In Washington State, most businesses are required to renew their business license annually through the Washington Department of Revenue (DOR). This renewal ensures that your business information stays up-to-date and that your business remains compliant with state regulations.

Even if your business made no income or hasn't been active, you're still responsible for filing the renewal if your business is registered with the state.

Who Needs to Renew Their Business License?

You must renew your Washington business license if:

• You registered for a Washington State Business License (UBI) through the DOR.
• You have active city or state endorsements (like a Lacey or Olympia business license).
• You are required to pay B&O taxes, sales tax, or excise taxes.
• Your business operates under a trade name (DBA).
• You sell products or provide services that require special licenses like food service or construction.

How Much Does the Renewal Cost?

The base renewal fee is $10 per year, but additional fees apply if you hold:

• City endorsements (fees vary by city, typically $25–$100)
• Specialty licenses (like liquor or cigarette licenses)
• Additional business locations

The DOR will notify you 30–45 days before your renewal due date through your MyDOR account.

How to Renew

1. Log into your MyDOR account at dor.wa.gov.
2. Select your business license renewal under your "To Do" list.
3. Update any business information (like address changes or new ownership).
4. Pay the renewal fee online.

Does This Affect My Taxes?

The business license renewal itself does not impact your taxes directly, but failing to renew your license on time can cause bigger tax problems down the road. Here's how:

• If your license lapses, you won’t be able to legally report and pay Washington State Excise Tax (including B&O or sales tax).
• Operating with an expired license could lead to penalties and interest on unpaid taxes.
• Some city business licenses automatically renew along with your state license — if your license expires, your local business license could be suspended too.

What Happens If I Don’t Renew?

If you miss your renewal deadline:

• The DOR charges a $10 late fee.
• Your business could be placed in inactive status, which means you're no longer authorized to operate.
• You'll still be required to file your Excise Tax Return — even if no business activity occurred.

If your business is inactive for more than 24 months, the DOR may automatically cancel your business registration.

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