How to get a Washington business license

Published Wednesday 6 May 2026

Table of contents

• Do you need a business license in Washington?
• How to get a business license in Washington
• Costs and processing times for Washington business licenses
• What happens if you operate without a license?
• Common mistakes to avoid
• How to renew your Washington business license
• Stay organized after licensing with Xero
• FAQs on Washington business licenses

Key takeaways

• Most businesses in Washington need a state license through the Department of Revenue's Business Licensing Service, and many cities require separate local licenses too.
• The application process involves 5 steps: choosing a business structure, registering a trade name, getting an employer identification number (EIN), applying online, and checking local requirements.
• A new state business license costs $50 in processing fees, plus any endorsement or trade name fees, and you'll need to renew annually for $5 plus endorsement fees.
• Operating without a license can lead to fines, business closure orders, and backdated tax penalties, so it's worth getting licensed early.

Do you need a business license in Washington?

A business license is an official permit from a government authority that allows you to conduct business activities within a specific jurisdiction. In Washington, most businesses need at least a state license, and many also need local city or county licenses. If you skip this step, you could face fines, closure orders, or backdated tax penalties.

Whether you're starting a business from your living room or opening a storefront, you'll likely need a 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 run 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 required 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 2 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 Washington can use to identify you.

You'll need a Washington business license if you meet 1 or more of the following criteria:

• 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 "doing business as," or DBA, name)
• you plan to carry out business activities like liquor sales, construction, or cosmetology that require special endorsements

Even small side gigs can cross the $12,000 threshold faster than you'd expect. If you're not sure whether you need a license, 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 local business licenses or permits. The requirements vary by city, so check with your local government to see what you'll need.

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

In most cases, local license requirements depend on your business's location, type of 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 need extra licensing or endorsements on top of the state license. These 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. Check with your state and local authorities to make sure you comply fully.

Professional and occupational licenses

Some professions require a separate occupational or professional license before you can practice in Washington. This is in addition to your general state business license. Regulated professions include:

• medical practitioners (doctors, nurses, dentists)
• attorneys and legal professionals
• certified public accountants
• general contractors and electricians
• cosmetologists and barbers
• real estate agents and brokers

Each profession has its own licensing board or authority in Washington. For example, contractors register through the Department of Labor and Industries, while healthcare professionals go through the Department of Health. Check with the relevant licensing authority for your profession to understand the specific education, exam, and experience requirements.

Federal licenses and permits

If your business involves federally regulated activities, you may need a license or permit from a federal agency in addition to your Washington state and local licenses. Activities that typically require federal permits include:

• agriculture and farming (U.S. Department of Agriculture)
• firearms manufacturing or sales (Bureau of Alcohol, Tobacco, Firearms and Explosives)
• alcohol production or wholesale distribution (Alcohol and Tobacco Tax and Trade Bureau)
• aviation and transportation (Federal Aviation Administration, Department of Transportation)
• radio and television broadcasting (Federal Communications Commission)

You can check with the U.S. Small Business Administration or the IRS for guidance on whether your specific business activities require federal licensing.

Exemptions to state licensing rules

Exemptions to state licensing rules are rare. They usually apply to certain types of nonprofits or to businesses that earn less than $12,000 per year and meet specific criteria. Local requirements still apply, though, so check with your city or county government to make sure you're covered.

How to get a business license in Washington

Applying for a business license in Washington involves 5 main steps. Here's what to do.

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:

• Sole proprietorship: simple and inexpensive to operate, but it offers no personal liability protection
• Partnership: typically formed by 2 or more individuals who contribute money, labor, or skill to a business, but each partner is liable for partnership debts
• LLC (limited liability company): one of the most popular choices for small businesses, an LLC gives you personal liability protection and flexible tax options
• Corporation: a more complex structure that operates as its own legal entity, requiring filing with the Secretary of State before applying for a business license

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 $5 per trade name.

3. Get your employer identification number (EIN)

If you're hiring employees or forming an LLC or corporation, you'll need an employer identification number (EIN) from the IRS. It's free, and you can apply directly through the IRS 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. If you're not sure which licenses and endorsements apply to your business, start with the Business Licensing Wizard, which walks you through a series of questions to identify your requirements. You'll need to provide:

• 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

After you've submitted your state application, look out for 2 additional things:

• Local application processes: some cities have their own business licensing portals, like Seattle's and Tacoma's FileLocal portal and Spokane's MySpokane portal
• 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 depending on your business type and location. Here are some general guidelines based on the Department of Revenue's fee schedule.

License costs

The state business license processing fee is $50 for new business applications. You'll also pay $5 for each trade name (DBA) you register. Specialty endorsement fees vary based on your business activity, so check with the relevant agency for current rates.

City license fees are separate and vary by jurisdiction. Seattle, Tacoma, and Spokane each have their own fee structures. Check with your local government for the latest rates.

Processing times

Online applications typically take around 10 business days for approval. Paper applications submitted by mail can take longer. Processing times for local licenses and permits vary by jurisdiction, so check with your local agency to avoid delays.

What happens if you operate without a license?

Operating a business in Washington without the required licenses carries serious consequences. It's not just a paperwork issue; it can affect your finances, your reputation, and your ability to keep running your business.

Potential penalties and consequences include:

• Fines from the Department of Revenue for unlicensed business activity
• Business closure orders that force you to stop operating until you're properly licensed
• Backdated tax assessments, meaning you could owe taxes from the date you started operating, plus interest and penalties
• Difficulty opening a business bank account or signing vendor contracts, as many institutions require proof of licensing
• Late renewal penalties of up to half the endorsement fee or $150, whichever is less, per the Department of Revenue

The longer you operate without a license, the more these consequences can compound. If you're unsure about your licensing requirements, it's worth reaching out to the Department of Revenue's Business Licensing Service or using the Business Licensing Wizard to check.

Common mistakes to avoid

Getting licensed in Washington is straightforward, but a few common missteps can cause delays or compliance issues. Here's what to watch for.

• Forgetting 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.
• Submitting incomplete or inaccurate information: typos in your EIN, missing documents, or mismatched names can delay approval or get your application denied. Double-check everything before submitting.
• Choosing the wrong endorsements: you'll need the right endorsements on your state license if you sell food, hire staff, or operate in more than 1 location. If your activities change, update your license with the correct endorsements.
• Missing renewal deadlines: you need to renew your Washington business license annually. Local licenses have their own renewal periods too, so stay up to date.
• Not keeping business details current: if you need to make changes to your business information at the Washington Department of Revenue, do so as soon as possible rather than waiting until renewal.

How to renew your Washington business license

Washington business licenses must be renewed every year. The state sends renewal notices, but it's your responsibility to make sure your license stays current. Here's what you need to know.

The renewal process involves a few key steps:

1. Log in to your account on the Department of Revenue's Business Licensing Service portal.
2. Review your business details and update any information that's changed, such as your address, business activities, or trade names.
3. Pay the $5 annual processing fee, plus any applicable endorsement fees.
4. Submit your renewal before the expiration date on your license.

If you miss the deadline, you'll face a late renewal penalty. This is typically half the endorsement fee or $150, whichever is less. City licenses have their own renewal schedules and fees, so check with each local jurisdiction where you hold a license.

Keeping your business details up to date throughout the year makes renewal faster and helps you avoid errors. If you've added a new trade name, changed your business address, or started a new activity that requires an endorsement, update your records promptly rather than waiting until renewal.

Stay organized after licensing with Xero

Getting your Washington business license is just the first step. From there, you'll need to track expenses, manage invoices, and stay on top of tax obligations to keep your business compliant and running smoothly. Xero accounting software helps small business owners manage their finances with tools for invoicing, expense tracking, bank reconciliation, and real-time reporting, all in 1 place.

Whether you're a sole proprietor or running an LLC, Xero can help you stay organized so you can focus on growing your business. Get 1 month free and see how it works for you.

FAQs on Washington business licenses

Here are some frequently asked questions about Washington business licenses.

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

Beyond fines and closure orders, unlicensed businesses in Washington can lose access to legal protections that licensed businesses have, such as the ability to enforce contracts in court. Getting licensed before you start operating is the safest approach.

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

Online applications through the BLS portal typically take around 10 business days. Paper submissions take longer. Some city licenses may require inspections or additional review, which can add 2 to 3 weeks to the timeline.

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

Yes. Most cities require their own business license, even if you already hold a state license. You can use FileLocal to manage licenses in cities like Seattle and Tacoma, and MySpokane for Spokane.

Do I need a business license if I have an LLC in Washington?

Yes. Forming an LLC with the Secretary of State is a separate step from getting a business license. Your LLC registers your business entity, but you still need a state business license through the Department of Revenue if you meet any of the licensing thresholds, such as earning over $12,000 or hiring employees.

Do I need a business license to sell online in Washington?

Yes, if your online business meets any of the standard licensing triggers, such as earning over $12,000 per year or collecting Washington sales tax. The license requirement applies whether you sell from a physical location or entirely online. You can apply through the same BLS portal that all Washington businesses use.

Do I need a license for a home-based business in Washington?

Yes. Home-based businesses must meet the same state licensing requirements as any other business. You may also need a home occupation permit or zoning approval from your city or county, depending on the nature of your business and where you live.