How Much Does It Cost to Start a Business in Washington?
Last updated: March 2026
Washington Business Overview
LLC Filing Fee
$200
Sales Tax Rate
6.5%
Minimum Wage
$16.66/hr
Cost of Living Index
117.5
Workers Comp
Required
Annual Report Fee
$60
Starting a Business in Washington
Washington requires a master business license from the Department of Revenue. Additional endorsements are required for regulated industries.
Washington has no state income tax. Businesses pay a Business and Occupation (B&O) tax based on gross receipts. The combined state and local sales tax exceeds 10% in many areas.
Washington's no income tax policy and Seattle's tech economy create unique opportunities. The B&O tax hits revenue-intensive businesses hard, so margins must account for gross receipts taxation.
For official formation documents, visit the Washington Secretary of State.
Startup Costs for 100 Business Types in Washington
The table below shows estimated startup costs for every major business type, adjusted for Washington’s cost of living index of 117.5. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $8,260 | $23,600 | $54,280 |
| Airbnb / Vacation Rental | Real Estate | $12,980 | $35,400 | $106,200 |
| Ambulance Service | Transportation & Logistics | $94,400 | $236,000 | $590,000 |
| App Development Company | Tech & Online | $11,800 | $35,400 | $94,400 |
| Architecture Firm | Professional Services | $23,600 | $64,900 | $153,400 |
| Auto Detailing Business | Automotive | $5,900 | $35,400 | $118,000 |
| Auto Repair Shop | Automotive | $88,500 | $236,000 | $590,000 |
| Bakery | Food & Beverage | $23,600 | $112,100 | $354,000 |
| Bar & Nightclub | Food & Beverage | $118,000 | $413,000 | $1,003,000 |
| Barbershop | Beauty & Personal Care | $17,700 | $76,700 | $206,500 |
| Beauty Supply Store | Beauty & Personal Care | $35,400 | $118,000 | $354,000 |
| Bookstore | Retail | $29,500 | $118,000 | $354,000 |
| Brewery / Microbrewery | Food & Beverage | $118,000 | $472,000 | $1,180,000 |
| Cannabis Dispensary | Specialty & Regulated | $146,910 | $391,760 | $1,469,100 |
| Car Wash | Automotive | $146,910 | $641,920 | $1,833,720 |
| Carpentry & Woodworking Shop | Construction & Trades | $12,390 | $33,040 | $82,600 |
| Catering Business | Food & Beverage | $14,160 | $62,540 | $153,400 |
| Chiropractic Office | Health & Wellness | $47,200 | $141,600 | $354,000 |
| Cleaning Business | Home Services | $1,770 | $12,980 | $43,660 |
| Clothing Boutique | Retail | $35,400 | $118,000 | $354,000 |
| Coffee Shop | Food & Beverage | $29,500 | $141,600 | $413,000 |
| Concrete Business | Construction & Trades | $29,500 | $76,700 | $177,000 |
| Consulting Business | Professional Services | $2,360 | $10,620 | $30,680 |
| Convenience Store | Retail | $59,000 | $330,400 | $885,000 |
| Courier & Delivery Service | Transportation & Logistics | $9,440 | $25,960 | $64,900 |
| Cybersecurity Firm | Tech & Online | $23,600 | $64,900 | $177,000 |
| Dance Studio | Childcare & Education | $23,600 | $94,400 | $295,000 |
| Daycare Center | Childcare & Education | $70,800 | $212,400 | $590,000 |
| Demolition Company | Construction & Trades | $35,400 | $94,400 | $236,000 |
| Dental Practice | Health & Wellness | $295,000 | $590,000 | $1,180,000 |
| Digital Marketing Agency | Tech & Online | $4,720 | $14,160 | $37,760 |
| E-Commerce Store | Tech & Online | $5,900 | $17,700 | $59,000 |
| Electrical Business | Home Services | $17,700 | $64,900 | $188,800 |
| Esthetics & Skincare Business | Beauty & Personal Care | $9,440 | $47,200 | $141,600 |
| Excavation Company | Construction & Trades | $59,000 | $153,400 | $413,000 |
| Financial Planning Practice | Professional Services | $23,600 | $64,900 | $153,400 |
| Flower Shop | Retail | $23,600 | $88,500 | $236,000 |
| Food Delivery Service | Food & Beverage | $11,800 | $61,360 | $153,400 |
| Food Processing Business | Food & Beverage | $88,500 | $295,000 | $885,000 |
| Food Truck | Food & Beverage | $53,100 | $141,600 | $236,000 |
| Freight Brokerage | Transportation & Logistics | $18,880 | $42,480 | $94,400 |
| Furniture Store | Retail | $59,000 | $236,000 | $708,000 |
| General Contracting Business | Construction & Trades | $23,600 | $64,900 | $153,400 |
| Ghost Kitchen | Food & Beverage | $23,600 | $70,800 | $177,000 |
| Gift Shop | Retail | $23,600 | $82,600 | $236,000 |
| Gym & Fitness Center | Health & Wellness | $59,000 | $295,000 | $1,180,000 |
| Hair Salon | Beauty & Personal Care | $17,700 | $88,500 | $295,000 |
| Handyman Business | Home Services | $2,360 | $11,800 | $38,940 |
| Home Health Care Agency | Health & Wellness | $47,200 | $153,400 | $354,000 |
| HVAC Business | Home Services | $23,600 | $82,600 | $236,000 |
| Ice Cream Shop | Food & Beverage | $23,600 | $88,500 | $236,000 |
| Insurance Agency | Professional Services | $17,700 | $47,200 | $106,200 |
| IT Services Business | Tech & Online | $17,700 | $47,200 | $118,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $29,500 | $106,200 | $295,000 |
| Landscaping Business | Home Services | $11,800 | $47,200 | $141,600 |
| Laundromat | Real Estate | $118,000 | $295,000 | $708,000 |
| Law Firm | Professional Services | $14,160 | $40,120 | $95,580 |
| Limousine & Car Service | Transportation & Logistics | $47,200 | $106,200 | $259,600 |
| Liquor Store | Retail | $59,000 | $212,400 | $590,000 |
| Marketing Agency | Professional Services | $5,900 | $21,240 | $59,000 |
| Martial Arts Studio | Childcare & Education | $23,600 | $82,600 | $236,000 |
| Meal Prep Business | Food & Beverage | $23,600 | $76,700 | $236,000 |
| Med Spa | Health & Wellness | $118,000 | $413,000 | $1,180,000 |
| Medical Practice | Health & Wellness | $177,000 | $472,000 | $1,180,000 |
| Mental Health Practice | Health & Wellness | $17,700 | $59,000 | $177,000 |
| Moving Company | Home Services | $35,400 | $118,000 | $354,000 |
| Music School | Childcare & Education | $11,800 | $59,000 | $177,000 |
| Nail Salon | Beauty & Personal Care | $23,600 | $106,200 | $295,000 |
| Painting Business | Home Services | $5,900 | $29,500 | $94,400 |
| Personal Training Business | Health & Wellness | $5,900 | $29,500 | $118,000 |
| Pest Control Business | Home Services | $11,800 | $47,200 | $141,600 |
| Pet Store | Retail | $35,400 | $118,000 | $354,000 |
| Pharmacy | Health & Wellness | $177,000 | $472,000 | $1,180,000 |
| Physical Therapy Clinic | Health & Wellness | $70,800 | $212,400 | $531,000 |
| Pizza Shop | Food & Beverage | $59,000 | $206,500 | $472,000 |
| Plumbing Business | Home Services | $17,700 | $59,000 | $177,000 |
| Podcast Production Company | Tech & Online | $2,360 | $7,080 | $21,240 |
| Preschool | Childcare & Education | $59,000 | $177,000 | $472,000 |
| Property Management Company | Real Estate | $12,390 | $28,320 | $64,900 |
| Real Estate Agency | Professional Services | $11,800 | $33,040 | $82,600 |
| Real Estate Investing (Rental) | Real Estate | $29,500 | $88,500 | $295,000 |
| Restaurant | Food & Beverage | $206,500 | $442,500 | $885,000 |
| Roofing Company | Home Services | $17,700 | $70,800 | $212,400 |
| SaaS Company | Tech & Online | $23,600 | $70,800 | $236,000 |
| Spa & Massage Therapy | Health & Wellness | $11,800 | $82,600 | $295,000 |
| Staffing Agency | Professional Services | $23,600 | $64,900 | $177,000 |
| Storage Unit Facility | Real Estate | $236,000 | $708,000 | $2,360,000 |
| Tattoo Shop | Beauty & Personal Care | $23,600 | $69,620 | $236,000 |
| Tax Preparation Business | Professional Services | $4,130 | $11,800 | $31,860 |
| Thrift Store | Retail | $23,600 | $88,500 | $236,000 |
| Tire Shop | Automotive | $59,000 | $177,000 | $472,000 |
| Towing Company | Automotive | $59,000 | $177,000 | $472,000 |
| Trucking Company | Transportation & Logistics | $35,400 | $94,400 | $236,000 |
| Tutoring Business | Childcare & Education | $2,360 | $28,320 | $118,000 |
| Used Car Dealership | Automotive | $59,000 | $236,000 | $708,000 |
| Vape Shop | Retail | $29,500 | $88,500 | $236,000 |
| Web Development Agency | Tech & Online | $4,130 | $14,160 | $38,940 |
| Welding Business | Construction & Trades | $17,700 | $47,200 | $118,000 |
| Winery | Food & Beverage | $177,000 | $899,160 | $3,540,000 |
| Yoga Studio | Health & Wellness | $17,700 | $94,400 | $236,000 |
Most Popular Business Types in Washington
Licenses & Permits in Washington
General Business License
Washington State requires most businesses to obtain a Unified Business Identifier (UBI) through the Business Licensing Service (BLS) of the Department of Revenue. Washington has no state income tax, but does have a Business and Occupation (B&O) tax applied to gross receipts, which is unique among US states. Additionally, businesses must register for the B&O tax and any applicable retail sales tax. Many cities require a separate city business license endorsed onto the state license through a streamlined endorsement system.
Industry-Specific Licenses
- Food Service Establishment Permit — Washington State Department of Health or Local Health DepartmentCost: $100-$700 • Renewal: Annual
- General Contractor Registration — Washington State Department of Labor and IndustriesCost: $150-$500 • Renewal: Annual
- Master Cosmetician Shop License — Washington State Department of Licensing — CosmetologyCost: $50-$200 • Renewal: Annual
- Real Estate Broker License — Washington State Department of Licensing — Real EstateCost: $150-$400 • Renewal: Biennial
- Family Day Care License / Child Care Center License — Washington State Department of Children, Youth, and FamiliesCost: $50-$300 • Renewal: Annual
- Marijuana Retailer License — Washington State Liquor and Cannabis BoardCost: $2,400-$6,600 • Renewal: Annual
- Spirits/Beer/Wine Restaurant License — Washington State Liquor and Cannabis BoardCost: $200-$4,000 • Renewal: Annual
- Money Transmitter License — Washington State Department of Financial InstitutionsCost: $1,000-$10,000 • Renewal: Annual
Home-Based Business Rules
Washington municipalities regulate home-based businesses through local ordinances within the GMA planning framework. Seattle allows home occupations in residential zones with restrictions on customer visits, commercial delivery, and non-resident employees. Many Washington communities have updated their home occupation rules to accommodate remote workers and tech entrepreneurs. Washington's cottage food law supports home-based food production and direct consumer sales up to $25,000 annually.
Washington Business Resources
SBA District Office
Washington SBA District Office — Seattle
Secretary of State
https://www.sos.wa.gov/corpsZoning Information
Washington municipalities control zoning. Seattle has complex commercial zoning with design review requirements, affordable housing requirements, and frequent plan amendments.
Health Department Notes
Food establishments require permits from the Washington State Department of Agriculture or local health departments. The state has strict labeling and food safety requirements.
Workers Compensation
Required for all employers. Washington operates a state-run workers compensation system (L&I) and is one of the few monopolistic states.