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How to Start a Business in Washington

Starting a business in Washington requires understanding key rules at federal, state, and local levels.
 
State Requirements ▼

 

Business Structure Registration: Register with the Secretary of State for LLCs/corporations. Get a UBI from the DOR.

State Business License: Required if you make over $12,000/year, collect sales tax, or hire employees. Apply via the DOR.

Local Business Licenses: Required in city limits; check city websites. Some unincorporated areas may not require them unless regulated.

Zoning and Land Use Compliance: Confirm zoning compliance through the county or city planning department.

Building Permits and Certificate of Occupancy: Required for construction or commercial occupancy. Apply through local planning agencies.

Health Department Permits (Food Businesses): Obtain food permits from local health departments or WSDA for cottage food.

Tax Obligations: Register for sales, B&O, and personal property tax. File with the DOR and local assessor.

Labor Regulations: Follow wage, sick leave, and worker’s comp rules. Register with L&I and ESD if hiring.

Environmental Compliance: Permits may be required if impacting air, water, or waste.

Federal Requirements: Obtain an EIN from the IRS. Follow OSHA, ADA, and tax regulations.

Quick Start Checklist

Quick start helper

Answer a few questions to reveal Washington-specific next steps and a printable checklist. (This is general info; it’s not legal/tax advice, we recommend reviewing your plan with a professional tax consultant.)

1) Do you plan to hire employees in the next 90 days?
Hiring employees usually triggers additional registrations/accounts.
2) Will you sell products/services that require collecting retail sales tax?
If you must collect sales tax, you generally need to register.
3) Will you do business under a name other than your full legal name?
Trade names (“DBAs”) can change what you file.
4) Will your gross income likely be $12,000/year or more?
This threshold is one of Washington’s triggers for needing a business license.
5) Environmental: will you first possess petroleum products/chemicals/pesticides in WA (e.g., bulk fuel, solvents)?
Some businesses may be affected by Washington’s Hazardous Substance Tax (HST).

Core next step: confirm whether you must register

Washington DOR lists common registration triggers (endorsements, collecting sales tax, hiring employees, gross income ≥ $12,000/year, etc.).

DOR: Apply for a business license

Sales tax: plan your registrations & recordkeeping

If you must collect retail sales tax, you’ll typically need a Washington business license/UBI and to file the appropriate excise tax returns.

Employees: plan for additional accounts

Hiring employees can trigger additional state requirements (e.g., unemployment insurance, workers’ comp, payroll setup). Start planning early.

Trade name (DBA): consider trade name filings

Doing business under a name other than your full legal name is a common trigger for registering and/or filing a trade name.

Revenue threshold: likely registration required

DOR lists gross income of $12,000/year or more as a registration trigger.

Environmental / excise: Hazardous Substance Tax (HST)

HST applies to first possession in Washington of hazardous substances (including certain petroleum products, pesticides, chemicals). Rates can include a per‑barrel amount and a value-based rate.

DOR: Hazardous substance tax

To-Do Checklist

Check items as you complete them. Items appear based on your answers above.

Business setup
Names & branding
Taxes
Employees
Environmental compliance
City and County Requirements 
 

This information was collected and updated as of February 2, 2026 and should be used for informational purposes only. Check with your local municipality for the latest changes and rates.