In Washington State, the tax ID number for a business is called the Unified Business Identifier, or UBI, and you get one by submitting a business license application through the Department of Revenue’s Business Licensing Service. The state charges a $50 processing fee, and online applications take roughly 10 business days to process.
What the UBI Is
The UBI is a nine-digit number that registers your business with several Washington state agencies at once, including the Department of Revenue, the Department of Labor & Industries, and the Employment Security Department. You’ll use it every time you file taxes, renew your license, or update your business information with the state. It sometimes goes by other names, including tax registration number and business license number, but they all point to the same nine digits.
The UBI is not the same as a Federal Employer Identification Number (EIN). The EIN comes from the IRS and covers federal tax obligations. Most businesses with employees, and any business set up as a corporation or LLC, need both numbers.
Who Needs a UBI
You need to register for a UBI if any of the following apply:
- Your business has gross income of $12,000 or more per year.
- You sell a product or provide a service that requires collecting sales tax.
- You plan to hire employees within the next 90 days.
- You operate under a trade name (any name other than your full legal name).
- Your business type requires special city or state endorsements.
- You owe any taxes or fees to the Department of Revenue.
If none of those apply, you may not need to register at all. In practice, most businesses that generate revenue in Washington hit at least one trigger.
Out-of-State and Remote Sellers
You don’t have to be physically located in Washington to need a UBI. Out-of-state businesses must register and begin collecting sales tax and paying Business and Occupation (B&O) tax once they exceed $100,000 in combined gross receipts sourced to Washington in the current or prior year. That threshold covers all Washington income, including retail sales, wholesale transactions, and services. Online sellers who ship into Washington often cross the line without realizing it, and the Department of Revenue expects you to register before the next reporting period starts, not after.
What to Gather Before You Apply
The application asks for different information depending on how your business is structured. Getting it together in advance keeps you from abandoning the form partway through.
Sole Proprietorships and General Partnerships
You’ll need the Social Security number or Individual Taxpayer Identification Number (ITIN) and date of birth for every owner or partner, along with your business’s physical location, a description of your activities, and your estimated gross revenues. If you plan to hire, have your Federal EIN ready with expected start dates and the number of hours workers will put in.
LLCs, Corporations, and Limited Liability Partnerships
These structures must file with the Washington Secretary of State before submitting the business license application. The Secretary of State charges $180 to form an LLC or incorporate a profit corporation. Once that filing is complete, the Secretary of State’s office issues a UBI, which you then use on the business license application along with your Federal EIN, physical location, activity description, and employee information.
Nonprofits
If you’re applying for a nonprofit city license, you’ll need to upload a copy of your IRS tax exemption certificate during the application.
How to Apply
Washington handles business license applications through the Business Licensing Service (BLS), which sits inside the Department of Revenue. You can apply online or by mail. Online is much faster.
Start with the Business Licensing Wizard on the Department of Revenue website. It walks you through questions about your structure, location, and activities, then tells you which licenses and endorsements you need. When you’re ready to submit, you’ll create a My DOR account, which you’ll also use later to file taxes and manage your license. Online applications take about 10 business days. If your business needs city or state endorsements, add another two to three weeks for those approvals.
Paper forms are available through the same wizard and get mailed with payment to the Business Licensing Service. Mailed applications can take up to six weeks.
What It Costs
The state charges $50 to open a new business and issue your UBI. That covers state registration only. City endorsement fees vary by location, and some cities add their own license fees on top.
LLCs, corporations, and limited liability partnerships also pay the $180 Secretary of State filing fee before starting the business license application. Real startup cost for those structures is at least $230 in state fees before any city charges.
Annual renewal costs $5 in state processing fees, plus whatever endorsements apply. Renewals are due by the expiration date on your license. Miss it, and the late penalty is half the endorsement fee or up to $150, whichever is less.
After You Receive Your UBI
Once approved, the Department of Revenue sends a letter with your UBI, your account ID, and your assigned tax filing frequency. Put that number on every tax return, deduction detail page, and check you send to the state.
Filing Frequency
How often you file depends on your estimated annual tax liability:
- Monthly if estimated tax liability is over $4,800 per year.
- Quarterly if estimated tax liability is between $1,050 and $4,800 per year.
- Annual if estimated tax liability is under $1,050 per year.
The Department of Revenue assigns your initial frequency based on the revenue estimates you provide at registration, and may adjust it later if your business grows or shrinks.
File Even When You Owe Nothing
You must file your tax returns on time even if you owe zero tax for that period. Skipping a return because nothing is due is one of the most common mistakes new Washington business owners make, and it triggers the same penalties as filing late with a balance.
Late Filing Penalties
Washington’s penalty structure escalates quickly. If you don’t pay by the filing deadline, the Department of Revenue adds a 9% penalty. If you still haven’t paid by the end of the following month, that jumps to 19%. After two months past due, it reaches 29%. The minimum penalty is $5, regardless of the amount owed.
Keeping the License Current
The Business Licensing Service sends a renewal reminder about a month before your license expires. Don’t rely on that alone. Mark the expiration date yourself, because an expired license means you’re operating without one.
Any time your business address, ownership structure, or activities change, update your information through your My DOR account. The state uses your UBI to track you across multiple agencies, so outdated information can cause problems beyond the Department of Revenue, including with Labor & Industries and the Employment Security Department.