Starting a Business
What Is a UBI Number and How Do I Get a Washington Business License?
3 min read
If you're starting a business in Washington, you'll hear two terms right away: UBI number and business license. They're related, but they aren't the same thing.
What is a UBI number?
UBI stands for Unified Business Identifier. It's a nine-digit number that identifies your business with Washington State agencies, including the Department of Revenue, the Secretary of State, the Employment Security Department and Labor & Industries. One business, one UBI, used across all state agencies.
You get a UBI in one of two ways:
- If you form an LLC or corporation, the Secretary of State assigns a UBI when your entity is created.
- If you're a sole proprietor, you receive a UBI when you apply for your Washington business license.
Do I need a Washington business license?
Most businesses operating in Washington need a state business license, which you apply for through the Department of Revenue's Business Licensing Service (BLS). There are some exceptions for very small businesses with low income that don't need other state registrations, but if you have a trade name, collect sales tax, hire employees or need a city endorsement, you'll need the license.
Applying for the license also does important behind-the-scenes work: it registers you with the Department of Revenue for B&O tax and sales tax and, if you're hiring, with the agencies that handle unemployment insurance and workers' compensation.
City and county endorsements
Many Washington cities require their own business license or "endorsement." You can often add these through the same Business Licensing Service application, though some cities (Seattle is one) handle their own licensing. If you work in several cities, for example as a contractor or cleaner, you may need endorsements for each city where you meet certain thresholds. Check each city's rules.
Specialty licenses
Some industries need additional licenses or registrations. Common examples include:
- Contractors (registration with Labor & Industries)
- Food businesses (health department permits)
- Cosmetology, real estate, child care and other licensed professions
How long does it take?
Online applications are usually processed within a couple of weeks. Do this before you start taking customers so you aren't operating unlicensed.
Renewals
Your Washington business license has a renewal date, and city endorsements typically renew with it. Missing a renewal can lead to late fees and an expired license. Watch for renewal notices and keep your contact email current.
Quick reference
| Item | Who issues it | What it's for |
|---|---|---|
| UBI number | Washington State | Your business ID with state agencies |
| Business license | Dept. of Revenue (BLS) | Permission to operate; tax registrations |
| City endorsement | Your city | Local permission to operate |
| EIN | IRS | Federal tax ID |
The bottom line
Your UBI number and business license are the foundation of your state compliance. Get them in place before you open for business, and keep your renewal dates on the calendar.
Need help getting this right? TRIG Bookkeeping & Tax Services helps new business owners in Washington with company registration, monthly and annual bookkeeping, and government compliance. Contact us to talk about your business.
This article is general information, not legal or tax advice for your situation. Tax rules and fees change, so confirm current details with the IRS, the Washington Department of Revenue, or a qualified professional.