The Complete Guide to Washington Business Licenses
Washington requires a state business license for most businesses. You apply through the Department of Revenue's Business Licensing Service, which issues your Unified Business Identifier (UBI) and adds any city and state endorsements to the same license. This guide explains who needs it, what it costs and what comes next.
Step 1: Form the LLC first
Washington LLCs must file with the Secretary of State before applying for the business license. The Certificate of Formation costs $200 online ($180 filing + $20 processing) and includes the initial report; the annual report is $70 a year, due by the end of your anniversary month. See the Washington LLC guide for every formation step.
Step 2: Do you need a Washington business license?
According to the Department of Revenue, you must apply if your business does any of the following:
- needs a city, county or state endorsement;
- operates under a name other than the owner's full legal name;
- plans to hire employees within 90 days;
- sells products or services that require collecting sales tax;
- has annual gross income of $12,000 or more;
- must pay other taxes or fees to the Department of Revenue, or meets nexus reporting thresholds.
In practice almost every new LLC qualifies.
Step 3: Apply and get your UBI
Apply online through the Business Licensing Wizard in your My DOR account, or by mail. Under the state's rule (WAC 458-02-200), the handling fee is $50 to open a new business, $0 to add a location or a nonresident city endorsement, and $5 for each annual renewal; late renewals can incur a delinquency fee. Each endorsement adds its own city or state fee. Online applications take about 10 business days, plus two to three weeks when city or state endorsements need approval; mail applications can take up to six weeks.
The same application registers you with the Department of Revenue for taxes and, if you hire, with the Employment Security Department and Labor & Industries for unemployment insurance and workers' compensation.
Step 4: City endorsements
Most Washington cities license businesses through an endorsement on your state license rather than a separate application. Many cities require an endorsement even for businesses based elsewhere that work within city limits, and some set a minimum income threshold before it applies. Seattle, Bellevue, Tacoma and a few others also run their own business license tax or B&O tax. Check the endorsement list for every city where you will do business.
Washington taxes to plan for
- Business & Occupation (B&O) tax: a tax on gross receipts rather than profit, with rates that depend on your activity (for example retailing versus services).
- Sales tax: retailers collect state and local sales tax.
- No income tax: Washington has no personal or corporate income tax.
Professional and trade licenses
The Department of Licensing regulates many professions — including real estate, cosmetology and several business professions — while Labor & Industries registers construction contractors and licenses electricians and plumbers. Health professions are licensed by the Department of Health. Some of these are added to your business license as state endorsements.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Certificate of Formation | Secretary of State | $200 online; $70 annual report |
| Washington business license (UBI) | Department of Revenue | $50 to open; $5 renewal |
| City endorsements | Through the state license | Set by each city |
| Professional or contractor license | DOL, L&I or Department of Health | Varies by license |
Frequently Asked Questions
Does Washington State require a business license?
Yes, for most businesses. You need a Washington business license if you have $12,000 or more in annual gross income, hire employees, collect sales tax, use a trade name or need a city or state endorsement.
How much is a business license in Washington State?
The state handling fee is $50 to open a new business and $5 for each annual renewal. City and state endorsements add their own fees.
What is a UBI number?
The Unified Business Identifier is the number the Department of Revenue issues with your business license. You use it to file Washington taxes and make changes to your business.
How long does it take to get a Washington business license?
About 10 business days online, plus two to three weeks if city or state endorsements need approval. Mail applications can take up to six weeks.
Do I need a city business license in Washington?
Usually yes. Most cities license businesses through an endorsement added to your state business license, including some businesses based outside the city that work there.