Starting a Short-Term Rental in Seattle: $75 STR License, the Two-Unit Cap and the $4 a Night Platform Fee

If you want to rent a room, a basement suite or a second home to visitors in Seattle, you need more than a listing. The city requires a Business License Tax Certificate (BLTC) and a short-term rental (STR) operator regulatory license through the City of Seattle Services Portal. The STR license costs $75 per unit per year, and every listing must display the license number. This guide walks through the sequence, the rules that catch first-time hosts, and what the platform fee means for your records.

This article is informational content, not legal or tax advice. City and state rules can change. Confirm each requirement with the agency named before you spend money or sign a lease.

What You Need Before You Start

Gather these items before you open any application:

• The street address of every unit you plan to rent, and a clear answer to which one is your primary residence.
• Your legal name, plus the name you want guests to see on listings. If that name is not your legal name, you will need a trade name.
• If you form an LLC or corporation, a Washington registered agent with a physical Washington street address and an email address.
• A business bank account and a business email address.
• Proof of liability insurance of at least $1,000,000, or written confirmation from your booking platform that it provides this coverage.
• For a bed-and-breakfast only, your state transient accommodation license number and proof of zoning approval for that use.
• A payment method for the $75 STR license and the state filing fees.

Step-by-Step: Getting Your Seattle Short Term Rental License

Step 1: Decide How Many Units You Will Register

Most short-term rental operators in Seattle may operate two units: the operator's primary residence plus one other unit that the operator does not live in. In practice, that means your home and one additional unit, such as a separate apartment or a condo you own. Special provisions apply to legacy units operated before Sept. 30, 2017, and rented rooms without their own kitchen and bathroom do not count toward the two units, so confirm your situation with the City of Seattle. If you want a larger rental operation, talk with a Washington real estate attorney before you buy additional property, because the STR rules will not cover it.

The primary residence question matters for your second unit. A non-primary unit must also register under the Rental Registration and Inspection Ordinance (RRIO). Confirm with the city how your property is classified before you list it, because that classification determines which paperwork applies.

Step 2: Choose Your Business Structure

Your structure determines whether you file anything with the Washington Secretary of State. Sole proprietors and general partnerships do not file with the Secretary of State. You register through the Department of Revenue’s Business Licensing Service (BLS) and receive a nine-digit Unified Business Identifier (UBI) number.

If you form a limited liability company (LLC), you file a Certificate of Formation with Initial Report through the Corporations and Charities Filing System (CCFS). The filing fee is $180. The LLC name must include “Limited Liability Company,” “Limited Liability Co.,” “L.L.C.,” or “LLC,” and it must be distinguishable from every other business name on record.

An LLC also files an annual report every year for $70. It is due by the last day of the month in which the LLC was originally formed, and you can file it up to 180 days early. A late filing carries a delinquency fee, for a total of $95. Put this date on your calendar the day you form the company.

Every business needs a registered agent in Washington. The agent must have a physical Washington street address. PO Boxes and private mailbox addresses are not accepted. There is no fee to change the registered agent or registered office.

Step 3: Register a Trade Name If You Need One

If you will market your rental under a name other than your legal name, such as “Lakeview Stays,” you register that trade name with BLS. Trade names are not filed with the Secretary of State or the county. The trade name fee is $5 for each name, plus the non-refundable Business License Application processing fee. That processing fee is $50 when you are opening a business and $10 when the filing adds a trade name to an existing business.

Step 4: File the Business License Application With BLS

The state’s Business License Application, handled by the Department of Revenue’s Business Licensing Service, issues your UBI and handles state endorsements and the endorsements of cities that use it. Seattle is not one of those cities: you get the Seattle BLTC separately through FileLocal (filelocal-wa.gov). The state business license is required when, among other triggers, the business has gross income of $12,000 per year or more, sells anything subject to sales tax, or operates under a name other than the owner's full legal name, so confirm with the Department of Revenue whether it applies to your rental.

If you formed an LLC or corporation, complete the Secretary of State filing first, because it must be on record before you submit the Business License Application. Sole proprietors can apply directly.

The processing fee to open a business is $50, plus separate endorsement fees. Confirm current endorsement amounts on the Department of Revenue website before you submit. An online application typically takes about 10 business days, and it can take 2 to 3 weeks longer when city or state endorsements need approval. Mailed applications can take up to six weeks. Plan your opening date around the slowest step.

Step 5: Wait 48 Hours, Then Apply for Your STR Operator License

Once your new BLTC is issued, wait 48 hours before you submit the STR operator regulatory license application. Then apply through the City of Seattle Services Portal, which you can reach from the city’s website. The license costs $75 per unit per year and runs for 12 months. Each unit needs its own license, so two units cost $150 per year in license fees.

Keep the confirmation and the license number in a compliance folder. You will need the number for every listing, and you will renew each year on the same schedule.

Step 6: Register Your Non-Primary Unit Under RRIO

If your second unit is not your primary residence, register it under the Rental Registration and Inspection Ordinance with the Seattle Department of Construction and Inspections. Seattle asks for this registration before you apply for the STR regulatory license, so complete it before the application in Step 5. Treat this as a separate task from the STR license. Having an STR license alone does not satisfy the RRIO requirement for a non-primary unit.

Step 7: Confirm Your Insurance

Washington law (RCW 64.37.050) requires liability coverage of $1,000,000 for a short-term rental, unless the booking platform provides that coverage. Confirm which applies to you before your first booking. Many standard homeowners policies exclude or limit paid lodging activity, so ask your insurer for written confirmation that your policy covers short-term guests. Do not assume that a platform’s coverage matches your own policy terms.

Step 8: Put the License Number on Every Listing

Every listing must display your STR operator license number in the format STR-OPLI-##-######. Copy the number exactly as issued, and include it on each platform and any direct booking page you use. Check each listing after you publish it, and check again whenever you edit the listing or change platforms.

Step 9: Understand the $4 a Night Platform Fee

Platforms pay a $4.00 fee for each night booked, remit it quarterly, and report monthly. The fee is handled at the platform level, so you do not calculate and send it yourself under this structure. For example, a three-night booking generates $12 in platform fees. Ask your platform how it reports this fee, whether it appears on guest invoices, and where you can see your monthly and quarterly reports.

Track your own bookings separately. A short-term rental is defined as a stay of fewer than 30 consecutive nights. Stays of 30 or more consecutive nights fall outside that definition, so confirm with the city how it treats them before you accept those bookings.

Step 10: Address State and Local Taxes

Washington has no personal income tax and no corporate income tax. Instead, the state’s business and occupation (B&O) tax applies to gross receipts. Virtually every business pays it, and it does not allow a deduction for labor, materials or other costs. Rental income may fall into a B&O classification, so confirm with the Department of Revenue which one applies. Many cities levy a separate local B&O tax that the state does not administer, so confirm whether Seattle applies one to your rental income. Check with the Department of Revenue on the state lodging and sales tax treatment of short stays. The state sales tax rate is 6.5%, but how it applies to your bookings is a question to settle with the agency before your first stay.

Step 11: If You Want a Bed-and-Breakfast, Plan Separately

A bed-and-breakfast is not the same as an STR. It requires a state transient accommodation license number plus zoning approval for that use. Do not assume your STR license covers a bed-and-breakfast. Confirm which state agency issues the transient accommodation license, and confirm the zoning requirements with the city before you advertise breakfast service or accept guests.

Tips for a Smoother Launch

• Start with the entity and BLS filings, then build the listing. The license number is required on the listing, so the listing cannot go live until the license is issued.
• Keep a compliance folder with your BLTC, STR license, RRIO registration if applicable, insurance declarations, and a monthly log of nights booked.
• Calendar your deadlines: the STR license renewal, the LLC annual report due by the last day of the formation month, and your B&O filing schedule.
• Ask your insurer for written confirmation of coverage, and keep a copy with your compliance folder.
• Use the platform’s host help pages to confirm how the $4 fee and the license number are shown, so your listing and your records match.

Common Mistakes to Avoid

• Running three or more units. Most operators are limited to two units under the city ordinance, so confirm with the City of Seattle before adding a third.
• Listing before the license is issued. A listing without the STR-OPLI number is out of compliance.
• Skipping the 48-hour wait. Apply for the STR license only after the 48-hour period following your new BLTC.
• Treating the SOS filing as the city license. An LLC still needs the Seattle BLTC and, depending on your situation, the state business license.
• Using a PO Box for the registered agent. The agent needs a physical Washington street address.
• Forgetting RRIO for the second unit. A non-primary unit has its own registration requirement.
• Assuming insurance is covered. Confirm whether you or the platform provides the $1,000,000 in liability coverage.
• Confusing the $4 fee with your license fee. The $4.00 per night fee is paid by the platform, while the $75 license fee is yours.
• Missing the LLC annual report. A late filing adds a delinquency fee, bringing the total to $95.

What to Expect

Most of the time in this process goes to paperwork, not fees. Using the state figures in this guide, a single LLC host with one unit may pay the $180 formation fee, the $70 annual report, the $50 BLS processing fee, endorsement fees, the $75 STR license, and any applicable tax filings. A two-unit host adds a second $75 license and possibly RRIO costs for the non-primary unit. Timing depends on the BLS and endorsement queues, and the 48-hour wait adds a short pause before the STR license application. Ask each agency to confirm its current processing times.

Revenue depends on your market, occupancy, pricing, cleaning, insurance and taxes. Nothing in this guide promises occupancy or income. Many hosts find it useful to model a conservative occupancy rate before they commit to a property.

Official Resources

• Washington Secretary of State, Corporations and Charities Division: https://www.sos.wa.gov/corporations-charities
• Corporations and Charities Filing System (CCFS): https://ccfs.sos.wa.gov/
• Department of Revenue, Business License Application: https://dor.wa.gov/open-business/apply-business-license
• Department of Revenue, trade name registration: https://dor.wa.gov/manage-business/grow-business/register-trade-names
• Washington Department of Revenue: https://dor.wa.gov/
• City of Seattle Services Portal: reach it from the City of Seattle website for the STR operator license. Apply for the Seattle business license tax certificate through FileLocal (filelocal-wa.gov).

Disclaimer

This article is informational content only. It is not legal, tax or insurance advice, and it does not create an attorney-client relationship. Confirm current fees, deadlines and processing times with the agencies named above. For a multi-unit plan, a bed-and-breakfast, an entity choice or a tax question, consult a qualified Washington attorney or certified public accountant before you commit.