End-to-end Virginia income tax engagement for sole proprietors and single-member LLC owners: federal Schedule C and SE feeding Form 760, Virginia-specific additions and subtractions, estimated tax vouchers (Form 760ES), and local BPOL business-license compliance where applicable.
Establish full-year vs. part-year Virginia residency (Form 760 vs. Form 760PY), confirm domicile intent, and collect all income-source documents. Virginia's unique May 1 filing deadline and $150 estimated-tax threshold make early intake critical for calendar planning.
Compute net profit or loss from business on Schedule C, categorize and verify all deductible expenses (home office, vehicle, health insurance, retirement contributions), and calculate self-employment tax on Schedule SE. Virginia starts from federal AGI so accuracy here directly sets the Virginia base.
Starting from federal AGI (Form 1040 Line 11), apply Virginia-specific additions and subtractions on Schedule ADJ, choose standard vs. itemized deductions (must mirror federal election), apply personal exemptions at $930 each, and compute tax using the four-bracket rate table (2%–5.75%). Note that Virginia does not conform to the federal §199A QBI deduction, so Virginia taxable income will be higher than federal taxable income by the QBI amount.
Identify and compute Virginia credits available to self-employed taxpayers, including the credit for taxes paid to other states (Schedule OSC), the low-income credit, and any refundable PTE credit if the taxpayer is also an owner of a pass-through entity that made the 5.75% PTET election on Form 502PTET.
Virginia requires estimated payments when expected tax liability (after withholding and credits) is $150 or more. Virginia's due dates are May 1, June 15, September 15, and January 15 — the first installment is May 1, not April 15. Compute the safe-harbor amount (100% of prior-year tax or 90% of current-year tax) and determine whether Form 760C underpayment penalty applies.
Sole proprietors and SMLLCs with a definite place of business in a Virginia locality for 30 or more consecutive days owe BPOL gross-receipts tax. Classify the business (professional services cap $0.58/$100, repair/personal services cap $0.36/$100, contractor cap $0.16/$100, retail cap $0.20/$100) and compute the license fee due March 1 to the local Commissioner of the Revenue. Rates vary materially by locality — Richmond city professional rate is $0.58/$100 while Henrico County is $0.20/$100.
Assemble and file federal Form 1040 (with Schedule C, SE, and any relevant supporting schedules) and Virginia Form 760 with Schedule ADJ. Virginia's filing deadline is May 1 (not April 15). If a balance is due and the extension is used, at least 90% of the tax must be paid by May 1 to avoid the failure-to-pay penalty of 6% per month. Deliver estimated payment vouchers and a forward-looking tax calendar.
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