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Washington · How-To Guide

How do I get a business license?

Washington Secretary of State (entity formation) / Washington Department of Revenue (master license and tax registration) / Local municipality or county for local licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Washington Secretary of State (for LLCs, corporations, and LPs) - file online at sos.wa.gov/corps or through bizfilings.sos.wa.gov; Washington offers online filing
  3. Obtain an EIN from the IRS at irs.gov
  4. Apply for the WASHINGTON BUSINESS LICENSE (Master License) through the Department of Revenue:
  5. Apply at dor.wa.gov or through the online Business Licensing Service at bls.dor.wa.gov (Business Licensing Service)
  6. The WA Master License is a unified license covering: State sales/use tax account, State business and occupation (B&O) tax account, and various other state license endorsements
  7. Washington charges a statewide BUSINESS LICENSE FEE (varies by endorsements; base license fee for many businesses); apply through BLS
  8. Washington has NO STATE INCOME TAX on individuals or corporations; instead relies on B&O tax and sales tax
  9. LOCAL BUSINESS LICENSE: Many Washington cities (Seattle, Spokane, Tacoma, Bellevue, Everett, Olympia, Vancouver, Bellingham, etc.) require their own local business licenses in addition to the state master license; some participate in the combined licensing system through BLS (some local licenses can be obtained through the state BLS portal simultaneously)
  10. Check for industry-specific state licenses: contractors (Washington Department of Labor and Industries - L&I registration required for contractors; lni.wa.gov); healthcare professionals, real estate, cosmetologists through the Washington Department of Licensing (DOL - dol.wa.gov); alcohol/beverage licenses through Washington State Liquor and Cannabis Board (WSLCB - lcb.wa.gov)
  11. Renew entity annual report with WA SOS; renew state business license annually; renew local licenses per city schedule; renew professional licenses per agency schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Washington business address and registered agent
  • Entity formation documents
  • EIN or SSN
  • Industry-specific certifications
Fee
LLC formation: $200 (online); corporation: $200 (online); ANNUAL REPORT: $60 (LLC - moderate); corporation annual report: $60; State Business License (Master License): $90 base fee statewide + additional endorsement fees; local license: varies by city; contractor registration (L&I): annual fee by contractor classification RENEWAL: Annual report due between January 1 and the anniversary date; state business license: annually; local license: annually per city ONLINE OPTION: Yes - bls.dor.wa.gov (Washington Business Licensing Service - one-stop); sos.wa.gov/corps (entity formation); dor.wa.gov (B&O tax) WHERE TO GO: WA SOS (entity formation); Washington BLS/DOR (state master license + tax); City Hall (local license); DOL (professional licenses); L&I (contractor registration)
Online Option
Yes - bls.dor.wa.gov (Washington Business Licensing Service - one-stop); sos.wa.gov/corps (entity formation); dor.wa.gov (B&O tax)
Where to Go
WA SOS (entity formation); Washington BLS/DOR (state master license + tax); City Hall (local license); DOL (professional licenses); L&I (contractor registration)
County-specific variations apply

Washington cities independently administer local business licensing. Seattle (Seattlebusinesslicense.seattle.gov), Bellevue, Tacoma, Spokane, Everett, and Olympia require their own local business licenses. Many WA cities participate in the state BLS portal allowing combined applications. King County, Snohomish County, Pierce County, and Spokane County have the most businesses and most active licensing environments.

Washington Notes

Important state-specific details

  • NO STATE INCOME TAX: Washington has no individual or corporate income tax; major business advantage.
  • BUSINESS AND OCCUPATION (B&O) TAX: Washington's primary business tax; applied to GROSS RECEIPTS (not profit); rates vary by business classification (retailing: 0.471%; services: 1.5%; etc.); all businesses with WA gross income must pay B&O; register and file through WA DOR; can be a significant cost since it's on gross receipts not profit.
  • STATE SALES TAX: 6.5% state rate; cities and counties add local rates; combined rates in major WA cities: Seattle 10.25%; Tacoma 10.2%; Spokane 8.9%; Bellevue 10.2%.
  • WA LLC FORMATION: $200 - moderate nationally; annual report: $60.
  • WA BUSINESS LICENSING SERVICE (BLS): bls.dor.wa.gov - Washington's excellent one-stop for state master license, B&O registration, and many local business licenses simultaneously.
  • CONTRACTOR REGISTRATION (L&I): Required for all WA contractors ($500+ in work); lni.wa.gov; annual renewal.
Official Source

State office contact

State Office
WA Secretary of State, Corporations - sos.wa.gov/corps | bizfilings.sos.wa.gov | (360) 725-0377; WA Department of Revenue (B&O, sales tax, master license) - dor.wa.gov | bls.dor.wa.gov | (360) 705-6741; WA DOL (professional licenses) - dol.wa.gov | (360) 902-3600; L&I (contractor registration) - lni.wa.gov | (360) 902-5800