How to Start a Craft Brewery in Washington: Microbrewery $150, Domestic Brewery $2,100 and Four Retail Licenses

If you want to know how to start a craft brewery business in Washington, the good news is that the state's license fees are lower than many people expect. A microbrewery license is $150 a year for production under 60,000 barrels, and a domestic brewery license is $2,100 a year at 60,000 barrels or more. The harder part is the sequence: the Secretary of State, the Department of Revenue, the Liquor and Cannabis Board (LCB), your city or county, and your health district each have a piece of the process, and the order matters.

This guide walks through that sequence in the order most new brewers file. It covers the paperwork, the fees, the common delays, and what to expect once you are open.

Disclaimer: This article is informational content, not legal or tax advice. Licensing rules, fees and deadlines change. Confirm every figure with the agency named before you spend money or sign a lease. For entity choice, tax treatment, and federal alcohol permits, talk with a qualified attorney and a CPA.

What You Need Before You Start

Gather these items before you file anything. Most delays come from missing information, not from the agencies themselves.

• A business name you have checked against the Secretary of State business search. Your name must be distinguishable from every other business name on record.
• A physical street address in Washington for your registered agent and your brewery. A PO Box does not work for the registered agent.
• A realistic production plan showing expected barrels per year. This decides whether you apply as a microbrewery or a domestic brewery.
• Your ownership details, including names, addresses, and roles of every owner, officer or manager. The LCB will ask for these.
• A site plan and zoning confirmation from your city or county. Brewing and taproom uses are not allowed in every zone.
• Equipment and ingredients for the brewhouse: malt, hops, yeast, water treatment, fermenters, kegs or canning equipment, and cleaning supplies. Your equipment list also helps the health district and fire inspector understand your operation.
• Startup capital for filing fees, the license fee, a deposit on the lease, equipment, insurance, and at least several months of operating costs before the first sale.

Step 1: Choose Between a Microbrewery and a Domestic Brewery License

Washington sets two brewery license types by annual production. Your choice affects your fee and what you can do with the license.

• Microbrewery (under 60,000 barrels a year): $150 a year. Under RCW 66.24.244, a microbrewery may also sell cider made by a domestic winery.
• Domestic brewery (60,000 barrels or more): $2,100 a year. Under RCW 66.24.240, this is the license for larger producers.

Both license types let you distribute and retail your own beer, hold up to four retail licenses, subcontract food service, and sell other Washington brewers' beer on up to 25% of your on-tap offerings. Both also pay the state beer excise tax, which is covered in Step 6.

Plan for growth when you pick a type. If your first-year forecast is modest, the microbrewery license is the right starting point, but project your volume honestly. Confirm with the LCB how production is counted and what happens when you cross the 60,000 barrel line.

Step 2: Form Your Business Entity With the Secretary of State

Most breweries form an LLC or a corporation. Sole proprietors and general partnerships do not file with the Secretary of State, but a brewery with partners or outside investors usually benefits from a formal entity that limits personal liability.

For an LLC, you file a Certificate of Formation with Initial Report through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov. The filing fee is $180. Your LLC name must include Limited Liability Company, Limited Liability Co., L.L.C., or LLC. Under RCW 23.95.305, the name also cannot include words such as bank, banking, trust, or cooperative.

Corporations file Articles of Incorporation with Initial Report for the same $180 filing fee. The Secretary of State's Corporations and Charities Division publishes its full guidance at sos.wa.gov/corporations-charities.

Two details trip up first-time filers:

• Registered agent. Every business must designate a registered agent in Washington under RCW 23.95.415. The agent must have a physical street address in Washington, must supply an email address, and must consent to serve. PO Boxes and private mailbox addresses are not accepted. You can change your registered agent later with no fee.
• Name reservation. If you need time to finish paperwork, you can reserve a name for 180 days for $30. Expedited processing of your filing is $100 per entity and is generally processed within three business days.

The Secretary of State does not publish a standard turnaround for online filings. Filings are worked in the order received, and expedited orders move to a separate priority queue.

Step 3: Register Your Trade Name and Get Your UBI Through the Business Licensing Service

Washington's general business license is the Business License Application, run by the Business Licensing Service (BLS) inside the Department of Revenue. The BLS issues your 9-digit Unified Business Identifier (UBI) and handles state and city endorsements in one application. You file it with the Department of Revenue, not with the Secretary of State or your county.

You will almost certainly need this application for a brewery, for several reasons:

• You will sell products subject to sales tax, including taproom sales.
• You may operate under a name other than your full legal name, which requires a trade name registration.
• You will likely owe B&O tax, a tax the Department of Revenue administers.
• You may need city or state endorsements.

Corporations, LLCs, LLPs and partnerships must file with the Secretary of State before submitting the Business License Application. The processing fee is $50 to open a business. If you are adding a trade name to an existing business, the fee is $10. Each trade name you register costs $5 more. Register trade names through the Department of Revenue at dor.wa.gov/manage-business/grow-business/register-trade-names.

Timing depends on the route. Online applications take about 10 business days. When city or state endorsements need approval, add 2 to 3 weeks. Mailed applications can take up to six weeks, so file online if you can.

Step 4: Apply for Your LCB Brewery License and Retail Licenses

The LCB licenses breweries, distributors and retail alcohol sales. The brewery license is the core of your business. Retail licenses let you serve pints in your own taproom. The LCB sets your fees, and the figures below apply to fees in effect since July 27, 2025.

• Microbrewery license: $150 a year
• Domestic brewery license: $2,100 a year
• New retail license application: $112.50 each
• Farmers market bottled-beer endorsement: $112.50 a year. For microbreweries, this endorsement excludes strong beer.
• Takeout endorsements: no fee

Your brewery license lets you hold up to four retail licenses, in any combination of these three types:

1. Tavern
2. Beer and wine restaurant
3. Spirits, beer and wine restaurant

Most taprooms start with one retail license, usually a tavern or a beer and wine restaurant, depending on whether food service is part of the plan. Confirm with the LCB how many retail licenses your brewery can hold at each location and whether separate fees apply for renewals.

Breweries may no longer deliver alcohol. Alcohol delivery by breweries ended on July 1, 2025, under RCW 66.24.710. Build your sales plan around pickup, the taproom, and approved distribution.

Step 5: Clear City, County and Health District Requirements

Many brewers lose months here. The state license does not replace local approval. Washington has 39 counties and 281 incorporated places, so your local jurisdiction controls much of the work.

• Zoning and land use. Confirm with your city or county planning office that a brewery and taproom are allowed at the address. Ask about parking, hours, and noise rules.
• Building and fire permits. Renovations for a brewhouse, taproom occupancy, and any gas or electrical work need permits. Electrical and plumbing work is licensed through the Department of Labor and Industries (L&I).
• Health district permits. Your local health district reviews food service and wastewater from brewing and cleaning. Ask early about floor drains, sink layout, and grease handling.
• Local B&O tax. About 54 Washington cities add their own B&O tax. The Department of Revenue does not administer local B&O, so register with your city separately if it applies.

Call the planning office and health district before you sign a lease. Ask for a written list of requirements.

Step 6: Set Up Your Tax and Employer Accounts

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 activity classifications and no deduction for labor, materials or other costs. Your brewery will likely fall under the manufacturing or retailing classifications, so confirm the correct one with the Department of Revenue.

Other items to set up:

• State beer excise tax under RCW 66.24.290. You report it monthly, and it is due by the 20th of the following month. The rate is about $4.78 a barrel on the first 60,000 barrels for a qualifying small brewer, and about $8.08 a barrel beyond that. Confirm the exact rate and reporting steps with the LCB.
• Sales tax. The state rate is 6.5%, plus any local sales tax where your brewery sits. Your Business License Application covers your sales tax permit.
• Federal Employer Identification Number (EIN) from the IRS, which you need for payroll and bank accounts.
• Employer accounts. Before you hire, register with L&I for workers' compensation coverage and with the Employment Security Department for unemployment insurance. Confirm the current fees and timelines directly with each agency.
• Federal brewing permits. Breweries must also meet federal requirements through the Alcohol and Tobacco Tax and Trade Bureau (TTB). Confirm what your operation needs before you buy equipment or sign a lease.

Step 7: Plan Your Operations Around the License Rules

Your license limits shape the business model. Plan these items before you open:

• Distribution. A brewery may distribute its own beer, which lets you sell to other retailers. Confirm the distribution rules and reporting with the LCB.
• Guest taps. You may sell other Washington brewers' beer on up to 25% of your on-tap offerings. Plan your tap list with that cap in mind.
• Food. You can subcontract food service rather than running your own kitchen. Put the subcontract terms in writing, and confirm with your health district what it requires.
• Cider. Microbreweries may sell cider from a domestic winery.

Startup Fee Summary

The table below lists the fees covered in this guide. Confirm each one on the agency page before you budget, because fees change.

Item	Fee	Agency or source
Microbrewery license (under 60,000 barrels)	$150 a year	LCB, RCW 66.24.244
Domestic brewery license (60,000 barrels or more)	$2,100 a year	LCB, RCW 66.24.240
New retail license application	$112.50	LCB
Farmers market bottled-beer endorsement	$112.50 a year	LCB
Takeout endorsement	No fee	LCB
LLC or corporation filing (Certificate of Formation or Articles of Incorporation)	$180	Secretary of State
Name reservation (180 days)	$30	Secretary of State
Expedited service	$100 per entity	Secretary of State
Annual report	$70 (late filing totals $95)	Secretary of State
Business License Application processing fee	$50 to open a business	Department of Revenue
Trade name registration	$5 per trade name	Department of Revenue
State beer excise tax	About $4.78 a barrel (first 60,000 barrels) and about $8.08 a barrel beyond that	LCB, RCW 66.24.290

Fees for city permits, health district permits, insurance, equipment, and building work are not listed here because they vary by jurisdiction. Get written quotes for each.

Common Mistakes to Avoid

• Filing the LCB application before the entity exists. Entities must file with the Secretary of State before you submit the Business License Application. Sequence your filings in that order.
• Using a PO Box as your registered agent address. Washington requires a physical street address.
• Signing a lease before zoning is confirmed. A brewery that cannot get a permit in the space is a costly mistake.
• Choosing a name that is too close to an existing one. The Secretary of State requires distinguishable names. Search first, then reserve.
• Forgetting the trade name. If your taproom uses a name other than your legal business name, register it through the Department of Revenue.
• Missing the annual report. Your annual report is due by the last day of the month in which you formed or registered the entity, every year. It may be filed up to 180 days early. A late filing costs $95 in total.
• Missing the beer excise deadline. The excise is reported monthly and due by the 20th.
• Planning for delivery. Brewery alcohol delivery ended July 1, 2025.
• Assuming a takeout endorsement costs money. Takeout endorsements carry no fee, so ask the LCB to add one if your plan includes to-go sales.

What to Expect: Realistic Results

Your timeline and revenue depend on your location, your financing, and how quickly your local approvals move. Based on the filing and licensing steps above, many brewers spend several months on paperwork and construction before the first pour. Plan a cash cushion that covers that gap, and do not count on early sales to pay for it.

Actual results vary widely. Some breweries find that the taproom drives more revenue than distribution, while others find the reverse. Test your assumptions with a small pilot run before you commit to a large space or equipment purchase.

Please note that this guide makes no health claims about beer or alcohol. Any statements about product effects should be reviewed against FDA labeling rules, and you should consult a qualified professional before making claims in marketing materials.

Ongoing Compliance

After you open, keep these recurring obligations on a calendar:

• Annual report with the Secretary of State, due by the last day of the month of your original formation or registration.
• Monthly beer excise reporting to the LCB, due by the 20th.
• B&O tax returns with the Department of Revenue, and local B&O filings if your city requires them.
• LCB license renewals. Confirm the renewal dates and any renewal fees with the LCB.
• Health district inspections and any permit renewals.

When to Get Professional Help

Hire help if you have outside investors, plan multiple locations, or expect to cross the 60,000 barrel threshold. A business attorney can advise on entity choice and lease terms, and a CPA can advise on B&O, excise, and payroll setup. The Washington Small Business Development Center (Washington SBDC) at wsbdc.org offers free business advising that can help you organize your plan before you meet with those professionals.

Again, this article is informational content, not legal or tax advice. Verify each fee, deadline, and requirement with the agency named before you act.