Washington compliance overview for freelancers

I researched authoritative Washington state sources to compile a comprehensive compliance overview for freelancers. Steps taken: 1) Performed broad web searches for Washington freelancer compliance topics (business licensing, B&O tax, sales tax on services, worker classification, workers' compensation, Paid Family & Medical Leave (PFML), unemployment insurance, local (Seattle/King County) rules, freelancer registration steps, estimated tax payments, 1099 reporting, and nexus). 2) Scraped and extracted content from key authoritative pages: Washington Department of Revenue (business taxes and how to apply for a business license), Washington State Business Licensing Service (how to get a business license / UBI), Department of Labor & Industries (independent contractor tests and workers’ compensation guidance), Washington Paid Family & Medical Leave (program overview and self-employed options), and City of Seattle Office of Labor Standards (Independent Contractor Protections Ordinance).

Analysis summary and key findings: - Business registration: Freelancers must register with WA Department of Revenue and obtain a business license/UBI if gross income >= $12,000/year, using an assumed name, hiring employees or selling taxable goods/services, or required to pay certain state taxes.

The Business Licensing Service (business.wa.gov and dor.wa.gov/open-business) is the starting point and registers you with DOR, L&I and ESD depending on answers. - B&O tax and sales tax: Washington has no personal income tax, but businesses (including freelancers operating as sole proprietors or LLCs) pay Business & Occupation (B&O) tax on gross receipts.

Sales tax applies to retail sales of tangible goods and some services; many professional services are not subject to sales tax, but freelancers selling goods or taxable services must collect and remit sales tax.

B&O tax rates vary by classification; freelancers often fall under Service & Other Activities. - Independent contractor classification: L&I presumes workers are “covered workers” unless they meet specific independent contractor tests (personal labor test and statutory tests under RCW 51.08.180/181/195).

Having a 1099 alone is not sufficient. To be exempt, a contractor must meet tests including registration with DOR/UBI, separate books/records, evidence of business, and contractor registration when required.

L&I provides detailed guides and eLearning. - Workers’ compensation: If contractors are covered workers, the hiring business must provide workers’ compensation; freelancers contracting with clients must evaluate classification and ensure they have appropriate coverage or documentation. - Paid Family & Medical Leave (PFML): Washington's PFML program applies; self-employed individuals can opt into PFML via voluntary coverage to be eligible for benefits, and employers have withholding obligations for employees. - Unemployment insurance: Generally applies when you have employees; self-employed/freelancers typically do not pay unemployment taxes unless they elect coverage. - Local rules: Cities like Seattle have independent contractor protections and may require notices, additional rights (Seattle ICP Ordinance), and local business licensing or taxes. - Practical steps for freelancers: register for a UBI and appropriate DOR accounts, determine B&O and sales tax obligations, maintain separate books and records, evaluate classification using L&I tests (document results), consider workers’ comp and PFML coverage, set up invoicing and estimated tax/payment plans, and check city-specific rules.

Citations: I collected verbatim excerpts and URLs from DOR (apply for business license, business taxes), L&I (independent contractor guide), PaidLeave (program), Seattle Office of Labor Standards (Independent Contractor Protections guide), and other relevant pages.

Next step: I can now draft the comprehensive blog post and newsletter content tailored to US business owners and LLC founders about Washington compliance for freelancers, including step-by-step registration checklist, tax obligations, classification guidance, resources and sample templates (contract addenda, client notice templates), and SEO-optimized meta content.

Please confirm if you want the full blog post and newsletter draft now, or if I should include specific templates and sample language for contracts and client notices.

I researched authoritative Washington state sources to compile a comprehensive compliance overview for freelancers. Steps taken: 1) Performed broad web searches for Washington freelancer compliance topics (business licensing, B&O tax, sales tax on services, worker classification, workers' compensation, Paid Family & Medical Leave (PFML), unemployment insurance, local (Seattle/King County) rules, freelancer registration steps, estimated tax payments, 1099 reporting, and nexus). 2) Scraped and extracted content from key authoritative pages: Washington Department of Revenue (business taxes and how to apply for a business license), Washington State Business Licensing Service (how to get a business license / UBI), Department of Labor & Industries (independent contractor tests and workers’ compensation guidance), Washington Paid Family & Medical Leave (program overview and self-employed options), and City of Seattle Office of Labor Standards (Independent Contractor Protections Ordinance).

Analysis summary and key findings: - Business registration: Freelancers must register with WA Department of Revenue and obtain a business license/UBI if gross income >= $12,000/year, using an assumed name, hiring employees or selling taxable goods/services, or required to pay certain state taxes.

The Business Licensing Service (business.wa.gov and dor.wa.gov/open-business) is the starting point and registers you with DOR, L&I and ESD depending on answers.

51.08.180/181/195). Having a 1099 alone is not sufficient.

To be exempt, a contractor must meet tests including registration with DOR/UBI, separate books/records, evidence of business, and contractor registration when required. L&I provides detailed guides and eLearning.

- Paid Family & Medical Leave (PFML): Washington's PFML program applies; self-employed individuals can opt into PFML via voluntary coverage to be eligible for benefits, and employers have withholding obligations for employees.

• B&O tax and sales tax: Washington has no personal income tax, but businesses (including freelancers operating as sole proprietors or LLCs) pay Business & Occupation (B&O) tax on gross receipts. Sales tax applies to retail sales of tangible goods and some services; many professional services are not subject to sales tax, but freelancers selling goods or taxable services must collect and remit sales tax. B&O tax rates vary by classification; freelancers often fall under Service & Other Activities.
• Independent contractor classification: L&I presumes workers are “covered workers” unless they meet specific independent contractor tests (personal labor test and statutory tests under RCW
• Workers’ compensation: If contractors are covered workers, the hiring business must provide workers’ compensation; freelancers contracting with clients must evaluate classification and ensure they have appropriate coverage or documentation.
• Unemployment insurance: Generally applies when you have employees; self-employed/freelancers typically do not pay unemployment taxes unless they elect coverage.
• Local rules: Cities like Seattle have independent contractor protections and may require notices, additional rights (Seattle ICP Ordinance), and local business licensing or taxes.
• Practical steps for freelancers: register for a UBI and appropriate DOR accounts, determine B&O and sales tax obligations, maintain separate books and records, evaluate classification using L&I tests (document results), consider workers’ comp and PFML coverage, set up invoicing and estimated tax/payment plans, and check city-specific rules. Citations: I collected verbatim excerpts and URLs from DOR (apply for business license, business taxes), L&I (independent contractor guide), PaidLeave (program), Seattle Office of Labor Standards (Independent Contractor Protections guide), and other relevant pages. Next step: I can now draft the comprehensive blog post and newsletter content tailored to US business owners and LLC founders about Washington compliance for freelancers, including step-by-step registration checklist, tax obligations, classification guidance, resources and sample templates (contract addenda, client notice templates), and SEO-optimized meta content. Please confirm if you want the full blog post and newsletter draft now, or if I should include specific templates and sample language for contracts and client notices.