How to Start a Winery in Washington: Domestic Winery License $150 or $600, Four Extra Tasting Rooms and 100 Cases a Month to Retailers

If you want to start a winery business in Washington, the domestic winery license from the Liquor and Cannabis Board (LCB) is the permit that controls almost everything you will do: making wine, selling it at your production site, opening tasting rooms, distributing to retailers and shipping to customers. The license itself is inexpensive compared with most alcohol permits. The real work is in the sequence: forming your business, getting your state and city registrations in order, confirming your site can host a winery, and then filing with the LCB.

Disclaimer: This article is informational content, not legal or tax advice. Liquor licensing, federal permits and tax treatment depend on your specific facts. Consult a qualified attorney and a certified public accountant (CPA) before you commit money to a lease, equipment or production.

What You Need Before You Start

Gather these items before you file anything. Missing information is the most common reason applications stall.

• Your business legal name and two or three backup names, checked against the Secretary of State business search
• A Washington registered agent with a physical street address in Washington State, a consent to serve and an email address (PO Boxes and private mailbox addresses are not accepted)
• A federal Employer Identification Number (EIN) from the IRS
• The physical address of your production site and written confirmation from the city or county that winery use is allowed there
• A production estimate in liters, because the LCB license fee depends on how many liters you manufacture
• A written plan for tasting rooms, retail sales, carrier deliveries to retailers and direct shipping
• A list of staff who will pour or sell, since they will need server permits
• A bank account in the business name and liability insurance (confirm coverage requirements with your insurer)

Step 1: Form Your Business Entity

Most wineries operate as a limited liability company (LLC) or a corporation. You file the formation document through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov.

For an LLC, the filing is a Certificate of Formation with Initial Report. The filing fee is $180. Your 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, and it cannot contain bank, banking, banker, trust, cooperative, or any combination of industrial and loan, or of two or more of building, savings, loan, home, association and society. Under RCW 23.95.305, those rules apply to the name you choose.

If you need time to finalize branding, you can reserve a name for 180 days for $30 through the Secretary of State Corporations and Charities Division. A corporation files Articles of Incorporation with Initial Report for the same $180 fee.

Every domestic entity must also designate and maintain a registered agent in Washington under RCW 23.95.405. Changing the registered agent or registered office carries no fee. The Secretary of State does not publish a standard turnaround for online filings, but expedited service is $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 are testing the market as a sole proprietor, know that you give up the liability separation an LLC provides.

Step 2: Get Your State Business License and UBI

Washington uses one statewide application for most business registrations. The Business License Application goes through the Department of Revenue's Business Licensing Service (BLS), and it issues your 9-digit Unified Business Identifier (UBI). A winery needs this license because it will have sales-taxable sales, gross income above $12,000 a year, and probably city endorsements. Corporations, LLCs and partnerships must file with the Secretary of State before submitting the BLS application, so complete Step 1 first.

The processing fee to open a business is $50, plus separate endorsement fees for city, county or state endorsements. Online applications generally take about 10 business days. Add two to three weeks if city or state endorsements need approval. Mailed applications can take up to six weeks, so file online if you can.

If you will sell under a name other than your full legal name, such as a tasting room brand, you must register a trade name. Trade names cost $5 each and are filed with the Department of Revenue through the Business License Application, not with the Secretary of State or your county. Details are at dor.wa.gov, and the online application is at dor.wa.gov/open-business/apply-business-license.

Step 3: Confirm Zoning and Local Permits

Washington has 39 counties and 281 incorporated places, which means your production site may fall under a city, a county or both. Do this check before you sign a lease or buy equipment. Call the planning department and ask three specific questions:

1. Is winery production a permitted use in this zone, or does it need a conditional or special use permit?
2. Are tasting rooms allowed at the production site, and what are the parking and hours rules?
3. Which health district permits apply to your production and any food service you add?

Many cities also levy a local business and occupation (B&O) tax that the Department of Revenue does not administer. About 54 cities do so, so confirm whether yours is one of them.

Step 4: Apply for the Domestic Winery License

The domestic winery license is issued by the LCB under RCW 66.24.170. The annual fee depends on your production volume, measured in liters manufactured:

Annual liters manufactured	Annual license fee
Under 250,000 liters	$150
250,000 liters or more	$600

These fees were raised on July 27, 2025. Because the fee is based on liters manufactured, estimate your first-year volume honestly. Confirm with the LCB whether any application, background check or other one-time charges apply, and what the review timeline is, because those items are not part of this article's verified fee figures.

Cider is made under the winery license, so if you plan to produce cider, include it in your liter estimate and application.

You will also need federal approval from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before you produce wine for sale. Confirm the TTB requirements and timing before you begin production, since the federal process runs separately from the state filings.

Step 5: Plan Your Tasting Rooms and Retail Footprint

A domestic winery can retail and distribute its own wine. You can also open up to four additional tasting or retail locations away from your production sites. Each one must be approved by the LCB. Staff who pour or sell at those locations need class 12 or 13 server permits.

If you plan to sell at farmers markets, a farmers market endorsement costs $112.50 a year. That endorsement does not count toward your four locations. The market itself applies for a sampling endorsement, so coordinate with the market manager early.

Step 6: Set Up Distribution to Retailers

A winery may use a common carrier to deliver its own wine to licensed Washington retailers, up to 100 cases a month in total. That limit covers all retailers combined, and only your wine counts toward it. Build a monthly case tracker from your first shipment, not after you reach the limit. Ask the LCB how it defines a case for this purpose and what records it expects you to keep.

Step 7: Set Up Direct Shipping to Customers

A domestic winery may ship wine to Washington residents who are 21 or older, for personal use, under RCW 66.20.360. You must report those shipments to the LCB by the 20th of each month under RCW 66.20.380. Missing that report is a compliance problem you can avoid with a calendar reminder and a simple monthly log. If you ship wine made by another producer, you need a separate wine shipper's permit, so do not mix those activities without checking first.

Step 8: Register for Taxes and Employer Obligations

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 more than 50 activity classifications and no deduction for labor, materials or other costs. Your winery's rate classification depends on how you earn revenue, such as production, wholesale, retail or tasting room sales, so have your CPA classify each revenue stream.

Retail sales are subject to the state sales tax rate of 6.5%, plus any local rate that applies where the sale happens. Confirm the combined rate at the tasting room address with the Department of Revenue at dor.wa.gov.

If you hire employees, check with the Employment Security Department on unemployment insurance registration and with the Department of Labor and Industries (L&I) on workers' compensation coverage before your first payroll. The BLS application asks whether you plan to hire within 90 days, so answer it accurately.

Tips for Getting It Right

• Measure liters carefully. The fee tier changes at 250,000 liters, so track production from the first batch, and do not guess at year end.
• Get zoning in writing. A verbal okay from a staff member is not enough when a lease or loan depends on it.
• Build your tasting room list early. Each additional location needs LCB approval, so add them to your application plan rather than planning them after you open.
• Train your servers before opening. Staff need class 12 or 13 server permits before they pour, so schedule that work into your opening timeline.
• Use a calendar for recurring deadlines. Track the annual report, the monthly shipping report due on the 20th and your annual LCB license renewal.

Common Mistakes to Avoid

• Using a PO Box for the registered agent. Washington requires a physical street address in the state, and PO Boxes and private mailbox addresses are not accepted.
• Skipping the name search. A name that is too close to an existing filing can be rejected, so check the business search before you pay for a reservation.
• Missing the annual report. The LLC or corporation annual report costs $70 and is due by the last day of the month in which the entity was formed each year. A late filing carries a delinquency fee, for a total of $95.
• Treating the 100-case limit as a monthly average. The limit applies per month in total, so plan your carrier shipments accordingly.
• Shipping other producers' wine under your winery license. Direct shipping under RCW 66.20.360 covers your own wine, so keep product sources separate.
• Assuming a city permit covers the state. The LCB, BLS and your city or county each issue separate approvals.

What Results to Expect

Results depend on your product, location, pricing, staffing and how well you sell. Many new wineries find that tasting room sales and direct shipping are the first revenue channels they use, but no one can guarantee sales volume. A winery that uses its four additional locations and its monthly retailer allowance may be able to reach more customers than one that relies on a single site. Treat these as planning assumptions to test, not promises, and build a budget that works even if your first-year sales are slower than you expect.

Make sure your marketing describes your wine accurately and avoids health or medical claims. Keep product descriptions factual, such as tasting notes, origin and production methods, and check any claim you are unsure about with a qualified attorney.

Where to Get Help

The Washington Small Business Development Center (SBDC) offers free and low-cost advising for new businesses at wsbdc.org. It is a practical place to review your business plan, cash flow and sequence of filings before you spend money on a lease or equipment.

For complex situations, such as multiple production sites, outside investors, a mix of winery and non-winery products, or an unclear zoning answer, hire a qualified attorney for legal questions and a CPA for tax questions. The LCB, the Department of Revenue and your city or county planning office can confirm current fees and requirements for your situation.

Disclaimer: This article is informational content, not legal or tax advice. Fees, timelines and rules change, so confirm every figure with the agency that administers it before you file.