Washington compliance for instructional content creators

Research steps taken and summary:I searched authoritative Washington state sources (Department of Revenue, Business Licensing Service, Secretary of State, Department of Labor & Industries and related guidance) and tax/industry commentary to compile state-specific compliance requirements for instructional content creators (online course creators, tutors, workshop instructors) in Washington.

I focused searches on business registration and licensing, Washington Business & Occupation (B&O) tax, sales tax treatment of digital products and services (including recent 2025 law changes), marketplace facilitator rules, employer obligations (payroll taxes, workers’ compensation, Paid Family & Medical Leave), contractor vs employee classification, professional licensing and restrictions on providing regulated advice, consumer-protection and advertising rules, digital accessibility/ADA considerations, and background-check considerations for working with minors.Key findings (summary of relevant information and practical next steps for instructional content creators in Washington):1) Business formation and registration- If you form an LLC or other business entity, file with the Washington Secretary of State (Certificate of Formation for domestic WA LLC). (See Secretary of State guidance.)- You must register with the Washington Department of Revenue and apply for a business license (Business Licensing Service) if any of the following apply: you hire employees within 90 days, you collect sales tax, or your gross income is $12,000 or more per year (among other triggers).

Register early to get your Unified Business Identifier (UBI) and any local endorsements.Practical steps: choose entity (LLC or sole proprietor), file Certificate of Formation with WA SOS as needed, obtain EIN (IRS), register for state business license/UBI at business.wa.gov and Department of Revenue.2) Taxes (B&O tax, sales tax, sourcing, digital products)- Washington does not have a corporate or personal income tax for businesses but imposes the Business & Occupation (B&O) tax on gross receipts.

Different B&O classifications apply (retailing, wholesaling, services, royalties, etc.). B&O tax is applied to gross receipts with limited deductions.- Washington’s Department of Revenue treats sales of digital products, digital codes, and remote access software as potentially taxable; sellers with nexus who sell digital products sourced to Washington are subject to retailing B&O classification for retail sales.

Standard sourcing rules determine whether a sale is sourced to Washington.- Recent state law changes (ESSB 5814, effective October 1, 2025) broadened Washington’s retail sales tax and retailing B&O tax to include many services (advertising, IT services, custom website development, some human-effort services and live presentations).

The Department of Revenue has published guidance about how contracts existing before Oct 1, 2025 are treated and how the new tax coverage applies. This change can affect instructional creators who sell services or digital services that fall into newly taxable categories.- Marketplace facilitator rules and sourcing rules matter: if you sell through a marketplace/platform, that platform may collect and remit sales tax under marketplace facilitator obligations.

But you still must register and comply with B&O and other obligations if your activities trigger registration.Practical steps: register for DOR tax accounts; review DOR guidance on taxation of digital products and services and ESSB 5814; determine whether your courses/digital goods are taxable retail sales; collect and remit sales tax where required; file regular B&O and sales tax returns.

Research steps taken and summary:I searched authoritative Washington state sources (Department of Revenue, Business Licensing Service, Secretary of State, Department of Labor & Industries and related guidance) and tax/industry commentary to compile state-specific compliance requirements for instructional content creators (online course creators, tutors, workshop instructors) in Washington.

I focused searches on business registration and licensing, Washington Business & Occupation (B&O) tax, sales tax treatment of digital products and services (including recent 2025 law changes), marketplace facilitator rules, employer obligations (payroll taxes, workers’ compensation, Paid Family & Medical Leave), contractor vs employee classification, professional licensing and restrictions on providing regulated advice, consumer-protection and advertising rules, digital accessibility/ADA considerations, and background-check considerations for working with minors.Key findings (summary of relevant information and practical next steps for instructional content creators in Washington):1) Business formation and registration- If you form an LLC or other business entity, file with the Washington Secretary of State (Certificate of Formation for domestic WA LLC). (See Secretary of State guidance.)- You must register with the Washington Department of Revenue and apply for a business license (Business Licensing Service) if any of the following apply: you hire employees within 90 days, you collect sales tax, or your gross income is $12,000 or more per year (among other triggers).

Register early to get your Unified Business Identifier (UBI) and any local endorsements.Practical steps: choose entity (LLC or sole proprietor), file Certificate of Formation with WA SOS as needed, obtain EIN (IRS), register for state business license/UBI at business.wa.gov and Department of Revenue.2) Taxes (B&O tax, sales tax, sourcing, digital products)- Washington does not have a corporate or personal income tax for businesses but imposes the Business & Occupation (B&O) tax on gross receipts.

Different B&O classifications apply (retailing, wholesaling, services, royalties, etc.). B&O tax is applied to gross receipts with limited deductions.- Washington’s Department of Revenue treats sales of digital products, digital codes, and remote access software as potentially taxable; sellers with nexus who sell digital products sourced to Washington are subject to retailing B&O classification for retail sales.

Standard sourcing rules determine whether a sale is sourced to Washington.- Recent state law changes (ESSB 5814, effective October 1, 2025) broadened Washington’s retail sales tax and retailing B&O tax to include many services (advertising, IT services, custom website development, some human-effort services and live presentations).

The Department of Revenue has published guidance about how contracts existing before Oct 1, 2025 are treated and how the new tax coverage applies. This change can affect instructional creators who sell services or digital services that fall into newly taxable categories.- Marketplace facilitator rules and sourcing rules matter: if you sell through a marketplace/platform, that platform may collect and remit sales tax under marketplace facilitator obligations.

But you still must register and comply with B&O and other obligations if your activities trigger registration.Practical steps: register for DOR tax accounts; review DOR guidance on taxation of digital products and services and ESSB 5814; determine whether your courses/digital goods are taxable retail sales; collect and remit sales tax where required; file regular B&O and sales tax returns.

Employer and contractor obligations- If you hire employees in Washington you must register for payroll taxes and employer accounts (e.g., Employment Security/unemployment, L&I workers’ compensation, Paid Family & Medical Leave, & DOR withholding). Washington has employer obligations for workers’ compensation and PFML. Classify workers correctly (employee vs independent contractor) under Washington rules and the Department of Labor & Industries guidance; misclassification can cause liability for payroll taxes and L&I.Practical steps

if hiring, register for employer accounts, carry required workers’ comp insurance, remit employer payroll taxes and PFML premiums, follow state wage/hour and paid leave rules (Washington minimum wage and paid sick leave rules may apply).

Professional licensing and regulated advice- If your instructional content includes regulated professional services (medical, legal, investment/financial advice, certain health/fitness services requiring licensure), you may need specific professional licenses or must avoid presenting regulated advice. Check Washington professional licensing boards for requirements.Practical steps

review Washington state licensing boards for your subject area; include clear disclaimers and consider referring learners to licensed professionals when necessary.

Consumer protection, refunds, and advertising- Washington Attorney General enforces consumer-protection and advertising laws. For paid instructional products, ensure transparent refund and disclosure policies, truthful advertising, and compliance with consumer protection laws.Practical steps

publish clear terms of service, refund and cancellation policies, and adhere to truthful marketing practices.

Data privacy, security, and accessibility- Washington has been active in addressing digital services taxation and other tech rules; while it does not (as of this research) have a broad consumer data privacy law like California’s CCPA, creators should follow best practices for data security, privacy notices, and comply with federal laws (COPPA if collecting data from children under 13). Also ensure digital accessibility (WCAG) best practices to reduce ADA risk and improve inclusivity.Practical steps

publish a privacy policy, follow COPPA and other youth-protection laws if you serve minors, and adopt basic accessibility practices (captions, transcripts, accessible navigation). Consult counsel for complex privacy obligations.7) Background checks for working with minors- If you provide instruction to minors in contexts that fall within regulated childcare or school programs, background checks and fingerprinting may be required (local school districts and childcare licensing have specific rules). Private independent tutoring generally has fewer formal background-check rules, but venue (schools, after-school programs) may require checks.Practical steps: if working with schools, camps, or childcare settings, confirm and obtain required background checks; maintain appropriate policies and training for safeguarding minors.Recommended compliance checklist (short):- Decide business entity; file with WA SOS if forming an LLC.- Obtain EIN; register for WA business license/UBI at business.wa.gov and with WA DOR.- Determine sales tax and B&O tax obligations (review DOR guidance for digital products and ESSB 5814 changes); register and file returns.- If using marketplaces, confirm marketplace facilitator tax collection; if not, collect & remit sales tax as required.- If hiring, register as employer; obtain workers’ comp and PFML accounts; remit payroll taxes; classify workers correctly.- Review professional licensing requirements for your instruction subject matter.- Publish clear terms, refund policy, privacy policy; follow COPPA when applicable.- Make content accessible and follow ADA/WCAG best practices; confirm background-check requirements when teaching minors.Limitations and next recommended steps: This research relied on Washington Department of Revenue guidance, Business Licensing Service, Secretary of State entity-formation guidance, Department of Labor & Industries references, and state legislative changes (ESSB 5814, 2025). Laws and administrative guidance evolve; ESSB 5814 introduced material changes effective Oct 1, 2025 and transitional guidance for existing contracts extends through 2026 in some cases. For definitive compliance, consult the listed agency pages and a Washington-licensed attorney or certified tax professional for specifics tailored to your business model and offerings.If you want, I can now: (A) draft a Washington-specific compliance checklist tailored to an instructional content creator selling self-paced online courses vs live workshops; (B) create a draft business-formation + registration step-by-step guide with links and form names; or (C) produce short newsletter/blog-ready content summarizing this guidance for your audience (US business owners, LLC founders). Tell me which of these you want next.