Start-Up Business
Your Path to Starting a Business in the U.S. Virgin Islands
Dreaming of a new business in the beautiful U.S. Virgin Islands? This can be a rewarding journey, and the VI SBDC is here to help you every step of the way. We’ve broken down the process into key stages, providing you with a roadmap to navigate the requirements for launching your business in the territory.
Step 1: The Foundation – Business Planning
Before you file any paperwork, a solid business plan is your most important tool. It helps you define your goals, understand your market, and plan your financial strategy. Our certified business advisors can assist you with:
1. Business Plan Development: Creating a clear and comprehensive plan.
2. Financial Analysis: Understanding cash flow projections and funding needs.
3. Feasibility Studies: Evaluating if your business idea is viable in the USVI market.
Step 2: Legal Structure & Registration
Once you have a plan, the next step is to make your business official.
1. Choose a Business Structure: Decide on a legal entity for your business (e.g., Sole Proprietorship, LLC, Corporation).
2. Register Your Business: Register your business and its trade name with the Lieutenant Governor’s Office, Division of Corporations and Trademarks.
3. Obtain an Employer Identification Number (EIN): Get this from the IRS for tax purposes, especially if you plan to hire employees.
Step 3: Licensing & Permits
Every business in the U.S. Virgin Islands must have a business license from the Department of Licensing and Consumer Affairs (DLCA). This is often the most complex part of the process, as it requires clearances from multiple government agencies. You may need to obtain:
• Police Records Check
• Tax Clearance Letter from the Bureau of Internal Revenue (BIR)
• Zoning Approval from the Department of Planning and Natural Resources (DPNR)
• Fire Inspection and Health Inspection (if applicable)
• Board Certifications for specific professions (e.g., real estate agents, contractors, beauticians)
Our SBDC advisors can help you understand which documents and clearances are required for your specific business type and guide you through the application process.
Step 4: Tax and Employee Obligations
Tax Registration: Register with the Bureau of Internal Revenue (BIR) and understand your tax obligations, including gross receipts tax. The USVI has a mirror tax system, so local tax laws often align with federal IRS codes.
Employee Requirements: If you plan to hire employees, you must register with the V.I. Department of Labor, obtain workers’ compensation insurance, and comply with all labor laws.
SBDC business advisors have the expertise to help you move forward.
Check out the resources on this page and contact us for no-cost, confidential, one-on-one advising specific to your business.