Seattle Business License 2026: $73 to $3,210 License, 0.342% and 0.658% B&O Over $2 Million and What JumpStart Covers

If your business operates inside Seattle city limits, you need a Seattle business license in addition to any state registration you already have. The city issues its license, called a business license tax certificate (BLTC), through FileLocal, not through the state Business Licensing Service. For 2026, the license fee runs from $73 to $3,210 depending on your Seattle taxable revenue. This guide covers what you need, how to apply, the 2026 B&O changes, and how the JumpStart payroll expense tax applies.

Disclaimer: This article is informational content, not legal or tax advice. Fees and thresholds change, so confirm current figures with the City of Seattle and the Washington Department of Revenue before you file. For complex situations, talk to a qualified attorney or CPA.

What You Need Before You Start

• Legal name and entity type. If you formed an LLC or corporation, have your filed Certificate of Formation or Articles of Incorporation ready. Sole proprietors and general partnerships do not file with the Secretary of State.
• Your UBI number, if you already have one from the Department of Revenue's Business Licensing Service. If you don't, you may need to apply for a state license first (see Step 1).
• Your Seattle business address, plus the address of any other Seattle branch. Each branch adds a $10 fee.
• Estimated Seattle taxable revenue for the year. This sets your fee bracket.
• Payroll records, if you have employees, so you can check the JumpStart threshold.
• Trade name details, if you will operate under a name other than your legal name. Trade names are registered through the Business Licensing Service for $5 each, not with the Secretary of State or the county.
• A FileLocal account and a payment method.

Step-by-Step: Getting Your Seattle Business License

Step 1: Check whether you need a state license first

Washington has no corporate or personal income tax, but it does use a statewide Business License Application handled by the Department of Revenue's Business Licensing Service (BLS). That application issues your 9-digit Unified Business Identifier (UBI) and handles trade names and state and city endorsements. You generally need it if your business:

• operates under a name other than your full legal name,
• plans to hire employees within 90 days,
• sells anything subject to sales tax,
• has gross income of $12,000 per year or more, or
• owes any tax or fee to the Department of Revenue.

Corporations, LLCs, LLPs and partnerships must file with the Secretary of State before submitting the Business License Application. If you haven't formed an entity yet, the Certificate of Formation with Initial Report carries a $180 filing fee through the Corporations and Charities Filing System. The state application's processing fee is $50 to open a business, plus separate endorsement fees. Online applications take about 10 business days, and 2 to 3 weeks longer when city or state endorsements need approval. The state application does not replace Seattle's BLTC. Apply at dor.wa.gov.

Step 2: Find your fee bracket

Seattle's 2026 license fee depends on your taxable revenue in Seattle:

• Under $20,000: $73
• $20,000 to $499,999: $147
• $500,000 to $1,999,999: $667
• $2 million to $4,999,999: $1,604
• $5 million and up: $3,210

Add $10 for each branch. If you start your business on July 1 or later, you pay half the fee.

Step 3: Check the out-of-city exemption

Businesses with no place of business in Seattle may qualify for an out-of-city exemption. For 2026, the exemption amount rose from $2,000 to $4,000. It applies only if you have no place of business in Seattle, so a business with a Seattle office, storefront or other location cannot rely on it. Confirm how the exemption is measured with the city before you skip registration.

Step 4: Apply through FileLocal

Search for FileLocal on the City of Seattle website, create an account, and start a Seattle business license tax certificate application. Enter your legal name, entity type, UBI (if you have one), Seattle address, branch locations and estimated Seattle taxable revenue. Pay the fee for your bracket, then save a copy of your BLTC with your other business records.

Step 5: Calendar the renewal and late penalties

Your BLTC must be renewed every year by December 31. The late penalty is $10 if you pay in February and $20 from March 1 onward. Set a reminder in October or November so the renewal doesn't slip into the penalty window.

Step 6: Set up B&O reporting

Seattle's B&O tax changed on January 1, 2026, after Proposition 2. Key points:

• The threshold is now $2 million, up from $100,000.
• A $2 million standard deduction applies.
• The rate is 0.342% for retail, wholesale and manufacturing activity, and 0.658% for services.
• If your Seattle receipts are under $2 million, you still must file a $0 return.
• The first 2026 quarterly return was due April 30, 2026. If you missed it, contact the city right away.

As an illustration only, a retail business with $3 million in Seattle receipts would have $1 million above the $2 million deduction, so at 0.342% the tax would be $3,420. A services business with the same receipts would owe $6,580 at 0.658%. Your actual liability depends on your activity classification and how the city applies the deduction, so confirm the calculation before you file. The state B&O tax is separate and is filed with the Department of Revenue.

Step 7: Check JumpStart and other Seattle taxes

The JumpStart payroll expense tax applies only to payroll above roughly $9 million. For tax year 2026, the tax applies to businesses with $9,074,409 or more in total Seattle payroll expense in 2025 and at least one employee paid $194,452 or more in 2026. These amounts are indexed every year, so check Seattle's current table. Most small businesses will fall well below the threshold, but confirm with the city if you're close.

Two other taxes may apply to specific businesses. The Social Housing Tax is 5% on compensation above $1 million paid in Seattle to an employee, and the City of Seattle administers it, so check with the city on how it applies to your payroll. If you operate paid parking in Seattle, the commercial parking tax is 14.5%.

Step 8: Handle home-based businesses correctly

Under Seattle Municipal Code (SMC) 23.42.050, a home business does not need a separate permit. You still need a BLTC. Violating the home business rules can bring fines of $150 to $500 a day, so confirm any use restrictions with the City of Seattle before you open.

Common Mistakes to Avoid

• Assuming the state license covers Seattle. The state application issues your UBI, but Seattle requires its own BLTC through FileLocal.
• Using the old $100,000 B&O threshold. For 2026, the threshold is $2 million.
• Skipping the $0 B&O return. Under $2 million, you still must file.
• Paying the full fee after a mid-year start. Check whether the half fee applies if you start July 1 or later.
• Missing the December 31 renewal. Late penalties are $10 in February and $20 from March 1.
• Forgetting branch fees. Each additional branch adds $10.
• Claiming the out-of-city exemption while you have any Seattle place of business.
• Running a home business without a BLTC. Not needing a home permit does not remove the license requirement.
• Forming an LLC without a Washington registered agent. Under RCW 23.95.405, every LLC must designate and maintain one, with a physical Washington street address. PO Boxes and private mailbox addresses are not accepted.

Expected Results

Completing these steps will likely give you a valid Seattle BLTC, a clear B&O filing routine, and a documented answer on payroll taxes. Businesses that file on time and pay the correct bracket typically avoid late penalties, although processing times and final amounts depend on the city's review of your application. Treat the figures here as a starting point, and check each one against the official source before you pay.

Official Resources

• Washington Department of Revenue, Business Licensing Service: dor.wa.gov
• Washington Secretary of State, Corporations and Charities Filing System: ccfs.sos.wa.gov
• Washington Small Business Development Center: wsbdc.org

This article is informational only and is not legal or tax advice. For complex situations, such as multi-state operations, large payrolls or entity structuring, consult a qualified CPA or attorney.