Washington State offers a thriving economy, business-friendly policies, and access to global markets. With no state income tax, a skilled workforce, and a diverse business environment, it’s no wonder so many entrepreneurs are starting a business in Washington.
From Seattle startups to Spokane retail shops, the Evergreen State is full of opportunity—if you know how to get started properly.
This guide will walk you through:
- How to register a business in Washington
- Licensing, permits, and legal steps
- State taxes and reporting requirements
- Resources for Washington entrepreneurs
- Tips to launch and grow your venture
Step 1: Choose a Business Idea and Structure
Before registering your business, make sure you’re clear on your idea and how you want to operate legally.
Popular Business Structures in Washington:
Structure | Description & Best Use Case |
Sole Proprietorship | Simplest form; for solo entrepreneurs |
LLC (Limited Liability Company) | Offers liability protection and flexible taxes |
Corporation (C-Corp/S-Corp) | Ideal for businesses seeking investors |
Partnership | Two or more owners sharing control |
Nonprofit | For charitable or mission-driven ventures |
Tip: Most small businesses in Washington choose an LLC for tax flexibility and protection.
Step 2: Register Your Business
Choose a Business Name
- Must be unique and not in use by another WA business
- Check name availability at the Washington Secretary of State’s website
- Secure a domain name and social media handles
Register with the Secretary of State (for LLCs, Corps, Nonprofits)
- File online at www.sos.wa.gov/corps
- Filing fee: $200 (online LLC), $180 (by mail)
Apply for a Washington Business License
- Register with the Washington State Department of Revenue (DOR)
- Required for most businesses
- File through the Business Licensing Service (BLS) at bls.dor.wa.gov
You’ll receive a Unified Business Identifier (UBI) number after approval.
Step 3: Apply for Necessary Licenses and Permits
Depending on your location and industry, you may need:
- City business licenses (e.g., Seattle Business License Tax Certificate)
- Professional or occupational licenses
- Health permits (for food or personal care businesses)
- Home-based business permits
- Environmental permits
Check with the WA State Department of Licensing (DOL) or Washington’s licensing portal for specific requirements.
Step 4: Understand Washington Taxes
Washington doesn’t have a state income tax—but there are other taxes to manage.
Key Taxes to Know:
Tax Type | Details |
Business & Occupation (B&O) Tax | Based on gross receipts, not profit |
Sales Tax | Statewide rate is 6.5%, plus local city/county rates |
Use Tax | Applies to items purchased out-of-state |
Employer Taxes | Includes unemployment and workers’ compensation |
File B&O and sales tax returns through the Washington DOR online portal.
Step 5: Set Up Business Operations
Open a Business Bank Account
Keep your personal and business finances separate.
Set Up Accounting and Bookkeeping
Use tools like QuickBooks, Wave, or FreshBooks to track income and expenses.
Apply for an EIN (Employer Identification Number)
Required for hiring employees and opening business bank accounts. Apply for free at irs.gov.
Get Business Insurance
Depending on your industry, consider:
- General liability insurance
- Professional liability
- Commercial property
- Workers’ compensation (mandatory if hiring)
Step 6: Build Your Brand and Marketing Strategy
Create an Online Presence:
- Register a .com domain and build a professional website
- Set up Google Business Profile
- Establish social media accounts (Facebook, Instagram, LinkedIn)
- Invest in local SEO (e.g., “coffee shop in Tacoma WA”)
Promote Your Business:
- Attend Washington startup events and networking groups
- Use digital ads, flyers, and referral programs
- Join the Washington Small Business Development Center (SBDC) for marketing support
Step 7: Hire Employees (If Applicable)
If you’re planning to grow a team, follow these steps:
- Register with Washington State Employment Security Department (ESD)
- Register with the Washington Department of Labor & Industries (L&I)
- Comply with wage laws, safety training, and paid family/medical leave rules
- Post required workplace notices
Washington has a strong set of labor protections—stay up to date at www.lni.wa.gov.
Helpful Resources for Starting a Business in Washington
Resource | What It Offers |
Washington SBDC | Free business advising and training |
SCORE Seattle | Business mentoring and startup planning |
Department of Commerce – WA | Grants and economic development support |
Washington Business Hub | Step-by-step registration guidance |
Small Business Administration (SBA) | Funding, templates, and government contracts |
Washington Business Trends in 2025
- Growth in green businesses and clean tech
- Expansion in remote services and digital startups
- Increased funding for minority-owned businesses
- Focus on rural entrepreneurship in Eastern WA
- Emphasis on sustainability and social impact
Conclusion
With no state income tax, access to tech-savvy markets, and strong infrastructure, starting a business in Washington is a smart move for entrepreneurs ready to grow.
By following the right legal steps, managing taxes, and building a solid marketing foundation, you’ll position your business for long-term success in the Evergreen State.
FAQs
1. How much does it cost to start a business in Washington State?
Startup costs vary, but registering an LLC online costs $200. Additional licensing and setup expenses may range from $500–$2,000+.
2. Do I need a business license in every city I operate in?
Yes, many Washington cities require a separate license to do business within their jurisdiction.
3. Is Washington a good place for small businesses?
Yes. Washington ranks highly for innovation, workforce quality, and economic opportunity—especially in tech, retail, and health sectors.
4. Can I run a home-based business in Washington?
Yes, but check local zoning laws and apply for a home occupation permit if required.
5. What is a UBI number?
A Unified Business Identifier (UBI) is a 9-digit number that identifies your business to state agencies.
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