Washington compliance for founders running online events

Summary of findings (what founders need to know — Washington-specific) 1) Live presentations (effective Oct 1, 2025): sales tax and B&O - Starting Oct 1, 2025, Washington treats "live presentations" as retail sales subject to retail sales tax and the retailing B&O tax classification. "Live presentations" include lectures, seminars, workshops or courses where participants attend in person or via the internet or telecommunications equipment that allow presenter and audience to give, receive, and discuss information in real time. - The DOR lists factors to determine whether an activity is a live presentation (purpose to inform/educate, structured as a seminar/course, real-time interaction or ability, more than one attendee).

There are specific exclusions (e.g., preschool classes, higher-education courses as part of accreditation, concerts, movies, sports events, fundraising events, one-on-one tutoring, some professional services). - Practical implications: ticketed/live online workshops and classes that meet the definition will require collecting sales tax from Washington customers and reporting retailing B&O tax.

Even many prerecorded/digital products are taxed under retailing (digital goods) or other classifications — DOR guidance differentiates pre-recorded vs real-time interactive. 2) Online instructional classes (pre- and post-Oct 1, 2025 guidance) - DOR guidance explains that where interaction is truly real-time and part of the class, income was historically classified under service and other activities B&O and not retail sales tax — but the 2025 law change reclassifies "live presentations" as retail sales, so founders must treat such events as taxable sales after Oct 1, 2025. - Examples in DOR guidance clarify borderline cases (e.g., two-way video/audio where instructor can interact = service classification historically; one-way livestream without real-time interaction = retailing sales tax).

Summary of findings (what founders need to know — Washington-specific) 1) Live presentations (effective Oct 1, 2025): sales tax and B&O - Starting Oct 1, 2025, Washington treats "live presentations" as retail sales subject to retail sales tax and the retailing B&O tax classification. "Live presentations" include lectures, seminars, workshops or courses where participants attend in person or via the internet or telecommunications equipment that allow presenter and audience to give, receive, and discuss information in real time.

2) Online instructional classes (pre- and post-Oct 1, 2025 guidance) - DOR guidance explains that where interaction is truly real-time and part of the class, income was historically classified under service and other activities B&O and not retail sales tax — but the 2025 law change reclassifies "live presentations" as retail sales, so founders must treat such events as taxable sales after Oct 1, 2025.

• The DOR lists factors to determine whether an activity is a live presentation (purpose to inform/educate, structured as a seminar/course, real-time interaction or ability, more than one attendee). There are specific exclusions (e.g., preschool classes, higher-education courses as part of accreditation, concerts, movies, sports events, fundraising events, one-on-one tutoring, some professional services).
• Practical implications: ticketed/live online workshops and classes that meet the definition will require collecting sales tax from Washington customers and reporting retailing B&O tax. Even many prerecorded/digital products are taxed under retailing (digital goods) or other classifications — DOR guidance differentiates pre-recorded vs real-time interactive.
• Examples in DOR guidance clarify borderline cases (e.g., two-way video/audio where instructor can interact = service classification historically; one-way livestream without real-time interaction = retailing sales tax).

Registering and reporting (agency touchpoints) - Founders who sell taxable live presentations or other taxable goods/services to WA customers should register with Washington agencies

form or register the business with the Secretary of State (if forming an LLC or corporation) and register for tax accounts and business licensing via Washington DOR / Business Licensing Service (My DOR and Business Licensing Service portals). The SOS provides pages for starting/registering a domestic or foreign business and maintaining compliance; the Charities/Nonprofit pages cover registration and disclosure for fundraising.

Charitable/fundraising events and nonprofit considerations - If your event is organized by a charity or involves solicitation/donations, review SOS Charities program rules and disclosure requirements and (where applicable) Attorney General guidance on charitable solicitation and commercial fundraisers. Fundraising events may be excluded from the "live presentations" retail tax treatment in certain circumstances, but charities must meet state disclosure and registration rules.

Local licensing and city taxes (example

Seattle) - Cities like Seattle have their own business licensing and local taxes/fees; if you have a physical presence or operate in a city with local taxes, you must check local requirements (city business license, local business & occupation taxes, local sales/use taxes). Ticket sales for Washington residents will generally require charging the appropriate local sales tax rate based on sourcing rules — DOR provides local rate and sourcing guidance.

Practical next steps for founders (actionable checklist) - Determine whether your event meets DOR's "live presentation" definition (real-time, structured class/seminar/workshop, fee). - If taxable as a live presentation or if you sell digital goods, register with WA DOR (My DOR / Business Licensing Service) and add appropriate tax classifications (retailing/retail sales tax) and B&O retailing classification. - Register your business with the Washington Secretary of State if forming an LLC or corporation; file/maintain annual reports and stay current on SOS compliance and charities rules if applicable. - Update ticketing and checkout flows to collect sales tax for Washington customers (use correct local rate and sourcing rules) or confirm whether your payment/ticketing marketplace facilitator remits tax on your behalf (verify the platform's role and DOR rules). - Keep clear records of attendee billing locations and refunds (sales tax refunds when you refund tickets), and set up a process for filing excise tax returns through My DOR according to the filing frequency assigned by the DOR. - If you solicit donations or run raffles/lotteries, confirm charity registration/raffle rules and AG guidance; for fundraising events that are exempt, document rationale and review guidance carefully. - Check federal compliance areas

consumer protection (FTC advertising & endorsements rules), email rules (CAN-SPAM), telemarketing (TCPA), child privacy (COPPA) if children attend, and accessibility (ADA best practices for online platforms). When in doubt, consult counsel.