Operating a Business in Virginia

Here you will find resources to help business owners operate legally in Virginia.

1. Pay Your Taxes

   Most business are required to pay business taxes to the Virginia Department of Revenue. The following resources provide guidance to filing and paying business taxes:

   • File Virginia Taxes Online
   • Virginia Tax Forms and Information

   Employers must also pay Workers' Compensation Insurance and Unemployment Insurance Tax.

2. Keep Your Business and Professional Licenses and Permits in Good Standing

   The Licenses and Permits page contains links to information and services for applying and renewing Virginia licenses and permits.

3. Hire and Manage Employees

   If you are a new employer, Ten Steps to Hiring a New Employee provides information on how to comply with federal and state labor laws.

   If you plan to hire independent contractors to support your business, you need to understand the distinction between employees vs independent contractors.

   All Virginia employers must obey federal and state labor laws and equal employment opportunity laws prohibiting employment discrimination. The following resources will help you understand these requirements:

   Labor Laws

   • Federal Employment and Labor Laws
   • Virginia Employment and Labor Laws

   Equal Employment Opportunity Laws

   • How to Comply with Federal EEO Laws
   • Guide to Employment Discrimination for Virginia Employers
4. Report New Hires

   The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date. Visit the Virginia New Hire Reporting page to learn how to register.

5. Post Required Notices

   Employers are required by state and federal laws to prominently display certain posters in the workplace that inform employees of their rights and employer responsibilities under labor laws. These posters available from free from federal and state labor agencies. Visit the Workplace Posters page for specific federal and state posters you'll need for your business.

6. Adopt Workplace Safety Standards

   Employers are responsible for protecting the safety and health of their employees by complying with standards set forth by the Occupational Safe and Health Administration (OSHA). OSHA offers a free on-site, consulting services that helps employers identify and remove workplace hazards. For more information on complying OSHA regulations, visit the following resources:

   • OSHA Resources
   • Virginia Division of Occupational Safety and Health
7. Comply with Environmental Regulations

   You may be required to obtain environmental permits and/or comply with other specific environmental regulations if your business could release pollutants into the air, land or water; or if you store, treat, or dispose of hazardous or solid wastes. Not complying with environmental regulations can lead to costly fines. Determine if your business must comply with environmental regulations and permitting requirements by visiting the following resources:

   • Virginia Environmental Permit Requirements
     
   • Environmental Compliance Assistance
8. Insure Your Business

   Business insurance protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster. State governments determine insurance requirements for businesses. Most states require businesses with employees to pay for workers' compensation insurance, unemployment insurance, and state disability insurance. Your state may require insurance of specific business activities. For more information on buying commercial insurance and help locating a licensed agent, visit the Virginia Insurance Department.

9. Keep Good Records

   Maintaining business records is not just a good business practice. You may be legally required to maintain records, particularly tax and employment records.

   • IRS Tax Recordkeeping Guidance
     Resources and tools aimed at helping employers maintain their tax records.
   • Labor Recordkeeping Requirements
     Federal employment laws such as the Occupational Safety and Health (OSH) Act, the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), have certain recordkeeping and/or reporting requirements.
   • State Wage and Hour Recordkeeping Requirements
     State laws for keeping payroll records, which may be different that federal laws.
   • Employee Eligibility Verification Requirement
     Federal law requires employers to verify an employee's eligibility to work in the United States and keep a record.