Checklist for Opening a Business

Steps to Forming a Business in Washington State

This is a checklist for opening a business in the state of Washington. There are eight steps but not all of them will apply to your business. We recommend you read through all steps in this checklist before applying for your business license. You can download the checklist as a PDF file if you prefer that format.

Here are the 8 steps:

  1. Research and make a plan;
  2. Register your business with the Secretary of State (SOS);
  3. License your business with the Department of Revenue (DOR);
  4. Report your new employees to the Department of Social and Health Services (DSHS);
  5. Apply for a Reseller Permit with the Department of Revenue (DOR);
  6. Register as a contractor with Department of Labor & Industries (L&I);
  7. Contact your local health department for food handling requirements; and
  8. Check with your City and/or County for their requirements.

Step 1: Consider this before you start

Before we get started here are some things you might want to consider:

  • Have you written a business plan?
  • Do you need a Federal Employer Identification Number (EIN)
  • Do you know state and local licensing and registration requirements?
    For help, go to: https://secure.dor.wa.gov/gteunauth/_/
    Answer the questions on the page to get customized information. Keep the information and use it when you license and register your business.
  • Have you checked for any additional requirements for starting your business?
  • Have you decided what type of business structure you will have?
    (For example: sole proprietor, limited liability company, etc.)

You can learn more in the Plan and Start chapters of Washington's Small Business Guide

Step 2: Will you have a corporate structure?

NO, I will operate as a sole proprietor Skip this step, go to step 3

YES - Register your business with the Secretary of State as a legal structure, such as:
  • Limited Liability Company (LLC)
  • Profit Corporation
  • Nonprofit Corporation
  • Limited Partnership
Once you register...

The Secretary of State will issue a Unified Business Identifier (UBI) number and send you formation documents. Use the same name and UBI number when dealing with all agencies.

How long does it take to process?

  • 2 business days if done online.
  • 14 business days if done by mail.
For help, contact the Corporations Division at:

website: www.sos.wa.gov/corps
email: corps@sos.wa.gov
phone: (360) 725-0377

Things to consider...
  • Bylaws if you are a corporation.
  • Operating Agreement if you are an LLC.
  • Governing person information such as officers for corporations and members/managers for LLCs.

If you want to be an S-corp, complete the steps for a profit corporation or LLC with the Secretary of State, then contact IRS for S-corp tax designation. For details, see Start chapter of Washington's Small Business Guide

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Step 3: License your business

You must file your Business License Application with the Department of Revenue to be recognized as a Washington business. Likely, you will also need an additional business license for each of the cities you do businesses in (or the county if your business location is outside of the city limits). We recommend you read through all steps in this checklist before applying for the business license.

File your Business License Application online at: https://dor.wa.gov/open-business

This is what happens once you file your Business License Application.

The Department of Revenue will:

  • Assign your business a UBI (unified business identifier) number if it hasn't already been issued.
  • Send you a business license with UBI.
  • Create a taxpayer account and send you more information on your tax reporting responsibilities.
How long does it take to process?
  • 2 business days if done online.
  • 14 business days if done in person or by mail.
How long does it take to get a liquor license?
  • Up to 90 days.
Be prepared to answer these questions:
  • What is your physical address? (must be in Washington if you have employees)
  • How much do you expect to make the first year?
  • Will you have employees? Will any be under age 18?
  • If you won't have employees, would you like to sign up for optional Workers' Compensation coverage for yourself?
  • What percentage of ownership do your owners and governing people hold?
  • Will your business sell, manufacture, or redistribute alcohol? If yes, go to: https://lcb.wa.gov/licensing/apply-liquor-license

Step 4: Will you have employees?

NO, I will not have employees Skip this step, go to step 5

YES - Report your new employees, rehired employees, or other requirements to the Department of Social and Health Services (DSHS) at: www.dshs.wa.gov/newhire

Create a required safety plan. Go to: https://lni.wa.gov/safety-health/preventing-injuries-illnesses/get-started-with-safety-health/

If you are going to have employees who are minors, please review Department of Labor & Industries' (L&I) rules and complete the required forms. Go to: https://lni.wa.gov/workers-rights/youth-employment/how-to-hire-minors

Department of Labor & Industries (L&I) will:
  • Automatically set up your Workers' Compensation Account.
  • Provide you with more information within 14 business days.
Employment Security (ESD) will:
  • Automatically set up your Unemployment Insurance Account.
  • Provide you with more information within 14 business days.
Internal Revenue Service (IRS) will:
  • Assign a Federal Employer Identification Number (EIN). Go to: www.irs.gov
  • Federal information is in the Start chapter of Washington's Small Business Guide

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Step 5: Will your business resell products?

NO, I will not be reselling products Skip this step, go to step 6

YES - Apply for a Reseller Permit... (if you do not automatically receive one by mail)

www.dor.wa.gov/resellerpermit

After you apply, the Department of Revenue will send you a Reseller Permit. The process takes about 10 business days.

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Step 6: Are you a construction contractor?

NO, I am not a construction contractor Skip this step, go to step 7

YES - Before you register as a contractor:
Register as a contractor with Department of Labor & Industries

For help, go to your local office:
https://lni.wa.gov/agency/contact/#office-locations
or call 800-647-0982

What happens after you register:

Labor & Industries:

  • Registers you as a construction contractor.
  • Posts your registration on it's website for public viewing.
  • Contacts your business with more information.

How long does it take to process?

  • Immediately if done at an L&I office.
  • 5 business days if done by mail.

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Step 7: Will your business deal with food?

NO, my business will not deal with food Skip this step, go to step 8

YES - Food-related businesses (restaurants, coffee stands, caterers, food product manufacturers, etc.) will need kitchen and food handler permits. Contact your countyhealth department. In addition, food and beverage manufacturers and processors will need licensing from the Washington Department of Agriculture.

Also, if you plan to sell, serve, or produce alcoholic beverages, contact the Washington State Liquor and Cannabis Board to find out what kind of license you need to apply for. For marijuana-infused products, you will need a marijuana license. Contact the Business Licensing Service for more information on how to apply. For help opening a restaurant in Seattle, visit the Seattle restaurant site.

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Step 8: Have you met all the requirements?

It is your responsibility to ensure you meet all government requirements.

For general help understanding government requirements refer to the state of Washington's Small Business Guide.

Note: You may receive updated business licenses when you receive additional licenses, or endorsements.

For help with city and county requirements, go to: mrsc.org/Home/Research-Tools/Washington-City-and-Town-Profiles.aspx and mrsc.org/Home/Research-Tools/Washington-County-Profiles.aspx

Once you have met all the requirements, you can open your business!