By Jake Lawson, LLC Formation Strategist
Alright, let’s talk about Washington state business licensing. Unlike many states where you might need a license or you might not, Washington has a simple rule: every single LLC needs a State Business License. Period. No exceptions, no matter what your business does.
But here’s where it gets interesting (and actually pretty smart): Washington’s “Business License” isn’t just a license—it’s what they call “bulk registration.” One application gets you registered for taxes, potentially gets you a city license, handles specialty licensing if needed, and even lets you register a trade name (DBA) if you want one.
After helping hundreds of Washington entrepreneurs navigate this system, I can tell you it’s actually one of the more efficient state licensing approaches I’ve encountered. Yes, it costs $90 upfront, but you’re getting a lot done with one application.
Let me break down everything you need to know about Washington’s unique licensing system.
Washington’s “Bulk Registration” System: One Application, Multiple Results
When you complete Washington’s Business License Application, here’s what happens automatically:
1. State Business License ($90, permanent)
This is your permission to do business in Washington state. Unlike some states where this expires annually, Washington’s State Business License never expires—it’s good forever.
2. Tax Registration with Department of Revenue (included)
Your LLC gets registered for Washington’s Business & Occupation (B&O) tax and Sales & Use tax (if applicable). This is automatic whether you owe these taxes or not.
3. City Business License (additional fee, varies by city)
If your city has partnered with the state system, you can get your city license at the same time. About 80% of Washington cities participate in this system.
4. Labor & Industries Registration (if you have employees)
If you’re hiring employees, you automatically get registered for workers’ compensation insurance.
5. Employment Security Department Registration (if you have employees)
Also automatic if you’re hiring—this handles unemployment insurance.
6. Specialty Licenses (if applicable)
Certain regulated industries can get their specialty licenses through the same application.
7. Trade Name Registration (optional, $5)
Washington’s version of a DBA (Doing Business As) name can be added to the same application.
Jake’s take: This bulk approach is actually brilliant. Instead of running around to five different agencies, you handle most of your compliance in one shot. Sure, $90 seems steep compared to states with $20 licenses, but when you factor in everything you’re getting, it’s actually a good value.
The $90 State Business License: What You Need to Know
Let’s address the elephant in the room—that $90 fee. I get questions about this constantly because many websites still show the old $19 fee from before July 2020.
Why the Fee Increased
In 2020, Washington passed legislation (Senate Bill 6632) that increased the Business License Application fee from $19 to $90. The increase funds enhanced business services and streamlined processes.
What the $90 Covers
- State Business License: Your permission to operate in Washington
- Tax registration: B&O tax, sales tax, use tax setup
- Employee registrations: L&I and ESD if applicable
- City license processing: For participating cities
- Specialty license processing: For applicable industries
- Trade name registration: If you choose to add one
Is It Worth It?
Compared to other states where you might pay:
- $25 for state registration
- $50 for tax registration
- $75 for city licenses
- $40 for employee registrations
- $25 for trade name registration
Washington’s $90 all-in-one approach actually saves money and time.
One-Time Payment
The best part: this is a one-time fee. Your State Business License never expires, unlike states where you pay annually forever.
City Business Licenses: The Three-System Approach
Most Washington cities require their own business license in addition to the state license. Washington has created three systems to handle this:
System 1: Department of Revenue Partnership (Most Cities)
About 200+ Washington cities have partnered with the state Department of Revenue. When you complete your State Business License application, you can get your city license simultaneously.
Cities using this system include:
- Spokane
- Vancouver
- Bellingham
- Olympia
- Yakima
- Most smaller cities and towns
How it works: During your state application, you’ll be asked about your business location. If your city participates, you’ll see city license options and fees.
Typical city license fees: $25-$150 annually (varies by city and business type)
System 2: FileLocal Partnership (Puget Sound Region)
Several major cities in the Puget Sound area use a separate system called FileLocal instead of working with the state.
Cities using FileLocal:
- Seattle
- Tacoma
- Bellevue
- Everett
- Renton
- Shoreline
- Des Moines
- Lake Forest Park
How it works: You still need to complete the state Business License Application, but you’ll need to separately apply for your city license through FileLocal.
Important: If your business is in any of these cities, budget extra time and money for a separate city license application.
System 3: Independent City Systems (Rare)
A few cities haven’t joined either system and handle business licensing independently. If your city isn’t listed with either the Department of Revenue or FileLocal, call them directly.
Business Location: What Determines Your City License Requirements
This is where people get confused, so let me clarify the rules:
Physical Business Location
If your LLC operates from a specific location (store, office, warehouse), you need a city license where that location is situated.
Home-Based Businesses
If you operate from home, you need a city license where your home is located. This applies whether you’re running an online business, consulting practice, or any other home-based operation.
Multiple Locations
If your LLC operates in multiple cities, you need a license in each city where you conduct business.
Using a Registered Agent Address
Important consideration: Some business owners use their registered agent’s address (like Northwest Registered Agent in Spokane) as their business address for privacy.
Pros: Keeps your home address private Cons: You’ll need a Spokane city license and file city taxes there
Jake’s recommendation: Only use your registered agent’s address if privacy is genuinely important to your business. For most LLCs, using your actual business location is simpler and cheaper.
Out-of-State Businesses
If you have a Washington LLC but operate entirely outside Washington, you still need the $90 State Business License, but you won’t need a Washington city license.
Specialty Licenses: When Your Business Needs Extra Permission
Some industries require additional licensing beyond the basic state and city requirements:
Included in the Business License Application
A limited number of specialty licenses can be obtained through the same application:
- Auction companies
- Collection agencies
- Commercial whale watching
- Limousines and for-hire vehicles
- Private investigative agencies
- Real estate appraisers
- Scrap metal dealers
- Timeshare resellers
- Travel agencies
Cost: $20-$250 annually depending on the license type
Requires Separate Applications
Most regulated industries need to apply separately with the appropriate agency:
- Healthcare: Department of Health
- Financial services: Department of Financial Institutions
- Professional services: Department of Licensing
- Food service: Local health departments
- Construction: Department of Labor & Industries
Research tool: Check the Department of Licensing list to see if your industry requires separate licensing.
Trade Names (DBAs) in Washington
Unlike most states where you file trade names (DBAs) with the Secretary of State, Washington handles them through the Business License Application.
When You Need a Trade Name
If your LLC wants to operate under a name different from its legal name:
- LLC legal name: “Smith Marketing Services LLC”
- Trade name: “Digital Growth Partners”
Cost and Process
- Fee: $5 (bargain compared to other states)
- Process: Add it to your Business License Application
- Renewal: Trade names renew with your annual tax filings
Jake’s Reality Check
Most LLCs don’t actually need trade names. Your LLC can operate under its legal name in most situations. Only get a trade name if you have a specific marketing or branding reason.
The Application Process: Online vs. Mail
Washington offers both online and mail filing, but this is an easy decision:
Online Filing (Recommended)
- Processing time: 10 business days
- System: MyDOR (requires SAW account setup)
- Convenience: Much easier interface
- Cost: Same $90 fee
Mail Filing (Not Recommended)
- Processing time: 6 weeks
- Process: Print, complete, mail forms
- Convenience: Complicated and slow
- Cost: Same $90 fee
Jake’s take: Unless you’re completely unable to use the internet, file online. The mail process takes forever and offers no advantages.
Step-by-Step Online Filing Process
Prerequisites You’ll Need
- Your LLC’s UBI number: Found on your Certificate of Formation or through the business search
- Business location information: Address where you’ll operate
- Employee plans: Whether you’ll hire employees
- Business activity description: What your LLC will do
Account Setup Process
- Create SAW account: Visit SAW Sign Up
- Verify email: Check for activation code
- Access MyDOR: Use SAW credentials to log into MyDOR
- Start application: Select “Apply for a Business License”
Application Completion
The application asks detailed questions about:
- Business activities and revenue projections
- Employee hiring plans
- Multiple location operations
- City license needs
- Specialty license requirements
- Trade name registration
Important: Answer honestly and completely. The state uses this information to determine your tax obligations and compliance requirements.
After Approval: What You’ll Receive
Within 7-10 business days, you’ll receive:
1. Approved State Business License Certificate
This official document includes:
- Your LLC name and UBI number
- Business address
- City endorsements (if applicable)
- Specialty endorsements (if applicable)
- Trade names (if applicable)
2. Filing Frequency Letter
This tells you:
- How often to file tax returns (monthly, quarterly, annually)
- Your Letter ID for MyDOR account access
- Tax obligations and deadlines
3. Welcome Packets
Additional information about:
- Washington tax requirements
- Filing procedures
- Business resources
Adding Access to MyDOR
After receiving your Filing Frequency Letter, you need to “Add Access” to your MyDOR account:
- Log into MyDOR with your SAW credentials
- Click “Add Access to Account”
- Enter your Letter ID from the Filing Frequency Letter
- Complete the connection process
This gives you full administrative access to file returns and manage your account.
Ongoing Compliance Requirements
State Business License
- Renewal: Never (permanent license)
- Updates: File amendments if business information changes
City Business Licenses
- Renewal: Annually (for most cities)
- Cost: Varies by city ($25-$150+ typically)
- Process: Through original application system (DOR or FileLocal)
Tax Filings
- Frequency: Monthly, quarterly, or annually (based on your Letter)
- Types: B&O tax, sales tax, use tax (as applicable)
- System: MyDOR online filing
Employee-Related Filings
- L&I reports: Quarterly payroll reports
- ESD reports: Quarterly wage and unemployment tax reports
Common Washington Licensing Mistakes
1. Skipping the state license: Every Washington LLC needs this, no exceptions
2. Ignoring city requirements: Most cities require separate licenses
3. Using wrong address: Choose carefully—it determines your city license obligations
4. Forgetting FileLocal cities: Seattle, Tacoma, Bellevue, etc. use a different system
5. Not setting up MyDOR access: You’ll need this for all ongoing compliance
6. Misunderstanding employee vs. contractor: This affects multiple registrations
Strategic Considerations
Timing Your Application
Best practice: Apply for your business license immediately after LLC formation approval. You can’t operate legally without it.
Address Privacy vs. Compliance Costs
Privacy route: Use registered agent address, get city license in their city
Cost-effective route: Use your actual business location
Consider: Is privacy worth the extra compliance complexity?
Multi-Location Planning
If you plan to expand to multiple Washington cities:
- Budget for additional city licenses
- Understand that each city has its own requirements
- Consider administrative complexity of managing multiple licenses
Professional Help: When to Consider It
DIY-Friendly Situations
- Single location business
- No employees initially
- Standard business activities
- Comfortable with online systems
Consider Professional Help If
- Multiple locations across Washington
- Complex employee situations
- Regulated industry requiring specialty licenses
- Multi-state operations requiring foreign LLC registrations
- Significant privacy concerns requiring complex address strategies
Typical cost for professional help: $300-$600 for comprehensive licensing assistance
The Bottom Line on Washington Business Licensing
Washington’s licensing system is comprehensive but efficient. The $90 upfront cost covers a lot of ground, and the bulk registration approach saves time compared to dealing with multiple agencies separately.
Key success factors:
- Apply immediately after LLC formation
- Use online filing for faster processing
- Choose your business address strategically
- Understand your city’s specific system
- Set up MyDOR access for ongoing compliance
- Budget for annual city license renewals
Most important point: This isn’t optional. Every Washington LLC needs a State Business License before conducting any business activities.
Your Washington Licensing Action Plan
Immediate tasks after LLC formation:
- [ ] Gather your UBI number and business information
- [ ] Create SAW account for MyDOR access
- [ ] Complete Business License Application online
- [ ] Research your city’s licensing system (DOR vs. FileLocal)
- [ ] Apply for city license if needed
After approval:
- [ ] Receive and review your approved license
- [ ] Add Access to MyDOR using Letter ID
- [ ] Post license at business location (if applicable)
- [ ] Set up ongoing tax filing schedule
- [ ] Calendar city license renewal deadlines
Ongoing compliance:
- [ ] File required tax returns per your schedule
- [ ] Renew city licenses annually
- [ ] Update license information if business changes
- [ ] Maintain employee-related filings if applicable
Need Help with Washington LLC Licensing?
Washington’s comprehensive licensing system covers a lot of ground, but getting all the details right is crucial for maintaining compliance and avoiding penalties. The bulk registration approach is efficient, but it also means missing one step can create multiple compliance problems.
At llciyo.com, we’ve helped hundreds of Washington entrepreneurs navigate the complete licensing landscape, from initial applications through ongoing compliance management.
Questions about your Washington licensing requirements? Every business situation is unique, and sometimes you need personalized guidance to ensure you’re handling everything correctly and cost-effectively.
Planning multi-location expansion or dealing with complex employee situations? We can help you understand all the requirements and create a compliance strategy that scales with your business growth.
Remember: This guide provides general information about Washington business licensing but doesn’t constitute legal advice. Washington’s comprehensive licensing system can be complex, especially for multi-location businesses or regulated industries. For complex situations, consider consulting with a qualified business attorney or licensing specialist.