How to Start a Business in Norfolk, VA – Useful Norfolk Facts 2023

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Start a Business in Norfolk, VA: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Norfolk, VA, is a plus for any entrepreneur. In general, setting up any form of business in Virginia, US, is the initial step to building an international brand.

Entrepreneurs across the globe are interested in starting and expanding their businesses in Norfolk, VA. With an urban population of 244300 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Virginia. Like most places in the US, Norfolk, VA also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Norfolk, VA has a proper business environment for all.

How to Start a Business in Norfolk, VA

In this article, you will read about how to start a business in Norfolk and why you should choose Norfolk to start and run your business. We recommend you check below the important facts about Norfolk, VA; these might help you.

Norfolk, VA Household Income Statistics

Norfolk Median household income53026 USD
Norfolk households with dual income earners50.3 %
Norfolk households $150K+ Income8.9 %
Norfolk households $100K+ Income21.4 %
Norfolk households $100-150K Income12.5 %
Norfolk households $75-100K+ Income12.3 %
Norfolk households $50-75K+ Income19.4 %
Norfolk households $35-50K+ Income13.2 %
Norfolk households $25-35K+ Income10.9 %

Norfolk, VA Education & Labor force Facts

Norfolk residents with a bachelor’s degree (or equivalent)18.3 %
Norfolk residents with at least a 4-year degree30 %
Norfolk residents with a graduate degree11.7 %
Norfolk residents with a high school diploma but no more24.8 %
Norfolk residents with less than high school education11.9 %
Norfolk residents with some college but no more33.3 %
Norfolk residents with a Bachelor’s degree or higher (STEM fields)48.8 %
Norfolk households that own (rather than rent) their residence43.5 %
Norfolk residents 16 and older in the labor force70.8 %
Norfolk residents unemployed8 %

Norfolk, VA Demographics

Norfolk residents aged 0-911.9 %
Norfolk residents aged 10-1911.8 %
Norfolk residents aged 20-2924.6 %
Norfolk residents aged 30-3914.6 %
Norfolk residents aged 40-4910 %
Norfolk residents aged 50-5910.5 %
Norfolk residents aged 60-699.3 %
Norfolk residents aged 70-794.6 %
Norfolk residents aged over 802.6 %
The average size of resident families in Norfolk, VA3.12
Estimated population per square kilometer in Norfolk, VA1770
Norfolk, VA urban population (estimate)244300
Norfolk, VA municipal population (estimate)244300

Now that you know what makes Norfolk of Virginia good for business, let’s get started with the exact steps on how to start a business in Norfolk.

How to Start a Business in Norfolk, VA

Starting a business in Norfolk, VA, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Virginia, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Norfolk.

Step 0: Decide on What Business to Start

Decide on What Business to Start

This is the first thing you work on, the type of business you want to start in Norfolk. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,

  1. Through market research on demand trend
  2. Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
  3. What competitors are doing
  4. SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
  5. Your targeted buyers

Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.

Step 1: Choose Your Business Structure

Choose Your Business Structure

The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Virginia LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.

Step 2: Name Your Business

Name Your Business

The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Virginia to do the Virginia LLC name search before you pick the available name. Below are some of the naming rules you need to follow,

  1. You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector. 
  2. If you are forming an LLC in Virginia, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
  3. The name should reflect the nature of your business. Any name that can confuse people should not be picked.
  4. You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
  5. You can reserve your business name for a certain time before you form your business in Norfolk, VA by filing a name reservation application.

The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.

Step 3: Get a Registered Agent

Get a Registered Agent

A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Virginia LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Norfolk can be a registered agent. However, there are some requirements to becoming a registered agent.

  1. The person has to be 18+ years of age.
  2. Must be a citizen of the Virginia
  3. Must have a physical street address in the Virginia
  4. Must have legal rights to conduct business in the Virginia

Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.

Step 4: Register Your Business

Register Your Business

The next step is to register your business under the Secretary of State, Virginia. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Virginia SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Norfolk, VA. Your Virginia LLC articles of organization should have the following details about your business

  1. Company/Business name, address
  2. Registered Agent Name, address
  3. Member-managed or manager-managed (in case of LLC)
  4. Type of business

Depending on the type of business structure, you may have to add some more information to the formation document.

Step 5: Write the Operating Agreement

Write the Operating Agreement

An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,

  1. About Business
  2. Members and management
  3. Capital contribution
  4. Profit Distribution
  5. Change of membership
  6. Dissolution

In future, if any member wants to leave the company or you want to dissolve the business, then the Virginia operating agreement has everything recorded, from clauses to contributions.

Step 6: Obtain EIN

Obtain EIN

EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.

Step 7: Get Business Bank Accounts

Get Business Bank Accounts

Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Norfolk, VA. It increases your business credibility and liquidity. It will also be helpful for business loans.

Step 8: Create Your Business Website

Create Your Business Website

Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.

Other Things to do After Starting Your Business

  1. Once your company is set in the Norfolk, Virginia, you need to file your taxes and apply for licenses (if needed).
  2. Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.

Important Norfolk Stats for Starting a Business

Before you start a business in Norfolk, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.

Education & Employment

Norfolk has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.


As we talk about the urban population density, the young population percentage in the city is approximately 24.6 (people in their 20s) and 14.6 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 30.8. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Norfolk has approximately 2.6 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.

Real Estate

Another important factor to mention about Norfolk is the home value of owned properties. The average value of owned houses is 215211. Also, the percentage of people living in their own houses is 43.5. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.


It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Norfolk who still do not have health insurance. The rate of people not having health insurance is 11.4. This depicts the lifestyle and overall health demography of Norfolk. As you plan to start your business in this city, you must consider this stat as well.

Income & Lifestyle

The income pattern of the people in this city is given in the table (Income) above. In Norfolk, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.

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Reasons to Start a Business in Norfolk

Norfolk offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Norfolk. Here are some of the reasons,

Stable Economic Growth

Norfolk or any other city in Virginia has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Virginia shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.

Minimize Personal Liabilities of the Entrepreneur

If you’re considering starting an LLC in Norfolk, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Norfolk is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.

Federal and State Tax Relaxation

There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Virginia LLC tax structure to know more about the tax structures for LLCs in the state.

Government Incentives for Entrepreneurs

Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Virginia or any other state. That means if you are operating any business in Norfolk, then Virginia State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.

Low Corporate and Other Business Taxes

Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Virginia. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.

Skilled Labour & Quality Manpower

In Norfolk, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 70.8 is the percentage of labour participation. Hence, it is clear that having a business in Norfolk will make a lot of difference to the existing labor force.

Demand for New Market and Industry

In Norfolk, Virginia, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Norfolk.

If we follow the US Data, the median value of commute time for the residents to their work is approximately 21.4. If you are starting a business here, you must keep in mind that commutation can be a point to consider.

Intellectual Property Protection

The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.

Other Benefits

Norfolk (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Norfolk. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Norfolk is 14.6. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.

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How Fast Can You Start Business In Norfolk Virginia

Whether you are just starting a new business in Norfolk Virginia or you are considering opening a new location, there are several things you should know before you start. The first step is to create a business entity and register it with the State of Virginia. In addition, you should have a business plan in place. You should also be able to secure funding for your business. This may include personal savings and current income. It is a good idea to research your market, which can include surveys, focus groups, and SEO research.

The next step to starting a business in Norfolk Virginia is to apply for a business license. You may need to get a business license for any number of reasons, depending on the type of business you have. You may also need to register with the Internal Revenue Service if you hire employees. You may also need to obtain a business license if you plan on renting out a short-term rental. You will also need a seller’s permit if you rent tangible goods.

To apply for a short-term rental permit, you will need to apply online. You will also need to schedule an inspection and pay a fee. You will also need to provide a letter of authorization from your insurance company. You will also need to provide a photo of any off-street parking.

You can also apply for a conditional use permit. The process for getting this permit can take several months. You will also need to schedule a fire inspection. The fee for this type of permit is hefty, though.

You will also need to register with the Virginia Department of Taxation. This agency is responsible for collecting sales tax. You can also use their online services to find out more about the tax laws in Virginia. They also offer virtual workshops, which can help you learn the ins and outs of taxes. You will also need to file your tax return with them. You will also need to include your Virginia tax account number with your tax filings.

You can also apply for a short-term vacation rental permit. The application is also very simple. This type of permit is valid for two years. You can apply online and choose whether you want to receive your certificate of registration in person or via mail. The certificate of registration is your permit to collect sales tax. You should display this certificate prominently.

Norfolk, Virginia is home to several industries, including the aerospace, defense, health care, and tourism industries. The area is also home to several leading colleges and universities. You will also find many outdoor activities and family friendly activities in the area.

Starting a business in Norfolk Virginia is not a small endeavor. You will need to be smart with your spending, secure funding for your business, and develop a detailed financial plan. You will also need to research your target market and develop a business plan. You will also need to find the right people to help you build a successful team.

FAQ About Norfolk, VA

What is a Norfolk, VA registered agent?

Each LLC must choose a registered agent in Norfolk, VA. An expert, a member of the LLC, or a family member might be involved. On behalf of the LLC, this individual is in charge of picking up all the paperwork at their Norfolk office.

Do I need insurance for my LLC in Norfolk, VA?

LLCs must be insured in Norfolk, VA. Having insurance for your LLC is generally a smart idea. If your Norfolk, VA LLC has employees, certain insurances, like as workers’ compensation, are required. For further information, you must see the Virginia SOS website.

How long does an LLC last in Norfolk, VA?

An LLC in Norfolk, VA lasts as long as you maintain the company and it is in operation. One has to renew the LLC in Norfolk, VA on time to prevent it from being shut down.

What is a livable salary in Norfolk, VA?

A living wage in Norfolk, VA would be between $40,000 and $70,000. The city’s level of life is not as great as people believe. Therefore, you must earn at least $40,000 a year if you wish to survive in this city.

Do you have to renew LLC Every year in Norfolk, VA?

LLCs in Norfolk, VA have to renew every year. The process is simple, and there are a few things to keep in mind. First, you’ll need to file a form with the Virginia Secretary of State. Submit it online before the deadline and renew your LLC easily.

How do I get an EIN number in Norfolk, VA?

To apply for an EIN number, visit the IRS website. A business name, a business address, and a signature are required to complete the form. The EIN number will be sent to the address you provided. Visit the IRS website to get an EIN number in Norfolk, VA.

Is moving to Norfolk, VA a good idea?

Move to Norfolk, VA, if you so want. It is not a terrible notion. Entrepreneurs and small company owners have a lot to choose from in the city. To launch your own company, you may make advantage of all the tools Norfolk offers.

What business can I start with $1000 in Norfolk, VA?

You could start a business with $1000 in Norfolk, VA that offers a service to people who want to know what’s happening in the city. You could offer a service that provides a daily email with the top five events going on in the city today.

What are 5 things you need to start a business in Norfolk, VA?

It takes some preparation to run a company in Norfolk, VA. Make sure you have these 5 items before you begin starting a company in Norfolk, VA. A business needs the following: 1. A business plan; 2. A company name; 3. Money; 4. Permits; and 5. A marketing strategy.

What can I do with an LLC in Norfolk, VA?

With your LLC in Norfolk, VA, you have a lot of options. You may spend less money thanks to this kind of company structure (as it has fewer tax burdens). In Norfolk, VA, your LLC may easily generate a nice income.

Is it better to rent or buy in Norfolk, VA?

Norfolk is a city with a lot to offer, but it also boasts some of the most expensive rentals in the nation. So, in Norfolk, VA, is renting or buying better? Whether a person wants to invest for the long run or the short term relies on his or her investment plan.

How do you make money with an LLC in Norfolk, VA?

You may simply generate money by selling your goods or services if you have a registered LLC in Norfolk, VA. To attract additional customers from across the state or the nation, find prospective purchasers and market your LLC.

Is LLC free in Norfolk, VA?

An LLC in Norfolk, VA is not absolutely free. There is a minimum filing fee everyone has to pay to the State. For some states, there is a tax deduction on the state filing fee. Hence, you can get a free LLC.

How much does it cost to license a business in Norfolk, VA?

You must get in touch with the local administration if you want to license a company in Norfolk, VA. They will provide you the necessary licensing and cost details. Depending on the kind of company you run in Norfolk, VA, there are different license fees.

What is better than an LLC in Norfolk, VA?

In comparison to other company ventures, establishing an LLC in Norfolk, VA is unquestionably a superior choice. However, starting a single proprietorship would be preferable than establishing an LLC. Because sole proprietorships have lower tax burdens than LLCs while being comparable to them, this is the explanation.

What taxes do small businesses pay in Norfolk, VA?

Small companies in Norfolk, VA, are required to pay a certain amount of taxes. It depends on how the firm is set up. Businesses are required to pay taxes including sales tax, franchise tax, corporate income tax, and other company taxes.

What is needed to sell in Norfolk, VA?

If you want to sell your product in Norfolk, VA, then you must have a few things. First, choose the product you want to sell. Secondly, know your targeted buyers. Finally, promote your product to increase sell in Norfolk, VA.

Why are LLCs so popular in Norfolk, VA?

There is a really simple explanation for why LLCs are so common in Norfolk, VA. The formation of an LLC is inexpensive, simple, and offers several tax benefits. Beginning an LLC in Norfolk, VA is preferred by startups and small enterprises.

What business are moving to Norfolk, VA?

One of the finest cities to relocate your company is Norfolk, VA, when it comes to business. Given that Norfolk, VA, is a business-friendly city, moving your firm there won’t be difficult.

How much does it cost to start my own business in Norfolk, VA?

Starting a business in Norfolk, VA is not easy. There are a lot of hoops to jump through, and the cost can vary depending on the type of business you choose. For example, starting an LLC for your business in Norfolk, VA can cost $100.

What kind of business can run itself in Norfolk, VA?

In all sincerity, neither Norfolk, VA, nor any other city, has a business that can run itself. You have to work hard to operate a company. If you create a small company in Norfolk, VA, in a specific area or neighborhood, you can find yourself with some spare time.

How many unicorns are in Norfolk, VA?

World-wide, unicorns are ubiquitous. Undoubtedly, Norfolk, VA, is home to a fair share of unicorns. Even while Norfolk may have more unicorns than ten, not all of them are equally well-liked.

How much is business insurance in Norfolk, VA?

The sort of business you have, the size of your organization, and the nature of the business all affect how much business insurance in Norfolk, VA will cost you. A small business with less than 10 workers, for instance, can spend as low as $1,000 year for general insurance.

In Norfolk, VA What can an LLC write off on taxes?

An LLC in Norfolk, VA, is able to deduct certain taxes. Some of these include company insurance, office supplies, mileage for business trips, automobile expenditures, home office costs, and many more. For further information, contact your neighborhood tax office.

Is it cheaper to live in Norfolk, VA or Houston?

People have been debating for years about which is the better city to live in. Norfolk is known for its booming economy and diverse population of people. Houston is known for its more affordable cost of living. There are a lot of factors to consider when deciding which is cheaper.

Do LLC pay taxes in Norfolk, VA?

LLCs are exempt from paying state taxes in Norfolk, VA as a company. Depending on the owner’s personal tax bracket, they may be subject to federal taxation based on their personal income.

Which small businesses make the most money in Norfolk, VA?

In Norfolk, VA, there are several tiny firms that generate excellent profits. Additionally, these companies don’t need a lot of capital to launch. These companies are those that sell products online, deal in tiny cars, handle real estate, and operate restaurants.

Is $18 an hour good in Norfolk, VA?

A wage of $18 per hour in Norfolk, VA, is not too awful. If you own a small company, particularly one that is an LLC, you are set to go. An LLC may be created and kept up in Norfolk, VA, for not much money.

What is a LLC in Norfolk, VA?

The business structure of a Limited Liability Company (LLC) in Norfolk, VA is comparable to that of a sole proprietorship. But it’s not only a solo proprietorship. A partnership and a sole proprietorship are combined to form an LLC. Pass-through taxation is used in it.

What big business can I start in Norfolk, VA?

You may launch a business that gives visitors a tour of Norfolk, VA, that stops at all the city’s top restaurants. To become a city tour guide, you must first have a name, a logo, a relevant license, and supporting paperwork.

Is Norfolk, VA a good place to start a business?

A successful company may be launched in Norfolk. Norfolk, VA is an excellent area to launch a company since it has a cheap cost of living and good quality of life. In particular, if you want to live in Norfolk, VA, and be a part of a vibrant, expanding community, this is true.

Why businesses are moving to Norfolk, VA?

Norfolk, VA, is a city where many enterprises are open to moving. Businesses are relocating to Norfolk for a variety of reasons, including the city’s robust economy, friendly business climate, and state tax structure. Additionally, there are several business opportunities in the city.

What are 3 disadvantages of an LLC in Norfolk, VA?

You must pay self-employment tax in addition to income tax if you have an LLC in Norfolk, VA. Additionally, filing costs for LLCs are higher than those for single proprietorships. Operating an LLC is more difficult than running a single proprietorship.

How much does it cost to get a tax ID number in Norfolk, VA?

If you reside in Norfolk, VA and do not already have a Tax ID number, you may be curious about the cost of obtaining one. An person or corporation may be identified by their Tax ID number, which is a nine-digit number given out by the IRS. It’s free.

Can I start my own business with no money in Norfolk, VA?

It depends on the kind of company you wish to launch. There may be government fees, licensing fees, and other state taxes that you must pay to establish your company in Norfolk, VA.

In Conclusion

Starting a business in Norfolk is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Virginia has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Norfolk, VA.

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