Business License Tax

A business license is a receipt for payment of taxes on gross receipts generated from business activity within the Town of Middleburg corporate limits and is required for each separate line of business and each physical location.

New Businesses

Business owners are required to register their business with the Town of Middleburg before commencing business operations in the Town of Middleburg. By applying for a business license, you are registering your activity for taxation based on the annual gross receipts (or gross purchases for Wholesalers) generated by your business. Owners of home-based businesses must also register for a business license, unless you are a “direct seller” (e.g., cosmetics or essential oils independent contractor) and have less than $4,000 in gross receipts. Vendors participating in limited church or community events must purchase a temporary business license for the special event.

Business Professional Occupational License Application

New Business Checklist

  1. Zoning Occupancy Permit: A Zoning Occupancy Permit is required prior to obtaining a Town of Middleburg business license
  2. Required Federal Registration: 
    1. Virginia Department of Taxation - Businesses engaged in retail or wholesale sales are required to register with the Virginia Department of Taxation online or by phone at 804-367-8037 for sales tax purposes.
  3. Required State Registration: 
    1. Virginia State Corporation Commission - If your business is a corporation, limited liability corporation, or limited partnership, you are required to register with Virginia State Corporation Commission.
      Effective January 1, 2020, businesses operating in Virginia using a fictitious business or trade name (DBA) must register that name with the Virginia State Corporation Commission. VA Code §59.1-74(B), states that business licenses may not be issued until the taxpayer provides evidence that the trade name has been registered
    2. Department of Professional and Occupational Regulation - Businesses involved in a professional trade must register online or by phone at 804-367-8500 with the Virginia Department of Professional and Occupational Regulation. For more information regarding trade registration, please contact the DPOR.
  4. Obtain a Business License: Businesses based in the Town of Middleburg are required to obtain a Business Professional Occupational License prior to commencing business in the Town of Middleburg. Business license applications are accepted by mail and in-office. Business license payments are accepted in the form of cash or check.
  5. Register for Business Tangible Personal Property Tax: Businesses based within the Town of Middleburg are required to register with the Loudoun County Commissioner of the Revenue for Business Tangible Personal Property Tax. Business Tangible Personal Property Tax is assessed by the Loudoun County Commissioner of Revenue and billed and collected by the Loudoun County Treasurer’s Office,

Annual Renewal

Businesses within the Town of Middleburg must renew their business license each year by reporting the business’ gross receipts from the prior calendar year. 

The Town of Middleburg mails business license renewal applications to businesses during the month of January each year.  Businesses are required to file their renewal application and pay by March 1.. Filing for business license renewals applications are accepted by mail or in-office with payment accepted in the form of cash or check. To be considered "on-time", filing and payment MUST be received at the Town Office on or before March 1. Post mark dates are not accepted. For businesses filing and/or paying their business license renewal after March 1, please contact the Town Office as late penalties and interest may be assessed for late filing and/or payment. 

Failure to receive the renewal application or reminder via mail, does not absolve the business owner from the deadline on any applicable penalties and interest. If you did not receive a renewal application, please contact the Town Office.

Contractor Requirements

Contractors conducting business at sites in the Town of Middleburg, at the point the sum of remuneration received for business done exceeds $25,000 in any year, are required to file and pay Business License Tax. Contractors registered with the Virginia Department of Professional and Occupational Regulation (DPOR) must provide a copy of their current state license or license number, and a copy of the Contractor’s Certification of Workers’ Compensation Insurance Acknowledgement letter with their business license registration and/or renewal application.

Business License Tax Rates

Classification and Rate

CLASSIFICATIONMINIMUMRATE
Per $100 of Gross Receipts
Business Service$30.00$0.22
Contractors$30.00$0.12
Financial Service$30.00$0.23
Personal Service$30.00$0.22
Professional Service$30.00$0.23
Public UtilityN/A1/2 of 1% of sales within corporate limits of the town
Real Estate$30.00$0.23
Repair Service$30.00$0.22
Retail Merchant (Includes Restaurants)$30.00$0.15
Wholesale$30.00$0.05
Itinerant Merchant $500/yearN/A
Savings & Loan Associations / Credit Unions$50/yearN/A
Vendors / Craftsman Selling at a Limited Community and/or Church Events
(Town Code Section 97-2)
$10/dayN/A


Flat Rate Taxes

TAX
RATE
Retail - On Premises Beer$25.00
Retail - Off Premises Beer$25.00
Retail - On Premises Wine & Beer$37.50
Retail - Off Premises Wine & Beer$37.50
Mixed Beverage - Seating 50-100 Persons$200.00
Mixed Beverage - Seating 100-150 Persons$350.00
Mixed Beverage - Seating 150+ Persons$500.00