How to get a business license in Washington State

Do you need a business license in Washington State?

Washington is one of the few states that issues a statewide business license. Most businesses (including sole proprietorships) will need to obtain this license by filing a Business License Application with the Department of Revenue (DOR). You will need to register with the DOR if any one of the following applies:

• if your business requires state endorsements (authorizations, certifications)
• if your business requires city endorsements* (city business license or tax receipt)
• if you are doing business using a name other than your full name legal name (ex. using a DBA or trade name)
• if you plan to hire employees within the next 90 days
• if you sell a product or provide a service that requires the collection of sales tax
• if your gross income is $12,000 per year or more
• if your business is required to pay taxes or fees to the Department of Revenue
• if you are a buyer or processor of specialty wood products

A Business License Application allows you to obtain your UBI (Unified Business Identifier) number and establish accounts with other Washington state agencies, including the Department of Labor and Industries and the Employment Security Department.

Domestic corporations, LLCs, partnerships, and LLPs must file formation documents with the Washington Secretary of State before filing the Business License Application.

Depending on your location and business activity, you may need to obtain a city business license, along with other local permits, such as a zoning permit, certificate of occupancy, and permits from the health and fire departments.

Beyond local licensing, your businesses may also need professional and specialized licenses and permits to legally operate. The state’s Department of Licensing issues professional licenses for businesses ranging from architecture firms to tattoo shops and tattoo artists.

*Cities can have a lower income threshold than the state.

Steps to obtaining a business license in Washington State

Business license requirements, and the process for obtaining a license, can vary based on your business activities and where you operate. Below are the general steps for obtaining a business license in Washington state.

Step 1: Research licensing requirements

Research all licensing requirements early in your business planning process. This should be done for every location where you plan on operating. Check zoning requirements, as these may restrict where you can do business. State and various local Washington government websites have online resources to help you identify your specific requirements.

For more information, see Research: The first step in business license compliance

Step 2: Register your business entity

Washington requires domestic corporations, LLCs, partnerships, and LLPs to file with the Secretary of State before filing for a state business license.

Out-of-state businesses operating in Washington must register with the state as a foreign (non-WA) business entity. Washington LLCs and corporations (both domestic and foreign) must also appoint and maintain a Washington registered agent.

Step 3: Obtain an EIN

A federal employer identification number (EIN) is issued by the IRS and is required for many businesses. An EIN is used for filing federal taxes, opening a business bank account, and managing tax reporting for vendor payments (such as issuing 1099s).

Step 4: Register a DBA (optional)

If you plan to operate under a name other than your legal business name — commonly referred to as a "doing business as" (DBA), assumed name, or trade name — you must register that trade name. This can be done through the Department of Revenue’s Business License Application.

Registering your trade name early ensures the name is consistent across all subsequent state and local business registrations.

Step 5: Apply for a Washington State business license

You can apply for a Washington State business license and obtain your UBI number through the Department of Revenue.

This license application can also be used to apply for many state endorsements and city licenses, such as state tax registration and city general business licenses, and to create accounts with Labor & Industries (L&I) for workers' comp and the Employment Security Department (ESD) for unemployment insurance. Note that some city or municipality business licenses must be obtained directly from local governments.

Step 6: Obtain professional and specialty licenses

You may need to obtain a professional or specialty license from the Washington State Department of Licensing, Department of Labor & Industries, or other state agency.

Step 7: Apply for local business licenses and permits

Requirements vary by city and industry; some businesses may have additional licensing beyond the state application.

Common local requirements include a city business license, business-specific licenses and permits (such as health permits), zoning approval, certificates of occupancy, and signage, alarm, and home occupation permits.

Keep in mind that these requirements apply in every jurisdiction where you operate, and some cities require a separate license for each physical location.

Washington State business license and permit requirements

Depending on your business type, location, and industry, you may need a combination of local, state, and federal licenses and permits. Here's an overview of the common license and permit requirements in Washington State.

State

• Washington State business license: This state business license is issued by the Department of Revenue for Washington State. You can also complete state tax registrations through the Department.
• Industry and professional licenses: Many industries and professions require a license or registration issued by a state agency. These requirements may apply to the business, the individual, or both. Common examples include professional services (such as healthcare or law), restaurants, and contractors. The Washington State Department of Licensing issues many of these licenses.
• Special state permits: Businesses that sell regulated products such as alcohol or tobacco must obtain special state-issued permits in addition to standard licensing.

Local

• City business license: In addition to a state business license, you may need to get a business license for each city where you plan to operate in Washington State. If your business is located in an unincorporated area, you may need to get a general license or endorsement from the county.
• Other local licenses and permits: Cities and counties may impose additional licensing and registration requirements, such as certificates of occupancy, certificates of use, and permits from zoning, health, and other departments.

Federal

• Federal licenses and registrations: Federal licenses are typically required for businesses regulated by a federal agency, such as the Securities and Exchange Commission (SEC), the U.S. Department of Agriculture (USDA), or the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). For example, food businesses that buy or sell more than 2,000 pounds of fresh or frozen fruits or vegetables in any given day must obtain a USDA PACA license.

How much does a Washington State business license cost?

There is a $50 processing fee for the state Business License Application. This does not include the cost for additional filings, such as hiring employees or registering a trade name.

The fees for a city business license and the criteria for determining those fees vary. For example, Tacoma determines annual license fees based on gross income, while Seattle bases its fees on taxable revenue.

What are the penalties for not having a business license in Washington State?

Conducting business without the required state or city licenses may subject you to fines and penalties. Failure to obtain a specialized state license, such as for contracting, can result in both civil and criminal penalties.

How to renew a business license in Washington

Business licenses and permits must be renewed periodically, and renewal requirements vary depending on the type of license. Professional licenses, for example, may require completed continuing education hours or a passed exam before renewal can be filed.

Most state and city business licenses must be renewed annually. It's important to track renewal deadlines and update your licenses promptly if any business details change, such as your name or address. Failing to renew a required license can result in penalties, fees, and the inability to legally operate your business.

If you would like help determining what licenses are needed or submitting your Washington State business license applications, contact CT Corporation to speak with a licensing specialist.

Washington State business license resources

• Business license requirements: Compliance guide
• Washington Secretary of State: Corporations & Charities
• Washington Department of Revenue
• Washington State Department of Licensing