Getting a Washington State Business License: A Simple Guide

Do I Need a Business License in Washington?

If you run a business in the state of Washington, it makes sense that you’d also need a Washington business license and the appropriate permits to operate in compliance with the law.

But what if you’re a freelancer? Or what if you turned your hobby into a moneymaking venture that you do from home?

Even then, you will likely need to apply for a business license.

Why? Well, some reasons may be that getting licensed can help the state identify your business for reasons such as taxes, protecting the public, and holding you accountable in the case of any legal action.

Failing to have a current business license could mean that you're out of compliance in various ways in the state of Washington. If you don’t have the proper licenses, both the city and county governments potentially could:

• Enforce fines and penalties
• Prevent you from opening other locations
• Lock up your existing location, preventing you from entering
• And more

But what about when it comes to your clients or customers? Without a business license, you could be risking things like:

• Your credibility and trustworthiness as a business
• Your ability to market your business
• And more!

You know the “why” behind needing a business license; now let’s take a look at how you can apply for one in the state of Washington.

How to Get a Business License in Washington

You may know how to get a business license in Washington, but maybe you still aren’t sure if you need one. If one of the following statements applies to you, it’s a smart idea to apply for a business license:

• You require city and state endorsements
• Your business name is different from your full legal name
• You plan to hire employees within the next 90 days
• You sell a product or service that requires you to collect sales tax
• Your gross income is $12,000 or more annually
• Your business must pay taxes or fees to the Department of Revenue
• You buy or process specialty wood products

Also, if your business structure falls into one of the following categories, you’ll need to file with the Washington Secretary of State before applying for your business license:

• Washington (Domestic) Corporation
• Washington (Domestic) Partnership
• Washington (Domestic) Liability Company
• Washington (Domestic) Limited Liability Partnership

It is important to note that the categories above are not listed in full - there could be other reasons you are required to get a business license in Washington.

Now that you know what the requirements are to apply for licensing, let’s look at how to approach it.

Step 1: Gather your business details and documents.

Before you start your application, it’s a good idea to have all the documents you'll need on hand. This includes:

• Your Certificate of Insurance (COI)
• Your business name
• Your driver’s license number
• Your personal contact information
• Your business’s contact information (if different from your personal contact information)
• Your business entity type
• Your seller's permit number (if you sell goods)
• Your Federal Tax ID or EIN, or Social Security number
• Your business plan, including information like anticipated revenue and expenses

That way, when you apply for your license, you won’t be running around trying to find this essential information.

It’s also a good idea to apply for your business license on a desktop or laptop computer, as at the moment, some Washington state city and county websites may not be compatible with a mobile device.

Step 2: Submit your application.

Through Washington’s Business Licensing Wizard, you have the option to apply online or by mail. Visit the Washington Business Licensing Wizard portal to start a scenario and download the forms you need to apply.

If you apply online, applications are typically processed within 10 business days. Then, create an account with the My DOR system. This system is where you can file your taxes, as well as update your business’s contact information or record a change in your activities.

If you apply by mail, complete the application and any other required forms and mail the documents to the address shown on the form. Mail-in applications may take up to six weeks to process. So if you’re looking for a faster method to obtain your business license, it’s worth considering applying online, if possible.

Washington Business License Costs

For all business licenses, a nonrefundable fee is required for each application. The fee breakdown is as follows:

• Open/reopen a business — $90
• Add an additional location — $0
• Add a city Nonresident Business Endorsement to an existing location — $0
• Any other purpose — $19 (e.g., if you’re hiring an employee, registering a trade name, etc.)
• Annual Renewal processing fee — $10

It’s important to note that you must review your business license annually. You’ll be required to pay the $10 fee no matter how many endorsements you possess.

Keep in mind that depending on the city where you operate, your fees may vary. Be sure to check out this page on the Washington State Department of Revenue website to confirm the most up to date required fees.

Also, depending on your business’s nature, you may be required to obtain a state endorsement. For example, if you’re a private investigator or architect firm, you’ll typically need a state endorsement. For more information on state endorsements, visit this page of the Washington State Department of Revenue website.

Getting Your Business Registration + Insurance: What You Need to Know

Once you’ve applied and your application is approved, you may receive information from some or all of these agencies. We advise you to keep this information handy if you need to refer to it at some point.

Department of Revenue

You’re required by the Department of Revenue to file an excise tax return either monthly, quarterly, or annually, even if you have no business to report for a particular time frame. The Department of Revenue will usually assign you a filing frequency once you apply.

You’ll receive a Unified Business Identifier (UBI) number to be used when you file your taxes or if you need to make any changes to your business. You’ll also receive your licensing, with any endorsements you requested. The Department of Revenue advises to not start any business activity until you receive this license.

After you receive your Washington business license, you must display/post the licensing at every business location.

Employment Security Department and the Department of Labor & Industries

If you plan on hiring employees, you’ll be required to submit quarterly reports for all active employees. If you don’t have any employees at the time, you’re still required to submit a quarterly report. You can write “0” in the active hours’ space.

The state of Washington may require you to have workers compensation insurance, depending on the nature of your business. For example, if you’re a contractor and have several employees working for you, having this insurance coverage is likely a good idea.

Federal, state, and local requirements

Depending on your business, there may be additional state or local agencies you’ll need to contact. You can find this information in the Washington Business Licensing Wizard.

For example, if you’re a contractor, there may be additional requirements for you to follow. You can find that information here.

In addition to your business licensing, it’s also important to think about business insurance if you don’t currently have a policy in place. Adding a general liability insurance policy to your insurance plan is a great way to protect yourself and your assets, as well as cover you from excessive fines and fees that you may encounter.

Washington state requires businesses that have employees to have workers compensation insurance. Having this insurance coverage means that both you and your employees are protected if injuries, sickness, or other events occur while on the job.

If you need assistance getting insured or want to learn more, our team of experts are standing by, ready to help. You also can check out our free quote tool to start comparing quotes in minutes.

Getting a Business License in Washington Will Help You Grow

Business licenses are essential for several reasons. But perhaps the most important reason is that a business license can help you grow.

As a licensed business, your customers may feel more inclined to work with a company that they view as being more “official.” This kind of licensing also can protect you from fines or getting into potential legal hot water for not being in compliance with the law.

The application process may call for some dedicated time out of your busy day, but the benefits far outweigh the application process!