Do I Need a Business License? Here’s How to Tell

Most entrepreneurs in Washington State need a business license, but there are exceptions.

As leading business and transaction lawyers in Seattle, we know that small businesses are the lifeblood of our economy. Our firm provides the legal support that entrepreneurs need for sustained growth. Contact us online to schedule a free consultation .


Entrepreneurs are known for their vision and their ability to turn ideas into reality. Most of them feel more comfortable tackling big-picture goals than sorting through the weeds. When it comes to sustainable business success, though, the devil truly is in the details.


One of the not-so-small details that a lot of entrepreneurs seem to be confused about is whether or not they need a business license to operate. This is especially true for freelancers and people who are considering turning their hobby into a business. Whatever their reason, it won’t be enough to keep them out of legal trouble if they’re caught violating the law.


Fortunately, this situation is easy to avoid when you partner with a dedicated
business and transaction law attorney from the get-go. Keep reading to learn everything you need to know about business licenses in Washington State.


Don’t jeopardize your business goals by failing to seek legal help! An experienced business attorney can help you avoid compliance issues, minimize tax liability and avoid contract disputes. Questions? Contact
By Design Law online to discuss your options.


Business Licenses in Washington State

A business license can refer to a collection of different licenses or permits, or it may refer to a general operating license. Depending on what type of business you’re starting, you may need to obtain a number of different licenses and permits from various jurisdictions before you can operate legally.


Who Needs a Business License in Washington?

It’s important to understand that licensing requirements vary drastically by state. Whereas some states allow a variety of exemptions from licensing, Washington is one of a handful of states that requires virtually all businesses to get state business licenses, as well as any required local licenses.


According to the
Washington State Department of Revenue , you need a business license if one or more of the following are true:


  • Your business requires city and state endorsements.


  • You’re doing business under a name other than your full legal name.


  • You plan to hire employees in the next 90 days.


  • You sell a product or service that requires the collection of sales tax.


  • Your gross income from the business is $12,000 per year or more.


  • Your business must pay taxes or fees to the Department of Revenue.


  • You buy or process specialty wood products.


If none of these apply to you and your business, you may be exempt from state licensure requirements. However, it’s a good idea to consult an attorney to be sure.


Types of Business Licenses

The specific licenses and permits that you need will depend on a few different factors, including the nature of your business and your location. Here are some of the most common licenses you may encounter:


  • General business license
  • Professional license
  • Health and safety permits
  • Zoning permits
  • Sales tax permits
  • Building permits
  • Environmental permits


Ultimately, the required permits, licenses and endorsements you need to operate your business will greatly depend on the type of company you run and the municipality in which it is located. Operating in multiple municipalities can significantly complicate the requirements.


Steps to Obtaining a Business License

No matter the specifics of your business, there’s a good chance you need at least a basic state business license . Luckily, obtaining one isn’t too difficult—especially with help from a legal expert. Following these steps can help you get started:


  • Research your local requirements. You’ll likely want to start with determining the local licensing requirements for your industry. You can contact your city’s business license department to find detailed information.


  • Register your business. You’ll need to register your business before you start applying for licenses. Although the process depends on the specifics of your case, this will likely require you to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and register your business name.


  • Complete the necessary applications. Each license has its own application process, and completing yours will require gathering all the required documents and filling them out accurately. Missing, incomplete or inaccurate information could result in delays or rejection.


  • Pay application fees. Before you submit your applications, it’s important to know that most licenses have associated fees. Be prepared to pay for those fees when it’s time for you to file.


  • Ensure compliance. Depending on the nature of your business, you may be subject to inspections to ensure compliance with local regulations and safety standards.


  • Keep renewal dates in mind. Business licenses expire, often one year after approval. It’s essential to keep renewal dates in mind to ensure continual compliance and avoid license revocation and penalties.


As you can see, obtaining the appropriate licensure for your business is an involved process. You may need to conduct thorough research and prepare lots of documentation to successfully secure it. That’s why many entrepreneurs choose to work with a legal professional in their pursuit of the necessary licensing.

By Design Law: Leading Business and Transaction Law Attorneys in Seattle

The most successful entrepreneurs are the ones who know how to delegate and when to ask for help. And one area of assistance that every business owner will eventually need—regardless of size or sector—is legal help. Whether it’s navigating a vendor dispute, reviewing an employee contract or applying for a business license, a dedicated attorney can help the process go smoothly.


So why not work with one from the get-go?
Contact By Design Law online to schedule your free consultation with an experienced business and transaction law attorney today.


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