South King County Business Licenses: Renton, Kent, Tukwila, SeaTac, Burien, Auburn and Federal Way Compared

If you are opening a shop, office or home business in south King County, you will deal with two layers of paperwork: the statewide business license from the Washington Department of Revenue and the city's own license, local B&O tax and, in some cases, a local minimum wage rule. This guide walks through the statewide steps first, then compares the seven cities owners ask about most: Renton, Kent, Tukwila, SeaTac, Burien, Auburn and Federal Way. If you need a Kent WA business license, the steps below apply to you, and the Kent notes in the comparison explain what to confirm with the city.

What You Need Before You Start

Gather these items before you open any form:

• Your business name, and whether you will operate under your full legal name or a trade name (doing business as)
• Your entity type: sole proprietorship, general partnership, LLC or corporation
• The physical address where the business operates, plus a mailing address
• A Washington registered agent's name, email address and physical street address (PO Boxes and private mailbox addresses are not accepted)
• Your estimated gross income and planned headcount, including whether you expect to hire within 90 days
• A credit or debit card for online fees, and a calendar for recurring deadlines

Step 1: Confirm Which City Applies

Your city is set by where the business operates, not by your mailing address. Some addresses use a city's name for mail delivery but sit outside its limits, so confirm the boundary with the city before you apply. Auburn straddles King and Pierce counties, so check which county your parcel is in. Washington has 39 counties and 281 incorporated places, and the city you choose determines which local licenses and taxes you owe.

Step 2: Form Your Entity With the Secretary of State

Sole proprietors and general partnerships do not file with the Secretary of State. LLCs and corporations do, through the Corporations and Charities Filing System at https://ccfs.sos.wa.gov/.

• LLC: File a Certificate of Formation with Initial Report for a $180 filing fee. The name must include Limited Liability Company, Limited Liability Co., L.L.C. or LLC, and it must be distinguishable from every other name on record (RCW 23.95.305). It also cannot include words such as bank, trust or cooperative.
• Corporation: File Articles of Incorporation with Initial Report for a $180 filing fee.
• Name reservation: You can hold a name for 180 days for $30.
• Expedited service: Expedited processing is $100 per entity and is generally completed within three business days. The fee schedule lists same-day service at $150, but the Corporations Division currently charges the $100 expedited rate for front-counter same-day transactions received before 3:30 p.m. and says it will post 30 days notice before applying the $150 fee.

Check the name against the Secretary of State business search before you file, because a rejected filing costs you time even if the fee is refunded.

Step 3: Appoint a Registered Agent

Every business must designate a registered agent in Washington under RCW 23.95.415. The agent can be a commercial service or a person, must consent to serve, must supply an email address and must have a physical street address in Washington. You can change your registered agent or registered office later with no fee.

Step 4: Register a Trade Name If You Need One

If you operate under a name other than your legal name, register it with the Business Licensing Service at the Department of Revenue, not the Secretary of State or your county. Each trade name costs $5, plus the non-refundable Business License Application processing fee: $50 to open or reopen a business, or $10 when the filing is for another purpose, such as adding a trade name to an existing business. See the Department of Revenue trade name page.

Step 5: Apply for the Statewide Business License

The Business Licensing Service (BLS) runs one Business License Application for the state license, city and state endorsements and the 9-digit Unified Business Identifier (UBI). You need a state license if the business needs city, county or state endorsements, operates under a name other than the owner's 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, owes a tax or fee to the Department of Revenue, or meets the nexus thresholds. LLCs and corporations must file with the Secretary of State before submitting the BLS application.

The processing fee is $50 to open a business, plus separate endorsement fees. Confirm the endorsement amounts for your city on the BLS application page, because this guide does not list them. Select the endorsement for the city where your business operates if the city is on the BLS list. Renton and Kent are not on it, so you apply for their city licenses directly with the city.

Step 6: Check Local B&O, License and Wage Rules

Washington has no corporate income tax and no personal income tax on wages. Instead, most businesses pay the state business and occupation (B&O) tax, a gross receipts tax with no deduction for labor or materials. About 54 cities add their own B&O tax, and the Department of Revenue does not administer those local taxes, so you may need to register and file directly with the city. The state sales tax rate is 6.5%. Next, check each city's license fee, B&O rate and any local minimum wage rule using the table below.

Seven-City Comparison

City	Local B&O rate	City license fee	Home business fee	Local minimum wage
Renton	0.07% retail, 0.121% other, above $500,000	Confirm with city	Confirm with city	$21.57 (500+ employees), $20.57 rising to $21.57 on July 1 (15 to 500), under 15 not covered
Kent, WA	0.1% to 0.2%, above $62,500 per quarter	Confirm with city	Confirm with city	Not listed here, confirm with city
Tukwila	0.05% retail, 0.085% other, above $750,000 (from January 1, 2024)	$56 per part-time employee, $112 per full-time employee	Confirm with city	$21.65
SeaTac	Not listed here, confirm with city	$100 (0 to 10 employees) to $9,500	$50	$20.74 (hospitality and transport only)
Burien	0.2%, above $200,000	$180 (0 to 39 employees) or $350 for the larger tier	$70	$21.78, $20.78 or $19.28 by employer size per L&I's 2026 local list, check the ordinance
Auburn, WA	Since January 1, 2022, above $500,000	$112	Confirm with city	Not listed here, confirm with city
Federal Way	None	$81 to $9,501, based on employee count	$51	Not listed here, confirm with city

Renton

Renton's B&O rate is 0.07% on retail and 0.121% on other activity above $500,000. Its minimum wage is $21.57 for employers with 500 or more employees. Employers with 15 to 500 employees pay $20.57, rising to $21.57 starting July 1, and employers with fewer than 15 employees are not covered. Confirm the license and home business fees with the city before you budget.

Kent, WA

Kent's B&O rate runs from 0.1% to 0.2% on quarterly gross receipts above $62,500. Kent is not on the Department of Revenue's list, so you handle the city license and B&O filing with Kent directly. Confirm Kent's license fee and home business fee with the city, since this guide does not state them.

Tukwila

Tukwila's B&O tax began January 1, 2024, at 0.05% on retail and 0.085% on other activity above $750,000. The city license is $56 per part-time employee and $112 per full-time employee. The local minimum wage is $21.65. Confirm the home business fee with the city.

SeaTac

SeaTac's license runs from $100 for businesses with 0 to 10 employees up to $9,500 at the top tier, and a home business costs $50. The $20.74 local minimum wage applies to hospitality and transportation employers only. This guide does not list a SeaTac B&O rate, so confirm with the city whether one applies to your activity.

Burien

Burien's B&O rate is 0.2% above $200,000. The license is $180 for businesses with 0 to 39 employees or $350 for the larger tier, and a home business costs $70. L&I's 2026 local list shows minimum wages of $21.78, $20.78 and $19.28 by employer size. Check the city ordinance before relying on those tiers, because the list is not the ordinance.

Auburn, WA

Auburn has levied B&O tax since January 1, 2022, on activity above $500,000. The license is $112. Auburn straddles King and Pierce counties, so confirm which county your location falls in before you file, since that affects other county filings you may need.

Federal Way

Federal Way does not levy a B&O tax. Its license ranges from $81 to $9,501 depending on employee count, and a home business costs $51.

Tips and Common Mistakes to Avoid

• Filing the state application first. LLCs and corporations must be on file with the Secretary of State before the BLS application is submitted. Applications out of order get delayed.
• Using a PO Box for the registered agent. Washington requires a physical street address in the state.
• Assuming the city is the one in your mailing address. Confirm the city limits before you pay a city fee.
• Skipping the city B&O filing. State B&O filings do not cover city taxes in cities such as Renton, Kent, Tukwila, Burien and Auburn.
• Using the wrong home business fee. A home business often carries a different fee from a storefront, so pick the correct category.
• Ignoring employee thresholds. License fees and minimum wage rules change at employee-count tiers, so recount your headcount when you hire.
• Missing the annual report. Corporations and LLCs owe a $70 annual report each year, due by the last day of the month in which they were formed. A late filing carries a delinquency fee for a total of $95.

What to Expect

Timelines depend on how complete your application is and on the city. A complete online BLS application generally takes about 10 business days. If city or state endorsements need approval, plan for 2 to 3 weeks longer. A mailed application can take up to six weeks. Your Secretary of State filing may be ready within about three business days if you pay for expedited service, though standard processing has no published turnaround. Once your UBI is issued, you may be able to start invoicing and hiring, but confirm any city license requirement before opening your doors.

Calendar Your Recurring Deadlines

Build a calendar with these recurring items: the annual report for your LLC or corporation, B&O returns on the schedule your Department of Revenue or city account assigns, and any renewal dates for city licenses. Set a reminder at least two weeks before each due date, because late penalties can apply.

Official Resources

• Washington Secretary of State, Corporations and Charities Division: https://www.sos.wa.gov/corporations-charities
• Washington Department of Revenue: https://dor.wa.gov/
• Washington Small Business Development Center: https://wsbdc.org/

Important Disclaimer

This article is informational content, not legal or tax advice. Fees, rates, thresholds and deadlines change, and some figures above are marked for confirmation with the agency or city. Verify each number on the official page before you file or pay. If your situation involves multiple entities, employees across several cities, or complex tax questions, consult a qualified Washington attorney or certified public accountant.