Starting a Business in Washington State

The 7-step Washington setup

If you're starting a service business in Washington, this is the order most owners follow. Filing and approval times vary — confirm current fees and processing times on the official pages linked below before you file.

1. Pick the structure (10 minutes)

For most solo operators: LLC. It separates your personal assets from the business, costs $200 to file (WA Secretary of State online filing fee at time of review), and lets you stay on a Schedule C until revenue justifies an S-Corp election (~$60-80k profit).

2. Reserve your name (5 minutes)

Search the WA Corporations & Charities Filing System. If the name is free, you can register it inside the LLC filing — no need to pre-reserve.

3. File the LLC ($200, online)

File the Certificate of Formation at ccfs.sos.wa.gov. You'll need:

• Business name + principal office address
• Registered agent (you, if you have a WA street address)
• Member names

Approval is usually same-day for online filings.

4. Get your EIN (free, 5 minutes)

At irs.gov/ein, apply online — issued instantly. Required to open a business bank account.

5. Open a business bank account

Take your EIN letter + LLC certificate to a local credit union (BECU, WSECU) or any bank. Keep business and personal money 100% separate from day one.

6. Apply for your WA Business License + UBI ($90)

At bls.dor.wa.gov, submit a Business License Application. You'll get a Unified Business Identifier (UBI). Add any city endorsements you need (Seattle, Tacoma, Spokane all require separate city licenses).

7. Register for B&O tax

You're required to file a B&O return on the schedule the state assigns you — even with $0 in revenue. Most service businesses fall under the Service and Other Activities classification. Effective October 1, 2025, that classification is tiered by your prior-year Washington taxable income rather than a single flat rate, and a temporary surcharge applies to very large businesses. Look up your current rate on the WA DOR B&O tax rates page before you file.

Industry add-ons

• Contractors: L&I contractor registration plus a surety bond — $30,000 for general contractors, $15,000 for specialty contractors — and public liability/property damage insurance of $200,000 public liability and $50,000 property damage, or a $250,000 combined single limit. Verify current amounts with L&I contractor registration.
• Food service: county health permit + food worker cards.
• Trades (electrical/plumbing/HVAC): L&I trade-specific license + journey-level cert.

What to skip on day one

• Trademark filings (wait until revenue)
• Custom logo (use a clean wordmark)
• Office space (work from home)
• Hiring (subcontract first jobs)

→ Pair this with our Local Marketing Playbook to land your first 10 customers.