Linking entrepreneurs and small businesses to Washington state agencies

Not usually; Contact the Department of Labor and Industries to inquire (360-902-6901), review the LNI web page on self-insurance (http://www.lni.wa.gov/ClaimsIns/Insurance/SelfInsure/), and we also recommend reviewing the Employers' Guide to Workers' Compensation Insurance in Washington State (https://www.lni.wa.gov/FormPub/Detail.asp?DocID=1476) and the Employers' Guide to Self-Insurance in Washington State (https://www.lni.wa.gov/FormPub/Detail.asp?DocID=2354)

If an out-of-state business is hiring an employee in Washington state, the business needs to apply for a Washington State Business License (http://bls.dor.wa.gov/file.aspx) as well as set up the Workers Compensation and Unemployment Insurance. The business will also need to report each Washington employee through the New Hire Reporting Program of the Department of Social and Health Services within 20 days of hire unless their company is listed as a multi-state employer (https://www.dshs.wa.gov/esa/division-child-support/new-hire-reporting). The business may also need to register with the Washington state Secretary of State (https://www.sos.wa.gov/corps/faq---do-i-need-to-register-my-business-in-washington-state.aspx).

There is no fee for applying or renewing a Reseller Permit. Recommend visiting: https://apps.oria.wa.gov/permithandbook/permitdetail/202, for information on the Reseller Permit and contacting the Reseller Subject Matter expert at: 360-902-7137 or reseller@dor.wa.gov for additional assistance.

All businesses hiring employees are required to register for workers' compensation and unemployment insurance. Register by completing, or updating, your Business License Application with Business Licensing Services, and checking the boxes to indicate you have, or plan to hire employees (http://bls.dor.wa.gov/file.aspx). After filing your application, the Department of Labor and Industries and the Employment Security Department will send you information about employee quarterly report forms.

No, In Washington state you cannot convert a sole-proprietor businesses into a structured entity (i.e., corporation). You will need to open the corporation as a new business. To do this, you need to complete 3 steps:

1. You first register your new corporation with the Secretary of State's (SOS) Office. You can file online (https://ccfs.sos.wa.gov/#/), the SOS Office will then issue you a new Unified Business Identifier (UBI) for the corporation.
2. Use the new UBI number to create a new business license through the Department of Revenue using the Business Licensing System (https://bls.dor.wa.gov/file.aspx).
3. You will also need to reapply for any applicable specialty, and/or city endorsements (for example, Nursery endorsements). You will probably need to re-apply for all of the licenses you currently have. For example, if you are a building contractor, you will need to reapply for your contractor’s license with the Department of Labor and Industries.

A UBI number is a 9-digit number that registers you with several state agencies and allows you to do business in Washington State. A UBI number is sometimes called a tax registration number, a business registration number, or a business license number. Use the Business License Application to apply for a UBI number.

You need a license if you meet 1 or more of the following criteria:

- Your business grosses $12,000 or more per year.
- You’re doing business using a name other than your full legal name.
- You plan to hire employees within the next 90 days.
- You sell a product or provide a service that is taxable. To find out more about what products or services are taxable, see the Department of Revenue’s Business tax guide (https://dor.wa.gov/sites/default/files/legacy/Docs/Pubs/ExciseTax/BusinessTaxBasics.pdf), or call them at 1-800-647-7706.
- Your business has specialty licenses (https://bls.dor.wa.gov/specialtylicenses.aspx) available through the Business Licensing Service.

If you need to get a business license, file a Business License Application (https://bls.dor.wa.gov/file.aspx).

There is a $19 non-refundable processing fee for the Business License Application. You must also pay different fees associated with the various licenses, registrations, or permits you may need for your particular business. For more information, see the License Fee Sheet (https://bls.dor.wa.gov/forms/700031.pdf).

Sole proprietors who aren’t employers usually don’t have to apply for a Federal Employer Identification Number (EIN). However, all other business types must apply for this registration whether they have employees or not. For more information about who needs an EIN or how to apply, visit the Internal Revenue Service (http://www.irs.gov/businesses/small/article/0,,id=98350,00.html).

L&I; enforces the state's minimum wage law. A voter-approved initiative (I-1433) passed in 2016 raising the minimum wage to $11.00 per hour in 2017 and continues to increase the minimum wage to $11.50 in 2018, $12.00 in 2019, $13.50 in 2020. Starting in the year 2021, the initiative requires a cost-of-living increase for Washington's minimum wage each year. See more about minimum wage (https://www.lni.wa.gov/WorkplaceRights/Wages/Minimum/default.asp).

The paid sick leave law and all applicable rules go into effect on January 1, 2018.

Yes. Almost all employers must provide paid sick leave to their employees, unless the employer only has workers who are exempt from Chapter 49.46 RCW – Minimum Wage Act, which includes the paid sick leave requirements.

Liability Insurance is not required as a general rule; however, it is recommended for a sole-proprietorship because it does not provide the same protection against lawsuits as a Corporation or Limited Liability Company. One exception to this rule is if you are registered as a general or specialty contractor with the Department of Labor and Industries (http://lni.wa.gov/TradesLicensing/Contractors/HowReg/Register.asp). We recommend using the Business Licensing Wizard located at: http://bls.dor.wa.gov/licensing.aspx, to determine if there are any other business types which require liability insurance.

For information on business insurance, visit: https://www.insurance.wa.gov/business-insurance