How to Apply for a Business License in Washington

If you're starting a new business in Washington, obtaining the necessary business license is crucial for compliance and accessing the state's thriving economic opportunities. Did you know that Washington consistently ranks among the top states with high GDP growth rates, thanks to its diverse sectors and booming tech industry?[1] 

In this comprehensive guide, we’ll walk you through obtaining a business license, equipping you with the knowledge to navigate Washington’s dynamic business landscape.

Washington Business License: Key Takeaways

1. In Washington, obtaining a business license provides legal authorization for operations, demonstrates regulatory compliance, lends credibility, and offers small businesses access to resources and support for growth.

2. Obtaining a business license in Washington involves several steps, from applying for a general business license to fulfilling federal, state, and local licensing requirements. Additional permits may also be needed, depending on the nature of the business and the locale.

3. Swyft Filings offers an online application platform to streamline the process of obtaining a business license in Washington, helping entrepreneurs navigate paperwork, regulatory requirements, and other challenges associated with starting a business.

What Is a Business License?

In Washington, a business license is an essential permit that grants legal authorization for businesses to operate within the state. It ensures compliance with state and local regulations specific to Washington. Different industries and professions may require particular licenses, and entrepreneurs must be aware of the unique requirements for their type of business.

Additionally, certain cities in Washington may have additional licensing requirements that businesses need to fulfill. It is crucial to differentiate between obtaining a business license and registering a company, as they serve distinct purposes.

Benefits of a business license in Washington:

• Legal authorization to operate a business within the state of Washington

• Demonstrates compliance with state and local regulations

• Provides credibility and trustworthiness to customers and partners

• Access to resources and support from the state for business growth and development

• Eligibility for tax incentives and exemptions specific to licensed businesses in Washington

Get Your Washington Business License in 7 Steps

Are you starting a sole proprietorship, limited liability company, corporation, limited liability partnership, or nonprofit in Washington? Understanding the business license process is vital to ensure compliance and operate legally. Discover the essential steps to obtaining a business license in Washington, from state licenses to additional permits.

Step 1: Apply for Washington General Business Licenses

A business license is essential to conduct business legally in Washington. The state provides a statewide business license, making the process easier. However, certain municipalities may have additional licensing requirements.

It is vital for entrepreneurs to understand the criteria for obtaining a Washington state business license and to research specific license regulations in local municipalities. Compliance with licensing requirements is crucial for establishing a solid business foundation in Washington and keeping state endorsements.

To apply for a general business license in Washington, your business needs to register with the Washington State Department of Revenue if it meets any of several conditions, including requiring endorsements, operating under a name other than your full legal name, planning to hire employees, collecting sales tax, earning more than $12,000 annually, or owing taxes or fees to the Department of Revenue.

Before applying, specific business structures such as corporations, partnerships, or limited liability companies must file with the Secretary of State. Businesses may apply online or by mail, and the license fee varies, with extra fees for additional endorsements.[2]

Step 2: Apply for Federal Licenses for Washington Businesses

In addition to state and local licenses, specific industries in Washington may require federal licenses or permits to comply with particular regulations. When establishing your business, it’s crucial to identify the federal agencies that oversee your industry. 

For instance, if you operate a TV or radio station, you need to adhere to regulations set by the Federal Communications Commission (FCC). Similarly, suppose your business involves transporting animals or plants across state lines. You may require permits from the Department of Agriculture. 

Familiarize yourself with the federal licensing requirements relevant to your business to ensure compliance.[3]

Step 3: Search for Washington Permits and Licenses

When launching a business in Washington, you must familiarize yourself with the required permits and licenses. Here are some essential examples to consider:

• Sales Tax Permit: If your business sells taxable goods or services, you will likely need to register for a sales tax permit with the Washington State Department of Revenue.

• Professional or Occupational Licenses: Certain professions, such as healthcare providers, contractors, or real estate agents, may require specialized licenses from respective state agencies.

• Liquor License: If you plan to sell alcoholic beverages, you must obtain a liquor license from the Washington State Liquor and Cannabis Board.

• Food Establishment Permit: Restaurants, cafes, and other food service establishments must obtain a food establishment permit from the local health department.

• Building Permits: Construction or renovation projects may require building permits from the local building department.

For detailed information on permits and licenses specific to Washington, you can visit the official website of the Washington State Business Licensing Service.[4]

Step 4: Search for Local County or City Washington Business Licenses

When establishing a business in Washington, it's essential to be aware that certain cities and counties may require specific licenses or permits in addition to state requirements. Here are a few examples of cities and municipalities with unique licensing requirements when operating within city limits:

Seattle

In Seattle, most businesses, including new, unprofitable ones, must obtain and annually renew a city license tax certificate. This applies to companies involved in retail sales, services, wholesale, professional or personal services, manufacturing, home-based businesses, and nonprofit organizations.

Certain businesses like taxis, short-term rentals, adult entertainment, towing companies, and marijuana businesses are regulated by the City of Seattle and require both a business license tax certificate and a regulatory endorsement.[5]

Spokane

In collaboration with the Washington State Department of Revenue Business Licensing Service, Spokane requires businesses to apply for a business license, which can be done online or in person. Companies must also apply for specific permits such as Temporary Business Registration, Entertainment Facility License, and Charitable Solicitation Permit, depending on the nature of their operations.[6]

Bellevue

Businesses operating in Bellevue must register for a city license if they maintain an office or place of business within city limits or if their annual value of products, gross proceeds of sales, or gross income within the city equals or exceeds $2,000. Companies that don’t meet this criteria but require a regulatory license or specialized permit will still need to secure a Bellevue business license.[7]

Step 5: Search for Washington Professional Licenses

Certain professions require specific licenses in Washington to ensure competence and regulatory compliance. Jobs such as healthcare providers (doctors, nurses), attorneys, architects, engineers, and real estate agents must obtain professional licenses from the respective state licensing boards.

For example, healthcare practitioners must be licensed by the Washington State Department of Health. At the same time, attorneys must be admitted to the Washington State Bar Association. If you are entering a regulated profession, it is essential to research and obtain the necessary professional license to practice legally and maintain professional standards in Washington.

Step 6: Apply for a Washington Home-Based Business License

In Washington, home-based businesses may require a home occupation permit or a business license, depending on the city or county's local regulations. Suppose you plan to operate a home-based business. In that case, you must check with your local city or county government to determine if a specific license or permit is required.  

Step 7: Maintain Your Washington Business License

In Washington, businesses are typically required to renew their business license yearly. The Washington State Department of Revenue manages the renewal process for most companies. However, certain professions or industries may have additional licensing requirements or renewal schedules.

Business owners in Washington need to stay updated on the renewal dates and requirements specific to their industry to ensure compliance and uninterrupted operations. Visit the Washington State Department of Revenue’s website or contact the department directly for more information on business license renewal in Washington.

Apply for a Washington Business License Online

Are you an aspiring entrepreneur in Washington, ready to bring your business idea to life? Don’t let the daunting task of obtaining a business license hold you back. We understand your challenges: the time-consuming paperwork, the confusing regulations, and the overwhelming process. But fear not! Swyft Filings is here to be your guiding light. 

With our convenient online application platform, we’ve simplified the entire process, allowing you to complete a Washington business license application efficiently. Say goodbye to endless queues and hello to a streamlined experience. Take control of your entrepreneurial destiny.

FAQs

How do I get a business license in Washington? 

To obtain a business license in Washington, you can apply online through the Washington State Department of Revenue website or contact your local city or county office for specific requirements and details.

Does Washington require a general business license? 

Yes, Washington requires most businesses to have a general business license. However, certain professions or industries may have additional licensing requirements specific to their field.

Can you sell things in Washington without a license? 

No, a business license to legally sell goods or services in Washington is generally required. Operating without a permit may result in penalties or legal consequences.

Do I need a special license for an online business in Washington? 

Depending on the nature of your online business, you may need additional permits or licenses. For example, you may need a sales tax permit if you sell tangible products. Consult the Washington State Department of Revenue for specific licensing requirements.

Can I collect sales tax in Washington without a license? 

No, to collect sales tax in Washington, you must obtain a sales tax permit from the Washington State Department of Revenue. This permit allows you to legally collect and remit sales tax on behalf of the state.

How much does a Washington business license cost? 

The cost of a business license in Washington varies depending on factors such as the type of business, location, and annual revenue. It is best to check with the Washington State Department of Revenue or your local city or county office for specific license and processing fee information.

What's the penalty for not having a business license in Washington? 

Operating a business without the required license in Washington can result in financial and legal consequences. Penalties may include:

• Fines

• Suspension of business activities

• Loss of city endorsements

• Other enforcement actions

It is crucial to comply with licensing requirements to avoid these penalties and maintain good standing with the state.

Bibliography

1. Washington's Governor Jay Inslee. “Economy.” Accessed June 25, 2023. 

2. Washington State Department of Revenue. “Apply for a Business License.” Accessed June 25, 2023. 

3. Federal Trade Commission. “Business Guidance.” Accessed June 25, 2023. 

4. Washington State Department of Revenue. “Home.” Accessed June 25, 2023. 

5. City of Seattle. “Business Licenses.” Accessed June 25, 2023. 

6. City of Spokane. “Licenses.” Accessed June 25, 2023. 

7. City of Bellevue. “Business Licenses.” Accessed June 25, 2023.