How to Start a Home Inspection Business in Washington: 120 Training Hours, $720 First License and the One-Year Repair Ban

If you want to start a home inspection business in Washington, the home inspector license comes first and the business paperwork comes second. The Department of Licensing (DOL) issues the home inspector license under RCW 18.280. That license is separate from the business registration you may file with the Secretary of State and the statewide business license issued by the Department of Revenue (DOR). This guide covers the order that works, the costs listed for 2026, and the mistakes that cost new inspectors time and money.

Disclaimer: This article is informational content, not legal or tax advice. Statutes, fees, and school requirements change, so confirm every figure on the official agency page before you pay. For entity choice, insurance, and contracts, talk to a Washington attorney and a CPA.

What You Need Before You Start

Gather these items first. You will use most of them at more than one step.

• Government-issued identification and the personal information DOL asks for on its application. Confirm the current requirements with DOL.
• Enrollment in a board-approved home inspector course covering 120 hours of classroom instruction.
• A licensed home inspector willing to supervise up to 40 hours of field training, with a written record of the dates and hours completed.
• About $1,020 in DOL fees: $720 for the application and initial license plus $300 for the exam. Course tuition is extra, varies by school, and should be checked school by school.
• A business name, a decision on entity type, and a Washington street address for a registered agent if you form an LLC.
• A computer, an email address, and a printer or scanner for signed agreements and inspection reports.
• Insurance quotes. Washington does not require them by statute, but you should price them before you take your first client (see Step 8).

Step 1: Choose Your Business Structure

Your structure decides whether you file anything with the Washington Secretary of State. Sole proprietors and general partnerships do not file with the Secretary of State. An LLC does. An LLC forms by filing a Certificate of Formation with Initial Report through the Corporations and Charities Filing System (CCFS) at https://ccfs.sos.wa.gov/. The filing fee is $180.

Expedited service costs $100 per business entity and is generally processed within three business days. The fee schedule also lists same-day service at $150 per entity. The Corporations Division currently charges front-counter same-day transactions received before 3:30 p.m. at the $100 expedited rate, and it says it will give 30 days notice on its website before it starts charging $150. Check the current rate before you choose a service level.

After formation, an LLC owes a $70 annual report each year. It is due by the last day of the month in which the LLC was originally formed. You may file up to 180 days early. A late filing carries a delinquency fee, for a total of $95.

Many new inspectors start as sole proprietors to keep the first year simple, then form an LLC once they have clients and a clearer picture of liability. Whichever you choose, the DOL license is issued to you as the individual inspector. Ask your attorney how the entity affects your liability and your insurance.

Step 2: Name Your Business and Appoint a Registered Agent (LLC Only)

If you form an LLC, the name must include Limited Liability Company, Limited Liability Co., L.L.C., or LLC under RCW 23.95.305. It must be distinguishable from every other business name on record with the Secretary of State. It also cannot include bank, banking, banker, trust, cooperative, or certain combinations of industrial and loan, building, savings, loan, home, association, and society.

To hold a name while you finish the paperwork, you can reserve it for 180 days for $30. The reservation fee is listed on the Secretary of State fee schedule.

Every business must have a registered agent in Washington under RCW 23.95.415. The agent can be commercial or noncommercial, must consent to serve, must give an email address, and must have a physical street address in Washington. PO Boxes and private mailbox addresses are not accepted. There is no fee to change the registered agent or registered office.

Tradeoff: You can serve as your own registered agent if you have a physical Washington address where you will be available during business hours. Many owners instead pay a commercial registered agent to keep their home address off public filings. Those services charge different annual fees, so compare the actual prices before you sign up.

Step 3: Complete the 120-Hour Course and Field Training

Under RCW 18.280, you need 120 hours of board-approved classroom instruction. Before you pay a school, confirm on the DOL website that the course is board-approved. A course that is not approved will not count, and you will have paid for hours you need to repeat.

The statute also allows up to 40 hours of field training supervised by a licensed inspector. The statute (RCW 18.280.070) says up to 40 hours, but DOL's application page says to complete 40 hours of field training and 5 actual inspections with a mentor who has at least 4 years of licensure, so plan for the full 40. Confirm with DOL how the field hours must be documented, then keep a signed log that shows the date, the property, the hours, and the supervising inspector's name and license number. Ask your trainer to walk you through the full inspection, including the report writing, not only the crawlspace or roof work.

Common mistake: Choosing the cheapest course without checking approval. The second common mistake is losing the field training paperwork. Start the log on your first day.

Step 4: Pass the Exam

The licensing exam has a national portion and a Washington portion. The exam fee is $300. Study the Washington portion closely, because it covers state-specific rules that are easy to miss if you train only on national material.

This guide does not publish exam pass rates. Ask your course provider how its recent students have performed and what their practice-test scores looked like before the exam. A strong school will give you a direct answer, and a school that avoids the question is a warning sign.

Step 5: Apply to DOL and Get Your License

The first license costs $720 for the application and the initial license. A home inspector license runs for 2 years. To renew, you need 24 hours of approved continuing education per 2 years and a $415 renewal fee.

DOL controls the order of training, exam scheduling, and application, and the sequence can change. Confirm the current steps on the DOL website before you schedule anything. Do not promise clients a start date until your license is issued. Processing times can vary, so check the current timing with DOL rather than relying on a number from a forum post.

Step 6: Register the Business and Get Your State Business License

Washington's statewide business license is the Business License Application, run by the Business Licensing Service (BLS) inside DOR. It issues your 9-digit Unified Business Identifier (UBI) and handles state and city endorsements in one application. Apply at https://dor.wa.gov/open-business/apply-business-license.

You need the BLS license if any of these apply: you operate under a name other than your full legal name, you plan to hire employees within 90 days, you sell anything subject to sales tax, your gross income is $12,000 per year or more, or you owe any tax or fee to DOR. A corporation or LLC must file with the Secretary of State before it submits the Business License Application. Sole proprietors do not.

The 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.

If you plan to advertise under a name such as Puget Sound Home Inspections, register it as a trade name through BLS, not the Secretary of State or the county. Each trade name costs $5. The application also carries the non-refundable processing fee: $50 to open a business, or $10 if the filing is for another purpose, such as adding a trade name to an existing business. Details are at https://dor.wa.gov/manage-business/grow-business/register-trade-names.

Step 7: Check City, County, and Tax Requirements

Washington has 39 counties and 281 incorporated places, which are cities and towns. Many of them add their own business license requirements. About 54 cities also levy their own business and occupation (B&O) tax, which DOR does not administer. Check the city and county where you will work and where your office is located. Start with the city or county clerk's website, then confirm with the city before you assume you are covered.

Washington has no corporate income tax and no personal income tax on wages. Instead, most businesses pay the state B&O tax, which is a gross receipts tax with more than 50 activity classifications. It does not allow a deduction for labor, materials, or other costs. Ask DOR which classification fits home inspection services and how your local B&O rate applies. The state sales tax rate is 6.5%, plus local rates. Whether your inspection fees are subject to sales tax is a question to confirm with DOR, not one to settle from this guide.

Step 8: Set Up Contracts, Conflict Disclosure, and Insurance

Every inspection requires a mandatory preinspection agreement. Under WAC 308-408C-020 and 308-408C-050, you must disclose any conflict of interest in writing before the client signs. Examples include a financial interest in a repair company you refer to clients. Put the disclosure in the agreement itself, and keep a signed copy in your file.

Washington's statute does not set a bond or insurance requirement for home inspectors. Errors and omissions coverage, general liability coverage, or both are business decisions, not state mandates. Get quotes before your first inspection, and ask an insurer and your attorney what coverage fits your structure and your service area.

Common mistake: Telling clients that state law requires E&O insurance. It does not, under the statute as summarized here. Say what you carry, and do not describe coverage the statute does not require as a legal requirement.

Step 9: Plan Around the One-Year Repair Ban

Under RCW 18.280.120, for one year after you issue a report, you, other licensed inspectors, employees of the same company, and any company in which you have a financial interest may do no work on that home other than home-inspection-related consultation. That rule applies even if the homeowner asks you directly.

Build this into your business model. Do not bid on repairs for homes you inspected in the past year, and do not refer repair work to a company you own or hold a financial interest in. Tell clients about the restriction in your agreement, so the rule does not come as a surprise when a seller asks for a repair estimate.

The same statute requires referral for wood-destroying insect findings. Unless you hold a WSDA-licensed structural pest inspector license, you must refer those findings to a WSDA-licensed structural pest inspector (RCW 18.280.190). Build a short list of referral contacts before you start taking clients, so you can give a complete answer on the spot.

Step 10: Track Renewal and Annual Deadlines

Put these dates on a calendar as soon as you are licensed:

• Your DOL renewal, due every 2 years, at $415, with 24 hours of approved continuing education per 2 years.
• Your LLC annual report, due by the last day of the formation month each year, at $70 ($95 if late).
• Your BLS and city license renewals and any local B&O filings. Confirm each due date with the agency that issued it.

Costs at a Glance

Item	Cost	Agency
First home inspector license (application and initial license)	$720	DOL
Licensing exam	$300	DOL
Home inspector renewal (2-year term)	$415	DOL
LLC Certificate of Formation with Initial Report	$180	Secretary of State
Expedited service	$100 per business entity	Secretary of State
LLC annual report	$70 ($95 if late)	Secretary of State
Name reservation (180 days)	$30	Secretary of State
Business License Application processing fee	$50 to open a business	DOR Business Licensing Service
Trade name registration	$5 per trade name	DOR Business Licensing Service
Course tuition	Set by each school, so compare providers	Training provider

Common Mistakes to Avoid

• Enrolling before checking board approval. Confirm the course is approved with DOL before you pay.
• Losing field training records. Keep a signed, dated log from day one.
• Skipping the BLS license. A sole proprietor who advertises under a business name still needs a trade name and possibly a Business License Application.
• Forgetting the city layer. A state license does not replace a city business license or a local B&O filing.
• Breaking the one-year repair ban. Referring repair work to a company you own a stake in can violate RCW 18.280.120.
• Leaving conflicts out of the preinspection agreement. Disclose them in writing before the client signs.
• Missing the LLC annual report. The late fee brings the total to $95.

What to Expect

Results vary by market, experience, and how you run the business. Inspectors who finish their training carefully, keep clean records, and communicate clearly with clients often report that referrals from real estate agents, lenders, and past clients drive much of their work. Those reports are not a promise. This guide does not promise any income level, number of inspections, or timeline to profitability.

Plan for a startup period in which you spend money before you earn it. Budget for the state fees above, course tuition, insurance, equipment, software, and marketing. Then talk to a Washington attorney and a CPA about your entity choice, tax treatment, and contracts before you take your first paid inspection.

For the state's business registration resources, start at the Secretary of State Corporations and Charities Division at https://www.sos.wa.gov/corporations-charities. For state tax and licensing questions, start at the Department of Revenue at https://dor.wa.gov/. For the home inspector license itself, go to the Department of Licensing and confirm every current fee, course approval, and deadline before you act on this article.