How to Start a Hotel, Motel or Bed and Breakfast in Washington: DOH Lodging License $230 to $922 for Three or More Units

Starting a hotel, motel, or bed and breakfast in Washington runs on two tracks at once: forming your business entity and getting the lodging approvals that let you rent rooms. The largest state-level permit is the annual transient accommodation license from the Washington State Department of Health (DOH). You need it if you rent three or more units to transient guests, meaning stays under 30 days. This guide covers how to start a hotel business in Washington in the order you should do it, with the fees and deadlines we can verify.

Disclaimer: This article is informational content, not legal or tax advice. Lodging rules, zoning, and tax treatment vary by city and county, and agency fees change. Confirm every figure with the agency named before you commit money. For complex situations, consult a qualified attorney and a certified public accountant (CPA) before you sign a lease or buy a property.

What You Will Need Before You Start

• A business name that meets Washington naming rules
• A registered agent with a physical street address in Washington (PO Boxes are not accepted)
• Formation documents: a Certificate of Formation for an LLC, or Articles of Incorporation for a corporation
• A federal Employer Identification Number (EIN) from the IRS, which you can obtain free online
• The property address, its zoning designation, and a floor plan showing the number of guest units
• Owner and business details for the Business License Application
• A budget that covers the state, county, and city fees listed in this guide, plus local inspection costs

Step 1: Choose Your Legal Structure

Your structure determines which filings you make. A sole proprietorship or general partnership does not file with the Washington Secretary of State. An LLC or corporation does, and it must be formed before you apply for your state business license.

Many hotel owners choose an LLC to keep personal assets separate from the property's debts and claims. An LLC does not exempt you from lodging licensing, building codes, or any other requirement, so the entity is a liability tool, not a compliance shortcut.

Washington has no corporate income tax and no personal income tax on wages. It also has no franchise tax. 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 hotel's gross receipts are what matter, not its profit. About 54 cities levy their own B&O tax, and the Department of Revenue does not administer those local taxes. Ask a CPA to model the B&O impact on your projected revenue before you choose a structure.

Step 2: Check and Reserve Your Business Name

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 with the Secretary of State. It also cannot contain the words bank, banking, banker, trust, or cooperative, any combination of industrial and loan, or any combination of two or more of building, savings, loan, home, association, and society.

Because of that last rule, a name like "Home Savings Inn LLC" can run into trouble, while a name using "home" alone, such as "Harbor Home Inn LLC", may be fine. Search the Secretary of State's business database at ccfs.sos.wa.gov before you settle on a name.

If you need time to finish the paperwork, you can reserve a name for 180 days for a $30 fee through the Secretary of State's Corporations and Charities Division. Trade names (doing business as, or DBA, names) are a separate filing handled by the Department of Revenue, covered in Step 5.

Step 3: Appoint a Registered Agent

Every business must designate a registered agent in Washington under RCW 23.95.415. The agent can be a commercial service registered with the Secretary of State or a noncommercial individual or entity. The agent must consent to serve, supply an email address, and maintain a physical street address in Washington State. PO Boxes and private mailbox addresses are not accepted.

There is no fee to change your registered agent or registered office, so you can switch later if your first choice does not work out. Many hotel owners use a commercial agent for reliability, since a missed notice can mean a lost lawsuit or a lapsed filing.

Step 4: File Your Formation Document Through CCFS

File online through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov. For an LLC, the formation document is the Certificate of Formation with Initial Report. For a corporation, it is the Articles of Incorporation with Initial Report. Both carry a $180 filing fee.

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. The fee schedule also lists same-day service at $150 per entity. However, the Corporations Division currently charges front-counter same-day transactions received before 3:30 p.m. at the $100 expedited rate, and it has said it will post 30 days' notice on its website before implementing the $150 fee. Check the current schedule before you plan a same-day filing.

Filings are worked in the order received, and the Secretary of State does not publish a standard turnaround for online business filings. Plan for a few weeks of cushion rather than assuming your entity exists on a specific date.

Step 5: Register With the Business Licensing Service

Washington's general business license runs through the Business Licensing Service (BLS) inside the Department of Revenue. The BLS issues your nine-digit Unified Business Identifier (UBI) and handles trade names and state and city endorsements in one application. Corporations and LLCs must file with the Secretary of State before submitting the Business License Application, so Step 4 comes first.

A hotel will almost always need this license. You must register if your business needs city, county, or state endorsements, operates under a name other than your full legal name, plans to hire employees within 90 days, sells anything subject to sales tax, expects gross income of $12,000 per year or more, or owes any tax or fee to the Department of Revenue. Lodging charges are generally subject to retail sales tax at the state rate of 6.5% plus local add-ons, so your registration should include a sales tax account. Confirm the details with the Department of Revenue.

The processing fee to open a business is $50, plus separate endorsement fees. Each trade name you register costs $5. Online applications take about 10 business days. If 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. Apply at dor.wa.gov.

Step 6: Apply for the DOH Transient Accommodation License

This is the core lodging permit. Under chapter 70.62 RCW, the Department of Health issues an annual transient accommodation license for three or more units rented to transient guests. Note that DOH issues this license, not your local health department. The fee depends on how many units you operate, under WAC 246-360-990, effective December 1, 2025:

Number of units	Annual DOH license fee
3 to 10 units	$230
11 to 49 units	$458
50 or more units	$922

Apply at least 60 days before you plan to open. Since the license is required before guests arrive, a late application can delay your opening date. Other lodging charges to plan for:

• Adding units to an existing license: $232
• Late renewal within 35 days of expiration: $77
• Late renewal after 35 days of expiration: $300

If you plan to operate fewer than three units, this license may not apply. Check with DOH before you assume you are exempt, and ask how that status affects your other obligations. Confirm current figures on the DOH website at doh.wa.gov.

Step 7: Clear Local Zoning, Building, and Fire Requirements

Washington has 39 counties and 281 incorporated cities and towns, and local government controls most of the land-use decisions that affect a lodging property. Before you buy or lease a building, call the planning department for the city or county where it sits and confirm three things:

• Zoning: Lodging may be allowed outright, allowed with a conditional use permit, or prohibited in a residential zone. A bed and breakfast in a house may face different rules than a motel.
• Building and occupancy: Converting a home or older building to guest rooms often triggers commercial building code, accessibility, and fire safety requirements. Get the inspection list in writing before you commit to a renovation budget.
• Local business endorsements: Your city or county endorsement is requested through the BLS application in Step 5.

Some cities and counties also levy a local lodging tax on overnight stays. Confirm whether your jurisdiction does, and how it is reported, with your city or county finance office and the Department of Revenue. Plan for local B&O tax in any city that imposes it.

Step 8: Obtain a Health Permit If You Serve Breakfast

A bed and breakfast that serves food needs a separate local health permit from its county or city health district. This permit is distinct from the DOH lodging license in Step 6. Fees vary by county and by the number of rooms and the risk level of your food service. For example, recent schedules list a Pierce County B&B with three or more rooms at $240 and a King County B&B at Risk Level 1 at $441. Treat those as examples, not guaranteed figures, and confirm the current amount with your local health district before you budget.

If your kitchen will prepare food for guests, ask the health district about plan review before you remodel. Changing equipment or layout after inspection can cost more than the permit itself.

Step 9: Decide Whether You Need a Liquor License

If you plan to serve alcohol, a hotel liquor license costs $2,500 per year under RCW 66.24.590. Other lodging-related liquor licenses may have different fees and eligibility rules, so check with the Liquor and Cannabis Board (LCB) at lcb.wa.gov before you purchase a license or build a bar area. Liquor licensing also involves background checks and location requirements, so start early.

Step 10: Register for Employer Accounts If You Hire Staff

Hiring triggers the BLS registration requirement described in Step 5 if you plan to hire employees within 90 days. Employment itself brings separate obligations to the Employment Security Department and to the Department of Labor and Industries (L&I) for unemployment insurance and workers' compensation. Confirm the registration, rate, and reporting requirements with each agency before your first payroll.

Cost Summary

Item	Cost	Agency or source
Name reservation (180 days)	$30	Secretary of State
LLC Certificate of Formation with Initial Report	$180	Secretary of State
Expedited formation service	$100 per entity	Secretary of State
Annual report (due yearly by the last day of the formation month)	$70	Secretary of State
Business License Application processing fee	$50	Department of Revenue
Trade name registration	$5 per trade name	Department of Revenue
DOH transient accommodation license, 3 to 10 units	$230 per year	Department of Health
Hotel liquor license (if applicable)	$2,500 per year	Liquor and Cannabis Board
Bed and breakfast food permit	Varies by county, for example $240 or $441 in the examples above	Local health district

Expect the state and local fees to be the smaller part of your startup budget. Renovation, inspections, insurance, and furnishings will usually cost far more. Use this table for the government side of the budget only.

Expected Results

If you file in the order above and start the DOH application at least 60 days before opening, you will likely reach a licensed opening date without surprises. Your timeline will depend mainly on local zoning and building review, which varies widely by jurisdiction, and on how quickly you respond to inspection comments. Filing fees rarely drive the schedule.

The market is established, which means both opportunity and competition. Census 2023 data counted 1,211 hotels with paid employees in Washington. Your results will depend on location, property condition, pricing, and how you market the business. This guide does not promise any occupancy, revenue, or profit outcome.

Common Mistakes to Avoid

• Buying or leasing before zoning is confirmed. A property that cannot legally host guests is an expensive mistake. Get written zoning answers first.
• Applying for the DOH license late. The 60-day lead time is a minimum. Missing it can push back your opening.
• Miscounting units. The fee tier depends on your unit count. Adding units later costs $232 on top of the new fee tier.
• Using a PO Box for the registered agent. Washington requires a physical street address in the state.
• Skipping the BLS license after forming an entity. Forming an LLC does not register you to collect sales tax or hold a UBI.
• Missing the annual report. The LLC or corporation annual report is $70 and is due by the last day of the month in which the entity was formed. A late filing carries a delinquency fee, for a total of $95.
• Misunderstanding B&O tax. B&O is a gross receipts tax, not an income tax. It applies even in a loss year.
• Serving breakfast without a health permit. Food service at a B&B requires a local health district permit in addition to the DOH license.
• Using a restricted name. Words such as bank or trust, and certain combinations like home plus association, will be rejected.

Official Resources

• Washington Secretary of State, Corporations and Charities Division: sos.wa.gov/corporations-charities
• Corporations and Charities Filing System (CCFS): ccfs.sos.wa.gov
• Washington Department of Revenue, business licensing: dor.wa.gov
• Washington State Department of Health: doh.wa.gov
• Liquor and Cannabis Board: lcb.wa.gov
• Washington Small Business Development Center (free advising): wsbdc.org
• U.S. Small Business Administration, Seattle District: sba.gov/district/seattle

A Small Business Development Center advisor can review your plan before you file, and they cost nothing to consult. For the legal structure, tax treatment, and lease terms, a Washington attorney and CPA are worth the fee on a project of this size.

Reminder: This article is informational content, not legal or tax advice. Verify all fees, deadlines, and requirements with the agency named before you act, and consult qualified professionals for your specific situation.