Washington compliance onboarding for new businesses

Summary of findings and actionable onboarding checklist (Washington-specific) - Start with planning and research: review the Washington State Road Map / Checklist for Opening a Business to identify which state and local requirements apply to your specific business activities and location. (See Business.wa.gov road map.) - Entity formation and Secretary of State (SOS): choose and register your entity with the WA Secretary of State.

Use SOS online filing (CCFS) to start domestic or register foreign entities and access forms and online filing instructions. SOS resources also cover registered-agent rules, maintaining business compliance, and annual/initial reports. - Action: File formation documents for LLCs/corporations or register a trade name; designate a registered agent with a Washington physical address; review SOS instructions for initial/annual reports and other post‑formation steps. - Business Licensing and Unified Business Identifier (UBI): apply for a Washington State business license through the Department of Revenue’s Business Licensing Service (BLS).

When applying you can obtain a Unified Business Identifier (UBI) — the nine-digit number that links multiple state agency registrations. The BLS application routes information to applicable agencies automatically (e.g., L&I, ESD). - Action: Apply online via DOR/BLS to get a UBI and state business license; follow the BLS prompts to register for tax accounts and employer-related accounts. - Federal tax ID (EIN): obtain an EIN from the IRS (required to hire employees, open business bank accounts, and file federal taxes). - State taxes (Department of Revenue): Washington does not have a personal/corporate income tax, but most businesses pay Business & Occupation (B&O) tax (a tax on gross receipts) and may need to collect and remit sales tax, use tax, and other excise taxes specific to certain goods/services.

Determine your tax classification and filing frequency in DOR’s guidance and register for the appropriate tax accounts when you file for your business license. - Action: Review DOR’s tax classification pages, register for sales tax and B&O tax accounts if applicable, set up filing and payment reminders. - Employer obligations (payroll, insurance, reporting): - Workers’ compensation (L&I): Washington requires employers to set up workers’ compensation coverage and follow L&I rules (WA L&I is the state agency to set up and manage the account). - Unemployment insurance (ESD): register for employer unemployment accounts (ESD) — the BLS/UBI application forwards employer data to appropriate agencies. - Paid Family & Medical Leave (PFML): Washington’s PFML program requires employer and employee contributions and has employer responsibilities; register and learn reporting requirements at PaidLeave. - New-hire reporting: report new hires to the state (DSHS) within the required timeframe (state guidance). - Action: Use the BLS/UBI process to trigger initial employer accounts, then confirm registrations and required payroll withholding, contribution, reporting, and coverage for workers’ comp and PFML.

Set up payroll systems to withhold and remit required state and federal amounts. - Local (city/county) licenses and permits: many cities/counties require separate business licenses, zoning checks, or permits (health, building, environmental).

Confirm with local jurisdiction planning and licensing departments before opening. - Contractor/industry-specific registrations: certain trades (contractors, food service, health-related activities) require additional state registrations, contractor registration with L&I, or local health or environmental permits. - Ongoing compliance and filings: maintain SOS filings (annual reports/initial reports), renew state business licenses and local permits as required, file tax returns and remit payroll/employer taxes on schedule, and keep workers’ compensation and PFML accounts current. - Recent policy/legislative notes (through 2025): the SOS noted updates related to the Corporate Transparency Act/Beneficial Ownership Information (BOI) reporting and posted: ‘‘Effective: March 26, 2025 the Beneficial Ownership Information Report is no longer required for domestic reporting companies.

Please see the FinCen website for additional details.’’ Check SOS and FinCEN guidance for any federal BOI obligations. Also monitor WA labor law updates (minimum wage, overtime, PFML and other employer obligations) through 2025–2026 season change notices.

Summary of findings and actionable onboarding checklist (Washington-specific)

2025): the SOS noted updates related to the Corporate Transparency Act/Beneficial Ownership Information (BOI) reporting and posted: ‘‘Effective: March 26, 2025 the Beneficial Ownership Information Report is no longer required for domestic reporting companies.

Please see the FinCen website for additional details.’’ Check SOS and FinCEN guidance for any federal BOI obligations. Also monitor WA labor law updates (minimum wage, overtime, PFML and other employer obligations) through 2025–2026 season change notices.

• Start with planning and research: review the Washington State Road Map / Checklist for Opening a Business to identify which state and local requirements apply to your specific business activities and location. (See Business.wa.gov road map.)
• Entity formation and Secretary of State (SOS): choose and register your entity with the WA Secretary of State. Use SOS online filing (CCFS) to start domestic or register foreign entities and access forms and online filing instructions. SOS resources also cover registered-agent rules, maintaining business compliance, and annual/initial reports.
• Action: File formation documents for LLCs/corporations or register a trade name; designate a registered agent with a Washington physical address; review SOS instructions for initial/annual reports and other post‑formation steps.
• Business Licensing and Unified Business Identifier (UBI): apply for a Washington State business license through the Department of Revenue’s Business Licensing Service (BLS). When applying you can obtain a Unified Business Identifier (UBI) — the nine-digit number that links multiple state agency registrations. The BLS application routes information to applicable agencies automatically (e.g., L&I, ESD).
• Action: Apply online via DOR/BLS to get a UBI and state business license; follow the BLS prompts to register for tax accounts and employer-related accounts.
• Federal tax ID (EIN): obtain an EIN from the IRS (required to hire employees, open business bank accounts, and file federal taxes).
• State taxes (Department of Revenue): Washington does not have a personal/corporate income tax, but most businesses pay Business & Occupation (B&O) tax (a tax on gross receipts) and may need to collect and remit sales tax, use tax, and other excise taxes specific to certain goods/services. Determine your tax classification and filing frequency in DOR’s guidance and register for the appropriate tax accounts when you file for your business license.
• Action: Review DOR’s tax classification pages, register for sales tax and B&O tax accounts if applicable, set up filing and payment reminders.
• Employer obligations (payroll, insurance, reporting):
• Workers’ compensation (L&I): Washington requires employers to set up workers’ compensation coverage and follow L&I rules (WA L&I is the state agency to set up and manage the account).
• Unemployment insurance (ESD): register for employer unemployment accounts (ESD) — the BLS/UBI application forwards employer data to appropriate agencies.
• Paid Family & Medical Leave (PFML): Washington’s PFML program requires employer and employee contributions and has employer responsibilities; register and learn reporting requirements at PaidLeave.
• New-hire reporting: report new hires to the state (DSHS) within the required timeframe (state guidance).
• Action: Use the BLS/UBI process to trigger initial employer accounts, then confirm registrations and required payroll withholding, contribution, reporting, and coverage for workers’ comp and PFML. Set up payroll systems to withhold and remit required state and federal amounts.
• Local (city/county) licenses and permits: many cities/counties require separate business licenses, zoning checks, or permits (health, building, environmental). Confirm with local jurisdiction planning and licensing departments before opening.
• Contractor/industry-specific registrations: certain trades (contractors, food service, health-related activities) require additional state registrations, contractor registration with L&I, or local health or environmental permits.
• Ongoing compliance and filings: maintain SOS filings (annual reports/initial reports), renew state business licenses and local permits as required, file tax returns and remit payroll/employer taxes on schedule, and keep workers’ compensation and PFML accounts current.
• Recent policy/legislative notes (through