How to Start a Real Estate Brokerage in Washington: Broker, Managing Broker and Firm Licenses, $304 Firm Fee and 90 Hours

If you want to run your own real estate firm in Washington, the path has more layers than most new owners expect. Washington has no entry-level license for people who work under a broker. Anyone doing brokerage work needs a broker license, and the firm itself needs a separate firm license from the Department of Licensing (DOL). Behind those sit the business formation filings with the Washington Secretary of State and the statewide business license from the Department of Revenue. This guide walks through the steps in the order most new firms follow them, with the fees and hours as they stand in 2026.

This is informational content, not legal or tax advice. Read the disclaimer at the end of this article before you rely on any step.

What You Need Before You Start

Gather these materials before you file anything. Missing one item is the most common reason a filing stalls.

• A business name that is distinguishable from every other business name on record with the Secretary of State. If it is an LLC, it must include "Limited Liability Company," "Limited Liability Co.," "L.L.C." or "LLC."
• A Washington registered agent with a physical street address in Washington State, a valid email address, and written consent to serve. PO Boxes and private mailbox addresses are not accepted.
• Your 90 hours of broker pre-license education, with completion documentation in hand.
• Funds for each fee: the broker exam ($210), the broker license ($233), the LLC Certificate of Formation ($180), the Business License Application processing fee ($50), and the firm license ($304).
• A federal Employer Identification Number (EIN) from the IRS if your firm will have employees or a multi-member ownership structure. Confirm with your tax advisor whether you need one for your structure.
• A business bank account and a business address for the firm's main office. Your DOL application will ask for the firm's address and principal contact information.

Step 1: Earn Your Broker License

Every person who performs brokerage services in Washington must hold a broker license, and the person who will run the firm must hold at least that license. The broker track requires 90 pre-license education hours, a state exam, and the license application.

1. Complete 90 pre-license hours from a provider that DOL recognizes for real estate education. Confirm the provider's current approval status on the DOL real estate licensing pages before you enroll.
2. Pass the broker exam, which costs $210. Confirm the current exam scheduling process and any eligibility requirements with DOL.
3. Apply for the broker license, which costs $233. Plan for DOL's processing time and confirm the current figure on the DOL fee page before you submit.

A broker license is the minimum for doing brokerage work in Washington. You cannot open a firm on a lower credential, because Washington does not issue one.

Step 2: Plan Your Path to Managing Broker

Many firm owners plan to become managing brokers, which is the license that carries supervisory responsibility over other brokers in the firm. Under current DOL requirements, you need at least 3 of the last 5 years as a full-time licensed real estate professional before you qualify. You also need 90 additional education hours and a $330 fee.

If you are early in your career, start tracking your full-time licensed years now. Keep copies of your broker license history and employment records, because DOL will ask you to document them. Confirm the exact experience documentation and the education requirements with DOL, since these rules change over time.

Step 3: Form Your Business Entity With the Secretary of State

Most firms are formed as limited liability companies. The LLC is formed by filing 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.

Expect the following when you file:

• Name check. Under RCW 23.95.305, your name cannot contain the words bank, banking, banker, trust, or cooperative, or certain combinations of building, savings, loan, home, association, society, industrial and loan. Real estate firms often run into the "home" and "trust" restrictions, so test your name early.
• Processing. The Secretary of State does not publish a standard turnaround for online filings. Filings are handled in the order received. Expedited service costs $100 per entity and is generally processed within three business days.
• Sole proprietors and general partnerships do not file with the Secretary of State. If you operate that way, you still need the state business license and the DOL firm license in Steps 6 and 7.

The Secretary of State's main page is at sos.wa.gov/corporations-charities. Use the Business Search at ccfs.sos.wa.gov to check whether your name is already taken.

Step 4: Name a Registered Agent

Every Washington business must designate a registered agent under RCW 23.95.415. The agent can be a commercial registered agent listed with the Secretary of State or a noncommercial agent such as an owner or employee. The agent must consent to serve and must have a physical Washington street address. Changing the registered agent later carries no fee, so you can switch if your arrangement changes.

Step 5: Reserve Your Name (Optional)

If you need time before filing, you can reserve the name for 180 days for a $30 fee through the Secretary of State. A reservation does not replace the formation filing. It only holds the name while you finish your DOL and bank setup.

Step 6: Register With the Business Licensing Service

After the LLC is formed, file the statewide Business License Application with the Department of Revenue's Business Licensing Service (BLS) at dor.wa.gov. Corporations, LLCs, LLPs and partnerships must file with the Secretary of State before submitting this application. BLS issues your 9-digit Unified Business Identifier (UBI).

Key points for real estate firms:

• Processing fee: $50 to open a business. This fee is non-refundable.
• Timing: 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.
• Trade names: If your firm operates under a name other than its full legal name, register it with BLS for $5 per trade name. Trade names are registered through the Department of Revenue, not the Secretary of State or your county.
• Endorsements: Your city or county may require an endorsement before you open. Confirm which endorsements your location needs with the city or county where the office will be.

Step 7: Apply for the Firm License With DOL

The firm license is the DOL credential that authorizes your company to conduct brokerage services. It costs $304. Your firm must hold this license before it conducts any brokerage activity, and your designated or managing broker must be licensed and tied to the firm.

Several related DOL fees apply as your firm grows:

• Assumed name (DBA) on the DOL license: $304 each. This is separate from the $5 BLS trade name fee in Step 6. Many owners pay both, so check which one your marketing and signage require.
• Branch office: $288 each.
• Designated broker endorsement: no fee. Confirm the endorsement requirements with DOL before you assign a designated broker.

Submit the firm application only after your entity and UBI are in place, since the application asks for that information. Confirm the current submission sequence with DOL.

Step 8: Set Up Your B&O Tax Account

Washington has no corporate income tax and no personal income tax. Instead, your firm pays the state business and occupation (B&O) tax, a gross receipts tax. For real estate brokerage, the rate is 1.5 percent on the gross commission the firm earns. That includes the share paid to brokers and agents who work through your firm. Reference RCW 82.04.255 when you review the classification with your CPA.

Several cities levy their own B&O tax, and about 54 cities do. The Department of Revenue does not administer local B&O taxes, so confirm with your city whether your office location carries one. Your BLS registration in Step 6 sets up the state account. Local obligations are separate.

Step 9: Understand Property Management Rules

Many firms add property management to their services. Washington has no separate property manager license. Under RCW 18.85.011(17)(h), property management is one of the brokerage services your broker license covers. If your firm manages rentals for owners, your broker and firm licenses must cover that work.

Two exemptions matter here:

• HOA and condo managers are exempt from the brokerage licensing requirements under RCW 18.85.151. Confirm the scope of the exemption with DOL or an attorney before you rely on it, especially if your firm does both association and rental management.
• Out-of-state licensees may perform commercial brokerage in Washington only with a Washington designated broker. If your owners or brokers hold licenses in another state, plan for a Washington designated broker before you take commercial listings.

If property management is a large part of your revenue, search for property management license Washington guidance on the DOL site and confirm the requirements for your specific services. Washington's property management work is licensed through the brokerage framework, so a separate property manager application is not part of this process.

Step 10: Plan Renewal and Continuing Education

Broker and managing broker licenses renew every two years and require 30 continuing education (CE) hours under RCW 18.85.211. Late renewal adds a $40 fee for individuals. If your license lapses, reinstatement costs $100 on top of the renewal fee.

Put renewal dates on your calendar when you receive your first license. Firms that miss a renewal often lose the ability to conduct business until the license is restored, which can interrupt closings and client work.

Common Mistakes to Avoid

• Confusing the two trade name fees. The $5 BLS trade name and the $304 DOL assumed name are different filings with different agencies.
• Filing the BLS application before the LLC. BLS requires the Secretary of State filing first for entities, so the application will stall.
• Choosing a name with restricted words. Words such as trust or home can trigger rejection under RCW 23.95.305. Check before you order signage.
• Using a PO Box as the registered agent address. Washington requires a physical street address.
• Assuming property management needs its own license. It falls under the brokerage license, so plan your broker coverage accordingly.
• Forgetting local B&O taxes. The state B&O rate applies statewide, but many cities add their own.
• Counting on expedited speed for everything. Expedited service speeds up the Secretary of State filing, but it does not change DOL or BLS timelines.

What to Expect

Firms that move through these steps in order generally avoid the delays that come from rework, such as a rejected name or a DOL application submitted before the entity exists. Timelines vary with agency workload, city endorsements and the completeness of your paperwork, so treat every date as an estimate and confirm current processing times with each agency. Nothing in this guide guarantees an approval date or a business outcome.

Fee Summary

Item	Agency	Cost
Broker pre-license education	Approved provider	90 hours
Broker exam	DOL	$210
Broker license	DOL	$233
Managing broker (plus 90 hours)	DOL	$330
Designated broker endorsement	DOL	No fee
Certificate of Formation (LLC)	Secretary of State	$180
Expedited service	Secretary of State	$100 per entity
Name reservation (180 days)	Secretary of State	$30
Business License Application	Department of Revenue (BLS)	$50 processing fee
Trade name registration	Department of Revenue (BLS)	$5 per trade name
Firm license	DOL	$304
Assumed name on firm license	DOL	$304 each
Branch office	DOL	$288
Annual report (LLC)	Secretary of State	$70, due by the last day of the formation month each year
Late annual report	Secretary of State	$95 total
Late license renewal (individual)	DOL	$40 added
License reinstatement	DOL	$100 plus renewal

Confirm every figure on the agency pages before you pay. Fees change, and this table reflects the state's published amounts as of 2026.

Where to Get Help

The Washington Small Business Development Center offers free business advising at wsbdc.org. The Department of Revenue's main site at dor.wa.gov covers B&O and licensing questions. For federal help, the SBA's Seattle district office is listed at sba.gov/district/seattle.

Disclaimer: This article is informational content, not legal or tax advice. Real estate licensing, entity formation and tax rules depend on your specific facts and may change. Consult a qualified Washington real estate attorney and a certified public accountant before forming your firm, especially if you have multiple owners, out-of-state licensees, or a mixed brokerage and property management business.