How to Get a Washington State Business License

Starting a business is a dream for many people, but it can be a daunting endeavor. Taking the time to read this article is a step toward making that dream a reality. If you’ve been imagining what it would be like to own and operate your own business in Washington, this article will help you understand some of the requirements you’ll need to meet before making that first sale.

Once you’ve decided to make your dream a reality, one of the first things you’ll need to do is get a business license.

Do you need a Washington business license?

If you’re planning to open a business in the state of Washington, the simple answer is: probably, yes. Almost all businesses in the state of Washington need a business license. But, there’s good news: The Evergreen State makes it pretty simple. In addition to your state business license, you might also need a local or federal business license, depending on the type of business you operate.

Washington state

The state of Washington has straightforward guidelines on which businesses need licenses. Almost all businesses operating in the state need a general business license. And, by offering a statewide license, they make it less complicated than other states where businesses might need a mixture of local, county, and state licenses for their business.

If your business meets any of the below criteria, you’ll need a business license:

• Have a gross income over $12,000 per year
• Sell a product or service that’s subject to sales tax
• Do business under a name that’s different from your full legal name
• Require endorsements from a city or state
• Plan to hire employees in the next 90 days
• Buy or process specialty wood products

If you’re still not sure whether or not you need a license for your business, you can check with the WA Department of Revenue to find out. 

Local business licenses

While the statewide Washington business license is enough for most businesses, those in some cities will also need to apply for and get a local business license.

To find out if you need a local business license, you’ll need to check in with your local city hall or county clerk to understand the requirements. The Washington Department of Revenue has a detailed list of which cities and counties need additional business licenses and how to apply. If your city doesn’t show up on those lists, you’ll need to contact your city directly.

Most notably, if you’re starting your business in Seattle, you’ll need a Seattle-specific business license.

A local business license might only be required in certain instances. Local licenses or permits might be necessary if you’re planning to operate your business out of your home, to do any construction or renovation, to operate a food business, or to add a sign to your property. 

Federal

The federal government regulates some types of businesses, requiring them to register for business licenses, including the following industries:

• Agriculture
• Aviation
• Broadcasting
• Drilling and mining
• Firearms
• Fish and wildlife
• Liquor license
• Maritime transportation
• Nuclear energy
• Transportation and logistics

How to get a business license in Washington state in 5 steps

From start to finish, it takes only five basic steps to get a business license in Washington.

Step 1: Start your business

Before you can get a business license in Washington, you need to start your business. You’ll want to choose a name for your business and decide if you want to operate your business as a sole proprietorship, LLC, partnership, or corporation. 

If you need help setting up your business, LegalZoom offers an LLC formation service that supports you in starting your business with confidence.

Step 2: Obtain an EIN

If you plan to hire employees or your business structure requires it, your second step will be to get your EIN or Employer Identification Number. Similar to a person’s Social Security Number, an EIN helps the government to track a business for tax purposes.

To get an EIN, you can:

• Apply on the IRS website
• Use LegalZoom’s affordable EIN registration service

Step 3: Apply for a Washington state business license

After you’ve started your business and obtained an EIN, it’s time to apply for any state licenses you might need. In the state of Washington, almost all businesses need a state business license (double-check the criteria mentioned at the top of this article).

To apply for a Washington state business license, you’ll start on the Washington Department of Revenue website. The Washington Business Licensing Wizard tool makes the process quite simple. It guides you through the following steps:

1. Enter a keyword describing your business.
2. Choose your business structure. If your company is an LLC or Corporation, you’ll need to file with the Washington Secretary of State prior to applying for a business license.
3. Choose whether or not you’ll be hiring employees and if they will be adults or minors.
4. Add either your business address or the city where you’ll operate.
5. Add additional cities if your business will operate in more than one city. 

At the end of the process, you will also be able to apply for any required city licenses in this same portal. Once your license has been granted, you’ll receive a unified business identifier number or UBIN.

The state’s customized business license wizard makes figuring out which licenses your business needs simple. If you’re not sure you want to go through this process alone, LegalZoom can put together a personalized business license report for you on which state, local, and federal business licenses you need to get your business up and running.

Step 4: Get required local permits and city business licenses

The Washington Business License Wizard helps you figure out which local licenses you’ll need for your type of business and business location. These city- and county-level permits in Washington are known as “endorsements.”

You can figure out which endorsements you need for your city from the list of city endorsements or use the Business License Wizard. If you’re planning to do business in Seattle, you’ll need to reach out to the appropriate city agency—Seattle business endorsements are done separately. 

Step 5: Check for required federal licenses

Your final step in registering your Washington business is to figure out if you need any federal business licenses to conduct business legally.

Again, the following industries require federal registration:

• Agriculture
• Aviation
• Broadcasting
• Drilling and mining
• Firearms
• Fish and wildlife
• Liquor license
• Maritime transportation
• Nuclear energy
• Transportation and logistics

After getting your Washington business license

As soon as you receive your local, state, and federal business licenses, you’re ready to get selling! There are many steps to starting a business, but the process makes accepting that first payment all the sweeter.

Now that your business is registered and you have the required licenses, it’s important to display those licenses and to follow all local regulations. Business licenses do expire, so set a reminder on your calendar to renew your license at the appropriate time. Most licenses must be renewed annually and you should receive a reminder one month before the renewal date. 

Getting a WA business license the easy way

There are many steps to starting your business and the process can be stressful. If you’re looking for a way to simplify your entrepreneurial journey, we can help. LegalZoom offers a business licensing service for Washington businesses that can help you identify which licenses you need for your unique business.

FAQs

What should I do before getting a business license?

Before applying for your business license, you’ll need to name, form, and register your business. That includes choosing which business structure is right for you, sole proprietorship, limited liability company, limited liability partnership, or corporation.

How much is a business license in Washington state?

A Washington state business license costs $90 and incurs a $10 renewal fee each year. You might also pay additional fees for registering your business at the local level with your city or county. 

How long does it take to get a business license in Washington?

It takes approximately 10 days to process a Washington state business license application. After that, the approval process may take another two to three weeks for any state and local licenses.