Washington compliance for online learning platforms

Comprehensive findings and practical guidance for Washington compliance for online learning platforms aimed at US business owners / LLC founders. Summary of research steps and sources - Searched official Washington state statutes (RCW), administrative code (WAC), and state agency guidance (Department of Revenue, Workforce Training & Education Coordinating Board, Washington Student Achievement Council, OSPI). - Searched for Washington-specific rules on taxation of online instruction, business registration, private vocational school licensing, degree authorization for degree-granting institutions, student privacy (K–12), and consumer protection/complaint processes. - Prioritized authoritative pages: wa.gov sites, RCW/WAC pages, agency guidance pages.

Key findings (what Washington requires and why it matters) 1) Business registration and basic corporate requirements - If you will be doing business in Washington (gross income ≥ $12,000/year, collecting sales tax, hiring employees, or operating under a trade name), you must register and obtain a Washington business license/UBI via the Business Licensing Service (My DOR / Business Licensing Wizard).

Domestic LLCs must first file with the Secretary of State. Practical: Get a UBI, file with Secretary of State if forming a WA LLC, and apply through My DOR.

Display registration at your place of business if you have one. Sources: WA Department of Revenue business license pages. 2) Taxes: B&O tax and Sales tax for online instruction - Washington treats revenue from online instruction under B&O tax (service and other activities) generally.

Retail sales tax may apply to charges for online instruction when the offering is non-interactive (e.g., prerecorded/on-demand content). The key determinative factor is real-time participation/interactive two-way audio-video between instructor and students: live, interactive classes are generally not subject to retail sales tax; prerecorded, noninteractive content typically is taxable as retailing/digital product.

Practical: Classify offerings (live-interactive vs. on-demand). Register for B&O and sales tax as required; collect sales tax on taxable transactions.

Seek DOR rulings or consult tax counsel for borderline cases. Sources: WA DOR guidance on online instructional classes; WAC 458-20-15503 and RCW definitions for digital products. 3) Private vocational / career school licensing (for diploma/certificate vocational programs) - If you offer vocational/technical training programs to the general public (tuition-charging programs longer than a short duration), you may need a Private Career School license from the Workforce Training & Education Coordinating Board (WTB) under the Private Vocational Schools Act (RCW 28C.10) and WAC chapter 490-105.

Out-of-state or distance providers that solicit, recruit, enroll Washington residents may fall under licensing or joint jurisdiction rules. Practical: Use WTB’s license-determination questionnaire and, if required, apply for a Private Career School license (orientation/webinar, application, fee).

Expect application review and possible on-site/virtual inspections and reporting obligations (student data reporting, consumer protections). Sources: WTB private career schools pages; RCW 28C.10; WAC 490-105. 4) Degree-granting institutions and authorization (WSAC) - Any private or out-of-state degree-granting institution offering degrees to Washington residents (or maintaining presence/field placements that occur in WA) must seek authorization from the Washington Student Achievement Council (WSAC) under the Degree-Granting Institutions Act (RCW 28B.85 and WAC 250-61).

SARA participation can affect out-of-state distance education delivery, but field placements, clinicals, and certain targeted recruiting can trigger authorization requirements. Authorized institutions may face surety bond, tuition recovery fund, reporting, and fee obligations.

Practical: If you plan to offer credit-bearing degree programs or place students in Washington for clinical/field work, contact WSAC early ( DegreeAuthorization@wsac.wa.gov ) and complete the distance-learning questionnaire if applicable.

Sources: WSAC degree authorization webpage; RCW 28B.85; WAC 250-61. 5) Student privacy (K–12) and data security - Washington’s Student User Privacy in Education Rights (SUPER) Act (RCW 28A.604) regulates “school service providers” that collect K–12 student personal information.

Requirements include: clear disclosures of data collected and uses; prohibition on selling student personal information; prohibition on targeted advertising using student personal information; contractual controls for subcontractors; obligations to maintain a comprehensive information security program and to delete data upon request from educational institutions (with limited exceptions). - For higher education and general student records, FERPA and OSPI guidance remain relevant; OSPI also provides guidance on protecting student privacy and data sharing agreements.

Practical: If your platform serves K–12 institutions or collects student personal information, you must implement privacy policies that satisfy RCW 28A.604, enter required school contracts, prohibit targeted advertising to students, maintain security programs, and support deletion/access/correction requests.

For postsecondary students, follow FERPA obligations where applicable and adopt robust data security and vendor/subprocessor controls. Sources: RCW 28A.604 (SUPER Act); OSPI student privacy guidance; RCW 28A.605 on student records. 6) Consumer protection, advertising, disclosures, refunds, and complaints - Washington’s Consumer Protection Act (RCW 19.86) and state AG enforcement apply to deceptive advertising and unfair business practices for online education providers.

For private vocational schools and degree-granting institutions, licensing agencies (WTB, WSAC) require truthful marketing materials and have complaint/discipline processes. WSAC and WTB publish student complaint portals and handling procedures.

Also be aware of state laws and recent legislation enhancing student consumer protections for online programs (e.g., WA legislative changes affecting SARA participation and student protections). Practical: Create accurate marketing and enrollment materials, clear refund and cancellation terms, and maintain complaint/appeals processes; maintain records to demonstrate compliance.

Use WSAC/WTB student complaint portals and monitor legal/regulatory updates. Sources: RCW 19.86 (WA Consumer Protection Act), WSAC and WTB complaint pages. 7) Accreditation, surety bonds, and tuition recovery obligations - For degree authorization, WSAC expects accreditation (or a plan to obtain accreditation) by a U.S.

Department of Education-recognized accreditor. Authorized institutions often must maintain surety bonds and contribute to or have procedures related to a tuition recovery fund for students in case of closure (see WAC 250-61-145 and WSAC guidance).

Practical: If offering degree programs, plan for accreditation requirements (or documented path), financial stability documentation, and potential surety bond/student protection obligations. Sources: WSAC degree authorization guidance; WAC 250-61 (fees, student protection rules).

Practical compliance checklist for Washington-focused online learning platforms

Comprehensive findings and practical guidance for Washington compliance for online learning platforms aimed at US business owners / LLC founders. Summary of research steps and sources

- Searched for Washington-specific rules on taxation of online instruction, business registration, private vocational school licensing, degree authorization for degree-granting institutions, student privacy (K–12), and consumer protection/complaint processes.

1) Business registration and basic corporate requirements - If you will be doing business in Washington (gross income ≥ $12,000/year, collecting sales tax, hiring employees, or operating under a trade name), you must register and obtain a Washington business license/UBI via the Business Licensing Service (My DOR / Business Licensing Wizard).

Domestic LLCs must first file with the Secretary of State. Practical: Get a UBI, file with Secretary of State if forming a WA LLC, and apply through My DOR.

Display registration at your place of business if you have one. Sources: WA Department of Revenue business license pages. 2) Taxes: B&O tax and Sales tax for online instruction - Washington treats revenue from online instruction under B&O tax (service and other activities) generally.

Retail sales tax may apply to charges for online instruction when the offering is non-interactive (e.g., prerecorded/on-demand content). The key determinative factor is real-time participation/interactive two-way audio-video between instructor and students: live, interactive classes are generally not subject to retail sales tax; prerecorded, noninteractive content typically is taxable as retailing/digital product.

Practical: Classify offerings (live-interactive vs. on-demand). Register for B&O and sales tax as required; collect sales tax on taxable transactions.

Seek DOR rulings or consult tax counsel for borderline cases. Sources: WA DOR guidance on online instructional classes; WAC 458-20-15503 and RCW definitions for digital products. 3) Private vocational / career school licensing (for diploma/certificate vocational programs) - If you offer vocational/technical training programs to the general public (tuition-charging programs longer than a short duration), you may need a Private Career School license from the Workforce Training & Education Coordinating Board (WTB) under the Private Vocational Schools Act (RCW 28C.10) and WAC chapter 490-105.

Out-of-state or distance providers that solicit, recruit, enroll Washington residents may fall under licensing or joint jurisdiction rules. Practical: Use WTB’s license-determination questionnaire and, if required, apply for a Private Career School license (orientation/webinar, application, fee).

Expect application review and possible on-site/virtual inspections and reporting obligations (student data reporting, consumer protections). Sources: WTB private career schools pages; RCW 28C.10; WAC 490-105. 4) Degree-granting institutions and authorization (WSAC) - Any private or out-of-state degree-granting institution offering degrees to Washington residents (or maintaining presence/field placements that occur in WA) must seek authorization from the Washington Student Achievement Council (WSAC) under the Degree-Granting Institutions Act (RCW 28B.85 and WAC 250-61).

SARA participation can affect out-of-state distance education delivery, but field placements, clinicals, and certain targeted recruiting can trigger authorization requirements. Authorized institutions may face surety bond, tuition recovery fund, reporting, and fee obligations.

Practical: If you plan to offer credit-bearing degree programs or place students in Washington for clinical/field work, contact WSAC early ( DegreeAuthorization@wsac.wa.gov ) and complete the distance-learning questionnaire if applicable.

Sources: WSAC degree authorization webpage; RCW 28B.85; WAC 250-61. 5) Student privacy (K–12) and data security - Washington’s Student User Privacy in Education Rights (SUPER) Act (RCW 28A.604) regulates “school service providers” that collect K–12 student personal information.

Requirements include: clear disclosures of data collected and uses; prohibition on selling student personal information; prohibition on targeted advertising using student personal information; contractual controls for subcontractors; obligations to maintain a comprehensive information security program and to delete data upon request from educational institutions (with limited exceptions). - For higher education and general student records, FERPA and OSPI guidance remain relevant; OSPI also provides guidance on protecting student privacy and data sharing agreements.

Practical: If your platform serves K–12 institutions or collects student personal information, you must implement privacy policies that satisfy RCW 28A.604, enter required school contracts, prohibit targeted advertising to students, maintain security programs, and support deletion/access/correction requests.

For postsecondary students, follow FERPA obligations where applicable and adopt robust data security and vendor/subprocessor controls. Sources: RCW 28A.604 (SUPER Act); OSPI student privacy guidance; RCW 28A.605 on student records. 6) Consumer protection, advertising, disclosures, refunds, and complaints

19.86) and state AG enforcement apply to deceptive advertising and unfair business practices for online education providers. For private vocational schools and degree-granting institutions, licensing agencies (WTB, WSAC) require truthful marketing materials and have complaint/discipline processes.

WSAC and WTB publish student complaint portals and handling procedures. Also be aware of state laws and recent legislation enhancing student consumer protections for online programs (e.g., WA legislative changes affecting SARA participation and student protections).

Practical: Create accurate marketing and enrollment materials, clear refund and cancellation terms, and maintain complaint/appeals processes; maintain records to demonstrate compliance. Use WSAC/WTB student complaint portals and monitor legal/regulatory updates.

Sources: RCW 19.86 (WA Consumer Protection Act), WSAC and WTB complaint pages. 7) Accreditation, surety bonds, and tuition recovery obligations - For degree authorization, WSAC expects accreditation (or a plan to obtain accreditation) by a U.S.

Department of Education-recognized accreditor. Authorized institutions often must maintain surety bonds and contribute to or have procedures related to a tuition recovery fund for students in case of closure (see WAC 250-61-145 and WSAC guidance).

Practical: If offering degree programs, plan for accreditation requirements (or documented path), financial stability documentation, and potential surety bond/student protection obligations. Sources: WSAC degree authorization guidance; WAC 250-61 (fees, student protection rules).

Practical compliance checklist for Washington-focused online learning platforms

• Searched official Washington state statutes (RCW), administrative code (WAC), and state agency guidance (Department of Revenue, Workforce Training & Education Coordinating Board, Washington Student Achievement Council, OSPI).
• Prioritized authoritative pages: wa.gov sites, RCW/WAC pages, agency guidance pages. Key findings (what Washington requires and why it matters)
• Washington’s Consumer Protection Act (RCW

Business setup - Form or register your business (Secretary of State filing for LLC/corp if Washington domestic) and obtain a UBI/business license via My DOR/Business Licensing Wizard. - Determine if local city/county endorsements are required.

Tax registration and classification - Register for Department of Revenue accounts (B&O tax; sales tax) and set up reporting. Determine product/service taxability

live interactive classes vs. prerecorded content (DOR guidance). Seek a private letter ruling or professional tax advice for ambiguous offerings.

Program licensing / authorization - If offering vocational diploma/certificate programs

complete WTB license-determination questionnaire and apply for a Private Career School license if required. - If offering degree programs or field placements in WA: contact WSAC for degree authorization; consider SARA status; prepare accreditation and financial documentation.

Student privacy and data security - If you serve K–12, comply with RCW 28A.604

publish clear privacy notices, prohibit selling student data and targeted advertising to students, implement a comprehensive information security program, contractual protections for subcontractors, and deletion capability. - For postsecondary students, implement FERPA-compliant processes where you are a contractor to an educational institution and adopt strong security and data-handling standards. 5. Consumer protection and disclosures - Publish transparent terms: refund policy, enrollment agreement, credential claims, learning outcomes, length, total cost, and contact/complaint info. - Avoid deceptive advertising that could violate RCW 19.86; ensure marketing is accurate about credentialing, job placement, and accreditation.

Operations and vendor management - Vet third-party vendors/subprocessors, require contractual data protections, and ensure subcontractors comply with applicable student privacy provisions.

Recordkeeping and complaint handling - Implement recordkeeping to support audits and student complaints; create clear complaint and refund handling procedures and publish them.

Financial protections - Understand possible surety bond and tuition recovery obligations (WSAC/WAC) if degree-granting or if required by WTB for vocational schools. Key agency contacts and resources (start here) - WA Department of Revenue — Online instructional classes and business licensing

https://dor.wa.gov/forms-publications/publications-subject/tax-topics/online-instructional-classes and https://dor.wa.gov/open-business/apply-business-license - Washington Workforce Training & Education Coordinating Board — Private Career Schools: https://wtb.wa.gov/private-career-schools/ and https://wtb.wa.gov/private-career-schools/open-private-career-school/ - Washington Student Achievement Council (WSAC) — Degree Authorization and SARA: https://wsac.wa.gov/degree-authorization and https://wsac.wa.gov/sara - RCW/WAC references: RCW 28A.604 (student privacy/SUPER Act), RCW 28C.10 (private vocational schools), RCW 28B.85 (degree-granting institutions), WAC 250-61 (WSAC degree authorization rules), WAC 490-105 (private career school rules) - OSPI — Protecting Student Privacy (FERPA guidance and state-level practices): https://ospi.k12.wa.us/data-reporting/protecting-student-privacy Limitations and recommended next steps - This summary uses authoritative WA state sources collected from agency websites and RCW/WAC. Individual business facts (course format, whether students are K–12 or adult, whether credentials are degree-bearing or vocational certificates, presence of field placements, and whether targeted marketing to WA residents occurs) materially affect which rules apply. - Next steps I recommend you take (or ask a WA-focused lawyer/accountant to do):

Classify each product (live interactive, live but one-way, prerecorded on-demand, credit-bearing degree, vocational certificate).

Register your business and tax accounts in Washington (get UBI).

Contact WTB (private career schools) and/or WSAC (degree authorization) to confirm licensing obligations; if serving K–12, map data flows and draft a compliant privacy policy and school-service contracts that satisfy RCW 28A.604.

Consult tax counsel (or request a DOR private letter ruling) for borderline taxability questions.

Draft consumer-facing materials (enrollment agreements, refund policies, marketing claims) to meet WA consumer protection expectations. If you want, I can now

(choose one) A) Draft full-length blog content and newsletter copy tailored to US business owners / LLC founders (including SEO meta, headings, and an actionable compliance checklist) based on the above research; or B) Produce a short, practical compliance playbook (step-by-step registration, tax, licensing, privacy, and marketing checklist) ready for distribution; or C) Draft required template disclosures and contract language (privacy policy clauses for K–12 school services, enrollment agreement/refund policy template, subcontractor data protection clause); or D) Connect you to tailored next steps: prepare the communications (emails) to WSAC/WTB/DOR with suggested language to request rulings/clarifications for your specific offerings. Tell me which deliverable you want and I will produce it using the research above.