Small Business Finance & Tax
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Date: March 20, 2025
π©βπ« Presenter: Diana Villegas, Department of Revenue (DOR)
Overview
On March 20, 2025, we hosted an insightful βSmall Business Finance & Taxβ workshop in collaboration with the Washington State Department of Revenue (DOR) and the Filipino Community of Seattle. The session provided critical guidance on business licensing and tax obligations, empowering attendees with actionable knowledge for compliance and success. Here are the key takeaways:
Business Licensing Essentials
- Businesses must register ifΒ Gross income exceedingΒ 12,000Β (Washingtonβbased) orΒ 100,000 (out-of-state).
- Requirements to collect retail sales tax, pay other taxes/fees, or obtain city/state endorsements.
- DORβs Licensing Wizard (dor.wa.gov/licenseswizard) simplifies the process by generating a customized list of required licenses and permits based on business activities, structure, and location.
Trade Name Registration
- Trade names (DBA) must be registered if they differ from the legal business name.
- Tools to verify name availability:
- DOR Business Lookup
- Secretary of State Corporations Registration Data Search
- U.S. Patent and Trademark Office (for federal trademarks).
- Cost: $5 + application fee (no renewal required; cancellation is free).
Business & Occupation (B&O) Tax:
- Applies to gross income, with rates varying by classification (e.g., 0.471% for retailing, 0.484% for wholesaling).
- Service businesses: 1.5%Β (income <Β 1M) orΒ 1.75 (income >Β 1M)
- Retail Sales Tax: 6.5% state rate + local variations.
- Use Tax: Similar rates, applicable for out-of-state purchases used in Washington.
- Reseller Permits: Allow tax-exempt purchases for inventory resale but exclude items like office supplies.
Pro Tips
- Secure Access Washington (SAW): Create an account (dor.wa.gov) to manage licenses, file returns, and access DOR services efficiently.
- Timely Compliance: Avoid penalties by filing taxes on time and selecting the correct B&O classification.
- Additional Permits: Check for city/county requirements (e.g., health permits, contractor licenses).
Need Help?
Contact DOR:
- Business Licensing: 360-705-6741
- Tax Assistance: 360-705-6705
- Live Chat/Secure Messaging: Available viaΒ DORβs website.
Thank you to all who attended! For further questions, reach out to our team or explore DORβs resources directly. Letβs keep building thriving, compliant businesses!
