How to Start a Funeral Home in Washington: DOL Establishment License, a Director in Service and the Natural Organic Reduction License

Starting a funeral home in Washington is as much a licensing project as a business launch. The Department of Licensing (DOL) regulates funeral establishments under chapter 18.39 RCW and chapter 308-48 WAC, and the establishment license covers one location only. Before you sign a lease or buy a building, you need to know who will hold the license, where the establishment will operate, and which licensed funeral director will be in service there. This guide walks through the sequence most new operators follow, with the fees and deadlines that apply as of 2026.

Disclaimer: This article is informational content, not legal or tax advice. Funeral service law, entity choice and tax treatment depend on your specific facts. Consult a qualified Washington attorney and a certified public accountant (CPA) before you form an entity, sign a purchase agreement or set up prearrangement funds.

What You Will Need

• A named licensed funeral director who will be in service at the establishment location
• A Washington street address for the establishment, with local zoning confirmed in writing
• A business entity, usually an LLC or corporation, with a Certificate of Formation or Articles of Incorporation
• A registered agent with a physical Washington street address and an email address
• A Unified Business Identifier (UBI) from the Department of Revenue Business Licensing Service
• Funds for the state fees listed in the cost table below, plus working capital for your opening months
• Records documenting your education, training and exam results

Step 1: Decide Which Licenses You Need

Washington licenses the person and the place separately. A funeral director holds an individual license. A funeral establishment holds a license for one location and must have a licensed funeral director in service at that location (RCW 18.39.145). If you plan to sell preneed contracts or prearrangement trusts, you also need a preneed contract registration. If you plan to offer cremation or natural organic reduction (NOR), you need a crematory license or an NOR license from the same board.

Write down every service you plan to offer before you choose a site. Ask DOL whether cremation or NOR equipment at your establishment must be separately licensed, whether it changes the director in service requirement, and how it affects your floor plan. Get those answers before you sign anything.

Step 2: Qualify as a Funeral Director

Someone has to hold the funeral director license, and in a new firm that is often the owner. Under RCW 18.39.035, a funeral director must:

1. Be at least 18 years old.
2. Hold an associate degree in mortuary science, or complete two years at an accredited college.
3. Complete a one-year course of training under a licensed Washington funeral director.
4. Pass exams in funeral arts and Washington law.

An embalmer has a separate two-year training requirement under the same statute. If you or your staff plan to embalm, start that training early because it adds time to your opening schedule. Ask DOL which forms it requires to document training hours, and keep your supervisor's written verification from day one.

Step 3: Form Your Entity With the Secretary of State

Most funeral homes operate as LLCs. A Certificate of Formation with Initial Report costs $180 and is filed through the Corporations and Charities Filing System (CCFS) at https://ccfs.sos.wa.gov/. Corporations file Articles of Incorporation with Initial Report for the same $180. Sole proprietors and general partnerships do not file with the Secretary of State.

Under RCW 23.95.305, an LLC name must include Limited Liability Company, Limited Liability Co., L.L.C. or LLC. It must be distinguishable from every other business name on record, and it cannot contain bank, banking, banker, trust, cooperative, or certain combinations of building, savings, loan, home, association and society. Search the name in the Secretary of State business search before you commit to it. Words like "trust" are common in funeral planning, so check the rule before you choose a name.

If you need to hold the name while you arrange financing or a lease, a name reservation costs $30 and lasts 180 days. Expedited service costs $100 per business entity and is generally processed within three business days. You can request it online at checkout or by mail with the envelope marked EXPEDITE. Confirm current same-day options with the Corporations Division before you plan around them.

Washington requires every LLC or corporation to designate and maintain a registered agent under RCW 23.95.405. The agent must consent to serve, supply an email address and have a physical street address in Washington. PO Boxes and private mailbox addresses are not accepted. You can change your registered agent or registered office at no fee.

Step 4: Register With the Business Licensing Service

Once the Secretary of State accepts your entity, file the Business License Application with the Department of Revenue's Business Licensing Service (BLS) at dor.wa.gov/open-business/apply-business-license. This is the statewide application that issues your 9-digit UBI and handles state and city endorsements in one filing. A funeral home will almost certainly need it, because you will have employees, gross income above $12,000 per year and likely taxable sales. The processing fee is $50 to open a business, plus any endorsement fees.

Plan your timeline around the processing estimates. Online applications 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.

If you will operate under a name other than your full legal name, such as a family name followed by Funeral Home, register it as a trade name. Trade names are registered through the BLS, not the Secretary of State or the county. The fee is $5 for each trade name, plus the non-refundable $10 processing fee when you add it to an existing business. See the Department of Revenue trade name page for current instructions.

Step 5: Apply for the DOL Establishment License

With your entity, UBI and director in place, apply to DOL's Funeral and Cemetery Board for a funeral establishment license under chapter 18.39 RCW and WAC 308-48. The new establishment license fee is $540, and the renewal fee is $439. The license is for one location. A branch location carries a separate fee of $473, so ask DOL how it defines a branch before you assume a second building qualifies.

Your application must show that a licensed funeral director will be in service at the location. Ask DOL what happens if your director in service leaves, how much notice is required and whether any interim arrangement is allowed. Get that answer in writing before you hire, because a gap in director coverage can stall your opening or your renewal.

The state license does not replace local permits. Washington has 39 counties and 281 incorporated cities and towns, and local governments control zoning, signage, parking and building permits. Confirm with your city or county planning office that a funeral home is a permitted use at the address you chose. Ask your local health district about any permits that apply to your facility.

Step 6: Set Up Preneed Registration and Trust Records

If you sell preneed contracts, register them with DOL. The preneed contract registration fee is $338, and the renewal fee is $304. Prearrangement trusts are audited, so build clean records from the first contract: trust deposits, account statements, contract files and reconciliations. Ask a CPA to help you design that system before you take your first preneed payment, not after.

Step 7: Add Cremation or Natural Organic Reduction Only If You Offer It

Washington licenses natural organic reduction facilities through the same board. The NOR license fee is $284, and the same $10.80 regulatory fee applies to each disposition. Crematory licenses cost $284 plus the same $10.80 per cremation. Confirm facility, equipment and location standards with DOL before you buy equipment or sign a lease for a separate building. Equipment is expensive to move, and a missed requirement can delay your opening.

Step 8: Handle the Embalming Disclosure

Washington does not require embalming by state law, except under conditions set by the state board of health. Families must be told this (RCW 18.39.215). Build the disclosure into your arrangement paperwork and train every staff member who meets with families to explain it accurately. Do not present embalming as mandatory unless a specific condition applies.

Step 9: Register for Taxes

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, materials or other costs. About 54 cities also levy their own B&O tax, which the Department of Revenue does not administer. Your BLS application registers you for state tax, but your city may require separate registration. Confirm your city's B&O rules directly with the city and your state classification with the Department of Revenue.

Washington's state sales tax rate is 6.5%. Caskets, merchandise and some services may be subject to sales tax, but treatment varies by product and service. Ask the Department of Revenue to confirm how your sales are classified before you set your price list.

Step 10: Calendar Your Recurring Deadlines

Your annual report to the Secretary of State costs $70 and is due by the last day of the month in which your LLC was formed, every year. You may file it up to 180 days early. A late filing carries a delinquency fee, for a total of $95. Your DOL renewals include the establishment license at $439, the director license at $203 and preneed registration at $304. Confirm renewal fees for crematory and NOR licenses with DOL, and set reminders well before each expiration date.

Startup Cost Summary

Item	Agency	Fee
Certificate of Formation with Initial Report (LLC)	Secretary of State	$180
Name reservation (180 days)	Secretary of State	$30
Expedited service	Secretary of State	$100 per entity
Annual report (late total $95)	Secretary of State	$70
Business License Application	Department of Revenue, BLS	$50 to open
Trade name registration	Department of Revenue, BLS	$5 per trade name
Funeral establishment license, new	DOL	$540
Funeral establishment license, renewal	DOL	$439
Branch license	DOL	$473
Preneed contract registration	DOL	$338 new, $304 renewal
Funeral director application	DOL	$135
Funeral director renewal	DOL	$203
Crematory license	DOL	$284 plus $10.80 per cremation
Natural organic reduction license	DOL	$284 plus $10.80 per disposition

Training, education and facility costs are not included above. Get those quotes from your schools, your supervising director and your contractors.

Common Mistakes to Avoid

• Signing a lease before confirming zoning and the license location. The establishment license covers one location.
• Assuming the owner can operate without a licensed director in service at the location.
• Choosing a legal name that includes a restricted word such as bank or trust.
• Using a PO Box or private mailbox as the registered agent address.
• Forgetting the annual report, which costs $95 once it is late.
• Operating under a trade name without registering it through the BLS.
• Mixing trust funds with operating money. Prearrangement trusts are audited.
• Leaving the embalming disclosure out of family paperwork.

Tips for a Smoother Launch

• Reserve your name early if you are negotiating vendor, lease or lending agreements, since the reservation holds it for 180 days at $30.
• Use expedited service only when timing requires it, and confirm current options on the Secretary of State website.
• Start your director's training first, because it is usually the longest lead item.
• Ask the Washington Small Business Development Center at wsbdc.org what advising services it offers to new business owners.

Expected Results

Operators who file in the order described above often find the state steps manageable, but the timing of each review is set by the agency and can vary. Plan for a gap between your applications and your opening date, and avoid binding lease, payroll or vendor commitments until your establishment license is in hand. This guide does not promise approval, a specific timeline or any level of revenue. Your results will depend on your location, your staffing and your local requirements.

Next Steps

Before you file anything, confirm your plan with a Washington attorney, a CPA and DOL. Verify each fee and deadline on the official agency page, since state fees change. Then work through the steps in order: entity, BLS registration, DOL licensing and local permits. Keeping records from the first day will save you time when you renew.