Wenatchee, Leavenworth and Chelan County Business Licenses and the Short-Term Rental Caps in Washington's Tourist Valley

If you plan to run a business in the Wenatchee Valley, the rules depend on exactly where the business sits. Leavenworth, Wenatchee, East Wenatchee, the city of Chelan and the unincorporated parts of Chelan County each handle local endorsements, fees and rental permits differently. This guide walks through the steps to get a leavenworth wa business license in place, lists the local fees we could verify, and explains the short-term rental tiers and caps that apply outside city limits.

Disclaimer: This article is informational only. It is not legal or tax advice. Talk with a qualified attorney or CPA before you decide on an entity structure, a lodging operation or a tax registration. Confirm every fee below with the agency named before you pay.

What you need before you start

Gather these items before you open any application:

• Your legal business name, plus the trade name you want to use publicly if it differs
• A Washington registered agent with a physical street address in Washington State and an email address. PO boxes and private mailbox addresses are not accepted.
• Your entity type. An LLC or corporation must file with the Secretary of State first. Sole proprietors and general partnerships do not file with the Secretary of State.
• The street address of the business or rental, so you know whether it sits inside city limits or in unincorporated Chelan County
• Your expected employee count and the hours each person works, because local endorsement fees and the Wenatchee calculation depend on them
• Your estimated gross income for the year
• Logins for the Corporations and Charities Filing System (CCFS) and the Department of Revenue's Business Licensing Service (BLS)

Step 1: Form your entity with the Secretary of State

Skip this step only if you are operating as a sole proprietor under your own legal name. For an LLC, file a Certificate of Formation with Initial Report through CCFS at ccfs.sos.wa.gov. The filing fee is $180. The name must include Limited Liability Company, Limited Liability Co., L.L.C. or LLC, must be distinguishable from every other name on record, and cannot include words such as bank, banking, trust or cooperative. Corporations file Articles of Incorporation with Initial Report for the same $180.

You can reserve a name for 180 days for $30. Expedited service costs $100 per business entity and is generally processed within three business days. Standard online filings have no published turnaround, so plan for expedited service if your lease or launch date is fixed.

Two recurring obligations start after formation. The annual report costs $70 and is due by the last day of the month in which the entity was originally formed, every year. You may file it up to 180 days early. A late filing carries a delinquency fee for a total of $95. Washington has no franchise tax and no corporate income tax, but virtually every business pays the state business and occupation (B&O) tax, a gross receipts tax with no deduction for labor or materials.

Step 2: Apply for your UBI and state business license

Next, submit the Business License Application through BLS, part of the Department of Revenue. This application issues your 9-digit Unified Business Identifier (UBI) and handles state and city endorsements in one filing. You need a UBI if you plan to hire employees within 90 days, sell anything subject to sales tax, earn $12,000 or more in gross income per year, operate under a name other than your legal name, or need a city endorsement. Entities must complete their Secretary of State filing before they submit this application.

The processing fee to open a business is $50, plus any separate endorsement fees. Apply online at dor.wa.gov/open-business/apply-business-license. Online applications take about 10 business days. If a city or state endorsement needs approval, add roughly two to three weeks. Mailed applications can take up to six weeks.

Step 3: Register a trade name if you need one

If you operate under a name that is not your legal name, register it as a trade name through BLS at dor.wa.gov/manage-business/grow-business/register-trade-names. Trade names are not registered with the Secretary of State or the county. Each trade name costs $5. If you are adding a trade name to an existing business, the Business License Application processing fee is $10 rather than $50. That processing fee is non-refundable.

Step 4: Apply for the city endorsement

Your city endorsement depends on where the business is located. Fees and staffing rules vary, so check each city's current figures before you file.

• Leavenworth: $115 for 0 to 12 employees, or $300 for 13 or more employees, according to the Department of Revenue pages checked on 2026-10-26.
• Wenatchee: The Fire, Community Development and Environmental Departments must all approve the endorsement before it is issued. Businesses with $0 to $2,000 in gross income pay no fee. Above that level, the fee runs from $75 for 1 to 2 employees up to $570 for 50 or more. The city counts employees as full-time equivalents (FTE), calculated as total hours worked divided by 2,080.
• East Wenatchee: $75 to $565, scaled by employee count.
• Chelan (city): $100 in the first year. Renewal is $50 for 1 to 3 employees and rises with headcount, up to $410 for 27 or more. A home business pays $100 in the first year and $50 on renewal. A home occupation may include no more than two immediate family members.

If the city does not appear on this list, or the figures have changed, check the Department of Revenue business licensing pages and the city's own website before you file.

Step 5: Permit your short-term rental in unincorporated Chelan County

Short-term rentals outside city limits fall under Chelan County's rules. The county page, updated 2025-10-28, sets three tiers. The tier depends on occupancy and whether the owner lives on the property.

Tier	Maximum occupancy	Annual permit fee
Tier 1: owner-occupied	8 people	$728
Tier 2: non-owner-occupied	12 people	$728
Tier 3	16 people	$1,092

Tier 2 and Tier 3 permits are capped. Do not assume a permit is available. Ask the county for the current cap counts before you sign a purchase agreement or lease that depends on the permit.

Other requirements to plan for:

• Liability insurance: A $1 million liability policy is required. Ask your insurer to confirm that the policy covers short-term rental use.
• Fire inspection: The 2025 code update added a Fire Marshal inspection every other year. Schedule it before your first season.
• Renewal window: Renewals run from September 1 to October 31. Late renewals carry penalties at 2x and 3x the fee, as the county describes them. Confirm the exact late fee amounts with the county before you pay.

A Leavenworth mailing address does not always mean you are inside city limits. Confirm the parcel's jurisdiction with both the city and the county before you apply. If the property is inside a city, that city's rules apply, not the county's tiers.

Step 6: Check occupational and tax registrations

A business license does not cover trade or professional work. Washington licenses by agency: L&I registers contractors and licenses electrical and plumbing work, the Department of Health licenses lodging and home care, and the Department of Licensing (DOL) handles real estate and other occupations. If you manage rentals for other owners, ask DOL whether a real estate license applies. Confirm lodging licensing with the Department of Health.

On taxes, the state sales tax rate is 6.5%. Ask the Department of Revenue whether your lodging charges are subject to sales tax. Many cities also levy their own B&O tax, and about 54 cities do so. The Department of Revenue does not administer local B&O taxes, so check with the city where the business is located.

Expected results

Completing these steps will likely give you the paperwork you need to operate legally in most cases, but the exact outcome depends on your business type, location and occupancy. Your UBI may arrive within about 10 business days for a straightforward online application. If an endorsement is required, you may need roughly four to five weeks in total, which is our estimate based on the published ranges. Your short-term rental permit may take longer if the county cap affects your tier.

Common mistakes to avoid

• Applying for BLS first. Entities must complete the Secretary of State filing before the Business License Application.
• Using a PO box for the registered agent. The agent needs a physical Washington street address.
• Assuming the address decides the city. A Leavenworth or Wenatchee mailing address may sit in unincorporated county land.
• Miscounting employees. Wenatchee uses FTE hours divided by 2,080, not headcount.
• Skipping the trade name registration. Operating under a name other than your legal name requires it.
• Missing the annual report. The $70 report is due by the last day of your formation month each year, and a late filing costs $95 in total.
• Counting on a capped permit. Tier 2 and Tier 3 permits may not be available when you apply.
• Missing the October 31 renewal deadline. Late renewals add penalties.
• Forgetting B&O tax. Washington has no corporate income tax, but the B&O tax applies to most businesses, and some cities add their own.

Next steps

Work through the steps in order: entity, UBI, trade name, city endorsement, then any county permit. Keep copies of every filing and confirmation number. If you need help with the numbers, the Washington Small Business Development Center offers free advising at wsbdc.org. For complex structures, lease terms or short-term rental insurance questions, consult a qualified attorney, insurance professional or CPA before you commit.