Business Licenses in Washington State: Types, Applications, and Renewals

Starting a business in Washington? Before you launch your product, open your storefront, or build your website, there’s one important legal step to check off your list: getting a business license in Washington State. Whether you're running a small home-based business or a high-growth startup, understanding the business license requirements in Washington State is essential to staying compliant and operating legally.

In this comprehensive guide, we’ll explore everything from the types of business licenses in Washington State, how to apply, what to expect for renewals, and where small businesses fit into the picture. By the end, you’ll know exactly how to secure, maintain, and renew your Washington State small business license with confidence.

Why Business Licenses Matter in Washington State?

Operating without the proper license in Washington can lead to fines, back taxes, and legal shutdowns. But compliance isn’t the only reason to be licensed.

A valid business license also:

• Legitimizes your business in the eyes of clients and vendors
• Opens the door to funding and permits
• Ensures you’re paying the correct taxes
• Helps you register for other required licenses at the local and state levels

Whether you’re a contractor, consultant, online retailer, or restaurant owner, getting licensed is a foundational step for every Washington-based entrepreneur.

Business Licenses Matter in Washington State

Do You Need a Business License in Washington State?

In most cases, the answer is yes. If you conduct business activities in Washington or have a physical presence in the state, you're likely required to obtain a license.

You're required to get a Washington State business license if:

• You operate under a name other than your legal personal name
• Your business grosses over $12,000 annually
• You plan to hire employees within the next 90 days
• You sell a product or service subject to Washington state taxes
• You are required to pay the Washington Business & Occupation (B&O) tax

This includes sole proprietors, LLCs, corporations, and even nonprofits in some cases.

Note that Washington’s B&O tax applies to gross receipts regardless of profit, while sales tax is collected from customers and remitted to the state.

3 Types of Business Licenses in Washington State

Washington does not have a one-size-fits-all business license. Instead, it uses a layered approach combining state registration with industry-specific and location-based permits.

Here’s a breakdown of the main types of business licenses in Washington State:

1. State Business License (Unified Business Identifier – UBI)

This is your core business license issued by the Washington State Department of Revenue (DOR). It comes with a Unified Business Identifier (UBI) number used across agencies.

All businesses need this before opening or operating.

2. City Business Licenses

Cities like Seattle, Tacoma, Spokane, and Bellevue may require their own business licenses. Even if you have a state license, you must also comply with local business licensing requirements.

Check with your city’s business licensing department for exact rules.

3. Speciality or Regulatory Licenses

Some industries require additional licensing from state boards or agencies. These include:

• Contractors (Department of Labor & Industries)
• Daycare providers (Department of Children, Youth, and Families)
• Food businesses (Washington State Department of Health)
• Cannabis-related businesses (Liquor and Cannabis Board), but Cannabis licenses face strict caps and moratoriums in many jurisdictions, making the approval process longer and more competitive than for other industries.
• Financial services (Department of Financial Institutions)

Make sure to verify whether your industry has separate licensing needs.

Types of Business Licenses in Washington State

Getting a Business License in Washington State: Step-by-Step

Applying for your Washington State small business license can be done entirely online through the Washington Business Licensing Service. The Washington Business Licensing Service (BLS), operated by the Department of Revenue (DOR), is the state’s central portal for business licensing.

Step 1: Register Your Business Structure

Before applying for a license, you must:

• Choose a business name
• Decide on your structure (LLC, corporation, sole proprietorship)
• Register with the Secretary of State if you’re forming an LLC or corporation

Sole proprietors and general partnerships register directly through the licensing process.

Step 2: Create a SecureAccess Washington (SAW) Account

Visit dor.wa.gov and create a SecureAccess Washington (SAW) account to access the Business Licensing Wizard.

This tool will guide you through:

• Identifying your license and permit needs
• Registering your business
• Calculating applicable fees

Step 3: Complete and Submit the Business License Application

Provide details such as:

• Business name and address
• Owner or officer information
• NAICS industry code
• Projected annual gross income
• Number of employees and expected payroll
• Whether you’ll be selling taxable goods or services

Application Fee:

• $90 for your main Washington State business license
• Additional fees apply for speciality licenses or city add-ons

Step 4: Wait for UBI Assignment and Approvals

Once approved, you will receive:

• Your Washington UBI number
• A confirmation of business registration
• Approval for any local licenses requested

Processing typically takes 5 - 10 business days, but city license approvals or additional regulatory checks can extend processing to 2 - 4 weeks.

Getting a Business License in Washington State

Business License Requirements in Washington State

Your application may trigger additional requirements based on your business type, such as:

• Filing for a Trade Name (if operating under a name different from your own or your entity’s legal name)
• Filing a trade name (DBA) costs $5 and must be renewed annually along with your business license.
• Registering with the Department of Labor & Industries if hiring employees
• Setting up unemployment insurance with the Employment Security Department
• Filing for sales tax collection authority if you sell taxable items

These are common add-ons during or shortly after the license application process.

Washington State Small Business License: What You Need to Know

For small businesses, especially sole proprietors and freelancers, the license requirements are often simpler, but no less important.

The key points for small business owners:

• Even if you're the only employee and operate from home, you may still need a business license
• If you earn over $12,000 in gross revenue, you must apply
• Most home-based businesses also need to meet zoning and city permit requirements
• If you work under a trade name (e.g., “Seattle Design Co.”), you must file a trade name certificate

Even informal or part-time businesses need to comply with the state’s licensing framework to operate legally.

Key points for small businesses in Washington State

Renew Business License in Washington State: How and When

All Washington State business licenses must be renewed annually. The renewal notice will be sent by email or mail approximately 30–45 days before the expiration date.

Renewal Process:

1. Log in to your SAW (SecureAccess Washington) account
2. Navigate to the Business Licensing Service
3. Review your license details
4. Renewal costs start at $10 for the basic license, but additional fees apply for each city license or specialty endorsement. 

For example, Seattle business license renewals may cost several hundred dollars annually, depending on business size.

Failure to renew can result in:

• Late fees
• Inactive status
• Loss of compliance with regulatory bodies
• Cancellation of endorsements or permits

Proactively renewing your business license keeps your business in good standing and avoids unnecessary disruptions.

Final Thoughts: Starting and Sustaining Your Business Legally in Washington

Understanding how business licenses in Washington State work is essential for any business owner aiming to grow, scale, or even operate legally within the state. From applying for your first license to ensuring timely renewals, staying compliant with Washington's licensing requirements gives your business a strong foundation and prevents regulatory setbacks.

Whether you’re an independent contractor, retail business, online seller, or launching a new LLC, getting a business license in Washington State is your first step toward legitimacy and legal protection. Even if your business has no sales or income, you must file a No Business Activity report each year to maintain good standing.

To streamline this process, One IBC USA offers comprehensive business registration and licensing services tailored to entrepreneurs and companies operating in Washington State. Our team assists with registering your entity, applying for the appropriate business licenses, and managing ongoing compliance with local, state, and speciality industry regulations.