Out of state businesses reporting thresholds and nexus

Updated April 2020

Starting Jan. 1, 2020, a business must register to report B&O tax and collect/submit applicable sales tax, if the business meets any of the following thresholds in the current or prior year:

Has physical presence nexus in Washington.
Has more than $100,000 in combined gross receipts sourced or attributed to Washington.
Is organized or commercially domiciled in Washington.

These thresholds will apply to all Washington income, including retailing, wholesaling, service and other activities, and other apportionable activities.

How to register

To register, file a Business License Application. This application will register your business with the Department of Revenue and other state agencies. You will be issued a Unified Business Identifier (UBI)/Account ID when the application is processed. See our new business information after you have registered.

Many Washington cities and counties have licensing requirements and taxes on business activities. The Business Licensing Service offers more information on licensing requirements for many cities.

The department issues reseller permits to businesses that make wholesale purchases, including qualified contractors. The permits allow businesses to purchase items or services for resale in Washington without paying retail sales tax. For more information, see our Reseller permit page.

You may determine whether an out of state business needs to register with the Washington’s Secretary of State’s office by visiting their website.