Spokane Business License: $131 Plus $10 to $20 per Employee, the 200 Square Foot Home Rule and No City B&O

If you plan to operate a business inside Spokane, you will not file a separate city form. Washington runs a statewide general business license through the Department of Revenue's Business Licensing Service (BLS). The BLS issues your 9-digit Unified Business Identifier (UBI) and adds state, city and county endorsements to the same Business License Application. For Spokane, the city endorsement carries a $131 origination fee plus an employee fee. This guide walks through the steps, the costs to budget for, and the home-based business rules that catch many first-time owners off guard.

Informational content only. This article is not legal or tax advice. Confirm current fees and rules with the agencies named below, and talk with a Washington attorney or CPA before you make decisions about entity structure or taxes.

What You Need Before You Start

• Your legal name and, if you will operate under a different name, the trade name you want to use
• A physical business address, plus your residential address if the business is home-based
• Your entity type: sole proprietorship, general partnership, LLC or corporation
• For an LLC or corporation, the Secretary of State filing details from your Certificate of Formation or Articles of Incorporation, which you file first
• A Washington registered agent with a physical street address in Washington State (PO Boxes and private mailbox addresses are not accepted)
• Your planned headcount and estimated annual gross income
• An email address and a payment method for the state processing fee, the Spokane fee and any employee fee

How the Spokane License Fits Into Washington's System

Washington has one statewide license for most businesses, and it is required in some cases even when your business is small. The BLS handles it, along with trade names and endorsements. Occupational licenses work differently: they are issued by the agency or trade that regulates the work, not by the BLS alone. Local permits, such as a city B&O tax or a health district permit, come from the city, county or health district.

Two facts shape the process. Sole proprietors and general partnerships do not file with the Secretary of State. LLCs, corporations, LLPs and partnerships must file with the Secretary of State before they submit the Business License Application.

Step-by-Step: Getting Your Spokane Business License

1. Choose your entity and file with the Secretary of State if required. Sole proprietors skip this step. An LLC or corporation files through the Corporations and Charities Filing System (CCFS) at https://ccfs.sos.wa.gov/. The formation filing, a Certificate of Formation with Initial Report for an LLC, costs $180. Expedited service costs $100 per business entity and is generally processed within three business days. An LLC name must include Limited Liability Company, Limited Liability Co., L.L.C. or LLC, and it cannot include words such as bank or trust. If you need time, a name reservation costs $30 and lasts 180 days.
2. Register a trade name if you do business under anything other than your legal name. Trade names are registered through the BLS, not the Secretary of State or the county. Each trade name costs $5. The processing fee is $50 to open a business, or $10 when the filing is for another purpose, such as adding a trade name to an existing business. Start at https://dor.wa.gov/manage-business/grow-business/register-trade-names.
3. Confirm that you need the state license. You need it if your business needs city, county or state endorsements, which includes operating in Spokane. It is also required if you operate under a name other than your full legal name, plan to hire employees within 90 days, sell anything subject to sales tax, expect gross income of $12,000 per year or more, or owe any tax or fee to the Department of Revenue.
4. Count your employees correctly. The Spokane employee fee is $10 each for 1 to 5 employees, $15 each for 6 to 10, and $20 each for 11 or more. Sole proprietors and spouses are not counted. For example, a business with three employees pays $30 in employee fees, for a $161 Spokane total before any city processing fee. Ask the city licensing office how the rate applies when your headcount crosses a tier.
5. Complete the BLS application online and select the Spokane endorsement. Apply at https://dor.wa.gov/open-business/apply-business-license. Online applications take about 10 business days. When city or state endorsements need approval, add 2 to 3 weeks. A mailed application can take up to six weeks, so online filing is the faster route.
6. Pay the fees and check for a city processing fee. Budget for the $50 state processing fee and the $131 Spokane origination fee, plus your employee fee. The city may add a processing fee, so check with the city licensing office before you submit. Confirm the final total on the Department of Revenue page, since the amount shown at checkout is the one that counts.
7. Set up your tax accounts. Washington has no corporate income tax and no individual income tax today. Instead, nearly every business pays the state business and occupation (B&O) tax, a gross receipts tax with more than 50 activity classifications and no deduction for labor, materials or other costs. Spokane does not have a general city B&O tax, and the city does not appear on the Association of Washington Cities' 2026 list of local B&O cities. The state sales tax rate is 6.5%, and the combined rate in Spokane is 9.1% as of Q1 2026. Confirm your sales tax obligations during the BLS application.
8. Calendar your recurring filings. An LLC or corporation files an annual report for $70, due by the last day of the month in which it was formed or registered. You may file it up to 180 days early. A late filing carries a delinquency fee, for a total of $95. For the Spokane license, renewal costs a $65.50 base when your in-city gross is $18,000 or less and you can provide proof. Nonprofits also pay $65.50. Above $18,000 in gross income, the renewal is $131 plus the employee fee, so confirm your amount on the Department of Revenue endorsement page.

The Home-Based Business Rule: 200 Square Feet at Most

Spokane's home occupation rules are the most common surprise for home-based owners. According to a city handout, which is undated, a home occupation may use no more than 25 percent of the home's floor area, and never more than 200 square feet. The handout also sets these limits:

• No garage or accessory structure may be used for the business.
• The home occupation is limited to two persons.
• You may display one sign, no larger than 3 square feet.

Because the handout is undated, confirm the current code with the city before you sign a lease, buy equipment or order signage.

Other Costs and Licenses to Check

Spokane applies a 5% admissions tax, so if you sell tickets or charge admission, confirm the scope with the city. Spokane has no local paid sick-leave ordinance, since the earlier one sunset on December 31, 2017, but state paid sick leave under RCW 49.46.210 still applies to Washington employers. For contrast, Spokane Valley charges a $25 license, so a business that operates in both places should not assume the costs match.

If your work requires an occupational license, the regulating agency issues it. L&I registers contractors and licenses electrical and plumbing work. DOL licenses real estate, cosmetology, notaries, security and tow operators. DOH licenses health professions, home care and lodging. The Liquor and Cannabis Board licenses liquor, cannabis and tobacco. Check with the agency that covers your trade before you open.

Tips and Common Mistakes

• Filing in the wrong order. An LLC or corporation must file with the Secretary of State before the Business License Application.
• Using a trade name without registering it. Any name other than your full legal name triggers the state license requirement.
• Using a PO Box as your registered agent address. Washington requires a physical street address in the state. Changing the registered agent or office has no fee, so fix it early if needed.
• Assuming Spokane has a city B&O tax. The state B&O still applies, but Spokane does not add a general city B&O.
• Counting the owner or spouse as an employee. Sole proprietors and spouses are not counted for the employee fee, which lowers your total.
• Planning a home office without measuring. Measure the space and the garage before you commit. A 250 square foot office fails the test even though 200 square feet sounds generous.
• Forgetting the 90-day hiring trigger. If you plan to hire within 90 days, the state license applies now, not later.
• Missing the annual report. A late LLC or corporation annual report adds a $95 total cost, and the mistake is easy to make in a busy year.

Expected Results

If you follow these steps, you should finish with a UBI, a Spokane city endorsement and a clear list of recurring filings. These results are typical, not guaranteed, and actual timing depends on the agencies' workload and whether your application needs extra review.

Item	Amount	Where to file
Certificate of Formation (LLC) with Initial Report	$180	Secretary of State (CCFS)
Expedited service	$100 per entity	Secretary of State
Name reservation (180 days)	$30	Secretary of State
Trade name registration	$5 per trade name	Business Licensing Service
State processing fee to open a business	$50	Business Licensing Service
Spokane origination fee	$131	Business Licensing Service
Spokane employee fee	$10 each for 1 to 5, $15 each for 6 to 10, $20 each for 11 or more	Business Licensing Service
Annual report (LLC or corporation)	$70, or $95 if late	Secretary of State
Spokane renewal (base, in-city gross of $18,000 or less with proof)	$65.50	Business Licensing Service

For planning, expect online processing of about 10 business days, plus 2 to 3 weeks if city endorsements need approval. That puts a typical online Spokane filing at roughly four to five weeks. The Washington Small Business Development Center offers free advising at https://wsbdc.org/ if you want help before you file.

Next Steps

Start with your entity choice, because it determines whether you file with the Secretary of State first. Then register any trade name, count your employees, and file the BLS application with the Spokane endorsement selected. Keep your renewal dates on a calendar from day one.

Disclaimer: This article is informational and is not legal or tax advice. Fees, thresholds and deadlines change, so verify them with the Washington Secretary of State, the Department of Revenue and the City of Spokane before you file. For complex situations, including entity structure, multistate operations, or tax planning, consult a qualified Washington attorney or CPA.