Congratulations on starting a small business in Loudoun County! But what are the local tax implications?

Starting and running a business in Loudoun County, Virginia, involves navigating several local tax implications:

Business License Tax: All businesses operating in Loudoun County are required to obtain a business license, known as the "business, professional, and occupational license" (BPOL) tax. The tax is based on gross receipts, with different rates for various types of businesses. There are minimum and maximum amounts that apply.

Personal Property Tax: If your business owns tangible personal property (e.g., equipment, furniture, vehicles), you will need to file a personal property tax return with the county. The tax is assessed based on the value of the property.

Real Estate Taxes: If your business owns real estate, such as land or buildings, you will be subject to real estate taxes based on the assessed value of the property.

Meals Tax: If your business operates in the food service industry, you will need to collect a meals tax from customers. In Loudoun County, the meals tax rate is generally 4%, but it’s always a good idea to verify the current rate as it can change.

Transient Occupancy Tax: Businesses in the hospitality sector, such as hotels or short-term rental properties, must collect and remit a transient occupancy tax from guests. The rate for this tax is 8% in Loudoun County.

State Taxes: In addition to local taxes, you’ll need to comply with state taxes such as sales and use tax, which is collected on taxable sales and services, and any applicable state income taxes.

Other Local Fees: Depending on your business type, there may be additional fees or special taxes, such as those for specific industries or activities.

It's important to stay informed about tax deadlines and requirements by consulting with a local tax advisor or the Loudoun County Commissioner of the Revenue's office to ensure compliance and take advantage of any available tax incentives or exemptions.