Starting & running a business in Washington
Washington has no personal income tax, but it does have the B&O tax on gross revenue, a state Business License Application that most businesses need, and L&I registration for anyone doing construction work.
The order to do things in
- 1
Pick a structure and register it
Form an LLC or corporation with the Secretary of State, or operate as a sole proprietor. Filing online is same-day to a couple of business days.
- 2
File the Business License Application
This gets you your UBI number and, in the same application, most state endorsements plus many city licenses. Filed through the Department of Revenue's Business Licensing Service.
- 3
Register for B&O tax
B&O is charged on gross receipts by classification — not on profit. Filing frequency is assigned to you when you register.
- 4
Contractors: register with L&I
Construction contractors must register with Labor & Industries, which requires a surety bond and liability insurance. Doing construction work unregistered is the fastest way to lose a job and get fined.
- 5
Check your city
Seattle, Tacoma, Bellevue and several other cities levy their own B&O tax and licensing on top of the state.
Informational only. Fees, rates and requirements change. Confirm every step with the official WA agencies linked below, or with a licensed attorney or CPA, before you act.
Official WA sources
Guides for Washington
Starting a Business in Washington State
A step-by-step Washington startup guide: LLC formation, UBI number, city license, and B&O basics.
ReadHow to Hire a Contractor in WA, OR & Idaho (Without Getting Burned)
License lookups, three questions that help identify warning signs, and how deposits and milestone payments should work.
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