Bellingham Business License: One-Time $40 That Never Renews, 0.44% Services B&O and the 270-Day Rental Rule

If you plan to run a business inside Bellingham, three numbers matter most: the $40 city business license you pay once, the 0.44% city B&O tax on services, and the 270-day primary residence rule for short-term rentals. Owners who assume Bellingham works like the rest of Washington often miss at least one of them. This guide covers what to gather, how to apply for your bellingham wa business license, and where the common mistakes happen.

This article is informational content, not legal or tax advice. Fees and rules can change, so confirm current figures with the City of Bellingham, the Washington Department of Revenue and a qualified attorney or CPA before you sign a lease, set prices or file.

How Washington Business Licensing Works

Washington does not use one license for everything. The state general business license is issued by the Business Licensing Service (BLS) inside the Washington State Department of Revenue (DOR). One Business License Application from the BLS issues your 9-digit Unified Business Identifier (UBI) number, registers trade names, and handles state and city endorsements. Occupational licenses are handled by the agency for each trade. For example, L&I registers contractors, and DOL licenses real estate and cosmetology. Bellingham then adds its own city license, city B&O tax and, for some businesses, short-term rental permits.

Bellingham sits in Whatcom County, and Washington has 39 counties and 281 incorporated cities and towns. Your city endorsement matters most if your business operates inside city limits.

What You Need Before You Start

• Your exact legal business name. For an LLC or corporation, you also need the Certificate of Formation or Articles of Incorporation already filed with the Secretary of State.
• A Washington registered agent with a physical street address in Washington. PO Boxes and private mailbox addresses are not accepted.
• A federal EIN or Social Security number, depending on how your business is set up.
• A working email address and your physical business address in Bellingham.
• The activity classifications that describe what you sell. The B&O system has more than 50.
• An estimate of your gross income and whether you expect to hire employees within 90 days.
• Payment for the $50 processing fee to open a business and the $40 city license. Add $5 for each trade name if you operate under a name other than your full legal name.

Step-by-Step: Getting Your Bellingham Business License

1. Confirm you need the city license. A business located in Bellingham needs it. A business based outside the city also needs it once its activity in the city goes above $4,000, so track where your customers and jobs are. Nonprofits still register with the state.
2. Form your entity first, if you have one. LLCs and corporations must file with the Secretary of State through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov before you submit the Business License Application. An LLC formation filing carries a $180 fee. If you want to hold a name while you prepare, a name reservation lasts 180 days and costs $30. Sole proprietors and general partnerships do not file with the Secretary of State and skip this step.
3. Appoint a registered agent. Every LLC or corporation must designate and maintain a Washington registered agent (RCW 23.95.405). The agent must consent, supply an email address and have a Washington street address. You can change the agent later at no fee.
4. Complete the Business License Application. Apply through the DOR business license page. Select Bellingham as a city endorsement and describe your activities accurately, because the classifications drive your state and local tax reporting.
5. Pay the fees. Expect the $50 processing fee to open a business, the $40 city license and any separate state endorsement fees. Keep the receipts with your formation documents.
6. Wait for approval. Online applications take about 10 business days. Add 2 to 3 weeks when city or state endorsements need approval. Mailed applications can take up to six weeks, so mail only if you have time to spare.
7. Set up your tax filings. State B&O reporting runs through DOR. The city B&O is filed separately from the state, so confirm the city filing process with the City of Bellingham before your first reporting period.
8. Calendar your recurring deadlines. The $40 city license does not renew. An LLC or corporation must file its annual report each year by the last day of the month in which it was formed. The fee is $70, or $95 total if the filing is late. You may file up to 180 days early.

Understanding the Bellingham B&O Tax

Washington has no corporate income tax and no personal income tax. Instead it uses the state business and occupation (B&O) tax, a gross receipts tax with no deduction for labor, materials or other costs. About 54 Washington cities add their own B&O, and Bellingham is one of them. The city tax is separate from the state tax.

Activity	Bellingham City B&O Rate
Manufacturing, retail and wholesale	0.17%
Services	0.44%

The 0.44% services rate sits above the 0.2% cap that applies to most cities because it is grandfathered. Watch the thresholds too. The city filing is tied to $5,000 in a quarter or $20,000 in a year, according to the Association of Washington Cities' 2026 list. Confirm with the city whether crossing those amounts creates a filing duty or works as an exemption, because the answer changes your budget.

Here is a simple example. A service firm with $60,000 in Bellingham receipts would owe $264 at 0.44% if the full amount is taxable: $60,000 x 0.44% = $264. Actual liability depends on how the city treats your receipts, so verify before you rely on the number.

Bellingham's combined sales tax rate is 9.1%, compared with the 6.5% state rate. If you sell taxable goods or services, register for the correct permits through the BLS.

Hiring in Bellingham: Local Minimum Wage

Bellingham has a local minimum wage above the state rate. L&I's local minimum wage list shows $19.13 per hour for 2026. Set payroll to the local figure, not the state figure, and confirm the number and any exemptions with L&I before you post a job.

Short-Term Rentals and the 270-Day Rule

If you list a home for short-term rental, you need a city short-term rental land use permit. The application requires a Bellingham business license number, so get the license first. The city's rules include these limits:

• Primary residence: The home must be your primary residence, and you must live there 270 days a year.
• Whole-unit cap: You may rent the whole unit no more than 95 days.
• One per operator: In residential zones, each operator may run one short-term rental.
• Excluded areas: Short-term rentals are not allowed in the Lake Whatcom Watershed or in shoreline areas.
• Subsidized housing: Units with a housing subsidy are excluded.
• Home occupation rules: Check with the city, because home occupation rules may also apply to your property.

Permit Item	Fee
Application, Type I	$370
Application, Type II	$550
Application, Type III-A	$847
Renewal, due before January 1 of each even-numbered year	$250

Confirm with the City of Bellingham which permit type applies to your property before you file. Visit cob.org for current forms.

Common Mistakes to Avoid

• Assuming everything renews. The city license does not renew, but your annual report and short-term rental renewal do.
• Using a PO Box for your registered agent. Washington requires a physical street address, and the application will not clear with a PO Box.
• Registering a trade name with the wrong agency. Trade names go through the BLS at DOR, not the Secretary of State or the county.
• Filing a sole proprietorship with the Secretary of State. Sole proprietors and general partnerships do not file there.
• Treating the city B&O as part of your state return. The city tax is filed separately.
• Taking bookings before the permit is issued. Confirm your short-term rental permit and business license number before you list the property.

What to Expect

Most owners find the process easier once they know the timelines. Online applications generally take about 10 business days, and endorsements may add 2 to 3 weeks. Plan around those dates, not the day you want to open. Keeping your UBI, city license, filing deadlines and short-term rental renewal dates in one calendar may help you avoid late fees. Results vary by business type, location and how complete your application is.

If your business involves an LLC, several employees, a short-term rental or a mix of state and city obligations, talk with a qualified attorney or CPA before you file. A one-hour review can catch problems that cost far more to fix later.