How to Get a Resale Certificate in Washington

How to Get a Resale Certificate in Washington

How to Get a Resale Certificate in Washington

A Washington resale certificate, also called a seller's permit or resale permit, allows your retail business to buy goods for resale without paying sales tax on the purchase. Your customers will pay the sales tax when they buy from you, not when you stock your shelves. Without it, you'll pay sales tax twice: once when you buy inventory, and again when customers purchase from you.

The good news: Washington handles this through a single, streamlined business licensing system. There's no separate resale certificate document. Instead, you apply for a business license (which generates your UBI, or Unified Business Identifier), designate your business type as retail, and you're authorized to buy for resale. This guide walks you through every step.

Who Needs a Washington Resale Certificate

You need a Washington resale permit if any of the following applies:

  • You sell tangible goods that are subject to sales tax
  • Your gross income is $12,000 per year or more
  • You operate under a name other than your full legal name
  • You plan to hire employees within 90 days
  • You have nexus with Washington (physical presence, economic presence, or sufficient business connections)
  • You owe any tax or fee to the Washington Department of Revenue

Most retailers, wholesalers, and ecommerce sellers selling physical goods fall into at least one of these categories. Service-only businesses (consultants, contractors, coaches) may not need one, but it's worth confirming your specific business type with the Department of Revenue before you assume you're exempt.

What You'll Need Before You Apply

Have the following information ready before you start:

  • Business structure: Sole proprietorship, LLC, C-corporation, S-corporation, partnership, or other legal entity
  • Business name: The exact name you'll operate under
  • Business address: A physical street address in Washington (PO Boxes don't count)
  • Business type and classification: What you sell or what service you provide
  • Federal Employer Identification Number (EIN): From the IRS. Sole proprietors can use their SSN, but an EIN is recommended
  • Social Security Number: For the business owner(s)
  • Expected monthly gross income estimate: A realistic number for your first year
  • Secretary of State registration: If you're filing as an LLC, corporation, partnership, or LLP, you must register with the Washington Secretary of State BEFORE applying for the business license

If you haven't formed an LLC or corporation yet, you'll need to do that first. The Secretary of State process is separate from the business license application but takes only a few days with expedited service.

Step-by-Step: Getting Your Washington Resale Certificate

Step 1: Register Your Business Entity (If Needed)

If you're operating as a sole proprietor under your own legal name, skip to Step 2. Everyone else must file with the Secretary of State first.

Go to https://ccfs.sos.wa.gov/ (the Corporations and Charities Filing System) and file your formation document:

  • LLCs file a Certificate of Formation ($180 filing fee)
  • Corporations file Articles of Incorporation ($180 filing fee)
  • Partnerships or LLPs file their respective formation documents

Processing takes about 5 to 10 business days online. Expedited service is $100 and typically processes within three business days. Same-day service is also available at $100 (the $150 same-day rate is not yet implemented). Your entity will not be officially registered until the Secretary of State issues a stamp on your formation document.

Once you have your registered entity, write down your entity name exactly as the Secretary of State registered it. You'll use this on your business license application.

Step 2: Gather Your Documentation

Before opening the business license application, collect these documents:

  • Your Secretary of State registration confirmation (if applicable)
  • Your EIN letter from the IRS (or your SSN if you're a sole proprietor)
  • Your physical Washington address
  • Your ownership structure confirmation
  • A description of what you'll sell or what service you provide

Keep this information in front of you. The application asks for it in detail.

Step 3: Apply for Your Business License Online

Go to the Washington Department of Revenue's Business License portal at https://dor.wa.gov/open-business/apply-business-license.

Click "Apply for a Business License" and choose the online application. You'll fill out:

  • Business legal name (must match your Secretary of State registration if you have one)
  • Business location address (physical street address only, no PO Boxes)
  • Mailing address (can be different from the business location)
  • Business type (select "Retail" or "Wholesaler" depending on your model)
  • Activity classification (a dropdown of over 50 classifications for Washington's B&O tax)
  • Owner information (names, ownership percentages, SSNs or EINs)
  • Estimated gross monthly revenue
  • Number of employees (current and planned within 90 days)
  • Whether you'll need city or county endorsements (this depends on your location and business type)

The filing fee is $50 to open a new business. This fee covers your initial business license and UBI assignment. Do not confuse this with the Secretary of State filing fee if you registered an entity (those are separate and already paid).

Step 4: Check for Required Endorsements

Depending on your business type and location, you may need additional endorsements from your city or county. Common endorsements include:

  • Health department approval (food and beverage businesses)
  • Liquor license or endorsement (alcohol sales)
  • Professional licenses (real estate, contractors, etc.)
  • Local business tax or zoning approval

The Department of Revenue will flag required endorsements during your application. If you need them, the application will route them to the appropriate agencies. This adds 2 to 3 weeks to your timeline. If no endorsements are needed, you're approved much faster.

Step 5: Submit and Wait for Approval

Submit your application online. You'll receive a confirmation email with your application reference number.

Standard online processing takes about 10 business days if you don't need city or county endorsements. If you do need endorsements, add another 2 to 3 weeks while those agencies review your application.

The Department of Revenue works applications in the order received. If you need faster processing, expedited service is available through the paper application, but online applications don't have an expedited option.

Step 6: Receive Your UBI and Business License

Once approved, you'll receive an email with your nine-digit Unified Business Identifier (UBI). This is your Washington business license number. You'll use it on:

  • All resale documents with suppliers
  • Your business tax filings
  • City and county permits
  • Any official state correspondence about your business

The Department of Revenue may also send a physical business license in the mail, but the digital UBI in your confirmation email is what matters legally. Suppliers will ask for this number when you request resale status.

After You Have Your Business License: Using Your Resale Status

Your business license authorizes you to buy for resale, but suppliers need to know you're a reseller. Here's what happens next:

Give your UBI to suppliers. When you open a wholesale account with a distributor or manufacturer, provide your UBI and tell them you're a reseller. They'll add that to your account and won't charge you sales tax on eligible purchases.

Keep resale records. Washington requires you to keep records showing that purchases were for resale. Your invoices, purchase orders, and supplier account information are usually sufficient. The Department of Revenue doesn't require a separate "resale certificate" document in most cases, but you must be able to prove resale intent if audited.

Collect sales tax from customers. You now must collect Washington's 6.5% state sales tax on taxable sales (plus any local B&O or sales taxes that apply in your area). Your responsibility is to remit this to the Department of Revenue monthly or quarterly, depending on your income level.

File resale or use tax returns. Every month or quarter, file a return reporting your sales and the sales tax you collected. There is no separate resale certificate return; you file a regular sales and use tax return. Returns are filed online through the Department of Revenue.

Common Mistakes to Avoid

  • Not registering with the Secretary of State first. If you're an LLC, corporation, or partnership, you cannot apply for a business license until you're registered with the Secretary of State. The business license application will reject you if it can't verify your entity registration.
  • Using a PO Box as your business address. The Department of Revenue requires a physical street address. PO Boxes, mailbox services, and virtual addresses are not accepted. If you don't have a physical location yet, use a home address or a commercial office address.
  • Forgetting to tell suppliers you're a reseller. Some suppliers default every new account to "pay sales tax" unless you explicitly provide your UBI and ask for resale status. Always mention it upfront.
  • Assuming you don't owe sales tax because you're a reseller. Resale certificates apply only to inventory you buy for resale. If you buy supplies, equipment, or anything you'll use in your business (not resell), you must pay sales tax on those purchases.
  • Missing deadlines for endorsements. If the Department of Revenue asks a city or county agency for an endorsement, respond promptly. Delayed endorsements delay your entire application.
  • Not filing sales tax returns on time. Once approved, you're required to file sales tax returns even if you had no sales that period. File on time or face penalties.

Timeline and Costs

Here's what you can expect:

Step Cost Timeline
Secretary of State registration (LLC/Corp only) $180 5 to 10 days (standard) or 3 days (expedited, +$100)
Business license application $50 10 days (no endorsements) or 2 to 3 weeks (with endorsements)
City/county endorsements (if needed) Varies Included in business license timeline

Total cost for most sole proprietors: $50. Total cost for an LLC: $230 to $330 (Secretary of State plus business license, depending on expedited service).

Key Washington State Resources

When to Consult Professionals

A Washington resale certificate is straightforward for most retail and wholesale businesses, but consider consulting an accountant or business attorney if:

  • You're unsure whether your specific business model requires a resale certificate
  • You operate across multiple states and need to understand nexus rules
  • Your business involves both taxable and non-taxable sales
  • You're planning to dropship or use third-party fulfillment
  • You need to understand Washington's complex B&O tax for your activity classification

A CPA familiar with Washington tax law can often save you thousands in penalties and interest by ensuring you file correctly from day one.

Important Disclaimer

This article is informational and not legal or tax advice. Washington's business licensing requirements, sales tax rules, and B&O tax classifications are specific to each business model and location. Before you apply, confirm your specific requirements with the Washington Department of Revenue or consult a qualified tax professional or attorney. Requirements can change, and your situation may have nuances this guide doesn't cover. The responsibility for accurate filing rests with you and any professionals you hire.