Washington compliance management for multi-brand agencies

Comprehensive Washington compliance management guidance for multi-brand agencies (summary and action checklist) Executive summary - If you operate a multi-brand or multi‑trade-name agency doing business in Washington, you must manage entity registration, trade name (DBA) registration, Washington tax obligations (including new sales-tax rules for advertising services effective Oct 1, 2025), payroll and employment obligations (workers’ compensation, unemployment, PFML), Secretary of State annual report and registered‑agent obligations, and consumer/data/privacy & advertising‑specific laws and advertising industry rules.

Below is a consolidated, actionable plan and checklist tailored to Washington State for LLC founders and US business owners running multi-brand agencies. High‑priority Washington requirements (what to do first) 1.

Register your legal entity and obtain a UBI - If you form a domestic WA LLC/corporation/partnership you must file with Washington Secretary of State before applying for a state business license. Foreign (out‑of‑state) entities must file a Foreign Registration Statement to do business in WA. (See SOS filing pages.) - After SOS filing, apply for a WA Business License via Department of Revenue’s Business Licensing Wizard to obtain a 9‑digit UBI. 2.

Trade names (DBAs)/branding - If you operate brands under names different from the legal name, register each trade name with the Washington Department of Revenue (trade name registration per RCW 19.80.10).

DOR charges $5 per trade name and trade names remain registered indefinitely until canceled. Registering a trade name does not give exclusive trademark protection — consider state or federal trademark filings for brand protection. 3.

Sales tax and B&O tax changes affecting agencies (urgent) - Important: Effective Oct 1, 2025 (ESSB 5814), Washington treats advertising services as retail sales subject to retail sales tax and requires reporting of income under the Retailing B&O classification. "Advertising services" includes digital and nondigital creation, preparation, production, placement, referrals, acquisition of advertising space, search engine marketing, lead generation, campaign planning, and monitoring/evaluation of website traffic for ad effectiveness. - Exclusions: web hosting/domain registration, certain newspaper/printing/publishing activities, radio/TV broadcasting (as defined), and many out‑of‑home advertising formats (billboards, transit, fixed signage).

Sales tax sourcing rules and allocation requirements apply: tax rate is based on where the customer receives the advertising services; DOR interim guidance addresses allocation and bundled transactions. - Action: Update accounting/tax classifications in My DOR (add Retailing, retail sales and local sales tax classifications), update invoicing and contract language to show sales tax separately (or clearly state tax‑inclusive pricing and how tax is handled), and implement sourcing practices (capture customer location / viewer ZIP+4 where required).

Consult tax counsel or CPA for complex sourcing/allocation questions and bundled‑service invoices. 4. Employment and payroll obligations - Workers’ compensation (L&I): If you hire employees in WA, you must obtain a workers’ compensation account through L&I.

L&I assigns risk classification(s) and issues premium rate notices; you must file quarterly reports and pay premiums. Set up your L&I account promptly when you hire employees. - Unemployment insurance (ESD): Register with the Employment Security Department for unemployment insurance (reporting and contributions).

ESD also administers PFML reporting and premium collection. - Paid Family & Medical Leave (PFML): Employers must collect and remit PFML premiums and file quarterly reports. For 2026 the PFML premium rate increases (1.13% total; employers pay 28.57% and employees pay 71.43% of the premium; small employers under the threshold may be exempt from the employer portion but still must collect the employee share).

Job protection rules expand (employer size threshold reduced to 25 employees for 2026, then lower in subsequent years). Action: update payroll systems to withhold and remit PFML premiums, post required notices, and follow ESD reporting cadence. 5.

Secretary of State ongoing maintenance - Annual report: Washington SOS requires an annual report for LLCs and other profit entities; fee for profit entities is $70 and reports are due annually by the last day of the entity’s anniversary month.

Late filings incur a $25 delinquency fee and prolonged delinquency can lead to administrative dissolution. Maintain a calendar for SOS annual reports for each entity. - Registered Agent: Maintain a valid registered agent in WA for each registered entity (required by RCW). 6.

Data privacy, advertising & consumer protection - Washington AG enforces consumer protection and false advertising rules; comply with FTC truth‑in’advertising and telemarketing (Do Not Call) rules where applicable.

For data handling, monitor WA legislative developments (state privacy law activity) and federal privacy guidance; use best practices: privacy notices, data processing agreements, opt‑outs for targeted advertising when required, secure data handling, and breach notification procedures.

Entity structure for multi‑brand agencies — practical options - Option A — One legal entity with multiple trade names (DBAs) Pros: Lower filing cost, single tax return and payroll, simpler bookkeeping and overhead, single UBI with multiple trade names registered with DOR (each $5).

Cons: Legal/financial exposure across brands shares the same liability; no separation for creditor or contract risk; more complex accounting to allocate revenue and expenses across brands. - Option B — Multiple LLCs (one LLC per brand) Pros: Liability separation, brand‑level accounting, easier sale/transfer of a brand, clearer segregation of client contracts and tax basis.

Cons: Higher formation and ongoing compliance costs (SOS annual reports $70 each, separate UBI registrations, separate L&I/ESD/insurance as applicable), more bookkeeping and administration. - Recommendation: For agencies with material revenue/independent risk per brand, or if you plan to sell/raise capital against a single brand, consider separate LLCs.

For lower‑risk sub‑brands or marketing imprints, a single LLC with properly registered trade names is often efficient. Always consult a Washington business attorney and CPA for entity‑level tax and liability planning.

Practical compliance management checklist (actionable steps) 1. Legal & registrations - File entity formation or foreign qualification with WA SOS for each legal entity.

Designate and confirm registered agent. Collect SOS confirmation and UBI. - File business license / UBI via DOR Business Licensing Wizard; register trade names (DBAs) with DOR ($5 each). - If operating under multiple brands within one LLC, ensure each DBA is registered and documented internally. 2.

Taxes & accounting - Add Retailing B&O, retail sales and local sales tax filings in My DOR for advertising services. Update tax codes in your accounting software to capture taxable vs excluded services (e.g., web hosting excluded, newspapers/printing exclusions, out‑of‑home exclusions). - Update customer contracts and invoices to: (a) itemize services and tax separately, (b) include language allocating sourcing or customer location facts, and (c) define who is responsible for media buys/third‑party ad space payments. - Implement procedures to capture customer/service delivery location (ZIP+4 if required) at the point of sale or in campaign briefs for sourcing and tax calculation. - Work with your CPA to model B&O tax and sales tax impact (B&O taxes are on gross receipts and have no deduction for costs), update pricing and margins accordingly.

- After SOS filing, apply for a WA Business License via Department of Revenue’s Business Licensing Wizard to obtain a 9‑digit UBI. 2. Trade names (DBAs)/branding

19.80.10). DOR charges $5 per trade name and trade names remain registered indefinitely until canceled.

Registering a trade name does not give exclusive trademark protection — consider state or federal trademark filings for brand protection. 3. Sales tax and B&O tax changes affecting agencies (urgent) - Important: Effective Oct 1, 2025 (ESSB 5814), Washington treats advertising services as retail sales subject to retail sales tax and requires reporting of income under the Retailing B&O classification. "Advertising services" includes digital and nondigital creation, preparation, production, placement, referrals, acquisition of advertising space, search engine marketing, lead generation, campaign planning, and monitoring/evaluation of website traffic for ad effectiveness.

- Action: Update accounting/tax classifications in My DOR (add Retailing, retail sales and local sales tax classifications), update invoicing and contract language to show sales tax separately (or clearly state tax‑inclusive pricing and how tax is handled), and implement sourcing practices (capture customer location / viewer ZIP+4 where required).

Consult tax counsel or CPA for complex sourcing/allocation questions and bundled‑service invoices. 4. Employment and payroll obligations

- Paid Family & Medical Leave (PFML): Employers must collect and remit PFML premiums and file quarterly reports. For 2026 the PFML premium rate increases (1.13% total; employers pay 28.57% and employees pay 71.43% of the premium; small employers under the threshold may be exempt from the employer portion but still must collect the employee share).

Late filings incur a $25 delinquency fee and prolonged delinquency can lead to administrative dissolution. Maintain a calendar for SOS annual reports for each entity.

6. Data privacy, advertising & consumer protection

- Option A — One legal entity with multiple trade names (DBAs) Pros: Lower filing cost, single tax return and payroll, simpler bookkeeping and overhead, single UBI with multiple trade names registered with DOR (each $5).

Cons: Higher formation and ongoing compliance costs (SOS annual reports $70 each, separate UBI registrations, separate L&I/ESD/insurance as applicable), more bookkeeping and administration.

1. Legal & registrations

- File business license / UBI via DOR Business Licensing Wizard; register trade names (DBAs) with DOR ($5 each).

2. Taxes & accounting

- Implement procedures to capture customer/service delivery location (ZIP+4 if required) at the point of sale or in campaign briefs for sourcing and tax calculation.

If you form a domestic WA LLC/corporation/partnership you must file with Washington Secretary of State before applying for a state business license. Foreign (out‑of‑state) entities must file a Foreign Registration Statement to do business in WA. (See SOS filing pages.)
If you operate brands under names different from the legal name, register each trade name with the Washington Department of Revenue (trade name registration per RCW
Exclusions: web hosting/domain registration, certain newspaper/printing/publishing activities, radio/TV broadcasting (as defined), and many out‑of‑home advertising formats (billboards, transit, fixed signage). Sales tax sourcing rules and allocation requirements apply: tax rate is based on where the customer receives the advertising services; DOR interim guidance addresses allocation and bundled transactions.
Workers’ compensation (L&I): If you hire employees in WA, you must obtain a workers’ compensation account through L&I. L&I assigns risk classification(s) and issues premium rate notices; you must file quarterly reports and pay premiums. Set up your L&I account promptly when you hire employees.
Unemployment insurance (ESD): Register with the Employment Security Department for unemployment insurance (reporting and contributions). ESD also administers PFML reporting and premium collection.
Registered Agent: Maintain a valid registered agent in WA for each registered entity (required by RCW).
Washington AG enforces consumer protection and false advertising rules; comply with FTC truth‑in’advertising and telemarketing (Do Not Call) rules where applicable. For data handling, monitor WA legislative developments (state privacy law activity) and federal privacy guidance; use best practices: privacy notices, data processing agreements, opt‑outs for targeted advertising when required, secure data handling, and breach notification procedures. Entity structure for multi‑brand agencies — practical options
Recommendation: For agencies with material revenue/independent risk per brand, or if you plan to sell/raise capital against a single brand, consider separate LLCs. For lower‑risk sub‑brands or marketing imprints, a single LLC with properly registered trade names is often efficient. Always consult a Washington business attorney and CPA for entity‑level tax and liability planning. Practical compliance management checklist (actionable steps)
File entity formation or foreign qualification with WA SOS for each legal entity. Designate and confirm registered agent. Collect SOS confirmation and UBI.
If operating under multiple brands within one LLC, ensure each DBA is registered and documented internally.
Add Retailing B&O, retail sales and local sales tax filings in My DOR for advertising services. Update tax codes in your accounting software to capture taxable vs excluded services (e.g., web hosting excluded, newspapers/printing exclusions, out‑of‑home exclusions).
Update customer contracts and invoices to: (a) itemize services and tax separately, (b) include language allocating sourcing or customer location facts, and (c) define who is responsible for media buys/third‑party ad space payments.
Work with your CPA to model B&O tax and sales tax impact (B&O taxes are on gross receipts and have no deduction for costs), update pricing and margins accordingly.

Payroll & benefits - Register with L&I (workers’ comp) when you hire; set up quarterly L&I reporting and risk classifications. Maintain accident prevention program. - Register/pay PFML and ESD unemployment

configure payroll to withhold PFML employee portion and remit employer portion where required; file ESD quarterly reports. - Post required workplace notices and employee PFML notices; provide paystub inserts where required. Track minimum wage and local ordinances (Seattle, Tacoma, etc.) for wage compliance.

Contracts, IP & internal controls - Contracts

Add sales tax passthrough or tax responsibility clauses; define media‑buy liability; include data‑usage & privacy provisions; tighten indemnities and limitation clauses between brands/clients. - Intellectual property: File trademarks for brand protection (WA Secretary of State trademark filing or USPTO federal filing for national protection). Maintain clear brand ownership clauses if multiple brands/owners/partners involved. - Internal controls: Separate bank accounts (at least by brand ledger), use unique job codes for brands/projects in accounting, use a consistent chart of accounts, and implement monthly close and intercompany reconciliation processes.

Compliance calendar (suggested cadence) - Ongoing

Collect and remit sales tax for advertising services (monthly/quarterly per DOR filing frequency), file payroll taxes, PFML quarterly reports, L&I quarterly reports. - Annually: SOS annual report for each entity (due last day of anniversary month; $70 fee). Review trade name registrations. Renew city or specialty licenses and business endorsements as needed. - Quarterly: Reconcile payroll/PFML/ESD/L&I reports; review B&O and sales tax liabilities and adjust pricing as necessary. 6. Monitoring and escalation - Subscribe to WA DOR, WA SOS, L&I and Paid Leave (ESD) updates to catch rulemaking and guidance (especially for sourcing, bundling, and contract transitions). Keep a relationship with a CPA/tax advisor experienced in WA service taxation and a WA business attorney for entity/contract/IP work. Selected authoritative resources (quick links) - Washington Secretary of State — Business entity filings & annual reports (forms, fees, registered agent): https://www.sos.wa.gov/corporations-charities/business-entities/filings-forms-information - WA Department of Revenue — Register trade names (DBAs): https://dor.wa.gov/manage-business/grow-business/register-trade-names - WA Department of Revenue — Apply for a business license / UBI: https://dor.wa.gov/open-business/apply-business-license - WA DOR — Advertising services now subject to retail sales tax (special notice) and advertising services guidance (ESSB 5814): https://dor.wa.gov/forms-publications/publications-subject/special-notices/advertising-services-now-subject-retail-sales-tax and https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax/advertising-services - WA Paid Family & Medical Leave (ESD) — Employers and 2026 updates (reporting & premium rates): https://paidleave.wa.gov/employers/ and https://paidleave.wa.gov/updates/ - WA Department of Labor & Industries (L&I) — How to get a workers’ compensation account & rates: https://lni.wa.gov/insurance/insurance-requirements/how-to-get-a-workers-compensation-account and https://www.lni.wa.gov/insurance/rates-risk-classes/rates-for-workers-compensation/ Next steps I recommend you take in the next 30 days

Confirm entity structure decision (single LLC with DBAs vs separate LLCs). If undecided, schedule a consult with a WA business attorney and CPA and run a cost/benefit model for separation of liability vs administrative cost.

If not already registered

file with WA SOS (domestic formation or foreign registration) and immediately apply for your WA Business License/UBI via DOR.

Register trade names (DBAs) in DOR for each brand and ensure your accounting system tags revenue to each trade name.

Work with your CPA to add Retailing B&O and retail sales tax classifications in My DOR and model the financial impact of ESSB 5814; update client invoices and contracts to collect sales tax where required.

If hiring or already employing people in WA, open L&I account and register with ESD (PFML & UI); update payroll to withhold and remit PFML and unemployment contributions.

Set up a compliance calendar (SOS annual reports, DOR sales/B&O filings, PFML quarterly reporting, L&I filings) and assign internal owners or an outside compliance partner. If you want, I can now

- Draft a Washington‑specific compliance checklist you can import into a project management tool (Trello/Asana/Notion). - Draft client contract/clause language and an invoice template that separates taxable advertising services and handles sales tax passthrough. - Build a one‑year compliance calendar for your exact entity/brands (dates for SOS annual report, DOR filing frequencies, PFML and L&I quarters) if you give me formation dates and how many brands/entities you manage.