You get a Washington business license from the Washington Department of Revenue, and you need one if you meet any of its conditions, such as earning $12,000 or more a year, collecting sales tax, hiring staff within 90 days or trading under a name other than your full legal name. Approval gives you a Unified Business Identifier (UBI) number.
Washington runs state business licensing through the Department of Revenue's Business Licensing Service. This page uses the department's apply for a business license page and its city endorsements page, both read in October 2026.
Who needs a Washington business license
The department says to register and get a business license if any one of these applies:
| Condition | What it means in practice |
|---|---|
| Gross income of $12,000 a year or more | Most active businesses cross this, as of October 2026 |
| You sell goods or services that require sales tax collection | Retail sales and many services |
| You plan to hire employees within the next 90 days | Even before the first hire |
| You trade under a name other than your full legal name | A trade name, for example |
| Your business needs city, county or state endorsements | Licensed trades and activities |
| You must pay taxes or fees to the Department of Revenue | Any registered tax type |
| You buy or process specialty wood products | A specific industry rule |
| You meet nexus threshold reporting requirements | Out-of-state businesses with enough Washington activity |
The insight: one condition is enough
Many sole owners think a small side business is below the line. The $12,000 income figure is only one of eight tests. A freelancer earning less than $12,000 still needs a license if they use a trade name or sell something that needs sales tax collected. Check every line, not just the income one.
Entities file with the Secretary of State first
If your business will be a corporation, LLC, limited partnership or limited liability partnership, the department says you must file with the Washington Secretary of State before you file the business license application. A sole proprietor goes straight to the license. My guide to starting an LLC covers the entity step, and my sole proprietorship guide covers trading in your own name.
How to apply, step by step
- Run the Business Licensing Wizard. It lists the agencies to contact, the endorsements your activity needs and tips for your type of business.
- Create an online account in My DOR. You'll use the same account later to file taxes and change your business details.
- Apply online, or download the forms and apply by mail.
- Add any city endorsements at the same time if your city is on the department's list.
- Pay the processing fee and any endorsement fees. The department says the application fee varies and explains how to work it out.
- Receive your business license and your UBI number.
How long it takes
| Route | Typical time (as of October 2026) |
|---|---|
| Online application | About 10 business days |
| Online with city or state endorsements | An extra 2 to 3 weeks for approvals |
| By mail | Up to six weeks |
If you're opening on a set date, apply online and allow for the endorsement approvals. Mail is the slow route, so it's only worth using if you can't apply online. Once your application has been processed, the department lists further steps for a new business, so read that page before your first tax return is due.
What the UBI number is for
When your license is issued, you're given a Unified Business Identifier. The department says it's unique to your business and you'll need it whenever you file taxes or make changes to your account. Keep it with your federal EIN, which my EIN guide explains how to get.
City endorsements
For many cities, the local business license is added through the department as a city endorsement. The department's city endorsements page says that if your business is located in, or will travel to, a listed city, you can apply for that city's endorsement at the same time as your state licenses and registrations. If you'll work in a city that isn't listed, contact that city directly. Contractors and mobile businesses that travel to clients in several cities should check each one.
Mistakes to avoid
- Assuming a small side business is exempt because it earns under $12,000, when a trade name or sales tax collection still triggers the license.
- Applying for the business license before filing an LLC or corporation with the Secretary of State.
- Forgetting a city endorsement for a city you travel to for work.
- Opening before endorsements are approved, when they can add 2 to 3 weeks.
- Using a personal account instead of the My DOR account tied to the UBI.
If you're not sure whether your activity needs a state endorsement, the Business Licensing Wizard is the quickest check. It asks about your business and lists what applies.
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After the license arrives
- File your tax returns through My DOR on the schedule the department assigns.
- Update your account when your address, owners or activities change.
- Add endorsements before starting a new licensed activity or working in a new city.
- Keep your UBI number on invoices and records where agencies ask for it.
Hiring staff? The Washington minimum wage guide covers the pay floor.
My verdict
Most Washington businesses need a state business license, and the $12,000 income test is only one of eight triggers. Apply online through the Business Licensing Wizard, allow about 10 business days plus time for endorsements, and add every city you work in. The UBI number you receive is the key to every later filing.
Frequently asked questions
Who needs a business license in Washington State?
Anyone meeting one of the Department of Revenue's conditions, including $12,000 or more in yearly gross income, collecting sales tax, hiring within 90 days or using a name other than your full legal name.
How long does a Washington business license take?
About 10 business days online, plus 2 to 3 weeks if endorsements need approval, or up to six weeks by mail.
What is a UBI number in Washington?
A Unified Business Identifier issued with your business license. You use it for tax filings and account changes.
Does an LLC need a Washington business license?
Yes, if it meets the conditions. An LLC must file with the Secretary of State before applying for the business license.
How much is a Washington business license?
The department says the application fee varies, with extra fees for each endorsement, and explains how to work out your fee.


