Frequently Asked Questions

VBDED offers a wide range of free services to support local businesses at every stage, from new operations to established corporations. Working with local partners, we provide targeted resources for small and startup firms, as well as women- and minority-owned companies of all sizes.

Our services include:

• Advocacy services.
• Business assistance/retention.
• Business workshops and other networking opportunities.
• Fast-track project review.
• Financial guidance.
• Market information.
• Ribbon-cutting assistance (if appropriate).
• Research assistance.
• Site selection.
• Small business assistance.
• Workforce development services.

Our services are always free of charge, and all business inquiries remain strictly confidential.

Virginia Beach is a highly strategic location for businesses of all sizes, set apart by:

• Low operating costs: Enjoy a pro-business climate with affordable real estate, utilities, and taxes.
• Top-tier workforce: Tap into a large, highly trained talent pool, including graduates from our innovative “mechatronics” program for the manufacturing sector.
• Global accessibility: Reach domestic and international markets quickly and easily through one of the U.S.’s most advanced deep-water ports and our multimodal transportation system.
• Superior digital infrastructure: Our world-class telecommunications systems make global communication easy and reliable.
• Built-in market: Reach a huge consumer base in a highly competitive business corridor.
• Unmatched livability: Our welcoming coastal community offers an excellent, affordable quality of life that helps you attract and retain top talent.
  

Starting a business is relatively easy and inexpensive, but requires a major commitment of time and resources. If you’re an entrepreneur starting a new enterprise from the ground up, you’ll need to think about completing a business plan, creating a budget, identifying financing options, conducting market research, and legal protections. The Small Business Development Center of Hampton Roads offers numerous resources to help get your business started.

• If you have an existing business and you’re considering opening a new facility in Virginia Beach, you need to obtain the proper business license.
• You can apply for a business license in two ways: through the VBePay Portal or in person at the Commissioner of the Revenue office .

Together, the Commonwealth of Virginia and the City of Virginia Beach offer one of the fairest tax structures in the United States:

• Only one local taxing authority (in Virginia, residents and businesses reside in/pay taxes to either a county or a city, but not both)
• 6% state corporate income tax rate unchanged since 1972
• Unemployment and Workers’ Compensation Insurance rates among the lowest in the United States.
• Limited local business taxes include real estate property, business property, and business license fees (gross receipts tax)
• Sales & Use tax is only assessed at the state level, and manufacturers are exempt from paying tax on production-related purchases; distributors pay no tax on items purchased for resale

Additionally, Virginia traditionally has one of the lowest industrial electricity rates on the East Coast, as well as low natural gas costs.

Yes. Home-based businesses require a business license and must provide proof of residency and complete the Restrictions for Home Use form. Some home businesses require a conditional use permit (CUP) , which you can verify by contacting the Zoning Office at 757-385-8074 . If one is required, you can obtain it through the Planning Department at 757-385-4621 .

Virginia Beach and the surrounding region offer a highly skilled, dynamic workforce of nearly 866,000 workers, augmented each year with an estimated 14,000 exiting local military members, and 15,000 graduating college students.

Companies establishing their workforce have a variety of options, including the Virginia Talent Accelerator Program , Virginia Employment Commission , Hampton Roads Workforce Council , and numerous local staffing firms. We can help you determine which resources are best for your needs.

Virginia Beach has nine major business districts , each with a distinct character and industry base, as well as 10 business parks. Some districts are heavily populated, making them ideal for corporate and retail clusters. Others are located where major transportation corridors converge, providing an ideal location for industrial development.

Yes. Virginia Beach has created Special Service Districts (SSD) that include higher real estate tax rates in order to help pay for specific projects and programs.

You can view a detailed list of our major employers , including companies that have chosen Virginia Beach for their headquarters.

Yes, we offer a range of assistance for both new and existing Virginia Beach businesses.

For start-ups and entrepreneurs, the city offers an active Small, Women- and Minority-Owned (SWaM) business program that works closely with the U.S. Small Business Administration (SBA), the Virginia Department of Minority Business Enterprise, the Service Corps of Retired Executives (SCORE), and many local financial and legal resources to provide targeted assistance.

Additionally, the Virginia Beach Development Authority administers its Economic Development Investment Program (EDIP) , which provides local grants to qualifying businesses locating to or expanding in Virginia Beach. This discretionary grant was created to support economic development projects creating new jobs and capital investment in the city. Certain projects may also be eligible for assistance from the Commonwealth of Virginia.

Businesses located in an Accidental Potential Zone 1 (APZ-1) can access the discretionary EDIP grant program, in addition to several entitled incentives.

The city created a business license fee incentive. New businesses with over $200,000 in gross receipts pay only $50 per year for their first two years operating in Virginia Beach, while manufacturers are exempt from business license fees altogether.

The Virginia Beach Development Authority can issue industrial revenue bonds to provide financial assistance to private sector entities acquiring or constructing industrial and commercial facilities. Since these bonds are tax-exempt, the interest rates offered are significantly lower than traditional forms of financing.

Companies and entrepreneurs have access to a wide variety of programs designed to expand investment and create jobs. You can start with the Virginia Beach Department of Economic Development—our team includes a dedicated business development manager for small businesses, offering free, one-on-one support to help you get started or grow. Contact us to get started.

Additional free counseling resources include:

• Service Corps of Retired Executives (SCORE)
• SCORE Veteran Fast Launch Initiative
• Small Business Development Center of Hampton Roads
• Hampton Roads Workforce Council
• Virginia Employment Commission
• Virginia Department of Small Business and Supplier Diversity

University programs:

• Old Dominion University Business Development Center
• Regent University Center for Entrepreneurship
• Norfolk State University Innovation Center
• Hampton University Center for Entrepreneurial Study
• College of William & Mary Technology & Business Center
• Tidewater Community College Business Solutions
• Entrepreneurs’ Organization Southeast Virginia

Visit our Data Hub , or contact us if you need assistance with specific research-related information, demographics, business statistics, or market research.

Virginia Beach is home to a diverse business community—from locally owned shops to global headquarters—and we welcome companies across all industries.

To drive growth and investment, the Virginia Beach Department of Economic Development’s resources are focused these key industries with strong potential for job creation and innovation:

• Advanced manufacturing
• Biomedical
• Defense
• IT/Cyber
• Maritime/logistics
• Office/retail
• Renewable Energy
• Small business

The Commonwealth of Virginia Green Job Tax Credit awards an annual tax credit of $500 for each salary of $50,000+ for up to 350 “green jobs.” The credit is allowed in the first taxable year after the job has been filled for at least one year and in each of the four succeeding years.

The Commonwealth also has a Recyclable Materials Processing Equipment Tax Credit available to manufacturers for the purchase of certified machinery and equipment used for processing recyclable materials in taxable years before January 1, 2015, equal to 10% of the total original capitalized cost of the equipment.

The Virginia Governor’s Agriculture and Forestry Industries Development Fund provides discretionary strategic grants to businesses adding value to Virginia-grown agricultural and forestall products.

The Virginia Clean Energy Manufacturing Incentive Grant program offers discretionary grants to eligible companies manufacturing equipment, systems, or products used to produce clean energy, or for products used for energy conservation, storage, or grid efficiency purposes.

The City of Virginia Beach has established a real estate tax rate for certified energy-efficient buildings . The program reduces the real estate tax by $0.15 per $100 for buildings certified as energy efficient.

Foreign Trade Zones (FTZs) are areas that are geographically inside the U.S. but are legally considered outside its customs territory. Companies that locate in FTZs can benefit by using special procedures that encourage U.S. activity by reducing, eliminating, or delaying duties.

The Virginia Port Authority holds the grant for Foreign Trade Zone (FTZ) 20, which covers all of Virginia Beach.

Yes. Explore the HUBZones in Virginia Beach.