Washington Contractor Registration: L&I Fee $150.20, $30,000 or $15,000 Bond and 63 Specialties
Washington Contractor Registration: L&I Fee $150.20, $30,000 or $15,000 Bond and 63 Specialties
If you build, remodel, or repair property for other people in Washington, you must register with the Department of Labor and Industries (L&I) before you bid, advertise, or start work. Most people search for a Washington contractor license, and that term is fine to use, but Washington does not license contractors the way some states do. There is no exam, no experience requirement, and no education requirement. You register, pay a fee, post a surety bond, and carry liability insurance. This guide covers the registration steps, the numbers you need, and the other state and local registrations that usually come with a contracting business.
This article is informational content, not legal or tax advice. Talk with a qualified attorney or CPA before you choose a business structure, set up your insurance, or make decisions about liability on a specific project.
Registration at a Glance
| Requirement | Washington Figure |
|---|---|
| Registration application fee | $150.20 (RCW 18.27.060) |
| Certificate validity | 2 years |
| Surety bond, general contractor | $30,000 |
| Surety bond, specialty contractor | $15,000 (since July 1, 2024, RCW 18.27.040) |
| Liability insurance | $200,000 public liability and $50,000 property damage, or a $250,000 combined single limit, with L&I as certificate holder |
| Specialties regulated by L&I | 63 |
| State business number | 9-digit Unified Business Identifier (UBI) from the Department of Revenue |
| Workers' compensation | Required if you have employees |
Who Must Register
Under RCW 18.27.020, it is a gross misdemeanor to advertise, bid on, or work as an unregistered contractor. Advertising includes a website, a truck with your company name on it, a yard sign, or a written bid you give a homeowner. Registration is required whether you are a general contractor or a specialty contractor.
The statute includes a casual-work exemption for jobs under $500, but it has a catch. If you advertise as a contractor, you lose that exemption under RCW 18.27.090(9). Do not assume a small job is safe to take without registering if you market yourself as a contractor. Confirm your situation with L&I or an attorney before you take side work.
Step 1: Get Your UBI and State Business License
Washington's general state business license is issued by the Business Licensing Service (BLS), part of the Department of Revenue (DOR). One application through BLS gives you your UBI, registers any trade names, and requests state and city endorsements. The processing fee is $50 to open a business, plus separate endorsement fees. Online applications take about 10 business days. Add two to three weeks when city or state endorsements need approval. Mailed applications can take up to six weeks.
You need a state business license if any of these apply: you need city, county, or state endorsements; 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 a tax or fee to DOR. Contracting businesses almost always meet at least one of these conditions.
Order matters. Corporations, LLCs, and LLPs must file with the Secretary of State before you submit the Business License Application. Sole proprietors and general partnerships do not file with the Secretary of State at all. They go straight to BLS.
Step 2: Set Up Workers' Compensation if You Have Employees
If you have employees, you need a workers' compensation account with L&I. Ask L&I how subcontractors affect your obligations before you hire any, because the rules depend on how you use labor on each job. Do not treat subcontracting as a way to avoid the account without checking first.
Step 3: Post a Surety Bond
The bond is $30,000 for general contractors and $15,000 for specialty contractors under RCW 18.27.040. These amounts took effect on July 1, 2024, so older articles or forms may show different numbers. You buy the bond from a surety company. You pay a premium to the surety, not the full bond amount. Premium cost depends on your credit and the surety you use, so get more than one quote.
The bond protects homeowners and others who have claims against you. The Homeowner Recovery Program can pay an owner-occupant who holds an unsatisfied judgment against a contractor, paying up to $25,000 per parcel from the bond. A claim on your bond can affect your ability to get future bonds, so keep your jobs clean and your paperwork complete.
Step 4: Buy Liability Insurance
You must carry either $200,000 in public liability coverage and $50,000 in property damage coverage, or a $250,000 combined single limit. L&I must be listed as the certificate holder. A policy alone does not satisfy the requirement. Ask your insurance agent for a certificate of insurance that names L&I, and confirm the exact certificate format with L&I before you submit your application.
Step 5: Choose Your Specialties
L&I regulates 63 specialties. Your registration lists the work you perform, so review the full list on the L&I site and select the classifications that match your actual work. Do not register for a narrow scope and then take jobs outside it.
Because the bond amount depends on whether you register as a general or a specialty contractor, confirm with L&I which designation fits your business before you buy a bond. Getting this wrong means buying the wrong bond and possibly redoing the application.
Step 6: Apply and Pay the $150.20 Fee
Submit your registration application to L&I and pay the $150.20 application fee under RCW 18.27.060. Your certificate is valid for 2 years, so put the renewal date on your calendar the day you receive it. This guide does not state an L&I processing time, so check the contractor registration page before you schedule paid work or sign customer contracts that depend on your start date.
Electrical and Plumbing Need Separate Licenses
A contractor registration does not cover electrical or plumbing work. Those trades require their own L&I licenses, and each requires passing an exam. If a project includes electrical or plumbing work, the person doing that work must hold the correct license. Build that into your bids and your subcontractor list.
Residential Jobs of $1,000 or More
For residential jobs of $1,000 or more, RCW 18.27.114 requires a written disclosure statement. Put it in your contract template before you sign your first residential job, and do not wait until a homeowner asks for it.
Local Licenses, B&O Tax and Permits
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. It has more than 50 activity classifications and does not allow a deduction for labor, materials, or other costs. Because labor and materials are not deductible, contractors often find the B&O tax is a larger cost than they expected, so build it into your pricing from the start.
Many cities add their own B&O tax. About 54 cities levy one, and DOR does not administer local B&O taxes. Check with each city where you work. Washington has 39 counties and 281 incorporated places (cities and towns), and many of them also require their own business license, permit, or inspection for construction work. Your city or county building department and business licensing office can tell you what applies to your project.
Trade Names
If your business operates under a name other than your legal name, register that trade name through BLS. Do not register it with the Secretary of State or your county. The trade name fee is $5 for each trade name. The Business License Application processing fee also applies: $50 to open or reopen a business, or $10 when the filing is for another purpose, such as adding a trade name to an existing business.
If You Form an LLC or Corporation
Many contractors form an LLC or corporation for liability and tax reasons. The Secretary of State filing fee is $180. An LLC files a Certificate of Formation with Initial Report through the Corporations and Charities Filing System (CCFS). A corporation files Articles of Incorporation with Initial Report. The name must include Limited Liability Company, Limited Liability Co., L.L.C., or LLC for an LLC, and it must be distinguishable from every other business name on record.
Every entity needs a registered agent in Washington. The agent must have a physical street address in Washington and an email address, and must consent to serve. PO Boxes and private mailbox addresses are not accepted. There is no fee to change the registered agent or registered office. The annual report costs $70 and is due by the last day of the month in which you formed or registered the entity. A late filing adds a delinquency fee, for a total of $95. If you want to hold a name while you prepare your filing, a name reservation costs $30 and lasts 180 days.
Quick Checklist
- Decide whether you will operate as a sole proprietor, LLC, or corporation, and file with the Secretary of State if needed.
- Apply for your UBI and any trade names through BLS.
- Open a workers' compensation account if you will have employees.
- Buy a $30,000 general or $15,000 specialty surety bond.
- Obtain liability insurance with L&I as certificate holder.
- Choose your specialties from the 63 L&I classifications.
- Submit your L&I registration and pay the $150.20 fee.
- Check local business license, B&O, and permit requirements in each city and county where you work.
- Calendar your 2-year certificate renewal.
Official Resources
- Department of Labor and Industries contractor registration: https://lni.wa.gov/
- 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/
- Business Licensing Service application: https://dor.wa.gov/open-business/apply-business-license
- Washington Department of Revenue: https://dor.wa.gov/
- Washington Small Business Development Center: https://wsbdc.org/
When to Get Professional Help
A single-trade contractor with no employees and no local complications can often handle registration alone. Get help from a qualified attorney or CPA if you plan to hire employees, work across several cities, combine trades, take on large commercial jobs, or form a new entity. A registered professional can also review your contracts, insurance, and liability exposure against your specific projects. The Washington Small Business Development Center offers free or low-cost advising for small businesses, and its advisors can help you prepare before you meet with a professional.