How to Get a Small Business License in Washington State

Are you looking to start a small business in Washington? If you are, you'll need to make sure you're following the state's regulatory requirements for businesses. Specifically, you must obtain the required licenses and permits from your state and local governments.

Let's look at the license, permit, and registration requirements for a Washington business.

Which Business Licenses Do You Need for Your Small Business?

When starting a business in Washington, you must:

• register your business entity with the Washington Secretary of State (SOS)
• file taxes with the Washington Department of Revenue (DOR), and
• apply for business licenses and permits with your state, county, and town.

The types of licenses and permits your business must apply for depends on your business structure, industry, and location. The main types of business licenses, permits, and registrations are:

• general business licenses
• professional licenses
• seller's permits (sometimes called "sales tax certificate")
• zoning and building permits, and
• doing business as (DBA) registrations.

(For more general guidance, see our article on the legal requirements for starting a small business.)

General Business License in Washington

In Washington, most businesses will need to apply for a state business license from the DOR. Your business must register with the DOR for a business license if one of the following applies:

• your business needs a local or state endorsement (like an individual license, registration, or certification)
• you'll do business under a name that's different from your full name or legal name (we'll discuss more later)
• you'll hire employees within 90 days
• your business will collect sales tax
• your business will make at least $12,000 in annual gross income
• your business must pay taxes or fees to the DOR (usually dependent on your business activities)
• you buy or process specialty wood products, or
• your business meets the nexus threshold for the state business and occupation tax.

A business meets the nexus threshold in Washington if the business either:

• has a physical presence in the state (such as a store, office, or warehouse)
• is organized or domiciled in the state, or
• has more than $100,000 in gross receipts from the state.

Your business can apply for a license with the DOR using the Business License Application. You can apply for and renew city and county endorsements along with your Business License Application via the state's Business Licensing Service. You can apply online through My DOR or by mail. You can also start the application process with the DOR's Business Licensing Wizard.

Your license fee can vary depending on the number of licenses and registrations your business needs. However, most businesses will pay at least a $50 state processing fee (as of 2024). After you submit your application, you'll receive your business license and a Unified Business Identifier (UBI) number. Use the UBI number to file and pay your business taxes. (You can also use your UBI number with other state departments and agencies.)

In general, you can use the Business License Application to apply for your state business license as well as any local licenses. You'll need to check with your city (or county if you're located in an unincorporated area) to see whether your business needs to add a city endorsement (license) to your application. Some cities and counties require every business to have a license while others require only businesses in particular industries to get a license.

For example, Seattle requires most businesses to have a business license tax certificate (also called a "general business license") if they want to do business within the city limits. In Spokane, every business must have a general business license (endorsement) if they're located in or do business within the city. Local license fees vary. You can easily find information about your city's licensing requirements and fees by clicking on your city on the DOR's city endorsements webpage. It might be a good idea to also check your city or county's websites or talk to local officials.

For more on the general business license requirement, see the apply for a business license webpage on the DOR website. There, you can find links to many great resources, including business licensing frequently asked questions (FAQ) and small business guidance. You can also use the Business Licensing Wizard tool to figure out which licenses your business needs.

Professional and Occupational Licenses for Businesses and Individuals in Washington

Aside from the general business license, you and your business could be required to obtain professional or occupational licenses for your industry. The Washington State Department of Licensing (DOL) oversees the licensing for many professions and occupations.

You can search for professional licenses on the DOL website. You can search via category or keyword or work your way through the alphabetized list. Some licenses apply to businesses or organizations while other licenses apply to individuals.

When you find your license, click on the link to go to a webpage on the DOL website with helpful information and resources. For each license, you can find details about:

• applications and renewals
• license fees
• laws and rules for your industry
• the licensing board, including its members, meetings, and events
• examinations and continuing education requirements
• FAQ, and
• other topics and issues.

You can apply for and renew most professional licenses online with the DOL using SecureAccess Washington (SAW).

While the DOL oversees more than 100 licenses, it doesn't oversee all professions and occupations. For example, the Washington Department of Health licenses all medical professionals, including counselors, dentists, massage therapists, nurses, and veterinarians to name a few.

Check with the board, commission, or agency that regulates your profession to learn more about your industry's licensing requirements.

Washington Sales Tax Registration

If you sell or lease tangible personal property or provide taxable services to a final consumer, then you're required to collect and pay sales tax in Washington. Before you start collecting sales tax, you must register for a general business license (as discussed above) using the DOR's Business License Application.

To learn more, visit the retail sales tax section of the DOR website. You should also check with your city or county to learn about their tax reporting requirements.

Local Zoning and Building Permits

In some instances—for example, if you're building or remodeling a space—you'll need to apply for special zoning and building permits. Typically, at the bare minimum, you'll need to complete an application and pay a fee.

If your work is more substantial, you could need to submit your project plans and participate in additional meetings, reviews, and inspections. Oftentimes, your city will also require you to have a certificate of occupancy or a similar document before you can start using your building.

For example, the Seattle Department of Construction and Inspections (SDCI) requires permits for various types of construction work in the city. The SDCI issues permits for:

• additions and alterations
• electrical work and installations
• mechanical work and installations (such as HVAC installation)
• rezoning
• land use variances
• signs and awnings
• tree removal
• demolition, and
• other construction and land use projects.

You can find more helpful guidance in the new businesses section of the SDCI website.

Zoning laws. If your type of business isn't in line with the zoning code, you should search for another location or potentially apply for a special use permit. A special permit can provide your business with an exception to the current use laws.

Building code. You can work with local departments and agencies to apply for building and construction permits. You'll likely need to have inspections related to your space's structural, electrical, mechanical, and plumbing features.

If you intend to lease a commercial space, make sure you have a section in the commercial lease that says that the building and your use of the space align with the zoning laws.

Registering a Trade Name in Washington

If you do business under a name that's different from your legal name, you must register that name (called a "trade name" or "DBA") with the DOR. You must register your trade name in Washington in either case:

• You're a sole proprietor or general partnership doing business under a name that's different from the full legal names of the business owners; or
• You're a corporation, limited liability company (LLC), or limited partnership doing business under a name that's different from what's registered with the SOS (for example, the name listed in your company's articles of incorporation or articles of organization).

(Wash. Rev. Code § 19.80.10 (2024).)

An individual's "full legal name" is their last name along with either:

• one or more of the individual's other names (like their first name)
• one or more of the individual's initials, or
• any combination of names and initials.

For example, suppose Kat Stratford sells vintage guitars under the business name "Stratford Strings." Because her business name only includes her last name, Kat would have to register her trade name with the DOR. If she did business under the name "Kat Stratford Strings" or "K. Stratford Strings," then she wouldn't need to register her trade name.

You can register your trade name using the DOR's Business License Application (as discussed above). As of 2024, the fee to register a trade name is $5. You don't have to renew your trade name. Your registration will remain active until you cancel it.

Before you register a trade name, you should make sure your proposed name is available to use. You can search for trade names that have already been registered using the DOR's Business Lookup tool. You can use that same tool to search for your proposed business name under general licenses, tax accounts, and permits.

For additional guidance, see the register trade names webpage on the DOR website.

Other Licenses and Permits Your Business Might Need

In addition to the licenses and permits reviewed above, you might be required to comply with other laws and regulations. For instance, your business might need to apply for special licensing or follow special rules related to:

• safety
• health, and
• the environment.

Sometimes these regulatory areas will be encompassed within other licenses, permits, and registrations. Other times, you'll need to complete a separate process. If you're in a highly regulated field, you're more likely to need additional licenses and permits. For example, if you're running a plant that could potentially affect water streams or air quality, then you'll likely need to follow additional protocols.

The requirements could vary depending on the city or county involved. Some businesses might be exempt from local licensing requirements under state or federal law. You should check with your federal, state, and local governments for more information.

Additional Information for Small Businesses in Washington

Washington offers many online resources on how to get a small business license. By answering a few questions with the Business Licensing Wizard, you can get a licensing checklist tailored to your business type, activity, and location.

Visit Washington's Small Business Guidance website for information and resources that can help you plan and grow your business in the Evergreen State. The website includes resources such as:

• the Small Business Guide publication
• answers to FAQ
• checklists for opening your business
• links to common business licenses and permits
• small business workshops, and
• the small business liaison team.

Small business owners can also benefit from Washington's Small Business Development Center (SBDC). You can work with one of the SBDC advisers near you. Advisers can help you through the business startup process, including assisting with licensing.

You can also look to the U.S. Small Business Administration for free government help with your business. The SBA has district offices in Seattle and Spokane.

In addition to these great state resources, you can also find more information on the small business section of our website. If you're looking for even more information, you can also read Legal Guide for Starting & Running a Small Business, by Fred S. Steingold, and The Small Business Start-Up Kit, by Peri Pakroo.

For personalized, professional help, talk to a Washington business attorney. You should try, if possible, to work with a lawyer who has experience in your industry. An attorney can help you navigate the steps to get your business license or permit.