Business Toolkit

Harrisonburg and Rockingham County’s economy is vibrant and growing. Benefitting from a planned growth model, two technology zones and an ideal location, the Harrisonburg-Rockingham area is the perfect home for your business. Many opportunities exist for further local development and below you will find helpful resources for not only starting, but also maintaining and growing your business here in the valley.

• Business Start-Up Consideration Checklist
  
• Obtain a Business License
  
• Filing Taxes
  
• Payroll Schedules
  
• Application Forms
  
• Helpful Links

 

Business Start-Up Considerations

Contemplating starting a new business? There are many things to keep in mind when creating a business entity. Please find below a checklist to help you through some of the start-up considerations. This document was provided by PBGH, LLP, certified accountants.

Business Start-Up Considerations (PDF)

Obtain a Business License

General Information

Every taxpayer operating a business in the City of Harrisonburg must obtain a City of Harrisonburg Business License each year. The licenses are good for a calendar year and need to be renewed by March 1 of each year

The licenses are based on the gross receipts from the previous year. Until a business is in operation for a full year the gross receipts are estimated and adjustments are made in the following year.

If you are operating under a trade name, then that names needs to be registered with the Clerks office. The fee will be $10 and that is a one-time fee. A copy of the registered name must be presented to the Commissioner's office prior to obtaining the license.

If the business is run out of the taxpayer's home then a home occupation permit is required before the license can be issued. There is no fee for the permit and can be obtained at the Community Development Office.

All businesses not located in a home must contact the fire marshal to conduct a fire inspection of the building. All grocery stores, restaurants, bakeries, or anyone selling food must contact the health department for an inspection of the building. A copy of the report must be provided to the Commissioner's office prior to obtaining the license. 

All contractors must fill out and submit a workers comp insurance form. Any contractor whose business is located outside of the city will only need to renew the business license if and when they come back into the city to work.

Business and Professional License
 
All business and professional operations must purchase a business license before commencing operation in the City of Harrisonburg, including home-based businesses. Licenses expire December 31st of each year. 

In order to obtain a Harrisonburg City Business License, you must have a definite place of business. A definite place of business is an office or location where a regular and continuous course of dealing with the public occurs. In the City of Harrisonburg, zoning laws may prohibit your business from operating at certain locations, such as a residence. The address of your business must be approved by the Zoning Administrator for the City. 

Any person, partnership, limited liability partnership, limited liability company, or corporation using a name that does not identify the owner of the business must register a trade name with the Rockingham County Circuit Court. Registering this name does not prevent your business name from being used by any other business. It is recorded to assist the public by providing information as to the person with whom the public will be dealing. There is a $10 fee to register the name. This fee is paid to the Rockingham County Circuit Court.

Cost of the Business License 

The cost of the business license is based upon your estimate of total gross receipts from the day the business opens to December 31 of the same year. If the estimate is less than $10,000, the license will cost $0. If the estimate is $10,001-$25,000 the license will cost $25. If the estimate is $25,001 - $50,000 the license will cost $50.00. If, however, the estimate is greater than $50,000, a tax rate will be applied to your estimate. There are different rates for different types of businesses as follows:

Contractors	$0.16 per $100 gross receipts
Retail	$0.20 per $100 gross receipts
Personal and Business Services	$0.20 per $100 gross receipts
Financial, Real Estate, Professional Services	$0.58 per $100 gross receipts
Wholesale Business	$30 for first $1,000 plus $0.17 per $100 gross receipts above $1,000     ($50,000 threshold does not apply)

Some types of businesses (such as contractors, restaurants, beauty and nail salons, health spas, etc.) require inspection/licensure from other agencies such as the Health Department or Fire Department, or from state agencies, such as the Virginia Department of Professional and Occupational Regulation before a City of Harrisonburg license can be issued.

Business License Applications

It is helpful for business license applicants to apply in person. To facilitate the application process, please bring with you the following information and documents: 

• Tax identification number (SSN or FEIN)
• Home Occupation Permit- (Contact Zoning Administrator at 540-432-7700)
• Corporate Charter (if applicable)
• Trade Name Registration ($10.00 fee- Contact Circuit Court 540-564-3126)
• Permits, if applicable, i.e. health department, fire department, etc.
• Estimate of gross receipts through December 31st

Business License Application (PDF)

 

Filing Taxes

Every Taxpayer operating a business in the City of Harrisonburg on January 1 is required to file a Business Personal Property Return on or before March 31 of the tax year.

Under provision of law, the taxpayer is required to list all furniture, fixtures, equipment, and all other tangible property, including personal items, used to conduct business. This listing must be attached to the business personal property return. A separate return must be filed for each business location.

The taxpayer shall submit a schedule of fixed assets, grouped according to the year acquired and the total original cost. The total original cost includes all costs incidental to acquired and the total original cost. The total original cost includes all costs incidental to the acquiring and placing an asset in use, i.e., freight, installation, sales tax, etc. All furniture and equipment must be reported, even if fully depreciated (on federal schedule). Do no list software, real estate, or vehicles.

Manufacturers are required to report only the machinery and tools used directly in the manufacturing process.

Do not include in your listing any leased equipment for which you are not responsible for the taxes. These items must be reported separately on Schedule 6 on the reverse side of the form.

Please do not write "See Attached" or "Same as last year" on the return. The return will not be accepted as complete or on time and will be returned.

Failure to file the business personal property return will result in a statutory assessment and a 10% penalty. Likewise, any return filed after March 31 of the tax year will be assessed a 10% penalty. A filing extension may be granted upon request.

The payment due date is December 5th. A bill will be mailed prior to the due date.

Please contact the Office of Commissioner of the Revenue at (540) 432-7704 with any questions.

Return of Business Tangible Personal Property Form (PDF)

 

Payroll Schedules

All companies must submit payroll taxes including state, federal and social security taxes. Below you will find forms that list the important dates when these taxes are due. Forms provided by PBGH, certified accountants.

Monthly Payroll Schedule (PDF)

Semi-Weekly Payroll Schedule (PDF)

 

Application Forms

Business License Application (PDF)

Return of Business Tangible Personal Property (PDF)

 

 

Helpful Links 

Shenandoah Valley Partnership

Shenandoah Valley Partnership is a public/private partnership providing marketing and business assistance for the Shenandoah Valley region. Through regional cooperation the SVP brings together business, government, and education leaders to promote new investment, strengthen existing business, and guide labor force development to ensure a healthy economic future for the region.

For more information visit their website at www.svp-va.org 

Virginia Department of Business Assistance

The Virginia Department of Business Assistance is a state economic development agency reporting to the Governor of Virginia through the Secretary of Commerce and Trade. The mission of the Department of Business Assistance is to promote economic growth by helping Virginia businesses prosper. For more information go to the website at  http://www.vdba.virginia.gov 

Contact the Virginia Business Information Center

Toll free 1-866-248-8814 or (804) 371-0348
Or email vbic@vdba.virginia.gov

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