Washington compliance for tech-driven operations

Below is a researched, Washington-specific, practical blog post for US business owners and LLC founders running tech-driven operations. It summarizes key legal and regulatory obligations (through late 2025 / early 2026), practical steps, and links to primary sources you must monitor. Title: Washington compliance for tech-driven operations Slug: washington-compliance-for-tech-driven-operations Excerpt: Essential Washington state compliance guidance for tech-focused businesses and LLCs — taxes, privacy & breach rules, accessibility, employment, and practical steps to stay compliant. Introduction Washington is an active, tech-forward state with evolving rules that affect software, SaaS, digital services, AI, and data-driven operations. In 2024–2025 the Legislature passed several tax and regulatory updates that materially affect tech companies (notably sales-tax expansions to certain services and B&O tax changes), state procurement and accessibility standards were strengthened, and privacy and AI policy activity accelerated. Below are the state-specific requirements and concrete actions for founders and owners. 1) Business formation & ongoing entity compliance (Secretary of State + Business Licensing) - Form or register your LLC with the Washington Secretary of State and file the required annual report; maintain a registered agent and keep contact and ownership information current. Use the Corporations & Charities / Business Entities pages for filings and resources. - Obtain a UBI and register with the Washington Department of Revenue and Business Licensing Service to collect and remit taxes and obtain required business licenses. - Note: Beneficial Ownership Information (FinCEN BOI) reporting changes: the WA SOS notes changes effective March 26, 2025 and refers filers to FinCEN for BOI filings — keep corporate transparency filings up to date. Practical actions: create a compliance calendar (annual report due date, tax registrations, license renewals), maintain minutes/ownership records, and automate reminders. 2) State tax landscape that affects tech products and services Primary changes (effective late 2025–2026): - Retail sales tax expansion (ESSB 5814) — the Department of Revenue summarized that Washington extended retail sales & use tax to specified services including: information technology training and technical support; custom website development; custom software and customization of prewritten computer software; select digital automated services. These changes took effect October 1, 2025. If you sell taxable services to Washington customers you may be required to collect sales tax. - B&O tax updates — the Department of Revenue’s 2025 summary describes multiple changes including new surcharges and rate clarifications, and a three-tiered B&O service/other activities rate effective October 1, 2025. Certain surcharges (advanced computing surcharge) and rate increases may apply depending on taxpayer size and activities. Practical actions: register for a Department of Revenue account, determine whether your product (SaaS, custom development, support, training, digital automated services) is taxable, update pricing and invoices to include tax where required, classify gross receipts under appropriate B&O categories and plan for new rates/surcharges. Consult a WA tax advisor prior to large product launches or pricing changes. 3) Data privacy and consumer rights developments - Washington has active legislative effort(s) around comprehensive privacy (HB 1671 and other bills introduced in 2025). Washington previously enacted the My Health My Data Act for consumer health data; proposed bills in 2025 (HB 1671 / “People’s Privacy Act”) sought to create a broader consumer privacy framework including sensitive data protections and consumer rights. Monitor bill status — requirements could include expanded rights, data minimization, opt-outs on targeted advertising, and potential private rights of action depending on legislative text. Practical actions: implement a privacy program now: maintain a data inventory, map personal data flows, adopt clear privacy notices, implement consumer rights processes (access, correction, deletion, opt-outs), minimize collection, and update vendor/processor contracts with WA-specific compliance obligations and breach cooperation clauses. Track WA privacy bills and Attorney General guidance for enforcement priorities. 4) Security breach notification (RCW 19.255) - Washington’s breach-notification law (Chapter 19.255 RCW) governs notification duties for unauthorized access to personal information about Washington residents. Typical requirements: prompt notice to affected consumers describing the incident, the data elements involved, steps taken to mitigate, and contact information; certain exemptions may apply (e.g., encrypted/de-identified data). The statute and implementing guidance define timing and content duties. Practical actions: build and test an incident response plan and breach-notification templates that meet RCW requirements; log detection & response timelines; designate who will notify customers and regulators; engage counsel early in an incident. 5) Accessibility & state procurement requirements (WaTech) - WaTech’s Digital Accessibility Standard requires Level AA conformance with WCAG (2.1 currently; WCAG 2.2 AA effective July 1, 2026) for covered technology used by state agencies (public-facing sites, applications, documents, and many non-public uses). Contracting with state agencies or bidding for state work requires embedded accessibility standards and validation/testing requirements. Practical actions: ensure public-facing web/mobile interfaces and procurement deliverables meet WCAG AA; include accessibility validation and testing in procurement specifications; maintain documentation and remediation plans. 6) Employment & workforce compliance important to tech companies - Washington updates for 2026 include minimum wage increases, new overtime thresholds for exempt classifications, and changes to non-compete thresholds established in prior years. Paid Family & Medical Leave (PFML) and other benefits rules are evolving with employer-size thresholds and timing changes. Practical actions: review worker classification (employee vs contractor), update pay policies to meet WA minimum wage and overtime rules, confirm exempt employees meet salary thresholds, update non-compete agreements to reflect WA statutory limits, and ensure PFML contributions and notices are handled correctly. 7) Industry-specific rules: health, finance, IoT, AI - Healthcare: My Health My Data Act imposes obligations on entities that process consumer health data beyond HIPAA; health tech companies must reconcile MHMD obligations and HIPAA where both apply. - Finance / fintech: GLBA/FFIEC rules and DFI oversight may apply; fintech firms should ensure consumer financial data protections and vendor oversight. - IoT / biometrics: Washington and other states have focused on sensitive data (location, biometric). Proposed privacy bills often single out minors’ data and biometric identifiers for stricter protections. - AI: Washington state task force work in late 2025 produced AI policy recommendations; expect state-level guidance/regulation around high-risk AI uses and procurement standards. Practical actions: perform DPIAs/AI risk assessments, minimize collection of sensitive biometric or location data, document lawful basis for data processing, and implement extra safeguards for health/financial data. 8) Contracts, vendor management & data transfers - Update vendor agreements to require: security controls, data-processing terms, breach cooperation, assistance with data subject requests, subcontractor flow-down obligations, and specific WA compliance cooperation (tax, procurement, accessibility where applicable). Practical actions: put standard DPA clauses into vendor and reseller agreements; verify vendor SOC or other security attestations; require indemnities and insurance aligned with risk. 9) Practical checklist & first 90-day plan for founders/LLC owners in Washington Day 0–30: - Register entity with SOS (or foreign qualify) and file for UBI and required licenses; register with Dept of Revenue. - Map revenue streams and assess whether sales tax applies (review ESSB 5814 coverage). Update invoicing. - Build basic privacy notice and cookie/consent flows; start a data inventory. - Designate a security incident lead and draft breach-response templates aligned with RCW 19.255. Day 30–90: - Review employment classification and payroll settings (min wage, PFML, overtime thresholds); update HR policies and contracts. - Review state procurement / accessibility requirements if you target public contracts; audit public-facing properties for WCAG AA and plan remediation. - Update vendor contracts to include DPAs and breach cooperation; begin onboarding security attestation process. - Engage Washington tax counsel/accountant to confirm B&O classification and plan for new surcharge/rate changes. 10) Monitoring, enforcement & where to get help - Key state resources to monitor and use: Washington Department of Revenue (tax law changes & guidance), Washington Secretary of State (entity filings & annual reports), WaTech (accessibility policies), Revised Code of Washington (RCW 19.255 for breach notifications), Washington Attorney General (consumer protection & privacy enforcement), Washington Department of Labor & Industries and Employment Security Department for employment rules. - Consider legal counsel for privacy/security and a Washington tax accountant for B&O and sales-tax questions; use experienced procurement/compliance consultants for accessibility and state contracting. Conclusion Washington’s regulatory environment for tech-driven operations is active and changing: key near-term impacts for tech founders are (1) expanded retail sales tax coverage of certain IT/digital services, (2) B&O rate and surcharge changes, (3) strengthened accessibility procurement rules, and (4) legislative movement on privacy and AI. Start with entity and tax registration, a practical privacy/security baseline (inventory + IRP + breach templates), vendor contract updates, and an accessibility review for public-facing offerings. Schedule a compliance review with counsel and a tax adviser before major product launches or contracting with the state. Primary sources and further reading (see excerpts below): - Washington Department of Revenue — Summary of 2025 Legislation (DOR): https://dor.wa.gov/sites/default/files/2025-06/2025_Summary_of_Legislation.pdf - RCW Chapter 19.255 — Personal Information—Notice of Security Breaches: https://app.leg.wa.gov/rcw/default.aspx?cite=19.255 - WaTech Digital Accessibility Standard (USER-01-01-S): https://watech.wa.gov/sites/default/files/2025-01/USER-01-01-S%20Digital%20Accessibility%20Standard.pdf - Washington Secretary of State — Corporations & Charities / Business Entities: https://www.sos.wa.gov/corps/ - HB 1671 and House Bill Report (privacy legislative activity): https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bill%20Reports/House/1671%20HBR%20TEDV%2025.pdf If you want, I can now: (A) Draft the full blog post text in publish-ready form (1200–1,800 words) using the structure above, (B) Produce an email newsletter version (shorter summary + CTA), and (C) Produce a one-page compliance checklist and timeline customized to your company size and product type. Tell me which deliverables you’d like.