Starting a service business in Washington

Form your business in Washington

You form a Washington LLC by filing a Certificate of Formation with the Secretary of State's Corporations and Charities Division, online or by mail. The filing fee is $180, as listed on the division's fee schedule in October 2026. Expedited service, generally processed within three working days, adds $100; same-day service adds $150. After the LLC exists, you still need a state business license from the Department of Revenue before you start work.

Ongoing state filings

A new Washington LLC files an initial report ($10) and then an annual report each year ($70, or $95 with the delinquency fee), as listed by the Secretary of State in October 2026. The Secretary of State mails and emails a courtesy notice 60 days before your report is due, but its own page quotes RCW 23.95.255(7): not getting the notice does not excuse a missed report. Set your own reminder.

Using a business name (DBA)

In Washington a trade name is registered through the Department of Revenue's Business Licensing Service, not the Secretary of State. The department says you need a business license if you do business under a name other than your full legal name, plan to hire employees within 90 days, provide a service that requires collecting sales tax, or have gross income of $12,000 or more a year, and the same Business License Application is where you register or change a trade name. Check the current trade name fee in the application, since the department lists it there.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

Washington requires every construction contractor to register with L&I, and that covers construction, remodeling, repair and demolition work, so handymen, roofers, deck builders and remodelers all register. L&I lists a bond of $30,000 for general contractors and $15,000 for specialty contractors, liability insurance of $200,000 public liability and $50,000 property damage (or $250,000 combined single limit), and a registration fee of $150.20 as of October 2026. Electricians and plumbers face additional education, examination and licensing requirements, also administered by L&I. Many cities and counties require an endorsement on your state business license, which you add through the Business Licensing Service, and they issue their own permits.

• Washington L&I: Contractor registration: Registration, bond and insurance for all construction contractors
• Washington L&I: Electrical licensing: Electrical contractors and certified electricians
• Washington L&I: Plumbing certification: Plumber certification

Workers' compensation

Washington is a monopolistic state fund state. Under RCW 51.14.010, every employer covered by the workers' compensation law must either insure through the state fund run by L&I or qualify as a self-insurer; there is no private policy to shop for. Sole proprietors and partners are exempt from mandatory coverage for themselves (RCW 51.12.020), as are LLC members who would qualify for that exemption, but the first employee you hire must be covered. Washington also makes workers share the cost: under RCW 51.16.140, an employer that is not self-insured deducts part of the medical aid premium from each worker's pay. Employers file quarterly reports with L&I, and rates depend on the risk class of the work, so set up payroll to track work by job type from the start.

More on coverage: business insurance for contractors.

Sales tax on services

Washington taxes many services that most states leave alone. The Department of Revenue lists retail services that carry sales tax, including installing, cleaning, repairing or otherwise altering tangible personal property; repairing or improving real property for consumers; construction; and landscaping and lawn maintenance. The state rate is 6.5% plus a local rate that depends on where the customer receives the service. Starting October 1, 2025, ESSB 5814 made some additional business services subject to sales tax as well. You report sales tax, along with Washington's business and occupation (B&O) tax, on your excise tax return with the Department of Revenue, and you get the account through the same business license application.

Recording business calls in Washington

Washington requires the consent of everyone on a call. RCW 9.73.030 makes it unlawful to record a private phone conversation without first obtaining the consent of all participants. The statute also says consent is obtained when one party announces to everyone, in a reasonably effective way, that the call is about to be recorded, and that announcement must itself be on the recording. Put the notice at the very start of your phone greeting and your call recordings; our guide to recording business calls shows how to set it up.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

Washington is two states for service work. West of the Cascades, mild, wet winters and long rainy seasons make moss removal, roof and gutter cleaning, and pressure washing year-round staples around Seattle, Tacoma and Olympia, with a short dry summer for exterior painting. East of the mountains, Spokane and the Tri-Cities get hot, dry summers and real snow, so irrigation, lawn and cooling work peak in summer and snow removal matters in winter. Summer wildfire smoke and ice storms in some winters both bring their own spikes in cleaning and repair calls.

Keep bond, insurance and registration on one calendar

L&I contractor registration rests on three things: the $150.20 registration, a bond ($30,000 general or $15,000 specialty) and liability insurance at the required limits. Track the renewal dates for all three together, because L&I lists the bond and the insurance as requirements of registration.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Washington questions