To get a business license in Washington, you need to register for a state business license through the Business Licensing Service of the Washington Department of Revenue. This service will also issue your Unified Business Identifier (UBI) number. Depending on where you’re located and what you plan to sell, you might also need a city license, a specialty endorsement, or a professional credential from a state licensing board. The process involves more than one application because Washington splits licensing authority across state, city, and industry-specific agencies.

Below, we’ll discuss how to get a business license in Washington, what counts as a business license in the state, and the licenses and permits you might need.

Key takeaways

• Washington requires a state business license for nearly every business, and many cities add their own licensing requirements.

• The state business license costs a flat fee, but total costs vary widely once you factor in city fees and specialty endorsements.

• Renewal dates are tied to your registration date, so track your specific renewal window.

What is a business license in Washington?

A business license in Washington almost always means the state business license, which is issued through the Department of Revenue’s Business Licensing Service. That license covers state-level obligations such as business and occupation (B&O) tax but doesn’t fulfill the requirements your city or county might impose.

What types of business licenses and permits do you need in Washington?

The types of business licenses and permits you need in Washington depend on your industry and location. Here are the main categories:

• State business license: Nearly every business that operates in Washington needs a state business license. This is your entry point into the Department of Revenue’s system and the source of your UBI number.

• City business license: Many cities, including Seattle, Tacoma, Bellevue, and Spokane, require a local license in addition to the state one, often with its own fee based on revenue or employee count.

• Specialty endorsements: Certain activities, such as the sale of liquor and the operation of a cannabis business or a business that handles firearms, require another endorsement on your state business license application.

• Professional and occupational licenses: Contractors, real estate agents, cosmetologists, healthcare providers, and similar regulated professions need a license from the relevant Washington licensing board to operate legally.

• Reseller permit: If you plan to sell taxable goods, you’ll need this permit from the Department of Revenue to buy inventory wholesale without paying sales tax up front.

• Federal licenses: Businesses in federally regulated industries, such as those that involve alcohol production, aviation, or firearms sales, need licensing from the applicable federal agency in addition to state and local requirements.

How do you get a business license in Washington?

You’ll need to prepare your business structure and registration details first because the Business Licensing Service pulls that information into your application. Here’s how the process works:

Choose and register your business structure

Decide whether you’re operating as a sole proprietorship, limited liability company (LLC), or corporation. If you’re forming an LLC or a corporation, you must register with the Washington secretary of state before you start the licensing application because you’ll need to provide your entity’s formation confirmation.

Get an Employer Identification Number (EIN)

Sole proprietors without employees can skip this step and use a Social Security number instead, but businesses typically need an EIN from the IRS to open a bank account or hire staff.

Apply for your Washington state business license

You’ll do this through the Department of Revenue’s Business Licensing Service online through the state’s Business Licensing Wizard or by mailing in a paper application. The online path is faster. Most applications process within 10 business days, although specialty endorsements can take longer.

Get a UBI number

This doesn’t involve a separate application. The number is issued automatically as part of your state business license application and becomes your reference number for tax filings, renewals, and any correspondence with state agencies.

Apply for a reseller permit if you plan to sell taxable goods

The Department of Revenue issues this separately from the general business license. You’ll need your UBI number to apply.

Check whether your city requires a separate license

If you’re in Seattle, Tacoma, Bellevue, or another city with its own licensing program, you’ll need to apply through that city’s finance or revenue department. Some cities, including Seattle, let you apply through the state’s combined licensing portal, which reduces separate paperwork.

Get any required professional or specialty endorsements

If your industry requires a board license (e.g., contracting, cosmetology), apply through the relevant Washington licensing board. If you need a specialty endorsement, such as for alcohol or cannabis, add it to your state business license application.

Once everything’s approved, keep copies of your license and UBI confirmation easily accessible. You’ll reference the UBI number constantly, including for tax filings, opening a business bank account, and more.

How much does a business license cost in Washington?

Washington’s state business license fee is $50 when you apply online, but the exact amount depends on which endorsements you’re adding. Local fees vary widely and stack on that, so your total cost depends on where you’re located and what you sell.

Here’s an overview:

City fees are the biggest variable. Because Seattle scales its business license tax based on gross revenue, a small home-based operation might pay close to the minimum, while a larger local business pays considerably more. Specialty endorsement costs vary just as widely. A liquor endorsement, for instance, costs far more than a tattoo or body art endorsement. Check the Department of Revenue’s fee schedule and consult your city’s finance department before you budget—be aware these figures can shift periodically.

How do renewals work for a Washington business license?

Washington ties your license renewal date to your registration date. The Department of Revenue sends a renewal notice by mail or email in the weeks before your license expires, depending on which contact method you selected when you applied.

Renewing can be easy if you keep your information current. You’ll log back in to the Business Licensing Service portal, confirm or update your business details, and pay the renewal fee, which mirrors your original state license fee. City licenses renew separately and on their own schedules. Check with your city’s finance department if you hold one of those licenses.

Missing the deadline means paying a late fee and, potentially, the loss of your reseller permit or specialty endorsements if the lapse drags on. Operating on an expired license also complicates tax filings because the state ties your B&O tax account to an active license.

What are Washington-specific business license rules and mistakes to consider?

Washington’s licensing quirks can confuse new business owners. The combination of state and local licensing means the rules that apply to a business two blocks away might not apply to yours. Confirm your city and industry requirements with the relevant agency.

Here are some common areas of confusion:

• Home-based businesses still need a license: Working from your kitchen table doesn’t exempt you from the state business license requirement; some cities, including Seattle, require a separate home occupation permit on top of that.

• Nonprofits aren’t automatically exempt: Washington nonprofits typically still need a state business license, even if they qualify for exemptions on specific taxes, such as B&O tax, once they’re registered.

• Multiple cities mean multiple licenses: If you do business in more than one Washington city—for example, a contractor who works job sites in Seattle and Bellevue—you’ll likely need a separate city license for each one.

• The reseller permit isn’t automatic: Registering for a state business license doesn’t grant you a reseller permit; you must apply for it separately. The Department of Revenue will consider it misuse if you use the permit to buy items for personal use rather than resale.

• Some professions need board approval before licensing: If your industry is regulated by a state board (e.g., cosmetology, real estate), you’ll need that board’s approval before you can complete your business license application.

• Digital and online-only businesses still count as operating in Washington: If your business is based in Washington but sells exclusively online, you still need the state business license and any applicable city license tied to your business address.

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FAQs about business licenses in Washington