Washington compliance for multiple revenue stream businesses

Register early and get a UBI/Business License - If your business meets registration criteria (e.g., gross income $12,000+; collecting sales tax; hiring employees; needing city/county/state endorsements), register through the Department of Revenue Business Licensing Wizard to receive a Unified Business Identifier (UBI).

For most entity types (corporation, LLC, partnership) you must first file with the Washington Secretary of State before applying for the business license. 2) Identify and report each revenue stream under the correct B&O tax classification(s) - Washington’s B&O tax is a gross-receipts tax.

There are 50+ B&O classifications and you may need to report income under multiple classifications if you engage in different business activities. The state won’t let you deduct ordinary business expenses on B&O — it is based on gross receipts.

Track revenue by activity (use separate revenue lines or accounting classes) and report each activity under its appropriate classification on the excise tax return.

Register early and get a UBI/Business License - If your business meets registration criteria (e.g., gross income $12,000+; collecting sales tax; hiring employees; needing city/county/state endorsements), register through the Department of Revenue Business Licensing Wizard to receive a Unified Business Identifier (UBI).

For most entity types (corporation, LLC, partnership) you must first file with the Washington Secretary of State before applying for the business license. 2) Identify and report each revenue stream under the correct B&O tax classification(s) - Washington’s B&O tax is a gross-receipts tax.

There are 50+ B&O classifications and you may need to report income under multiple classifications if you engage in different business activities. The state won’t let you deduct ordinary business expenses on B&O — it is based on gross receipts.

Track revenue by activity (use separate revenue lines or accounting classes) and report each activity under its appropriate classification on the excise tax return.

Sales tax, resale permits, and marketplace rules - If you sell taxable goods or services, collect Washington retail sales tax and keep reseller permits on file for wholesale/resale purchases. Be aware of marketplace facilitator rules and economic nexus thresholds (out-of-state businesses may have reporting/collection requirements when they meet state thresholds). Use the Department of Revenue’s rate and tax-code lookup tools to apply the right local coding.

Filing frequency and thresholds - The Department of Revenue assigns monthly/quarterly/annual excise-filing frequency based on estimated gross income and tax liability. Monthly returns are due the 25th of the following month; quarterly returns are due the last day of the month following the quarter; annual returns are due April 15 of the following year. Even if you owe no tax, you must timely file a return.

Employment obligations (if you have employees) - Register for unemployment insurance with the Employment Security Department (ESD). Register for industrial insurance (workers’ compensation) with the Department of Labor & Industries (L&I). Register for payroll withholding and report new hires as required. These registrations are separate from DOR registration and are mandatory once you have employees.

Local/city taxes and licenses (Seattle example) - Many cities (including Seattle) require a local business license or business & occupation tax separate from state filings. City thresholds, rates, filing frequencies, and classifications differ from the state’s — register with the city and confirm local B&O or business license-tax obligations, filing schedules, and possible small-business exemptions or thresholds.

Recordkeeping, audits, and practical compliance steps - Keep excise tax returns, workpapers, sales invoices, reseller permits, and supporting documentation for at least five years. Maintain separate tracking for each revenue stream (separate bookkeeping classes, NAICS/industry codes, or DBAs if helpful). If classification is unclear, request a tax ruling or contact DOR for guidance to avoid misclassification. Consider consultation with a Washington-experienced CPA or tax attorney for apportionment or complex multi-state sourcing questions.

Structuring considerations - You can operate multiple revenue streams under one LLC, but you must correctly report each activity and meet any separate licensing requirements (professional licenses, city certificates, permits). Evaluate whether DBAs, separate entities, or divisions make recordkeeping or liability management easier; tax consequences depend on how activities are run and reported. Next practical checklist (starter)

- Determine entity type; file with Secretary of State if required. - Complete Business Licensing Wizard at dor.wa.gov/open-business to get UBI and required endorsements. - Identify all revenue streams and map each to DOR’s B&O classifications; set up accounting classes. - Get reseller permits for resale purchases; set up sales tax collection and nexus monitoring. - Register with ESD and L&I before hiring; set up payroll withholding. - Check city/county licensing (e.g., Seattle) for local taxes and certificates. - Set up calendar for filing frequencies and keep 5+ years of records. - If in doubt about classification or apportionment, request a DOR tax ruling or consult a professional.