How to Start a Business in Washington 2026 Guide

Key Highlights

Here are the main points you should know before you start your new business in Washington State:

• First, you will need to pick a unique business name and choose the best business structure for you.
• All formal business types must register with the Washington Secretary of State.
• Almost every new business will have to get a state business license so you can run your business the right way.
• You should learn and follow Washington’s tax rules, like the B&O tax.
• It is important to open a business bank account so your personal money will be safe.

Introduction

Welcome to your guide to starting a new business in Washington State! The Evergreen State has a strong economy and there is support for people who want to start small businesses. Many big names like Amazon and Starbucks, plus lots of other small businesses, can be found here. Washington State is a good place to launch your own business.

This guide will help you with each step. It will show you how to choose a business name, how to get a business license, and ways to understand taxes. It will give you what you need to know so you can get off to a good start with your new business in Washington State.

Understanding the Washington Business Landscape

Washington State is a great place for people who want to start a new business. The state has a strong and varied economy. There are many chances to grow, whether you are in tech, retail, or other services. New business owners will see that they are welcome here.

It is good to know the economic overview before you get started. The state has more than 670,000 small businesses. This shows that there are many people with the drive to start something of their own. Now, let’s talk about the key business activities and factors in the economy that new business owners in Washington State should look at.

Key Industries and Opportunities in Washington State

Washington State is a great place to start a new business. There are many strong industries here. Technology is a big part of the state, with companies like Microsoft and Amazon based here. This helps new tech startups get support and grow. Other big areas are aerospace, farming, clean energy, and retail.

When you want to start a company in Washington State, be sure your business idea fits with one of these key areas. Your first business activities should be focused on where you can find good chances to grow. The state is known for its focus on new ideas and caring for the environment. This makes it a very open market for new companies.

Looking into these chances is what makes the Evergreen State stand out. You can open a coffee shop, start a software business, or launch a consulting company. The wide variety in the state’s economy means there is something for everyone who wants to start a business. By working in these main industries, you have a better chance to grow and do well.

Economic Overview for New Entrepreneurs

Washington offers a great place for new business and business owners. The economy is strong, and there is no state income tax. This helps small businesses keep more money and gives them a good chance to do well.

State agencies are ready to help you out. The Department of Commerce and the Small Business Development Center (SBDC) both offer support and funding for new business owners. They can help you find ways to grow and show you what you need to know when you start. It is good to find out how these agencies can work for you when you plan your next move.

When you look at all this, you also need to pick the right legal setup for your new business. For example, what business structure is best for you in Washington? You could be a sole owner, form an LLC, or start a full company. Each choice means something different for taxes and risk. We will talk more about those choices later.

Essential Requirements to Start a Business in Washington

Before you open your doors in the State of Washington, there are some things you must do. The state has some rules you must follow. You will need to register your business entity. You must also make sure you follow the state tax laws from the first day.

Your business structure will decide which papers you need to file with the Washington Secretary of State. You will also have to sign up with the Department of Revenue to handle taxes. The next sections will show you the documents and resources you need to get started.

Documents and Information Needed Before You Begin

Getting your papers and details in order before you start will make the business registration easier. When you keep everything together, it can save you a lot of time. It also helps you avoid slowing down your business license application.

Most of the time, you need a few important details to register. You need all these for your state and federal filings. Here are some of the main papers you will need for your business registration:

• Your Social Security Number or Individual Taxpayer Identification Number (ITIN)
• A legal name for your business
• A physical address and mailing address in Washington
• Formation papers, like a Certificate of Formation for an LLC

A lot of people want to know, “What licenses or permits do I need to open a business in Washington?” Almost all businesses need a state business license. You might also need to get local city or county licenses, or permits if your business activities need them. This can change with your location and what your business does.

Resources and Tools for First-Time Business Owners

If you are new business owners, you do not have to do this on your own. In Washington, there are many resources and tools from state agencies to help you. A good place to start is the official small business guide.

Many ask, “Is there a step-by-step guide for starting a business in Washington?” Yes, there is. The state gives you guides and checklists for each step. Here are some top resources:

• The Washington Small Business Development Center (SBDC) that gives free help.
• The U.S. Small Business Administration (SBA) has loan programs and business plan templates.
• You can use the state’s Business Licensing Wizard to find which licenses you need.
• SCORE has people who give advice and mentorship to business owners.

All these tools from state agencies are made to help make things easy. If you use them, you will feel better about making your business plan and knowing the legal steps.

Choosing the Right Business Structure in Washington

Choosing the right business structure is a big step for anyone starting a business. The business structure you choose will affect your taxes, the way you work with the state, and your own risks in Washington State. It also tells what your company will be in law, as a legal entity.

There are a few types, from a simple sole proprietorship to a corporation, which can be more involved. Each one gives different ways to protect you and gives different benefits. Limited liability is important for many people because it can keep your own things safe if the business owes money. We are going to talk about the most common options now to help you see what works best for you.

Sole Proprietorships and Partnerships Explained

If you want to start a business in Washington, there are some simple business structures you can pick from. The easiest is a sole proprietorship. This setup is best if you are the only one running your business. There is no legal wall between you and your business. You have to report all the money you make or lose on your own personal income tax.

A general partnership works almost the same way, but it has two or more business owners. Just like a sole proprietorship, there is no separate legal entity in place. The business owners in a partnership are also responsible if the business owes money. It is quick to get going with this type, so many small business owners go with it.

Both of these ways to set up your business are easy. But they do not give you liability protection. This means your personal things, such as your house or car, could be at risk if the business faces a lawsuit or goes into debt.

Limited Liability Companies (LLCs) in Washington

Another option for “What business structures can I choose when starting a business in Washington?” is the limited liability company (LLC). A Washington LLC is a well-liked business type. It gives the limited liability you find in a company, but also has the easy taxes seen with a sole proprietorship.

The biggest perk of an LLC is limited liability protection. When you own a Washington LLC and your business gets sued, your own things should be safe. This split between what the business owns and what you own is one main thing that gets people to form a limited liability company.

With a Washington LLC, you get that liability protection and do not have to deal with a lot of red tape like with a big company. Money made or lost by the company goes right to your personal tax papers, so you skip double taxation that corporations have. All of this makes an LLC a smart and useful choice for someone who wants to start a new business in Washington.

Corporations and Nonprofits: What to Know

When you look at the types of business structures you can pick, a corporation gives the most liability protection. A corporation is a business entity that is separate from its owners, or shareholders. To start one in Washington State, you need to file Articles of Incorporation with the state.

One thing about a regular corporation is something called double taxation. This means the business gets taxed, and then the profits get taxed again when they go to the shareholders as dividends. But, there is no corporate income tax in Washington State. This helps lower the impact of double taxation, but companies will still need to pay the B&O tax.

If your plan is to work on a cause that is charitable, educational, or religious, you can set up a nonprofit corporation. This business entity is there for the public good, not for making a profit. Each type in Washington State has its own rules for how to be formed, how to run things, and how to follow all laws.

Naming Your Washington Business

Choosing the right business name for your Washington business is an important first step. The name should be easy to remember, simple to say, and show what your business does. The business name you pick will not just make your brand stand out, but it also has to follow the law. Your legal name has to be one-of-a-kind and it must be free to use in Washington State.

When you have a few ideas for a business name, check to see if the name is already being used. It is a good idea to find out if you can get a matching domain name, too. This will help your washington business look the same both online and offline. That way, your brand will be clear and easy for people to find.

Washington Business Name Rules and Availability Search

Before you can sign up your new business in Washington, you need to make sure your business name follows the state’s rules. Your legal name should not be the same as, or too close to, another business entity that is already with the Washington Secretary of State.

To see if the name you want is open, use the business name search tool on the Washington Secretary of State’s website. It will show you if any other company is using the name you want. Here are some tips for picking a good name:

• Make sure it is easy to spell and simple to remember.
• Pick a name that shows what your business does.
• Try not to choose a name that is too focused in case your business grows later.
• See if you can get social media accounts and the .com domain name.

After you know your business name is free, you can start your business registration. Having a special name helps you build a strong brand name that shows on things like your website and business cards.

Registering a Trade Name or DBA

If you want to start a new business in Washington and use a name that is different from your legal name, you need a trade name. This is also called a “doing business as” (DBA). With a trade name, your business can go by a name that is not your real name.

You must register a trade name if you are a sole proprietor or a partnership and you are doing business using a name that is not your full legal name. LLCs and corporations will also need to register a DBA with the secretary of state if they use a name that is not their official name for business activities.

The process is easy and can be done through the Washington Secretary of State. You will have to fill out a trade name application and pay a fee. This helps people know who owns and runs the business.

Registering Your New Business in Washington

After you pick your business name and decide on your business structure, the next thing you need to do is start your official business registration. If you set up an LLC or a corporation, you will file special papers with the Washington Secretary of State. When you do this, your business will become a legal entity in Washington State.

There will be a filing fee to pay when you register. The fee will change based on your business structure and what way you file—online or by mail. Next, we will go over the exact filing needs for every business type.

Filing With the Washington Secretary of State

To register your new business in Washington, you need to submit the correct documents to the Secretary of State. If you are forming an LLC, you will file a Certificate of Formation. For a corporation, the document is called the Articles of Incorporation. These filings officially establish your business in Washington State.

You can complete your business registration online or by mail. Online filing is generally faster but may have a slightly higher fee. The filing fee is a one-time cost to get your business legally recognized.

Here is a quick breakdown of the filing costs for common business structures.

Business Structure	Formation Document	Filing Fee (Mail/Online)
Limited Liability Company (LLC)	Certificate of Formation	$180 / $200
Corporation	Articles of Incorporation	$180 / $200
Trade Name (DBA)	Trade Name Application	$5

Business Registration for Different Legal Structures

The business registration process in Washington State will change depending on the type of business structure you pick. For example, formal legal entities such as LLCs and corporations have different steps compared to simple setups like sole proprietorships.

So, how do you get your new business started in Washington? Here is a quick look at what each kind of small business needs:

• LLCs and Corporations: You have to file your formation forms with the Washington Secretary of State.
• Sole Proprietorships and General Partnerships: You don’t need to register with the Secretary of State unless you want to use a trade name.
• All Businesses: Most of the time, you will need a state business license. You also have to register with the Washington State Department of Revenue for taxes.

It’s good to know the rules for each business structure. This helps you and your legal entity stay in line with the law right from the start. Every business registration type has its own steps you must follow to work in Washington.

Getting Your Washington State Business License

Almost every business in Washington State needs to have a Washington State Business License. People also call it a “master business license” because one license application will sign you up with different state agencies, including the Department of Revenue.

It does not matter what your business structure is or what business activities you do. If you run a business in Washington State, you need this business license. The license application is easy to fill out and you can do it online. Here are the steps to help you get your Washington State Business License.

How to Apply for a Washington State Business License

To get a Washington State business license, you have to send in a business license application. The best way to do this is online with the Business Licensing Service. This service is a part of the Washington Department of Revenue.

This easy process helps new business owners do things faster. You can use one application for a state business license, get your UBI number (Unified Business Identifier), and sign up for state taxes at the same time. Here’s what you need to do:

• Visit the Washington Business Licensing Service online portal.
• Fill out the business license application with your business information.
• Write down any trade names you want to use.
• Pay the fee to process your license application.

After the department of revenue goes through your application, you will get your Washington state business license. You must have this to run a business in washington state. Put this business license in a safe spot. You will need it for other things you may do for your new business.

City, County, and Local Licenses and Permits

Besides the state business license, you may also need local licenses and permits for your business. The rules are different in each city and county, so you should ask your local government what you need to do.

Many cities in Washington State have their own rules for a business license. Some cities are part of a program with the state that lets you get your state business license and your city license at the same time. If your city isn’t in this program, you will have to talk to the city clerk’s office to see what to do next.

Some business activities need special permits too. For example, if you run a restaurant, you will need health permits. A construction business will need contractor permits. Make sure you spend time looking into these local rules so your business can stay on track and follow the law.

Understanding Washington State Tax Requirements

Washington’s tax system is different from most others. The good thing is that there is no state income tax in washington state for people or companies. But, washington state does have a Business and Occupation (B&O) tax. This tax is based on the gross income of your business.

Almost all business activities in washington state are covered by the B&O tax. If you sell real goods or certain services, you also need to collect and pay sales tax. The washington state department of revenue handles the B&O and sales taxes. It is important to know what your business must do to keep up with the rules of the washington state department of revenue.

State and Local Taxes for Businesses

A lot of new business owners ask, “What tax rules do I need to follow for a new business in Washington?” The main washington taxes you should know about are the Business & Occupation (B&O) tax and the sales tax. There is no personal income tax for people in Washington, which makes it different from most other places.

The B&O tax is a tax on all money your business gets before taking any costs out. The amount you pay can change based on what type of business you have. You must send B&O tax reports to the washington department of revenue. Most people do this every three months or once a year.

If you sell things to your customers, you also need to collect sales tax. The starting sales tax around the state is 6.5%. Local areas add their own rates, so how much you collect can go up depending on where you are. Some services need sales tax too. Check with the department of revenue for the rules about your line of work.

Obtaining an Employer Identification Number (EIN)

An Employer Identification Number (EIN), also called a federal tax ID number, works much like a Social Security number but for your business. Most business owners in Washington State have to get one. You need an EIN if you plan to hire people, run your business as a corporation or a partnership, or file certain federal tax forms.

You can get your EIN for free on the IRS website. This online application is easy and fast. You will get your number right away, and this number is important for many business activities, such as opening a business bank account and doing payroll.

The EIN is a federal rule, but it connects to your Washington State needs. When you talk to state agencies like the Department of Revenue or the Employment Security Department, you often have to give your employer identification number.

Sales Tax and Excise Tax in Washington

Understanding sales tax and excise tax in Washington is an important part of starting a new business. If you sell real products or do some kinds of services, you will have to collect retail sales tax from your customers.

You also need to send that money to the Washington Department of Revenue. The total sales tax rate is made of the state rate plus the local rates. The rate can change based on where your business is. On top of sales tax, there are excise taxes for some groups. This covers things like fuel, tobacco, and liquor.

Here are some key things about these taxes:

• Register with the Department of Revenue to get a tax permit.
• Find the right tax rate for your business location.
• Learn what things you sell or do are taxed.
• Send in your tax returns and pay the sales tax you collected on time.

Opening Business Bank Accounts and Managing Finances

It is very important to keep your business money separate from your personal money. One good way to do this is to open a bank account for your business. This can help protect your own things, like your house and car, if you have an LLC or a company.

A business bank account also makes it much easier to keep track of your money and do your taxes. Once you get your bank account set up, you may want to get a business credit card. This can help you pay for things your business needs and begin to build the business’s credit history.

Setting Up a Business Bank Account in Washington

Setting up a business bank account is an easy but important step to take when you first register a new business in Washington. You need this account to handle your money in the right way for a legal entity. The bank will ask you for some papers to prove who you are, where your business is, and how your business is set up.

Most banks want to see your formation documents. These can be your Articles of Incorporation or Certificate of Formation. The bank will use these to check if your business is real and that your business name matches what you want on the bank account. You also need to give them your federal Employer Identification Number.

The bank will need a personal ID from you and the business’s physical address. After the account is set up, you can put money in, get paid, and handle all money matters for your business. This also helps you keep your work money and your own money in different places.

Basics of Business Accounting and Bookkeeping

Good bookkeeping is very important for your money health. It also helps you meet tax rules in Washington. Doing business accounting the right way lets you keep track of what you earn and spend. You can see your cash go in and out and make the right moves for your business. For small businesses, bookkeeping does not need to be hard.

If you keep all records tidy for your business activities, you can figure out your gross income. You will need this for B&O tax. These records also show proof if there is an audit. You can start by using a simple spreadsheet or you can try easy accounting programs.

Here are some basic tips for good bookkeeping:

• Keep all business receipts and invoices in order.
• Look over your bank statements often.
• Track your income and spending every week or month.
• Think about getting an accountant when your small business starts to grow.

Getting Insured and Protecting Your Business

Keeping your business safe from things you can’t plan for is as important as making it grow. Business insurance gives you a safety net. It can keep you from money problems when the unexpected happens. In washington state, some kinds of insurance are needed by law. Other types are not required, but they are good for giving you liability protection.

For small businesses, having the right insurance can help you get through hard times. It could mean not closing for good. Here, we will look at what kinds of insurance you may want to have, to keep your investment safe and help you feel at ease.

Types of Business Insurance Required in Washington

In Washington State, the kind of business insurance you need will depend on what you do and if you have any workers. If you hire someone, you have to get workers’ compensation insurance by law. The Department of Labor & Industries handles this, and this is one of the state agencies you will talk with if you are an employer.

Besides what is required, there are plans that also give you important liability protection. General liability insurance is a good idea for most businesses, since it helps with claims if someone gets hurt or if there is damage to property. For service-based businesses, you should get professional liability insurance, in case a client is not happy with your work.

Here are some common types of business insurance you should know about in Washington State:

• Workers’ Compensation Insurance: This one is required if you have workers.
• General Liability Insurance: This insurance helps protect against regular business risks.
• Professional Liability Insurance: This covers you when there are mistakes or problems in the services you give.
• Commercial Property Insurance: This keeps your buildings and belongings safe.

Workers’ Compensation and Unemployment Insurance

For small business owners in Washington State who have workers, it is important to know about workers’ compensation and unemployment insurance. Workers’ compensation helps pay for medical bills and wages if one of your workers gets hurt at work. The Washington State Department of Labor & Industries handles this insurance.

Unemployment insurance gives support for a short time to workers who lose their job and it is not their fault. As the boss, you have to pay unemployment taxes to the Washington State Employment Security Department. These state agencies are very important for any business in Washington State that hires workers.

If you do not follow these rules, you can get big fines and pay other costs. Setting up these insurance accounts the right way is a big job for all business owners. It helps keep your small business safe and protects the people who work for you.

Step-by-Step Guide: How to Start a Business in Washington

Are you ready to start your new business? This easy guide will help you set up your Washington State business step by step. If you follow each step in order, you can make sure nothing is missed. This guide will take you from planning to launch.

It does not matter if you want a tech business or a shop. You can use this small business guidance for any business type. Let’s split this big process into four clear steps. This way, you can get your Washington State business started the right way and move towards success.

Step 1: Refine Your Business Idea and Conduct Market Research

The first thing you need to do when starting a business in Washington State is to turn your good idea into a real business concept. Start with making your business idea clear and simple. Then do some research on the market. You need to ask if there is a true need for your product or service in Washington State.

Doing this market research will help you learn about the industry, the people you need to compete with, and the customers you want. One main thing you will get from this step is knowing your target audience. When you know who you want to sell to, it will help you plan your marketing and shape how your business works.

To begin, work on these things:

• Make sure you clearly say what your product or service is.
• Figure out who your main customer or target audience should be.
• Look into your competitors and find what makes you different and better.
• Let possible customers try your business idea and ask them what they think.

Step 2: Write a Business Plan and Set Goals

Once you have a clear idea, the next step is to make a business plan. The business plan helps you know where you want to go and how you will get there. For business owners, this plan is important. Small business owners need it to stay on track and also to help get money for their business. The business plan is a big part of any step-by-step guide when you want to start a business.

Your business plan should talk about your company’s mission, its setup, and what money you think you will make and spend. When you set goals in the plan, you get easy steps to move toward. The plan also needs to cover your business activities and the type of business you will run.

A good business plan usually has:

• An executive summary of your business.
• A detailed company description.
• Market study and research on other companies.
• Money plans, like how much to start and how much you can bring in.

Step 3: Register Your Business and Secure Licenses

Now is the time to make your new business official. You need to take care of business registration and get the right licenses so you can work within the law. How you do this step in Washington state depends on the business structure you have chosen.

If you picked an LLC or corporation, you must file with the washington secretary of state. All types of businesses need to apply for a state business license by going through the washington state department of revenue. The business licensing wizard from the washington state department can show you what you will need for your new business.

Here’s a checklist for you:

• File formation papers with the secretary of state (if you need to).
• Apply for your washington state business license.
• Get an employer identification number (EIN) from the IRS.
• Look for and get any other local or special permits you might need.

Step 4: Set Up Finances, Hire Employees, and Launch

The last things to do before you start your business in Washington State are about getting your daily work set up right. First, you need to open a business bank account. This helps you keep your business money away from your personal finances. It also makes things easier when you need to do accounting or get liability protection.

If you are going to hire people, you must sign up with state agencies for workers’ compensation and unemployment insurance. You should know the laws in Washington State about things like pay and working extra hours.

Once your business setup for money and the law is ready, you can get started. Here is what you do next:

• Open your business bank account.
• Set up your system for accounting.
• If you hire someone, follow all employment laws.
• Create a plan for marketing and then tell people your business is open.

Conclusion

Starting a business in Washington can be the start of a great new path, with many chances to grow and do well. When you know about Washington’s economy and follow the main steps in this guide, you can build a good base for your business dreams. Picking the right business structure and making sure you have the proper licenses and permits are important for every new business. You want to set things right so your business will meet all state rules and be able to do well later on. Planning and research are needed for things to go well when you start. If you want to start your own business, you can ask for help or look for resources that will help you on this path.

Frequently Asked Questions

What are the main steps to legally start a business in Washington?

To start a new business in Washington State, you need to pick a legal entity. You must do your business registration with the Secretary of State if this is needed for your kind of business. Then, you will have to get a state business license.

You also need to follow all the tax and license rules at the federal, state, and local levels. Make sure you do everything so your new business in Washington State will be set up the right way.

Do I need a registered agent for my Washington business?

If your business is an LLC or a corporation in Washington State, you need to have a registered agent. The registered agent can be a person or a service, but they must have a physical address in the state. This person or service will get legal papers and official notes from the Secretary of State for your business.

Can I operate an online-only business in Washington State?

Yes, you can run an online business in the State of Washington. You still need to get a state business license. You also have to follow all the rules for registration and taxes, just like any other business. What you need to do will depend on your business activities and your business type.

What permits or licenses are required for most small businesses in Washington?

Almost every small business in Washington needs to get a state business license. You get this by applying to the Washington State Department of Revenue. Depending on what your business does and where it is, you may need more permits from your city, county, or agencies in your field. You may also need local or professional licenses in addition to the state business license. Always check with the Washington State Department of Revenue for the latest steps and rules about your business license and business activities.