Yakima Business License: $45 Plus $15 per Employee, the Downtown Assessment and Why a City License Does Not Cover the Health Permit

If you plan to open a business in Yakima, the first question is usually what a yakima wa business license will cost. The city license itself is modest, but it is only one of several charges and permits that can apply, depending on your headcount, your location and what you sell. This guide covers the city license, the downtown assessment, the health permit and the state filings that have to come first.

Disclaimer: This article is informational content, not legal or tax advice. Fees and rules change, so confirm every figure on the agency page before you pay. For complex ownership, payroll or tax questions, talk with a qualified attorney or CPA.

How Washington Licensing Fits Together

Washington does not have a single license that covers everything. The state runs a general business license through the Business Licensing Service (BLS) inside the Department of Revenue. The BLS issues your 9-digit Unified Business Identifier (UBI) and handles trade names and state and city endorsements in one Business License Application. Occupational licenses are issued by the agency that regulates the trade, and Yakima adds its own city license on top of the state process. Health permits come from the Yakima Health District, a separate office.

Materials You Need Before You Start

• Your legal business name and entity type. Sole proprietors and general partnerships do not file with the Secretary of State. LLCs and corporations must file there first.
• For an LLC or corporation, your Certificate of Formation or Articles of Incorporation filing confirmation and the exact name shown in the Secretary of State records.
• A registered agent with a physical street address in Washington State. PO Boxes and private mailbox addresses are not accepted.
• Your Yakima business address.
• Your expected gross income for the year, your headcount, and the hours worked by each part-time employee so you can calculate full-time equivalents (FTE).
• Any trade name (doing business as) you plan to use.
• A list of your products or services, and whether you prepare or serve food, sell from a cart or stand, or operate a vehicle.

Step 1: Form the Entity First (LLC and Corporation Owners)

File your Certificate of Formation with Initial Report (LLC) or Articles of Incorporation with Initial Report (corporation) through the Corporations and Charities Filing System (CCFS). The filing fee is $180. Standard processing has no published turnaround, while expedited service costs $100 per entity and is generally processed within three business days.

Your LLC name must include Limited Liability Company, Limited Liability Co., L.L.C. or LLC, and it must be distinguishable from other names on record. If you need time to decide, a name reservation costs $30 and lasts 180 days.

Calendar the annual report now. It costs $70, is due by the last day of the month in which the entity was formed, and may be filed up to 180 days early. A late filing carries a delinquency fee, for a total of $95.

Step 2: Calculate Your City License Tier

The City of Yakima license is tiered by FTE. Use this table as your starting point, then confirm it with the city.

Your situation	City of Yakima license
1 to 2 FTE	$45
More than 2 FTE	$45 plus $15 per employee
120 or more employees	Capped at $1,770
Sole proprietor, no employees, income under $12,000	$0

FTE equals total annual hours divided by 1,600. Three part-time workers at 800 hours each total 2,400 hours, which is 1.5 FTE and falls in the $45 tier. A business with 10 full-time staff at 1,600 hours each is 10 FTE. Confirm with the city how the per-employee charge is counted above 2 FTE before you budget, because the table alone does not show how each employee is counted.

If you run the business from your home, the city code section YMC 15.04.120 covers home businesses. Ask the city how that section applies to your address and activity.

Step 3: Register Through the Business Licensing Service

Apply online at the Department of Revenue Business License Application page. The application requires a Yakima endorsement if you are doing business in the city. An LLC or corporation must complete its Secretary of State filing before you submit the BLS application.

The BLS processing fee is $50 to open a business, plus separate endorsement fees. Online applications generally take about 10 business days, and 2 to 3 weeks longer when city or state endorsements need approval. Mailed applications can take up to six weeks. Plan your opening date around the longer timeline.

You generally need a state Business License Application if you hire employees within 90 days, sell anything subject to sales tax, have gross income of $12,000 or more per year, operate under a name other than your legal name, or need city or state endorsements. Even a sole proprietor who pays $0 to the city should confirm whether the state application is still required.

If you use a trade name, registration costs $5 for each name, plus the $10 processing fee when you add a trade name to an existing business. Trade names are registered with the Department of Revenue, not the Secretary of State or the county.

Step 4: Plan for Taxes That Start Immediately

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 more than 50 classifications and no deduction for labor, materials or other costs. Yakima does not appear on the Association of Washington Cities list of cities with a local B&O tax, but confirm that directly with the city before you assume it.

The state sales tax rate is 6.5%. The combined rate in the City of Yakima is 8.6% for the fourth quarter of 2026. Check the Department of Revenue for the current rate before you set prices or issue your first invoice.

Step 5: Check the Downtown Yakima Business Improvement District Assessment

If your business is inside the downtown boundaries, expect a separate charge. The Downtown Yakima Business Improvement District assessment is billed on top of the city license for downtown businesses. This article does not state the assessment amount, so ask the city for the current rate, the boundary map, the assessment basis and the billing schedule. Do not treat the city license total as your full cost of operating downtown.

Step 6: Identify Activity-Specific Licenses

A general city license does not authorize every activity. Check each of these before you open:

• Street sales, mobile vendor and peddler activity: Yakima requires separate licenses for these. Check the city for current fees.
• Mobile food units: The Yakima Health District permits food units based on risk level. Details are in the next section.
• Short-term rentals and cannabis: Check the city for local rules before you advertise or open.
• Wine: The Liquor and Cannabis Board licenses wine production and sales.
• Hops and orchard operations: These fall under Washington State Department of Agriculture (WSDA) rules. Confirm which WSDA license, if any, applies to your operation.
• Contractors, electrical and plumbing: Labor and Industries (L&I) registers contractors and licenses electrical and plumbing work.

Why the City License Does Not Cover the Health Permit

The city license is a business license. It does not satisfy the health permit requirement. The Yakima Health District permits mobile food units by risk level, and a city license does not substitute for that permit. If you sell prepared food from a truck, trailer or cart, you need to contact the health district separately and begin that process early, because inspection and approval can take time.

The same logic applies to other regulated activities. Each agency issues its own approval, so keep a checklist of which office approved what.

Common Mistakes to Avoid

• Counting heads instead of FTE. Part-time staff may reduce your tier when you total their hours correctly. Count hours, not names.
• Filing the BLS application before the entity exists. An LLC or corporation must file with the Secretary of State first, or the state application will stall.
• Assuming the city license covers food. It does not. Contact the Yakima Health District.
• Forgetting the downtown assessment. It is billed separately for downtown businesses.
• Using a PO Box as your registered agent address. Washington requires a physical street address in the state.
• Missing the annual report. A late filing adds a delinquency fee, bringing the total to $95.

What to Expect After You Apply

Once the state approves your application, you should receive your UBI and any endorsements you requested. Timing depends mostly on whether endorsements need review, so an application with complete information can help avoid delays. Consider these results as expected outcomes that depend on your entity type, headcount and activities, not guarantees. A complete, accurate application may help you move through review more smoothly, but approval is set by each agency.

Next Steps

Start with the Secretary of State if you are forming an LLC or corporation, then complete the Business License Application, then call the city and the Yakima Health District about the rules for your specific activity. For free help with planning, the Washington Small Business Development Center offers advising. For complex structures, licensing or tax questions, consult a qualified attorney or CPA. This article is informational and is not legal or tax advice.