Washington Business Tax

Every type of business is required to file tax returns at the federal level and also in the state that it is based in. Some businesses like foreign entities have to file taxes in their formation state (home state) as well as any other state where they are conducting their business. If you start a business in Washington then you will not be required to file any income tax but your company may be required to file a small business tax in Washington. It is important to note that each state including Washington has its own set of tax requirements. The Washington business tax rate and filing processes would be different from other states.

What taxes do businesses pay in Washington?

Washington is a popular state amongst entrepreneurs as it is ranked 11th in the list of states with the best business tax climate. The state does not have any personal or corporate income tax. You can form different types of domestic and foreign entities in Washington including a sole proprietorship, a limited-liability Company, a C corporation, and even an S Corporation. Each type of entity will have a different tax status in the state and will be required to file some sort of Washington business tax. Your company may be required to file a single form of business tax or multiple taxes, which will require you to use a Washington business tax calculator for determining the rate or amount of taxes. Let’s try to understand the different types of taxes applicable to small businesses in the state of Washington.

Business and Occupation tax

A primary Washington business tax is known as the Business and Occupation tax (B&O tax). The B&O tax is a type of gross receipts tax. It is calculated based on the value of products, gross income of the company, or gross proceeds from sales. This tax rate varies depending on tax classifications for common business activities like accounting, actuarial, amusement services, and advertising among others. If your company conducts multiple activities then you will be required to report under multiple tax classifications. You will need a Washington business tax calculator to determine the total B&O tax under such circumstances.

• Retailing B&O tax
• Wholesaling B&O tax
• Manufacturing B&O tax
• Service and other activities B&O tax

Example: If you have a company that provides computer services then it will be classified under retailing B&O tax or wholesaling B&O tax. If you provide data processing services then the classification category will be Service & Other Activities B&O.

Washington Retail sales tax

One of the types of small business tax in Washington is the retail sales taxes and it is an important source of revenue for the state government. Normally, if your company is providing retail services or selling retail products to a customer then you will be required to collect retail sales tax. Retail sales in the state are also defined as the sale of any tangible personal property. A business will also be required to pay retail sales tax on the purchase of any items that are meant for business use like equipment and supplies. The retail Washington business tax rate is currently 6.5 percent and is governed by chapter 82.08 RCW.

Washington Use Tax

Use tax is a type of small business tax in Washington, which is levied on the use of specific products and certain services in the state, especially where sales tax is not applicable or not paid. Goods that are used in this state will be subject to either use tax or sales tax but both taxes cannot be levied simultaneously. The use tax may be applicable in the following scenario:

• If a company purchases goods in another state that does not have any sales tax or its sales tax rate is lower than that of Washington
• If goods have been purchased from a company or individual who cannot collect sales tax
• The Washington business tax rate for use tax will be levied on goods that have been purchased out of state through the Internet, by subscription, or using a mail order catalog.

Are you thinking of forming a new company in Washington?

How are Washington Businesses Taxed?

If you are planning to form a startup in Washington, then one of the important annual requirements will be filing business taxes. The state does not have any corporate or personal income tax but there are several other types of small business taxes in Washington. The taxes and the business tax rate may vary depending on the type of business structure as well as the location of the company. You may need to file more than one type of business tax and therefore, it is important to use a Washington business tax calculator to determine the taxes. Let us look at the different types of entities and their tax obligations in this state.

Taxes for an LLC

If you are thinking of starting an LLC in Washington, then for taxation purposes, it will be considered a pass-through entity. This means that your LLC will not be required to file federal or Washington business tax. Instead, the income will pass through to you, the owners, and other members. Normally, in such a situation, members have to file personal income taxes, but the state doesn’t have any. Consequently, other forms of business taxes will be applicable for a limited liability company in Washington.

Taxes for a C Corporation

If you are planning to form a Washington C corporation then the good news is that there are no corporate taxes in this state. Alternatively, your company will be subjected to business and occupation (B&O) tax. The other types of Washington Corporation taxes applicable include:

• Retail sales tax – Applicable on sales of any tangible personal property to consumers like office & stationery supplies, prepaid wireless cards, T-shirts, etc
• Use tax – It is applicable on goods purchased outside Washington and sold in the state like showroom and office supplies, equipment, mechanical and electrical parts, accessories, etc.
• Other industry-specific taxes – This is a type of excise tax administered by the Department of Revenue in specific industries or business activities like aircraft, spirits sales, and petroleum products, among others.
• Personal property tax – This small business tax in Washington will be applicable if the personal property owned by individuals is used for business including land, structures, and equipment.

Taxes for S Corporation

If you choose S Corporation tax treatment then one of the Washington benefits is that you will be exempt from self-employment taxes. An S corporation will be required to file the business and occupation (B&O) tax. Washington Corporation tax applicable for an S Corporation would include retail sales tax, use tax, excise taxes, and other industry-specific taxes.

Taxes for a Sole Proprietorship

If you form a sole proprietorship in Washington then you will need to report your profits by filing the income as individual tax returns. These taxes have to be filed with the IRS every quarter and you will need to use Form 1040-ES (estimated tax form). Apart from this, you may be required to file other small business taxes in Washington like retail sales and use tax depending on the business activity and jurisdiction of your business.

Taxes for Partnerships

If you form a partnership company in Washington then the applicable taxes would be similar to the Washington LLC tax or taxes for sole proprietorships. Partners will be required to file individual tax returns based on the income they have earned through the business. If you use a personal property for business then you will have to file personal property tax. You may also need to file sales and use tax depending on your business activity.

Ready to Incorporate Your Company in Washington?

You can choose to form a variety of entities in Washington from a Sole Proprietorship, to a C Corporation, an LLC, and S Corporation. The process for a new business formation and the annual requirements including taxes would be different, exhaustive, and time-consuming. This is where IncParadise can provide meaningful assistance. We are one of the top incorporation service providers in the state. We can help to register your LLC or corporation in Washington.

Introduction – Why Washington?

The state of Washington has been consistently ranked as one of the top destinations for entrepreneurs and small enterprises. It boasts of a pro-business climate, and the State Department of Commerce has several programs as well as resources that will help entrepreneurs to relocate a business to Washington. The state is home to several top companies like Microsoft, Amazon.com, Costco Wholesale, Deloitte Digital, Danaher Corporation, Starbucks, MSN, and Nordstrom Inc., among others. If you plan on moving a corporation to Washington or if you would like to move your LLC, then it is important to identify the benefits this state offers.

Pro-business climate

Business climate plays a decisive role especially if you plan on moving your business to Washington. There are several elements that empower this business climate and ensure that new, existing, and relocated companies can maximize their growth and stability. Some of the features driving this pro-business environment include:

• Strong industrial and manufacturing hub
• Wide variety of tax incentive programs
• Good regulatory environment
• Centralized export hub and foreign trade zones (FTZ)
• Robust infrastructure and supply chain
• Several business grants & loan programs

Taxation benefits

One of the top business benefits in Washington is its overall business-friendly tax climate. The state does not have any personal income tax or corporate income tax. This helps small businesses lessen their tax burden. The state has implemented several tax incentive programs targeted at different industries as well as Community Empowerment Zones (CEZ).

Excellent workforce

The state of Washington has been consistent in providing long-term postsecondary education and meeting the demands of a strong and able workforce. If you plan on moving your business to Washington then you will benefit from the steady stream of highly qualified and educated workers in all essential industries. A study has revealed that compared to the national average of 83%, 91% of Washington residents are high school graduates. The state is home to more than 20 colleges, universities, and other technical institutions. There are several integrated workforce training programs available to you like Talent and Prosperity for All (TAP), which are focused on increasing employer productivity and profitability.

Culture of Creativity

Washington is ranked among the top states for businesses. The state’s creative culture is the compelling trait that led to this ranking. The state has a legacy and tradition of innovation and bold inventions from personal computers to rocket engines for NASA and backpacks. Whatever the idea, if you plan on moving an LLC to Washington then you will find opportunities and a platform for all your new and existing ideas.

Business Incentives

One of the salient business benefits in Washington is the wide variety of business incentives. You can apply or participate in any of these programs that include everything from grants and loan programs to deferrals and exemptions. Once you relocate a business to Washington, you can take advantage of some of their top incentive programs like:

• Multiple Activities Tax Credit (MATC)
• Business and Occupation (B&O) Tax Credits
• Sales and Use Tax Exemptions
• Governor’s Strategic Reserve Fund (GSRF)
• Rural County/CEZ Business and Occupation (B&O) Tax Credits
• Job Skills Program (JSP)
• Brownfields Revolving Loan Fund
• B&O tax exemption for manufacturers and sellers of dairy and seafood products
• Remittance of state sales tax for warehouses

Low-Cost Energy

If you are moving a corporation to Washington or an LLC that requires higher energy consumption then You’ll be happy to learn that energy costs are low in this state. The state is home to the largest coordinated hydroelectric system globally. It is also home to several wind and solar energy systems. Therefore, energy costs in Washington can be as low as 2.88 cents per kWh. The industrial energy rates in the state are 38.1% lower while the commercial rates are 17% lower than the national average.

Centralized Export Hub

One of the leading business benefits in Washington is the centralized export hub. The state is one of the foremost export hubs in the nation that exports $60 billion in goods each year. It has also been ranked as the 4th largest shipping center of containers in North America. The primary goal of the centralized export hub is to help small businesses to expand their business globally. The hub also provides a wide variety of support services like consulting, advocacy, trade missions, risk mitigation, custom programs, and trade show support.

Steps to Move a Corporation to Washington

Seattle and Redmond are considered the finest cities for establishing and expanding businesses. They provide support, resources, and infrastructure. When moving your business to Washington, you may have questions concerning the options available to you for expanding your business in the state. There are three major options for moving a corporation to Washington, so let us look at each of the options in detail.

Register as a Foreign Corporation

Registering your business as a foreign company is one of your first options to relocate a business to Washington. This option is recommended for owners who don’t want to close their existing business in other states and also want to operate in Washington. The Washington domestication of a foreign corporation is governed by the 2020 Revised Code of Washington – WA Rev Code § 23B.15.070 (2020). The process for foreign qualification is as follows:

• Designate a registered agent in Washington for handling service of process pursuant to WA Rev Code § 23B.15.070 (2012)
• Identify and reserve a corporation name pursuant to WA Rev Code § 23B.15.060 (2012)
• Apply for a certificate of authority also known as Profit Foreign Registration Statement, pursuant to WA Rev Code § 23B.15.030 (2012)
• Submit a Certificate of Existence or Certificate of Good Standing from the home state

Do you want to form a foreign corporation in Washington?

Convert a Foreign Corporation to a Washington entity

If you want to relocate a business to Washington then your second available option is an entity conversion. The process of conversion varies from one state to another and refers to changing the type of entity. For example, moving from a limited liability company to a corporation or vice versa. This process is similar to a Washington domestication of foreign corporations in which case, out-of-state company is converted into a domestic entity. The process of conversion involves:

• select and reserve the name of the said corporation
• Hire a Washington registered agent
• File a Cover Sheet for a Conversion of Business Entity specifying “Converting from” and “Converting to” along with current and new domicile.
• File Articles of Conversion pursuant to WA Rev Code § 24.03A.840 (2021)
• Filing new entity formation documents like Articles of Incorporation
• The conversion documents have to be submitted to the Washington Secretary of State – Corporations & Charities Division

Dissolve a home Corporation and establish a new Corporation in Washington

The third and final option for moving your business to Washington is the process of dissolution. This process involves dissolving your home corporation by initial directors, incorporators, or board of directors and establishing a new Corporation in Washington. The dissolution will be governed by the laws of the home state and vary from one state to another. The laws and process also vary depending on the type of dissolution such as: voluntary, judicial, and administrative. The process of dissolution will involve:

• The approval of dissolution of a corporation
• Filing the Articles of dissolution in the home state
• Filing any outstanding federal, state, and local taxes
• The publication of notice of dissolution
• Wind up all affairs in the said state like canceling business licenses and permits

• Appoint a Washington registered agent for service of process
• Identify and reserve a business name pursuant to WA Rev Code § 23B.04.020 (2012)
• File Articles of Incorporation pursuant to WA Rev Code § 23B.02.020 (2012) along with the appropriate fee
• Prepare bylaws for your Washington Corporation
• Apply for business licenses and permits

Steps to Move an LLC to Washington

The state of Washington offers a wide variety of opportunities, support, resources, and infrastructure to small businesses. If you plan on moving your business to Washington, then it would benefit you to know that certain cities provide unique advantages like Bellingham, Tacoma, and Bellevue. When moving an LLC to Washington, you may have questions concerning the processes involved and options available. Let us look at each of the options in detail.

Register as a foreign LLC

There are three options available for moving your business to Washington. The first option is to go through a foreign qualification. This option works best for those entrepreneurs who want to expand their business in Washington while keeping their home state business operational. The Washington domestication of a foreign LLC is governed by the 2020 Revised Code of Washington – WA Rev Code § 25.15.310 (2012). The process for registering a foreign LLC is as follows:

• Hire and maintain a registered agent in Washington for handling service of process pursuant to WA Rev Code § 25.15.325 (2012)
• Choose and register the name of the said LLC while being compliant with RCW 23B.04.010 and 25.10.061
• File the Foreign Limited Liability Company Registration application or Certificate of Registration, pursuant to WA Rev Code § 25.15.315 (2012)
• Submit a Certificate of Existence or Certificate of Good Standing from the home state

Do you want to move your LLC to Washington?

Convert a foreign LLC to a Washington entity

If you plan on moving your business to Washington but are not interested in registering as a foreign entity then you have the option to convert the said entity. Conversion of an entity simply refers to a foreign entity being converted into a domestic entity. To transfer LLC to Washington through conversion, the necessary steps are as follows:

• Identify and then reserve the name of the limited liability company
• Hire a Washington registered agent
• File a Cover Sheet for the Conversion of the Business Entity specifying “Converting from” and “Converting to” along with the current and new domicile.
• File the Articles of conversion pursuant to RCW 25.15.436
• File the new entity formation documents

Dissolve your home LLC and form a new LLC in Washington

Your third option for moving an LLC to Washington involves dissolving the home state entity and registering a domestic LLC in the chosen state. The rules for dissolution will be governed by the LLC Act., of the state where it was initially formed. The rules and processes for dissolution can vary from one state to another, although some aspects remain the same like the approval of dissolution and filing of the articles or certificate of dissolution. The process to form a new LLC in Washington will involve the following:

• Hire a Washington registered agent to initiate service of process
• Reserve a business name in accordance with the state guidelines
• File Certificate of Formation pursuant to WA Rev Code § 25.15.071 (2016)
• Apply for appropriate business licenses or permits

Move Your Business to Washington with IncParadise

Washington is a leading state when it comes to a pro-business climate and robust infrastructure. It is quickly becoming an IT hub with startups enjoying steady growth and expansion. If you want to relocate a business to Washington then great opportunities await you. IncParadise can help you with the process of moving your LLC or corporation to Washington with ease.

Washington Foreign Qualification

The state of Washington offers many advantages and opportunities to small businesses and medium enterprises. It is home to over 600,000 small businesses, this includes both domestic and foreign entities. If you are planning to expand to this state then simply opt for Washington LLC foreign registration or foreign business incorporation to leverage the state’s favorable business environment. You can become an important part of the vibrant industry from aerospace to information technology, life science, clean technology, and food manufacturing among others. A Washington foreign business entity registration ensures that you’re able to apply for state grant and loan programs as well as tax incentive programs.

What is a Washington foreign qualification?

If you’re already conducting business in any other state but want to expand your operations in Washington then one of the best options is to undergo a Washington foreign business entity registration. This process doesn’t require you to incorporate your company all over again. When you opt for a foreign qualification in Washington; you will be able to operate your company in your home state as well as the new state (Washington). The home state refers to the jurisdiction where the business was initially formed or incorporated.

Example: You have formed a domestic LLC in Idaho by filing the Certificate of Organization. Idaho will be considered your home state. You need to now expand to Washington. One of the options is to close your Idaho LLC and start a new LLC in Washington. If you don’t want to close your Idaho LLC then you can apply for a Washington foreign business entity registration. The process of foreign qualification will provide you with the authority to transact business in Washington as well.

Doing business in Washington

When a business corporation, a limited-liability company, or any other form of entity operates within any state other than their home state or the state of incorporation, then they are required to “foreign qualify”. The foreign qualification in Washington provides a company formed in another state, with the authority to conduct business in this state. The foreign qualification is applicable if a company is doing business in Washington.

• If a company is collecting debts
• When a lawsuit is filed against a company in this state
• Internal business activities like board meetings don’t qualify as doing business
• Opening or having a bank account in Washington
• Businesses that have agents, offices, and representatives in Washington
• Selling of services or goods through independent contractors
• Delivery and installation
• Participating in an isolated or one-time business transaction
• A company transacting business in interstate commerce

Washington Foreign Qualification Process

If you have formed a limited liability company or a corporation in another state but want to conduct business in Washington then you will have to apply for foreign qualification in Washington. It is important to note that all out-of-state businesses require an authority to transact business in Washington, and operating without it is considered as breaking the law. There are consequences for transacting business without authority including severe penalties pursuant to WA Rev Code § 23B.15.020 (2012). Let us study in detail the Washington foreign business entity registration process for limited liability companies and corporations.

Washington foreign Corporation registration

If you already own a corporation in another state and want to expand the operations to Washington then you will need to apply for Washington foreign corporation registration. The foreign qualification will be governed by the 2020 Revised Code of Washington, Title 23B – Washington Business Corporation Act, 23B.15 – foreign corporations. You will have to obtain the authority to transact in this state before starting your company. The process for obtaining this authority is as follows:

• Business Name – Washington foreign corporation registration is incomplete without a corporate name. According to WA Rev Code § 23B.15.060 (2012), the business name should contain words like “corporation”, “incorporated”, or abbreviations like “inc.”, “corp.”, and “co.” Once you have chosen a name, it is important to conduct a Washington foreign entity search. The business name search will help you find out if your chosen name is available. If the said name is available then you need to file the “Foreign Name Registration” application along with a fee of $30. The application has to be filed with the Secretary of State, Corporation Division. The name registration has to be renewed annually between October 1st and December 31st.
• Registered Agent – There are several important requirements for the Washington foreign business entity registration and a registered agent is one of the most paramount. According to WA Rev Code § 23B.15.070 (2012), a foreign corporation will not be authorized to transact business in this state without a registered agent. We at IncParadise are one of the top Washington registered agents and have helped several domestic and foreign entities to incorporate in this state.
• Certificate of Authority – Another necessary step towards the Washington foreign corporation registration is to file the Application for a certificate of authority pursuant to WA Rev Code § 23B.15.030 (2012). This application is also known as the Profit Foreign Registration Statement and has to be filed with the Office of the Secretary of State, Corporations & Charities Division along with a filing fee of $180. You can apply online as well as by mail. There is an option for expediting the process of Washington foreign business entity registration by paying an additional fee of $50. It is important to note that you will also be required to submit a Certificate of Existence or Certificate of Good Standing acquired from the state of incorporation or home jurisdiction.

Do you want to register a foreign Corporation in Washington?

Washington foreign LLC registration

If you have already formed an LLC in any other state and want to expand your business in Washington then all you need is a Washington LLC foreign registration. This process will help you to not only conduct business in the state but it will also help you avoid going through the formation process of a new limited-liability company again. You can opt for a single-member or multi-member LLC depending on the requirement. Foreign LLC qualification in Washington will be governed by the Revised Code of Washington, Title 25 – PARTNERSHIPS, 25.15 Limited liability companies, Article IX – Foreign Limited Liability Companies. The process for a Washington foreign business entity registration is as follows:

• Business Name – One of the foremost requirements for Washington LLC foreign registration is a business name. You have to select a name in accordance with the naming regulations of the state. You can verify your name choice availability through a Washington foreign entity search also known as a name database search. If your chosen name is available then you need to use the “Foreign Name Registration” application to register it with the secretary of state pursuant to RCW 23.95.525 and Article 3 of chapter 23.95 RCW. The fee for name registration of a foreign LLC is $30, and by making an additional payment of $50; the process can be expedited.
• Registered Agent – The service of process which is executed by a registered agent, is a major component for any new business formation or foreign qualification in Washington. According to WA Rev Code § 25.15.331 (2016), a foreign limited liability company has to continuously maintain a registered agent in their state. Registered agent services offered by IncParadise, not only fulfill the service of process requirements but also assist with other business compliances like filing annual reports. IncParadise is one of the state’s top registered agents and has helped with several Washington foreign business entity registrations.
• Certificate of Authority – Company Registration is another significant requirement for conducting business in Washington. A Washington LLC foreign registration will help you to get the necessary authorization. You will have to file the Application for a certificate of authority or the Profit Foreign Registration Statement pursuant to WA Rev Code § 25.15.321 (2016). The registration statement can be filed online or by mail with the Office of the Secretary of State, Corporations Division. The filing fee is $180 and you can also choose the expedited service by paying an additional $50. The Washington foreign business entity registration will require you to submit a Certificate of Existence or Certificate of Good Standing acquired from the state of formation or home jurisdiction.

Need Any Assistance in Applying for Washington Foreign Qualification?

Washington is considered one of the top states in terms of business climate, which encompasses opportunities for startups, robust infrastructure, availability of skilled labor, and business incentive programs. You can expand your business to this state using the process of foreign qualification in Washington. As one of the leading registered agents in Washington, IncParadise can assist you with the process of foreign corporation registration or foreign LLC formation.

DBA or Trade Name in Washington

Washington is home to over 600,000 small businesses including partnerships, LLCs, and sole proprietorships. All company structures require a business name to operate. Some of these companies may opt to use the owner’s legal name like Brad Cooper LLC or use a “Doing Business As” (DBA) name like Brad’s Tours & Travels. If you want to register a trade name in Washington or a DBA, then it is important to comply with the requirements of RCW 19.80.010. If you are wondering how to look up a DBA in Washington, there is a process although it is important to first understand the conditions under which a DBA is used.

What is DBA or trade name in Washington?

When starting a small business in Washington, you must first choose a name for your company. You can choose your name (owner’s name), any other business name, or a DBA (Doing Business As). A DBA is also known as a trade name or fictitious business name and it should be distinguishable from any other name. Once you choose a name then filing a DBA in Washington should be your next step.

• Entity Structure – If you want to start a company in any name other than your own name or legal name then you should fill out a Washington DBA online application. More often than not, a trade name or DBA is preferred by sole proprietorships or general partnerships. This is because these particular entity structures are considered unincorporated businesses and don’t require legal formation or registration papers.
• Name Combination – Sometimes, business owners like to use a combination of their name as well as the product or service being provided like James Gordon Catering Services. Such a name would not require filing a DBA in Washington. Alternatively, if the owner decided to use the combination of their first name and product or services like Gordon’s Catering Services then registration of DBA would be necessary.
• Multiple Businesses – If you want to operate multiple businesses, especially LLCs or corporations, then you would be required to form a separate corporation or LLC for each of those entities. If you choose to fill out a Washington DBA online application for each of those businesses then it would cut down on the expenses as well as paperwork.

Filing DBA or Trade Name in Washington for LLC and Corporation

A DBA (doing business as) is known by many names and in Washington, it is known as a trade name. If you are thinking of starting a new LLC or corporation in the state then one of the foremost requirements is a business name. You can start a company in your legal name, opt for a business name, or even choose a trade name. There is a specific process to register a trade name in Washington for a business corporation or an LLC. The process and fee are different from the business name reservation process and fee.

Do a Washington Trade Name Search

If you are planning to register a trade name in Washington then the first step is to conduct a name search. Business owners are often faced with the question – how do I look up a DBA in Washington? These are the three ways to conduct a DBA search:

• Conduct a business lookup on the website of the Washington State Department of Revenue. The business lookup offers the option to search through an extensive database of tax accounts, business licenses, and reseller permits
• You can also conduct a Secretary of State Corporations Registration Data Search for names of LLCs and corporations registered with the state.
• You can also search for federally registered names or trademarks using the trademark database also known as Trademark Electronic Search System (TESS)

Register a DBA Trade Name with the Department of Revenue

Once you have chosen a trade name and have conducted the necessary name search; the next step is filing a DBA in Washington. The registration of a trade name is required and will notify your prospective customers or the general public about the company, which is conducting business under the said DBA. The registration of the Washington trade name is governed by WA Rev Code § 19.80.010 (2013). This law is applicable to both domestic and foreign companies.

• Business Licensing Service
  P.O. Box 9034
  Olympia, WA 98507-9034

Register your Washington DBA with ease!

Managing your Washington DBA

When you register a trade name in Washington or file a DBA then it will mean that you can conduct your business within the state using the DBA or assumed name. Each state has rules and regulations concerning a DBA or trade name. These laws are applicable for the renewal, changing, or canceling of a trade name or DBA in the jurisdiction where you are conducting your business. Let’s look at the various processes for managing a Washington DBA or trade name in the future.

How to renew Washington DBA?

Once you apply for a Washington DBA online with the Department of Revenue, you will not be required to renew it. There is no expiration for a trade name in Washington.

How to change a Washington DBA?

After filing a DBA in Washington, you may want to change the registered name shortly after. There could be many reasons, like a change in products or services being offered. To change the existing trade name, you will need to file a notice of change with the Washington State Department of Revenue pursuant to WA Rev Code § 19.80.025 (2013). The form you will need for this change is the Business License Application, wherein there is an option to Change the trade name. The fee for changing a trade name is $5 and the submission process would be the same as the registration for a DBA.

How to cancel a Washington DBA?

At any given point in time, if you want to cancel or withdraw your Washington DBA or trade name, you will be required to complete and file the business information change form (Form BLS 700 160). The cancellation of a DBA is governed by WA Rev Code § 19.80.080 (2013). There is no fee for cancellation and you can file the request online.

Need Any Assistance in Filing for a Washington Trade Name or DBA?

The process to register a trade name in Washington requires you to provide complete and accurate information while being compliant with state and federal trademark laws. The process of conducting a trade name search and adhering to trademark laws can be perplexing. IncParadise can gladly assist you with this process. We have expertise and knowledge regarding the Washington Business Regulations and can help you to apply for a Washington DBA online.

Business Licenses in Washington

Every business operating in the USA requires some form of a license or permit to operate. The licensing requirements vary from one state to another. A Washington business license is a document issued by different government or state agencies. It is issued to individuals and businesses so that they can transact within the geographical jurisdiction of the state. Washington has specific licensing regulations, laws, fees, and renewal requirements when it comes to permits or licenses. A business or individual organizing a business may require one or more Washington business licenses and permits.

What business license do I need in Washington?

Most states in the USA normally require a general business license or a state business license. Washington also requires most businesses to obtain a state business license. If you are planning to start a new business in this state then you need to apply for state licenses and permits. The Washington State Department of Revenue is responsible for issuing this license. The best way to proceed is by completing the Business Licensing Wizard. The wizard can be used to conduct a Washington business license search.

State (General) Business Licenses

The most common Washington business license is the state or general business license. You will need to register your business with the Department of Revenue (DOR) to obtain this license. Not all businesses may require this license as there are certain criteria to qualify for the need. If your business meets the following conditions then you will need to apply for and obtain a Washington business license. The qualifications are:

• If your business requires state and city endorsements
• Sole proprietorships or other businesses using any name other than the full name of the owner
• Planning to hire employees within 90 days of starting a business
• Selling a product or providing a service, which requires the collection of state sales tax.
• The annual gross income is $12,000 or more.
• The business is required to file any fee or taxes with the Department of Revenue.
• The business activity involves buying or processing specialty wood products.
• The business meets the requirements of reporting thresholds and nexus

Specific Licensing for Regulated Professions and Industries

The requirement for licenses depends on the type of business or business activity. There is a category of Washington business licenses and permits for regulated professions and industries. The Department of Commerce has created a regulatory roadmap so that businesses can fulfill their local, regional, and state licensing requirements. This roadmap is applicable for specific industries or business activities like restaurants and manufacturing including the sale of alcohol, as well as any gambling event occurring within the premises of a business.

For example: If you want to start a business in Washington for landscaping architecture, then there is a process to obtain a Washington business license for that particular industry. You will need to apply by filing the Landscape Architect License Application along with a fee of $450. It has to be renewed once every 2 years. The business license will be issued if you have the Landscape Architectural Accreditation Board (LAAB) accredited degree.

City Business License

Once you start or register your business in Washington, you may also require separate licenses in the city where your business is located. To do this, you will need to conduct a Washington business license search to identify the various permits you require. You may even require multiple licenses or permits depending on the business activity. The licensing requirements and fees vary from one city to another. We have listed 5 top cities for businesses.

Seattle

If your business is located in Seattle, then you will need to apply for a Seattle business license tax certificate (BLTC). This certificate is considered a Washington business license. The distribution of this license is handled by the License and Tax Administration, City Finance Division. You can apply for a new license or renewal using the online portal called FileLocal. It is important to obtain the UBI number first. There are specific business activities that require this license like Manufacturing-Extracting, Tour Operator, and Retail among others. The fee for this Washington business license and permit is $59. In the city of Seattle, a regulatory endorsement is also added to the business license tax certificate. You may need to apply for additional licenses if your business is categorized under Regulatory License.

Spokane

If you are planning to establish your business in Spokane, then you may be required to obtain a Washington business license and permit in addition to the state or general business license. The permits or business licenses will vary according to the type of business and activity. If you want to start a restaurant then it will be considered an Entertainment Facility in the city of Spokane. You can conduct a Washington business license search to identify the right application as there are separate applications for permanent and temporary facilities. You will have to file the Entertainment Facility license application with the Department of Taxes & Licenses, City of Spokane along with a fee of $100.

Tacoma

The business licensing rules in Tacoma are a little different from Seattle because the application process is structure-based. There are two types of Washington business license structures, a general business, and a rental business. If your company falls under the general structure, you will need to apply for a City of Tacoma Business License. If the activity is related to leasing or renting real estate property, then you will have to complete and file the registration and rental business license application. The fee to obtain a Washington business license in Tacoma is based on the gross income and revenue e.g., if the gross income threshold is under $12,000 then the fee would be $25; if it is more than $250,000 then the fee would be $250. It is also important to note that there are Regulatory Business Licenses applicable in Tacoma.

Vancouver

The city of Vancouver has specific licensing regulations and requires all companies conducting their business activities within the city limits to have the necessary permits or licenses. The Washington business license fee is determined through a calculation of the gross annual income as well as the number of employees (full-time equivalent/FTE) working within the city limits. If the reported gross annual income is $12,000 or more then the license fee would be $200 + $90 per FTE. Some businesses may also require a Vancouver special license in addition to obtaining a Washington business license and permit, as well as city business license.

Bellevue

If you are planning to conduct your business in Bellevue then you need to obtain a Washington business license in Bellevue. This is true for the following conditions:

• If a business office, warehouse, or retail outlet is located in the city per Bellevue City Municipal Code 4.09.030 (W)
• If an individual or business is engaged in business activities within the city limits and its gross income or sales is equal to or more than $2,000, then a city license is necessary.

Your business may also require regulatory licenses for specific activities like adult entertainment or pawnbroker activities. Some of these regulatory activities also require additional addendums

Building & Zoning Permits

One of the focal points of conducting a Washington business license search is checking for proper building and zoning permits in the state. These permits are mostly applicable in local jurisdictions like cities and counties. If your business activity is connected to any kind of construction projects, then you will need to obtain a building permit in the respective county or city.

Example: If you are constructing a building in Clark County or are working on the structural components of a building like plumbing; then you need to apply for building permits from the Clark County Permit Center.

Need any Assistance in Obtaining Your Washington Business License?

If you are planning to start a new business in Washington, then it is important to obtain a proper Washington business license. Licenses or permits can vary depending on the type of business activity and location of the business. If you conduct your business without proper licenses and permits then you may risk facing penalties and even punitive action.

Sole Proprietorship in Washington

Washington is home to over 600,000 small businesses spread over a diverse umbrella of industries from Aerospace, to clean technology, manufacturing, information and communication technology, e-commerce, and global health among others. The state provides a strong infrastructure, commercial spaces, startup hubs, and loans and grants that will help you to start a sole proprietorship in Washington with ease. The state also offers small business assistance through many state-governed programs including business incentive programs.

What is a sole proprietorship in Washington?

Filing a sole proprietorship in Washington refers to operating an individual entrepreneurship or sole tradership. It is a company or enterprise that is owned as well as operated by a single individual. This individual is also responsible for all business assets, as well as profits and liabilities. A sole proprietorship also has a different tax structure as compared to other businesses like a corporation. If you want to know how to start a sole proprietorship in Washington then it’s important to identify the various characteristics of this particular entity.

Important features of sole proprietorship in Washington

First time business owners normally prefer to start a sole proprietorship in Washington due to its salient benefits and several features. Some of the key features are:

• It works well for small entities including home-based businesses as well as medium-sized enterprises.
• There is no requirement for registering a sole proprietorship in Washington with the office of the Secretary of State. Therefore, it is not required to file any type of new business formation documents.
• A sole proprietorship business is also known as a sole-owner business, meaning the business and the owner are considered as one.
• Filing a sole proprietorship in Washington means that any, and all financial, management, and operational decisions will be made by the owner. One of the benefits is that no one else can interfere with these decisions.
• The tax structure of a sole proprietorship is different from other structures. It has to be filed through the owner’s income tax return.
• Registering sole proprietorship in Washington also equates to unlimited liability. This simply means that the owner will be liable for any losses or debts.
• The process of dissolution for a sole proprietorship is also simple.

Are you ready to start a sole proprietorship in Washington?

Steps to Start Sole Proprietorship in Washington

If you intend to start a sole proprietorship in Washington then you must start by identifying the various business requirements. You will need to focus on the financial and management aspect of the business. You will also need to consider several of the state-based requirements like tax IDs and business licenses. If you are wondering how to start a sole proprietorship in Washington, these steps will help you get started and continue to run the business smoothly.

1. Prepare a business plan

When thinking of filing a sole proprietorship in Washington, one of the first details to focus on is creating a proper business plan. This plan focuses on several major elements that will aid in the overall growth of the business. It will provide you with a clear visual path regarding finance, budgeting, marketing, prospective markets, customer base, and state requirements among other details. Different types of businesses have different requirements and plan components. Some of the most common facets of a general business plan are:

• Executive Summary
• Company Description and Objectives
• Industry and Market
• Direct and indirect competitors
• Chain of command or Management
• Details of Products or services
• Marketing Plan
• Sales Plan
• Funding Plan
• Financial Projection

2. Choose a Washington business name

When you start a sole proprietorship in Washington, you must choose a business name. Creating a company name is important because it helps to create a professional identity and communicate the nature of the business and its objectives to customers, partners, and vendors among others.

• Keep the business name as simple as possible
• The company name should represent your product or service like “Steven Johnson Sportswear”
• Conduct a copyright or trademark search for the chosen name
• If you plan to create a website, check for domain name availability

3. File for a Trade name

If you are thinking of filing a sole proprietorship in Washington, you will have two options available when it comes to choosing a company name. They are:

• The full legal name of the owner can be used as a company name
• Alternatively, you can register a trade name

For example: IF your name is Susan Wright and you want to start a sole proprietorship in Washington as a Yoga Studio. You can use your own name like ‘Susan Wright Yoga.’ Alternatively, if you use a name like “Susan’s Master Yoga” then it will be considered a DBA or trade name. In this situation, you will need to conduct a sole proprietorship Washington search to determine availability and then register the trade name.

4. Get an EIN

An EIN or Employer Identification Number is required for most businesses, mostly for tax purposes or opening a business bank account. When you start a sole proprietorship in Washington, you will be required to file your income and expenses through an individual tax return using your Social Security number (SSN). You can also apply for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS). As a sole proprietor, you will need an EIN if you meet the following conditions:

• If you hire employees
• When you open a business bank account
• A Keogh plan for an unincorporated business or are self-employed
• For filing excise tax returns
• Filing Chapter 7 (liquidation) or Chapter 11 (reorganization) bankruptcy
• If you change or convert the entity structure from a sole proprietorship to an LLC or partnership

5. Obtain the necessary licenses and permits

If you are interested in filing a sole proprietorship in Washington, then you must fulfill certain state requirements. Filing for a business license and permit is one of the most vital requirements. Obtaining the right license your business will allow your business to become and remain operational. Business licensing in the state can be categorized as:

• A state business license
• Professional or regulated licensing
• City or County licenses and permits
• Zoning permits

6. Open a bank account for your Washington business

Sole traders or proprietors often feel as though they don’t require a separate business account for banking purposes. Having a business bank account has its advantages especially when it comes to managing finances. Opening a business banking account is an ideal professional decision because they have been specifically designed to serve the financial and accounting requirements of a business.

7. Report and pay taxes

Since a sole proprietorship is operated by a single owner, it is considered an unincorporated business for tax purposes. Normally, the owner of this type of entity has to file personal income tax but Washington State doesn’t have any personal or business income tax. Therefore, if you start a sole proprietorship in Washington then you will be required to file sales and use tax in the state depending on your business activity and the location of your company.

Example: If you start your company in Seattle then the combined sales tax rate would be .101, but if you are based in Vancouver then the rate would be .084. The combined tax rate includes local and state sales tax.

Ready to Start a Sole Proprietorship Business in Washington?

A sole proprietorship, one of the simplest business structures, is well favored amongst first-time business owners. If you are wondering how to start a sole proprietorship in Washington then you will be happy to know that you are not required to submit any paperwork with the office of the Secretary of State. Although there is no registration process; paperwork and documentation will be required for making the company operational. This is where IncParadise can provide guidance and expertise to help you start a sole proprietorship in Washington with ease.