How to Get a Business License in Seattle

Starting a business in Seattle is an exciting step toward economic independence and community contribution. However, before you open your doors, serve your first customer, or launch your website, there’s a critical legal requirement you must fulfill: obtaining a business license. In Seattle, this isn’t just a formality—it’s a foundational step that ensures your operations comply with local, state, and federal regulations. Without a valid business license, you risk fines, operational shutdowns, and loss of credibility with clients, vendors, and financial institutions.

The City of Seattle, in partnership with the Washington State Department of Revenue, manages business licensing through the Seattle Business License Application (BLA) system. Whether you’re opening a coffee shop in Capitol Hill, launching a freelance graphic design service from your home in Ballard, or establishing a tech startup in South Lake Union, you must register your business with the city. This guide walks you through every stage of the process—from initial planning to final approval—with clear, actionable steps, real-world examples, and essential tools to ensure your business gets off to a legally compliant start.

Step-by-Step Guide

Step 1: Determine Your Business Structure

Before applying for a business license, you must decide how your business will be legally structured. Your business structure affects your tax obligations, liability exposure, and the documents you’ll need to submit. The most common structures in Seattle include:

• Sole Proprietorship – The simplest form, where you and your business are legally the same entity. No formal registration is required at the state level, but you still need a Seattle business license.
• Partnership – Two or more people share ownership. General partnerships require a Doing Business As (DBA) registration if operating under a name other than the partners’ legal names.
• Limited Liability Company (LLC) – Offers personal liability protection and flexible taxation. Must be registered with the Washington Secretary of State before applying for a Seattle license.
• Corporation (C-Corp or S-Corp) – A more complex structure with formal governance. Requires articles of incorporation filed with the Secretary of State.

Each structure has different filing requirements. For example, if you’re forming an LLC or corporation, you must first file with the Washington Secretary of State and receive a Business Identification Number (BIN) before proceeding with the Seattle application. Sole proprietors and general partnerships can proceed directly to the city application if using a trade name.

Step 2: Choose and Register Your Business Name

Your business name is more than branding—it’s a legal identifier. If you plan to operate under a name different from your personal legal name (for sole proprietors) or the official corporate name (for LLCs and corporations), you must register a Doing Business As (DBA), also known as a trade name.

To register a DBA in Seattle:

1. Search the Washington Secretary of State’s Business Name Database to ensure your desired name isn’t already in use.
2. File a Trade Name Registration with the Secretary of State. The fee is $50 and can be completed online.
3. Keep your confirmation email or certificate—you’ll need it when applying for your business license.

Note: If you’re using your own legal name (e.g., “Jane Doe Consulting”), you do not need to register a DBA. However, if you’re using “Jane’s Coffee Corner,” you must register the trade name.

Step 3: Obtain a Federal Employer Identification Number (EIN)

If your business has employees, operates as a corporation or partnership, or has certain tax obligations, you must obtain an EIN from the Internal Revenue Service (IRS). Even sole proprietors without employees often apply for an EIN to maintain privacy (avoiding use of their Social Security Number) and to open a business bank account.

To get an EIN:

1. Visit the IRS website at www.irs.gov/ein.
2. Complete the online application (Form SS-4). It’s free and available Monday–Friday, 7 a.m. to 10 p.m. Eastern Time.
3. Receive your EIN immediately upon submission.

You’ll need your EIN when completing your Seattle business license application. Keep it in a secure location—it’s required for tax filings, payroll, and banking.

Step 4: Apply for Your Seattle Business License

The core step in the process is applying for your Seattle Business License. This is done online through the Seattle Business License Application Portal.

Here’s how to complete the application:

1. Log in or create an account on the Seattle Business License website. You’ll need your email, a password, and your business name or EIN.
2. Select your business type. Choose from options like Retail, Service, Professional, Food, Manufacturing, etc.
3. Provide business details. Enter your legal name, DBA (if applicable), physical and mailing addresses, and business start date.
4. Enter ownership information. List all owners, their addresses, and Social Security Numbers or EINs.
5. Answer industry-specific questions. Depending on your business type, you may be asked about hazardous materials, alcohol sales, firearms, or health-related services.
6. Pay the application fee. The base fee is $205 for most businesses. Additional fees may apply for specific industries (e.g., food service, liquor, massage therapy).
7. Submit your application. You’ll receive an email confirmation and a temporary license number immediately.

Processing time is typically 7–10 business days. You’ll be notified by email when your license is approved and issued. You can download a digital copy from your account dashboard.

Step 5: Register for State Taxes

When you apply for your Seattle business license, you’ll automatically be enrolled in the Washington State Business License Service (BLS), which registers your business for state taxes. This includes:

• Business and Occupation (B&O) Tax – A gross receipts tax applied to nearly all businesses in Washington. Rates vary by industry (e.g., retail is 0.471%, services are 1.5%).
• Sales Tax – Required if you sell tangible goods or certain services. You’ll receive a sales tax permit automatically with your license.
• Use Tax – Applies if you purchase goods for resale without paying sales tax.
• Withholding Tax – Required if you have employees.

You’ll receive a letter from the Department of Revenue with your tax account number and filing schedule. Most businesses file quarterly, but some high-volume sellers file monthly.

Step 6: Obtain Additional Permits and Approvals

A Seattle business license is not the only requirement. Depending on your industry, you may need additional permits:

Food and Beverage Businesses

If you’re opening a restaurant, food truck, bakery, or catering service, you must also obtain:

• Health Permit – Issued by Public Health – Seattle & King County. Schedule an inspection before opening.
• Alcohol License – If serving alcohol, apply through the Washington State Liquor and Cannabis Board (WSLCB). This can take 6–12 weeks and requires a background check.
• Sign Permit – Required for exterior signage above a certain size.

Home-Based Businesses

If operating from your residence:

• Ensure your property is zoned for home-based business use. Most residential zones allow it, but restrictions apply (e.g., no customer traffic, no signage, limited employees).
• Submit a Home Occupation Notification form to the Seattle Department of Planning and Development (DPD).

Professional Services

Professionals such as accountants, architects, contractors, and therapists may need state-issued occupational licenses:

• Contractors – Must be licensed by the Washington State Department of Labor & Industries (L&I).
• Therapists – Must hold a valid state license (e.g., LPC, LMFT, LCSW).
• Real Estate Agents – Must be licensed by the Washington State Department of Licensing.

Step 7: Renew and Maintain Your License

Your Seattle business license is valid for one year and must be renewed annually. Renewal is done online through the same portal where you applied.

Key reminders:

• Renewal notices are emailed 60 days before expiration.
• Failure to renew on time results in late fees and possible suspension.
• Update your information if you change your address, ownership, or business name.
• Keep your license visible at your place of business or on your website if you operate online.

Annual renewal fees vary based on gross revenue. Most small businesses pay between $80–$200, but larger enterprises pay more. You can estimate your renewal fee using the city’s online calculator.

Best Practices

Start Early

Many applicants underestimate how long the process takes. While the Seattle license itself may be approved in under two weeks, additional permits—especially alcohol licenses or health inspections—can take months. Begin the process at least 60–90 days before your planned opening date.

Keep Detailed Records

Organize all documentation: EIN confirmation, DBA registration, permit approvals, tax filings, and renewal receipts. Store digital copies in a secure cloud folder and physical copies in a fireproof box. These records may be required during audits or if you apply for a loan.

Understand Your Tax Obligations

Washington has no personal income tax, but B&O and sales taxes can be complex. Use the Department of Revenue’s free online resources or consult a local CPA familiar with Seattle’s tax codes. Misclassifying your business activity can lead to underpayment penalties.

Verify Zoning Compliance

Before signing a lease or purchasing property, confirm your business use is allowed in that zone. Use the Seattle Department of Planning and Development’s Zoning Map to check your address. Violating zoning laws can result in fines or forced closure.

Stay Compliant with Employment Laws

If hiring employees, you must comply with Seattle’s minimum wage laws (which exceed state and federal levels), paid sick leave requirements, and anti-discrimination ordinances. Register with the Seattle Office of Labor Standards for guidance.

Use Digital Tools for Compliance

Set calendar reminders for license renewals, tax deadlines, and permit inspections. Many successful small business owners use tools like QuickBooks, Gusto, or ZenBusiness to automate compliance tracking.

Network with Local Business Associations

Join organizations like the Seattle Metropolitan Chamber of Commerce or your neighborhood business association. They provide updates on regulatory changes, offer workshops, and can connect you with mentors.

Tools and Resources

Official Seattle Resources

• Seattle Business License Application Portal – Central hub for applications, renewals, and tracking.
• Seattle Department of Planning and Development – Zoning, sign permits, and home occupation rules.
• Public Health – Seattle & King County – Food safety permits and inspections.
• Seattle Office of Labor Standards – Wage and employment law guidance.

State-Level Resources

• Washington Department of Revenue – Tax registration, B&O rates, filing schedules.
• Washington Secretary of State – Business entity filings, DBA registration, annual reports.
• Washington State Department of Labor & Industries – Contractor licensing, workers’ compensation.
• Washington State Liquor and Cannabis Board – Alcohol and cannabis licensing.

Third-Party Tools

• ZenBusiness – Streamlines LLC formation and business license applications.
• LegalZoom – Offers business formation and compliance packages.
• QuickBooks – Tracks income, expenses, and tax deadlines.
• Gusto – Payroll and HR compliance for businesses with employees.
• SCORE Seattle – Free mentoring from retired executives and business owners.

Free Workshops and Seminars

Seattle offers numerous free educational events:

• Seattle Small Business Development Center (SBDC) – Weekly webinars on licensing, taxes, and funding.
• Library of Congress Small Business Resource Center – Online guides and local event listings.
• Chamber of Commerce New Business Bootcamps – Hands-on training for first-time entrepreneurs.

Real Examples

Example 1: Home-Based Freelance Graphic Designer

Jamal, a freelance designer in Georgetown, wanted to operate under the name “Pixel & Ink Studio.” He:

• Registered his trade name with the Washington Secretary of State ($50).
• Applied for an EIN through the IRS (free).
• Completed the Seattle business license application online ($205 base fee).
• Submitted a Home Occupation Notification to DPD (no fee).
• Set up quarterly B&O tax filings via the Department of Revenue portal.

He received his license in 8 days and has renewed annually since 2021. He does not collect sales tax because he provides services, not products.

Example 2: Mobile Food Truck in South Lake Union

Sofia opened “Taco Luna,” a taco truck serving Latin American cuisine. Her process:

• Formed an LLC with the Secretary of State ($200).
• Registered her DBA “Taco Luna.”
• Applied for a Seattle business license ($205 + $150 food service surcharge).
• Scheduled a health inspection with Public Health (fee: $200).
• Applied for a WSLCB food service alcohol permit ($1,200) to serve margaritas.
• Obtained a mobile food vendor permit from the City of Seattle ($175).
• Registered for sales tax and B&O tax.

Total upfront cost: ~$2,200. Processing took 10 weeks due to the alcohol permit. She now operates legally and has expanded to catering events.

Example 3: Tech Startup in Belltown

A team of three developers launched a SaaS platform called “FlowMetrics.” They:

• Registered as a Washington C-Corp with the Secretary of State ($180).
• Obtained an EIN.
• Applied for a Seattle business license under “Professional Services” ($205).
• Did not need a sales tax permit since they sell digital services.
• Registered for B&O tax under the “Service and Other Activities” classification (1.5%).
• Used a virtual office address for compliance.

They hired their first employee after 6 months and immediately registered for payroll taxes and workers’ compensation.

FAQs

Do I need a business license if I’m selling online from Seattle?

Yes. If your business is based in Seattle or you serve customers in Seattle, you must obtain a Seattle business license. Even if you operate entirely online, you’re still subject to local licensing requirements.

Can I operate without a license while waiting for approval?

No. Operating without a valid license is illegal and can result in fines of up to $500 per day. You may begin planning and marketing, but do not engage in commercial activity until your license is issued.

What if I move my business to a different neighborhood in Seattle?

You must update your business license with your new address. This is done online through the Seattle Business License portal. Failure to update may affect your tax jurisdiction or zoning compliance.

Do non-profits need a business license?

Yes. Non-profits operating in Seattle must obtain a business license. However, they may qualify for reduced fees or exemptions from certain taxes. Contact the Department of Revenue to determine eligibility.

How much does it cost to renew a business license?

Renewal fees range from $80 to $1,000+, depending on your business’s gross revenue. The city uses a tiered system: businesses earning under $100,000 pay a flat rate; those earning more pay a percentage of revenue. You can calculate your exact fee using the renewal estimator on the city’s website.

Can I apply for a business license if I’m not a U.S. citizen?

Yes. Non-citizens and non-residents can obtain a Seattle business license. You’ll need a valid EIN and proof of legal business operation in the U.S. (e.g., a registered agent, business address).

Do I need a separate license for each location?

Yes. Each physical business location in Seattle requires its own business license. If you operate multiple stores or offices, each must be registered individually.

What happens if I don’t renew my license?

Your license will expire, and you’ll be charged a 25% late fee. After 90 days, your license is suspended, and you may be subject to penalties. Continued operation without a valid license can lead to legal action.

Can I get a temporary license for a short-term event?

Yes. For temporary events like farmers’ markets, pop-up shops, or festivals, you can apply for a Temporary Business License. The fee is $50 and valid for up to 30 days.

Is there a discount for startups or low-income entrepreneurs?

Seattle offers a Business License Fee Waiver Program for qualifying low-income entrepreneurs. To qualify, your household income must be at or below 80% of the Area Median Income, and your business must be in operation for less than two years. Apply through the Seattle Office of Economic Development.

Conclusion

Obtaining a business license in Seattle is more than a bureaucratic hurdle—it’s a strategic foundation for long-term success. From ensuring legal compliance to building trust with customers and partners, your license is your business’s official seal of legitimacy. By following the step-by-step process outlined in this guide, you avoid costly mistakes, reduce administrative stress, and position your venture for sustainable growth.

The tools, resources, and real-world examples provided here empower you to navigate the system confidently. Whether you’re a solo freelancer, a food vendor, or a tech innovator, Seattle welcomes entrepreneurs who take the time to do things right. Start early, stay organized, and leverage the city’s robust support networks.

Remember: Your business license isn’t a one-time task. It’s an ongoing commitment to compliance, transparency, and professionalism. Renew on time, update your information as your business evolves, and never underestimate the value of operating legally. In Seattle’s dynamic economy, a properly licensed business isn’t just compliant—it’s competitive.