverage, Wine, AND, Beer On Premises |
$250.00 |
With these two straightforward steps, you’ll be well on your way to launching your business in Buena Vista, Virginia. If you have any questions or need further assistance, don’t hesitate to contact us. We’re here to help you succeed!
Obtain Necessary Permits, Licenses, and Other Requirements
Before you are finally ready to open your business, it’s essential to ensure that you have all the necessary permits and licenses in place. Below are permits and licenses to consider:
Building and Renovations
If you’re planning to build or renovate a space for your business, you’ll need to navigate the permitting process. This may involve obtaining zoning permits, building permits, signage permits, and other local approvals.
For a full list of required local permits, visit the Permits page.
Professional Licenses
Certain businesses, including contractors, barbers, cosmetologists, real estate agents, auctioneers, and more, are required to be licensed by the Virginia Department of Professional and Occupational Licenses (DPOR). It’s essential to check whether your profession falls under this category and obtain the necessary licensure before commencing operations.
Permits for Specific Industries
Depending on the nature of your business, you may need additional permits. Businesses are responsible for ensuring that all necessary permits and licenses are obtained. A few examples when additional permits may be required, include:
- To serve food – Virginia Department of Health
- To sell or serve alcoholic beverages – Virginia Alcoholic Beverage Control
- For child and adult daycare providers – Virginia Social Services Department
- Others to consider:
Set up utilities & Plan for Taxes
Once you’ve secured your location and are ready to open your doors, it’s time to set up your utilities.
It is also important to ensure that you are prepared for tax responsibilities.
- If you set up your state and federal tax information during the “Navigate Legal Requirements” step, then you are part of the way there. If not, be sure to consider state and federal tax requirements for sales tax, income tax, etc.
- Visit the Business Tax page to prepare for any local taxes and business license fees.
You should always consider seeking advice from a qualified tax professional, such as an accountant or tax attorney, to ensure that you’re meeting all of your tax obligations and maximizing tax-saving opportunities. A tax professional can help you navigate complex tax laws, identify deductible expenses, and develop tax strategies tailored to your business goals
Grand Opening and Beyond
Congratulations on reaching this milestone! Now it’s time to celebrate your grand opening and introduce your business to the community. The resources below can help you plan and promote your launch event, attract customers, and generate buzz for your new venture. But the journey doesn’t end here–we’ll continue to support you as you navigate the challenges and opportunities of business ownership…
List with Local Tourism
Our regional tourism center offers complimentary business listings for everyone holding a current business license. The information that you provide for this listing is used for print and online resources, such as:
- Lexington, Buena Vista, and Rockbridge County Visitor Guide
- www.lexingtonvirginia.com and www.rockbridgeoutdoors.com
- www.virginia.org
To obtain your business listing, be sure you have a copy of your business license and click the appropriate link below to submit your listing.
- Attraction
- Restaurant
- Retail
- Wedding Vendor
- B&B or Inn
- Cabin or Vacation Rental
- Campground
- Hotel or Motel
You may also take advantage of opportunities to display rackcards/brochures at visitor centers [PDF Rack Card Policy] and other free promotional opportunities [PDF tourismpartners_promoservices]
Join the Chamber of Commerce and Host a Ribbon Cutting
The Chamber of Commerce serving Buena Vista, Lexington, and Rockbridge County provides countless opportunities to help you grow your business. Such as:
- Promotional Support through Locals’ Nights, Cash Mobs, Ribbon Cuttings, and Ground-Breaking Ceremonies.
- Online presence through listings on lexrockchamber.com, the Profile Display, and on MyChamber App, providing free marketing to all member organizations and businesses.
- Networking opportunities at Business After Hours, Business @ Breakfast, Coffee and Conversation, and during Signature Events.
- Educational opportunities through forums, seminars, and workshops.
- The Chamber is often a first stop for individuals seeking business referrals and relocation information.
- Discounted Services through the Chamber Benefits Card program.
- Advertising in e-newsletter, The Chamber Weekly, during Signature Events, in the Hospitality Map, and the Regional Business Map.
For more information and to join the Chamber, visit http://www.lexrockchamber.com/ or email the Chamber at info@lexrockchamber.com
Get Involved with Main Street Buena Vista
Established in 2022, Main Street Buena Vista (MSBV) is a volunteer-based, nonprofit organization that works to create a prosperous and welcoming downtown while preserving BV’s unique charm
The goal of Main Street Buena Vista is to encourage entrepreneurship, innovation, and small-business growth in order to create a downtown that is sustainable for future generations. There are many ways to get involved in MSBV through committees.
- Business Relations: Improving economic vitality through attracting new businesses and facilitating growth for existing ones.
- Promotion: Promoting local events and attractions while organizing community events and volunteer efforts to build a sense of community and ownership over the area’s revitalization.
- Placemaking: Design improvements such as facade renovations or streetscape enhancements to create an inviting and visually appealing atmosphere for residents and visitors alike.
- Organization: Grants, fundraising, and sustainability
To get involved, visit: https://www.mainstreetbuenavista.org/
Networking & Support
Starting a business is easier with the right guidance and connections. Our Small Business Solutions page highlights training, consulting, business tools, and technical assistance available to entrepreneurs, while our Partner Organizations page connects you to additional local and regional resource agencies.
Click the buttons below to explore support and connect with resources.