Washington Business License

Starting or running a business in Washington? You’ll most likely need a Washington Business License from the state Department of Revenue (DOR for short). You may also have heard it called by its old name, the Master Business License.

Think of it as your business’s official sign-up with the state. It registers your business with DOR so you can legally operate and pay state taxes, like B&O tax (Washington’s business and occupation tax) and sales tax.

For many businesses, the state license is not the only license they’ll need. Depending on where you operate and your business activities, you may also need a city license or endorsement, a state endorsement, or a separate license from another agency. Not sure which one’s apply to you? Tell us about your business, and we’ll research the full list for you, free.

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:

• Your business needs a city, county, or state endorsement.
• You do business under a name that isn’t your full legal name. This is called a trade name, or DBA (“doing business as”).
• Your business brings in $12,000 or more a year in gross income.
• You plan to hire employees in the next 90 days.
• You sell products or services that require collecting sales tax.
• Your business is required to pay taxes or fees to the Department of Revenue.
• You buy or process specialty wood products.
• Your business is based outside Washington but sells enough to meet the state’s economic nexus thresholds.

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.

What Does a Washington Business License Cost?

The starting cost is straightforward: a new license comes with a $50 processing fee. If your business needs a trade name or endorsements, those fees are added on top. Here’s the full breakdown:

How Do I Get a Washington Business License?

You will file your application for a Washington Business License with the Washington Department of Revenue, either online through a My DOR account or by mail. Here’s what that looks like, step by step:

1. Form your company first. LLC’s, corporations, partnerships, and LLP’s register with the Washington Secretary of State before applying with the DOR. If you are a sole proprietor, skip this step.
   • A quick tip: finish one before you start the other. Both agencies can assign a UBI number (Washington’s ID number for your business), so applying with both at once can leave you with two UBI numbers.
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 the business is ran, or where business activities occur)
   • Any trade names (DBAs)
   • Description of business activities, services, and products
   • Your estimated gross revenue for the first year
   • The date your business was formed in Washington
   • Your business’s EIN (federal tax ID), if you have one
   • When you plan to hire, and how many employees
     
3. Chose online or by mail. You can apply online through My DOR or by mailing a paper application.
4. Submit and pay. To apply online, create a My DOR account and file the Business License Application. You’ll use the same account later for renewals and tax filings. To apply by mail, send the paper application to Business Licensing Services, PO Box 9034, Olympia, WA 98507-9034. Either way, you’ll pay the $50 processing fee plus any trade name and endorsement fees.
5. Wait for your license. Online applications usually take about 10 business days. If you need city or state endorsements, allow another 2-3 weeks for those approvals.

Already know what you need and would rather hand off the paperwork?

Renewing Your Washington Business License

If your license includes a city or state endorsement, you’ll renew it once a year. Your due date is the expiration date printed on your license. DOR sets it when you apply, so it may not line up with the calendar year. DOR will send a courtesy reminder about a month before your license expires, and you can renew online through My DOR up to two months early.

Renewing costs a $5 process fee plus your endorsement fees. If anything changed during the year, like a new location or new services, the renewal is a good time to update your endorsements. The DOR imposes penalties for late renewals.

Do You Need Other Licenses?

Your Washington Business License is the starting point. Depending on your industry and where you operate, you may need a few more.

Industry-specific licenses

Some industries are overseen by their own state agencies. Here are 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.
• Alcohol: 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: law, medicine, accounting, real estate and similar fields are governed by their own licensing boards in addition to the general business license. A Professional LLC also needs the owner\s professional licenses.

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. Other cities handle licensing themselves. For example:

• Seattle: any company operating in Seattle must apply for a Seattle Business License Tax Certificate (also called a general business license) through FileLocal.
• Spokane: Businesses in Spokane 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 (outside city limits), 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.

Federal requirements

There’s no general federal business license. Federal licenses apply only to activities a federal agency regulates, such as alcohol, firearms, aviation, commercial fishing and broadcasting. If your business falls under federal requirements, you’ll apply with that agency in addition to your state and local licenses.

Frequently Asked Questions