How to Start a Business in Washington (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

To start a business in Washington you pick a structure, file with the Washington Secretary of State if you are forming an entity - the domestic LLC filing fee is $180 plus an online processing fee - and then file the Business License Application with the Department of Revenue, which charges a $50 processing fee for a new business's first location.

Quick Answer

Entity agency
Washington Secretary of State, Corporations and Charities Division
Domestic LLC filing fee
$180, plus an online processing fee
Expedited service
Additional $100
Licensing agency
Washington Department of Revenue, Business Licensing Service
Business License Application fee
$50 for the first location of a new business
Order
File with the Secretary of State before the Business License Application
State income tax
None - Washington levies B&O tax on gross receipts instead

Washington's Two-Agency Order of Operations

Washington splits start-up between two agencies, and the order matters. The Secretary of State creates entities - corporations, LLCs, and LLPs. The Department of Revenue, through its Business Licensing Service, licenses businesses and registers them for tax. The Department of Revenue is explicit that if your business structure is a corporation, limited liability company, or limited liability partnership, you must file with the Washington Secretary of State before completing the Business License Application. Doing it backwards means redoing the application.

A sole proprietor skips the Secretary of State entirely and goes straight to the Business License Application. That is the main structural difference in the Washington sequence.

Step 1: Choose a Structure and Clear the Name

Sole proprietorships are the simplest and offer no liability separation; LLCs and corporations are separate legal persons that own their own assets and bear their own debts. Most small Washington businesses that sign contracts, hire, or hold premises choose an LLC. Read what an LLC is and S-corp vs LLC, then confirm the name is available with the Washington business entity search. State availability is not trademark clearance - see the trademark hub. To trade under a second name, see Washington DBA filing.

Step 2: File With the Secretary of State

Form the entity through the Secretary of State's online filing system. For a domestic Washington LLC the filing fee is $180 in addition to an online processing fee, and expedited service is available for an additional $100. The filing names the company, its registered agent and Washington registered office, its principal office, and its executors or governors. You must maintain a registered agent with a Washington street address - see Washington registered agent requirements and the national registered agent overview. Step-by-step formation detail is in how to form an LLC in Washington.

Step 3: Get a Federal EIN

An EIN is free from the IRS and takes minutes to obtain online. You need it to open a business bank account, to run payroll, and for most tax registrations. Get it after the entity exists so the EIN is issued in the LLC's exact legal name. A single-member LLC with no employees can sometimes use the owner's Social Security number for income tax, but an EIN keeps the personal number off vendor forms.

Step 4: File the Business License Application

The Business License Application is Washington's combined licensing and tax registration. The Department of Revenue charges a $50 processing fee when opening the first location of a new business, or reopening a business with no active locations. The application produces your Unified Business Identifier and the business license document you post at your place of business. Sole proprietors, partnerships, LLCs, and corporations all complete it. See Washington business licenses and the national business license guide.

Step 5: Add Endorsements

The Business License Application is a container: the specific permissions you need are added as endorsements. Some are state endorsements tied to regulated activities, and many Washington cities issue their city business license as an endorsement on the same state application. Endorsements can carry their own fees, and the Department of Revenue publishes both a state endorsement fee sheet and a schedule of variable business license processing fees. Review both before you submit so the total does not surprise you, and add every endorsement your activity requires rather than filing amendments later.

Step 6: B&O Tax and Ongoing Reporting

Washington has no personal income tax. Instead the state levies the business and occupation (B&O) tax, which is measured on gross receipts rather than on profit - an important distinction, because a business can owe B&O tax in a year it loses money. Rates and classifications depend on your activity, and retailers also collect sales tax. Confirm your classification and reporting frequency with the Department of Revenue's B&O pages when you register. Federal treatment is separate: a single-member LLC is disregarded and reports on Schedule C, while a multi-member LLC files a partnership return. See Washington LLC tax filing and the business tax hub.

Internal Documents and Banking

Washington does not file your operating agreement, but adopt one anyway: it sets ownership, management, voting, and distributions, and banks and lenders ask for it. See Washington operating agreement. Open a dedicated business bank account before the first dollar arrives. Commingling personal and business money is the fastest way to undermine the liability separation you just paid for, and it makes B&O reporting and federal tax preparation far harder than it needs to be.

Renewals and Staying Current

Washington businesses renew the state business license annually with the Department of Revenue, and entities separately file an annual report with the Secretary of State to stay in good standing. Those are two different filings with two different agencies, and both must be kept current. Confirm the renewal fee and due dates in the Department of Revenue's licensing FAQs and with the Secretary of State. Keep the registered agent relationship live, because state notices go to the agent. See the Washington annual report guide.

Two habits keep the Washington calendar under control. First, write the Unified Business Identifier on the inside cover of your records folder; nearly every state interaction, from license renewal to tax reporting to city endorsements, is keyed to that number, and hunting for it wastes time every year. Second, review your endorsements annually at renewal rather than only when something changes. Businesses drift - a retailer starts offering installation, a consultant begins reselling hardware - and the endorsement that covered the original activity may not cover the new one.

It is also worth separating the three lanes in your bookkeeping from the beginning: Secretary of State filings, Department of Revenue licensing and B&O reporting, and federal IRS obligations. Each has its own deadlines, its own account credentials, and its own consequences for lapsing. Owners who keep one undifferentiated pile of business paperwork are the ones who discover in year three that the entity was administratively dissolved while the license was current, or the reverse.

If the Business Ends

Close deliberately. That means a dissolution filing with the Secretary of State, closing the tax account and filing final returns with the Department of Revenue, and canceling endorsements and local licenses. An abandoned Washington business keeps accruing licensing and reporting obligations, and an unresolved delinquency can surface years later in a background check or a financing diligence review. See the dissolution guide and how to dissolve an LLC in Washington. If you expand out of state, register there as a foreign LLC.

Frequently Asked Questions

What does it cost to start a business in Washington?

For a domestic Washington LLC the Secretary of State filing fee is $180 plus an online processing fee, with expedited service available for an additional $100. The Department of Revenue's Business License Application carries a $50 processing fee when opening the first location of a new business. Endorsements may add fees.

Do I file with the Secretary of State or the Department of Revenue first?

The Secretary of State first. The Department of Revenue states that if your business structure is a corporation, limited liability company, or limited liability partnership, you must file with the Washington Secretary of State before completing the Business License Application. Sole proprietors skip the Secretary of State step entirely.

What is the Washington Business License Application?

It is the combined state licensing and tax registration filed with the Department of Revenue's Business Licensing Service. It produces your Unified Business Identifier and your business license, and it is where you add state and city endorsements. The processing fee is $50 for a new business's first location.

Does Washington have a state income tax?

No. Washington does not levy a personal income tax. Instead it imposes the business and occupation tax, which is measured on gross receipts rather than net profit, so a business can owe B&O tax in a year it loses money. Rates depend on your activity classification.

Do sole proprietors need to register in Washington?

Sole proprietors do not file with the Secretary of State because there is no entity to create. They do complete the Business License Application with the Department of Revenue if they need a state license, city endorsement, or tax registration. Local permits still apply based on activity and location.

What does a Washington business have to renew each year?

Two separate filings. The state business license is renewed annually with the Department of Revenue, and entities registered with the Secretary of State file an annual report to remain in good standing. Confirm both fees and due dates with the respective agencies and keep the registered agent current.

Related

Sources

  1. Washington Secretary of State - Start a Domestic (WA) Limited Liability Company Online ($180 filing fee plus online processing fee; $100 expedited).
  2. Washington Department of Revenue - Apply for a business license ($50 processing fee for the first location of a new business; Secretary of State filing required first).
  3. Washington Department of Revenue - Open a business.
  4. Washington Department of Revenue - Business and occupation tax.
  5. Washington Department of Revenue - Business licensing and renewals FAQs.
  6. Washington Department of Revenue - Variable business license processing fees.
  7. Washington Department of Revenue - Get or renew your business license.
  8. Washington Department of Revenue - Business License Application (PDF).
  9. Washington Department of Revenue - State Endorsement Fee Sheet (PDF).
  10. IRS - Get an Employer Identification Number (free EIN).
  11. IRS - Limited Liability Company (LLC).
  12. IRS - Single Member Limited Liability Companies.
  13. IRS - About Schedule C (Form 1040).
  14. IRS - Self-Employment Tax.

LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the Washington Secretary of State and the Washington Department of Revenue before acting.