Business licenses in Washington State

[Guest]

I live in western Washington and I my husband and I are starting a craft and hobby business.  We have applied for our state business license and our federal tax ID.  Do we still need to apply for a business license in the city we live in if we are only doing online sales?  And is a resale license different than either of these?  I also see that you will be having a bead sale in my neck of the woods.  Do I need to have an invitation to it, or can I just show up with my business license?

Thank you for your help!!!

I'm in WW too, and it's my understanding that if you're selling in another town/city/county you may or may not need their license and you may have to adjust the tax rate to suit that location.  You need to check with the powers that be in that area.  The local tax office offers a roving class that's very helpful.  I'd check on getting into one of those whenever you can.

[Polly]

You're right - every town and city is different, and so it's hard to know without contacting City Hall, or your local Chamber of Commerce, or some other local agency or organization.

Here is a page, mostly for Washington state, that offers links to a few helpful sites.
http://www.rings-things.com/WA-TAX.HTM

For the bead shows, either piece of paper works equally well:  an invitation from us, or else a copy of your business license / resale ID.

Thank you for asking!

--Polly

[Polly]

In Washington state, tax laws quietly changed towards the end of last year, and will be changing again on January 1, 2010.

Traditionally, you got your UBI number (that 9-digit number that allows you to do business in Washington state), and then used your UBI number to fill out Resale Certificates at WA-state businesses before making non-taxed purchases of wholesale goods. The Resale Certificates were valid for 4 years from the date you signed it, and were basically your promise that since you weren't paying tax on your purchase, you would collect tax when you sold the goods to the end consumer. At the end of 4 years, you had to fill out a new Resale Certificate or the company that you were buying from would have to charge you tax again.  In August 2008, this law quietly changed.  At the moment, your Resale Certificate is valid forever ... as long as you have "a continuing business relationship" with your vendor.  (This is defined by the Washington Department of Revenue as purchasing at least one time within a 12-month period.)  So, if you last purchased from us approx. 10 months ago, you'll soon see a letter in the mail from us, asking you to order now so you don't have to fill out a new form.

However, that change is only valid through the end of 2009.
Soon, the Department of Revenue will be sending you a Reseller Permit which replaces the old Resale Certificates.  The details aren't all worked out yet.  We'll post here and send a local-area email when WA.DOR.GOV announces the next steps.

In the meantime, here are some helpful links:
Washington State Department of Revenue's FAQ about business licensing
Sellers Permit Page at dor.wa.gov