Washington Business License

Who Needs a Washington Business License?

If your Washington LLC, corporation, or sole proprietorship will do any of the following, you need to apply for a Washington Business License from the Washington Department of Revenue:

• Earn $12,000 or more in annual gross income
• Hire employees
• Collect Washington sales tax
• Operate under a trade name (DBA)
• Need a state or local endorsements or specialty license
• Purchase an existing business
• Register an out-of-state business that will conduct business in Washington

The main purpose of the Washington Business License is to register your company with the Department of Revenue, allowing your business to pay taxes, register employees, and access certain types of insurance.

Is Getting a Business License the Same as Forming a Business?

No, getting a business license isn’t the same as forming a business. The difference between forming your business and getting the licenses you need to operate it is one of the most common misunderstandings.

If you’re creating a formal business entity such as an LLC, corporation, limited partnership, or nonprofit corporation, you’ll need to register your business with the Washington Secretary of State. This process legally creates your business entity and establishes it as a separate legal organization.

Once your entity is formed, you’ll typically need to apply for a Washington Business License through the Washington Department of Revenue’s Business Licensing Service. If you’re operating as a sole proprietor, you may not need to register with the Secretary of State, but you may still need a Washington Business License and other required permits.

Think of it this way: forming your business creates the company, while business licenses and permits give you permission to legally operate it.

If you still haven’t formed your business with the Secretary of State, we can help you take care of business formation and license research at the same time. Simply check “Business License Research” during the sign up.

How Much Does a Washington Business License Cost?

New business license applications carry a non-refundable $50 processing fee. If you’re registering a trade name (DBA), that’s done as part of the same application and costs an additional $5 per trade name. Specialty endorsements for a particular industry, activity, or city, typically come with additional fees on top of the base application cost.

Your total cost depends on how many endorsements apply to your business. The license also requires an annual renewal, which costs $15 in processing fees in addition to any city endorsements and specialty licenses. DOR issues reminders 30–45 days prior to renewal in their portal, as well as via mail or email depending on your preferences.

How Do I Get a Washington Business License?

You will file your application for a Washington Business License with the Washington Department of Revenue. Here’s the process from start to finish:

1. Form your company with the Secretary of State (if applicable). Get your Unified Business Identifier (UBI) number when you register your LLC, corporation, or other entity. Skip this step if you’re a sole proprietor.
2. Gather your application details. The application asks for details about your business, taxes, employees, endorsements, and other licenses. You’ll generally need:
   
   • Legal name & business structure
   • Physical business address (where business is ran, or where business activities occur)
   • Any trade names (DBAs)
   • Description of business activities, services, and products
   • Estimated gross revenue for the first year
   • The date your Washington business was formed
   • Your business’s EIN (FEIN)
   • The date you plan on hiring employees and the number of employees you intend on hiring
     
     You may also need documentation of specific state and/or local endorsements, depending on your company’s industry. For example, if you’re opening a restaurant, there are certain state and local food service licenses you’ll need to get as well.
     
3. Determine if you’re filing online or by paper. Most businesses can file online, but some can only apply by mailing in a paper application. This is usually reserved for businesses with a complex tax report or operating in specific industries, including cigarette wholesale, whitewater rafting, debt collection, employment and travel agencies, limousine services, manufactured home communities, private investigation, radiology benefits, vehicle sales and manufacturing (including RVs, boats, and trailers), scrap metal, taxi and towing services, tobacco, underground storage, used vehicle batteries, and waste tires.
4. Filing online: Create an online account with the Department of Revenue. This account is also where you’ll file your Annual Renewal every year. Once inside, click “File Business License Application” and complete the application, uploading any required documentation. You can also register for Industrial Insurance and Unemployment Insurance without paying additional fees, register a trade name (DBA) for $5 per name, and register for special Business Endorsements in the same account.
5. Filing by paper: Mail your completed application to State of Washington, Business Licensing Service, PO Box 9034, Olympia, WA 98507-9034. Call 1-800-451-7985 with questions.
6. Pay the application fee. New business license applications carry a non-refundable $50 processing fee.
7. Wait for confirmation. Online processing generally takes 5-10 business days, though it may take longer during high-volume periods. Other endorsements add additional time, and they vary by city. Application confirmations are sent by email, and a physical Washington Business License follows in the mail.

Rather not deal with the forms yourself? We can file your Washington Business License for you, correctly and on time.

What Happens If You Operate Without a Washington Business License?

Operating a business without the licenses can lead to hefty fines of up to $1,000 per day, business closure, losing good standing with the state, and back payments for the unlicensed period of operation.

Doing business without licenses complicates your other business activities like opening a business bank account, signing a commercial lease, or working with vendors, as all of these activities require a valid UBI number and often confirmation of licenses.

Other Washington Business Licenses

If you are operating a Professional LLC or withing certain industries, you will also need to apply for other specialty licenses.

If you need any specialty business licenses (sometimes called endorsements), like a contractor’s license or a CPA license, the Washington Business License does not automatically include these. You’ll need to contact the appropriate agency and go through their application process separately. The cost of these licenses varies depending on what your business needs.

You may also need to meet other licensing requirements at the federal, county, or local level. Each business is different, and the requirements depend on what kind of business you have and where it operates.

Which Industries Need Additional Licenses?

The state business license covers your baseline right to operate, but many industries layer additional requirements on top of it. A few common examples:

• Restaurants and food service businesses typically need a food establishment permit from the Washington State Department of Health, plus sign-off from their local county health department.
• Businesses serving alcohol need a liquor license from the Washington State Liquor and Cannabis Board, which is separate from the business license and has its own application process.
• Contractors generally need to register with the Department of Labor and Industries and carry the required bond and insurance before bidding on or starting work.
• Cannabis businesses are licensed through the Liquor and Cannabis Board under a separate regulatory framework.
• Professional services, including law, medicine, accounting, and real estate, are governed by their own licensing boards in addition to the general business license.

If your business falls into any of the special categories, the Washington Business License is the starting point, not the finish line.

City and County Licenses

This is where Washington licensing tends to get complicated. The state business license covers you at the state level, but most cities and many counties require their own separate license or registration, often with their own fees and renewal schedule.

Many Washington cities participate in the state’s combined licensing system, which means you can apply for your state and city license together. Others run their own independent system. For example, any company operating in Seattle must also apply for a Seattle Business License Tax Certificate (also called a general business license) through the city’s own website. Businesses in Spokane also need a general city license, but can apply for it at the same time as their Washington Business License through the DOR website.

County-level requirements vary too, particularly for businesses operating in unincorporated areas or in industries like food service, construction, or home-based businesses. This is exactly why a generic checklist rarely covers everything, the right licenses for your business depend on your exact location and what you do.

Renewing Your Washington Business License

Your Washington Business License renews annually, based on the anniversary of your UBI issuance date rather than the calendar year. The Department of Revenue sends a renewal notice to your address on file, but it’s ultimately your responsibility to renew on time whether or not that notice arrives.

Renewal follows the same basic structure as your original application: the base fee plus any endorsement fees. If your business activities or locations have changed during the year, renewal is also the time to update your endorsements. Missing your renewal deadline can result in late penalties, and a license that lapses for an extended period may require a brand new application rather than a simple renewal.

Business License Research Service

While the Washington Business License is a necessity for your business, you’ll likely need other licenses from the federal, state, county, and local level too.

Business license requirements aren’t the same across the board, and the state doesn’t provide a single list of everything your business needs. It’s up to you to track down each requirement on your own, which can take hours and still leave gaps.

This is why we offer a Business License Research service at no extra charge. When you sign up for our Registered Agent service or Business Formation service, check the box next to “Business License Research” during signup to opt in. It isn’t automatic, so be sure to select it.

From there, one of our local experts researches your business activities, industry, and location, and sends you a customized report outlining which licenses, permits, and endorsements may apply to you. Upon request, we can also provide a quote to file those licenses on your behalf.

So sit back, relax, and let us take care of the rest.

Already know what you need and just want it filed? Use our Business License Filing Service.