How to get a Washington business license in 2025

Published on Monday 2 June 2025

Table of contents

• Do you need a business license in Washington?
• How to get a business license in Washington
• Costs and processing time
• Common mistakes to avoid
• FAQs on getting your Washington business license
• Get your business set up right with Xero

Key takeaways

• Most businesses in Washington must apply for a state license through the Department of Revenue's Business Licensing Service.
• You'll need to register your business name and structure with the Secretary of State before applying for a license.
• You might also need city or specialty licenses depending on your business location and industry.
• You’ll need to renew Washington business licenses every year to remain active and in compliance with state regulations.

Do you need a business license in Washington?

Yes – whether you’re starting a business remotely or launching a brick-and-mortar retail shop, you'll probably need a business license (or licenses) to operate legally.

You’ll likely need to get a business license if you:

• Advertise or market goods or services
• Sell products online or in-person
• Collect sales tax
• Have employees or independent contractors
• Open a physical location or create a mobile business
• Provide professional services under a name that isn’t your legal name

Even home-based businesses must follow state and local regulations, including any zoning permits or home occupation licenses needed in the area.

Here’s a breakdown of key state and local licensing requirements and how they could apply to your business.

State requirements

There are two requirements at state level: registration, and the license itself. Most businesses in Washington must register with the state through the Washington State Department of Revenue’s business licensing service (BLS). When you register you’ll receive a unified business identifier (UBI) number – a unique ID for your business that agencies across WA can use to identify you.

You’ll then need a Washington business license if you meet one or more of the following:

• You plan to hire employees in the next 90 days
• Your gross income is over $12,000 per year
• Your business collects Washington sales tax
• You plan to operate under a trade name (a DBA – a “doing business as” name)
• You plan to carry out business activities like liquor sales, construction, or cosmetology that require special endorsements (extra rights or privileges)

Even small side gigs can cross the $12,000 threshold faster than you'd think. If you’re not sure, it’s better to register early to avoid the risk of backdated taxes or penalties.

Local requirements

Beyond the state business license, most Washington cities require your business to have local business licenses or permits to operate there. The requirements for these licenses vary, so check with your city to see which type of license you’ll need for your business.

• For Seattle and Tacoma: FileLocal licensing portal
• For Spokane: MySpokane licensing portal

In most cases, local license requirements are based on your business’s location, type of business activity, and any signage, customer traffic, or environmental factors that could affect the surrounding community.

Extra licenses for certain activities or industries

Certain types of businesses will need extra licensing or endorsements on top of the state license. These types of businesses include (but aren't limited to):

• Food service businesses
• Daycare and childcare centers
• Construction and trades
• Cosmetologists and estheticians
• Alcohol retailers
• Healthcare providers
• Medical cannabis retailers

If your business operates within any of these industries, you'll likely need state endorsements or health and safety permits from agencies like the Washington State Department of Health or the Liquor and Cannabis Board.

Don't skip on due diligence. Check with your state and local authorities to make sure you comply fully with your Washington business registration requirements.

Exemptions to state licensing rules

Exemptions to state licensing rules are rare (usually for certain types of nonprofits or if your business makes less than $12,000 per year and meets certain criteria.) Local requirements still apply, though, so it’s a good idea to check with your city or county government to make sure you're 100% sure you’re OK.

How to get a Washington business license

Here are the steps to apply for a business license in Washington:

1. Choose a business structure

Your choice of structure determines how you file taxes, handle financial and personal liability, and register your business with state and local agencies.

Here are several common types of business structures:

• Sole proprietorship: simple and inexpensive to operate, but it offers no financial liability protection.
• Partnerships: typically organized by 2 or more individuals who contribute money, labor, or skill to a business, but each partner is liable for any partnership debts and terms are outlined in a membership agreement.
• LLC (limited liability company): One of the most popular choices for small businesses, an LLC gives you personal liability protection and flexible tax options, such as the ability to file as a sole proprietorship or corporation.
• Corporation: Complex organization that operates as its own entity. Filing with the Secretary of State is required before filing for a Business License Application.

2. Register your DBA business name if you’re using one

If you’re doing business under a name different from your legal name or business entity name, you’ll need to register it with the Washington Department of Revenue. The cost is usually $5 per DBA.

3. Get your employer identification number (EIN)

If you’re hiring employees for your business or you’re forming an LLC or corporation, you’ll need an EIN from the IRS. It’s free and you can apply directly through the IRS’s website.

4. Apply for a business license in Washington

You can complete your business license application online through the Washington State Department of Revenue’s BLS portal. You’ll need to enter some information about your business, including:

• Your type of business structure
• Ownership and manager information
• Any trade names (DBAs) you operate under
• Any endorsements your business needs

Once you’ve applied, you should receive your UBI number for Washington.

5. Check for local and specialty requirements

Look out for two things:

• Local application processes – some cities have their own business licensing and application processes, like Seattle’s and Tacoma’s FileLocal portal and Spokane’s MySpokane portal mentioned above.
• Local endorsements – depending on the type of business, you may need zoning clearance, occupancy permits, or other local endorsements.

Costs and processing times for Washington business licenses

Costs and processing times vary, but here’s some general guidelines:

License costs

• State business licenses cost $90 (plus $10 for each DBA), while the costs for local business licenses vary by city.
• Specialty endorsement costs vary based on the type of business activity – check with your local authority.
• Renewals of state licenses typically cost $71 in Washington at time of writing, and you must renew annually.
• Other costs and separate fees for things like city-specific licenses, endorsements, and specialty permits can vary by location and industry, so check with your local agency for the latest fees.

Processing times

• Online applications take around 10 business days to be approved, and mail-in forms can take longer.
• Processing times for local licenses and business permits in Washington State vary by jurisdiction – check with your local agency so you don’t get delayed.

Common mistakes to avoid

Here are some common mistakes to avoid that many business owners often make include:

• Remember local licensing requirements

The state license might not be everything you need to run a business in Washington – check your city or county requirements to be sure.

• Give complete and accurate information Incomplete info or typos in your EIN, missing documents, or mismatched names can delay approval or even get your application denied. So check everything thoroughly.
• Choose the right endorsements

You’ll need the right endorsements on your state license if you sell food, hire staff, or operate in more than one place, for example. And if your activities change, update your license with the right endorsements.

• Meet renewal deadlines

You need to renew your Washington business license annually. There are renewal periods for local licenses, too, so stay up to date with these.

• Keep your business details up to date

Don’t leave updates until the last minute. If you need to make changes to your business info at the Washington Department of Revenue, do so as soon as you can.

FAQs on how to get a Washington business license

What happens if I operate without a business license in Washington?

It’s not a good idea. If you operate without a license you can be fined, your business closed down, or be hit with backdated tax penalties. You could also be blocked from opening a business bank account or signing vendor contracts.

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

It depends where you are and how you apply. Online applications take about 10 business days, and paper submissions take longer. Some city licenses may take extra time depending on inspections or review, but typically expect an extra 2–3 weeks.

Are there exemptions to needing a business license in Washington?

It’s rare. Some businesses earning less than $12,000 a year may be exempt from state licensing, but local rules still apply. Always check with your city before assuming you're exempt and keep your finances organized with tools like Xero accounting software so your finances are always up to date.

Do I need a separate license if I operate my business in multiple Washington cities?

Yes. Most cities require a separate license, even if you already have a state license. Use FileLocal to manage Washington business registration in cities like Seattle and Tacoma, and MySpokane for jurisdictions in Spokane.

I’m running my business from my home in Washington. Do I need a license?

Yes. Even if you’re starting a business from home, you still must meet any zoning and licensing requirements for your business location and activities.

What documents do I need to apply for a business license in Washington?

You’ll need your business name and structure, owner, manager or partner names and contact details, your EIN if applicable, the physical and mailing addresses for your business, and any zoning approvals you’ve been granted.

Are there tax benefits or incentives for licensed businesses in Washington?

Yes, there are some exemptions and benefits. Registered businesses may qualify for tax credits, especially those creating jobs or investing in rural areas. Check out programs with the Washington State Department of Commerce.

Get your business set up right with Xero

You’ve got your Washington business license – now you need to streamline your operations and stay organized. Xero helps new business owners manage their finances with intuitive tools for invoicing, expense tracking, and real-time reporting.

Start using Xero for free and stay on top of your business from day one.