Depending on your business structure and type of business, you will owe various Federal, State, and Local taxes. It is the business owners responsibility to know what taxes must be paid and to pay them on time. For some general information about the types of taxes that must be paid by small business, see the SBA’s page on taxes.
City of Alexandria Taxes
Businesses, professionals, and occupations that meet all qualifications and legal requirements are eligible to obtain business licenses upon application and payment of the license tax. Everyone doing business in the City of Alexandria is required to pay an annual tax on gross receipts earned in the City. Each start up business is required to estimate the gross receipts they expect to receive between the date of beginning business and the end of the current license year (December 31) which will be the basis on which the license tax is computed. The estimated license tax is adjusted at the end of the tax year to reflect the business’ actual gross receipts. If the taxpayer overestimates, they are given a credit on the license tax payable in the following year. If the taxpayer underestimates, that amount will be added to the license tax for the succeeding year.
During the first year of operation, businesses that estimate gross receipts of less than $100,000 do not owe a tax, but still must file to obtain a license. Businesses with gross receipts between $100,000 and $1,999,999 expend a flat fee of $50. For those businesses that estimate $2,000,000 or more in gross receipts, their fee is determined by the tax rate for the business category.
After the first year of operation, businesses are taxed on prior year gross receipts. Those whose license basis does not exceed $9,999 do not owe a tax. They still must file, however, to obtain a license. Businesses with gross receipts between $10,000 and $99,999 pay a flat fee of $50. For businesses with annual gross receipts of $100,000 or more, the tax owed is based on the tax rate for the business category.
Businesses, professions and occupations must file a license renewal application every year and pay the license tax by March 1 of each year. Businesses that are begun after January 1 must file the application and pay taxes immediately at the Permit Center. The business license renewal application and tax payment should be mailed to:
City of Alexandria Business License
P. O. Box 34580
Alexandria, VA 22334-0850
PHONE (703) 746-3903
FAX (703) 706-3996
Other City of Alexandria Taxes:
- Business License Tax (described above)
- Business Tangible Personal Property Tax (all businesses)
- Vehicle Personal Property Tax
- Restaurant Meal Tax (see below)
- Bank Franchise License Tax
- Cigarette Tax
- Daily Rental Tax
- Local Sales Tax
- Motor Vehicle License Tax
- Public Utilities Tax
- Real Estate Tax
- Recordation Tax
- Utility Tax
- Transient Lodging Tax
Restaurants: Any person or group of persons, corporation, company, association, firm or co-partnership that sells food and drink to be consumed by the purchaser at one time must collect a City tax on the meal. This tax is in addition to the state sales tax. Every entity collecting the tax must file a report with the City on taxes collected on meals. The report and payment of the taxes collected should be filed with Tax Services & Enforcement within thirty (30) days of the month of collection.
For more information on the City of Alexandria taxes see http://alexandriava.gov/BusinessTax or contact:
Tax Services & Enforcement
301 King Street, City Hall, Room 1700
Alexandria, VA 22314
PHONE (703) 746-3903
FAX (703) 706-3996
State of Virginia Taxes
All entities conducting business in the Commonwealth of Virginia must register their business with the Virginia Department of Taxation (TAX). You can register online using VATAX Online Services. The most common taxes that Virginia businesses pay are listed below. No single business will, of course, be affected by all of these tax categories. For more information on State of Virginia Taxes, visit the business section of the Virginia Department of Taxation.
The following are State of Virginia taxes:
State Income Tax:
- Corporate Income Tax
- Individual Income Tax
State Employer Taxes:
- Employer Income Tax Withholding
- Employer Unemployment Tax
State General Business Taxes:
- Litter Tax
- Motor Vehicle Fuel Tax
- Retail Sales & Use Taxes
The IRS has excellent online tools to assist in understanding Federal business Tax obligations, including Small Business Taxes: The Virtual Workshop.
Your form of business (e.g., sole proprietorship, partnership, LLC) determines which income tax return form you have to file. The federal government levies four basic types of business taxes:
- Income tax
- Self-employment tax
- Taxes for employers
- Excise taxes
To learn more about these taxes, visit the Internal Revenue Service’s (IRS) Guide to Business Taxes.
Federal Income Taxes
Select the form of your business below to find out which federal tax forms you need to file: