Operating in more than one city or state? Don’t miss these licensing + tax pitfalls.

A lot of business owners think, “I registered my business - I’m done.” In reality, registration is only one piece. Licensing and local tax reporting can apply as soon as you expand where you work or where you sell.

1) Multi-state reminder: one state registration ≠ all states

When your business is registered in State A, that registration generally supports your activity within that state only. It doesn’t automatically cover operations in other states.

If you expand into State B (new location, employees, projects, inventory, etc.), you may need to register/qualify in that state, too.

And here’s what surprises many businesses: even without a physical location in another state, sales alone can trigger requirements. Many states have sales thresholds (dollar amount and/or transaction count) that can require registration and additional compliance once you cross them.

2) Washington reminder: SOS + IRS + WA DOR still doesn’t replace city licensing

In Washington, even after you register with the Washington Secretary of State, the IRS, and the Washington Department of Revenue, many cities still require a city business license if you:

• have a physical location in the city, and/or

• provide services or make sales within city limits.

  
  

3) City examples (WA): same state, very different rules

Here’s how requirements can differ by city (always confirm for your specific situation):

• Everett

  • City license required

  • Local tax filings required (typically quarterly or annually)

  • Annual license renewal required

• Bellevue

  • City license required (generally obtained once)

  • City tax filings required (typically quarterly or annually)

  • No annual renewal requirement

• Seattle

  • City license required

  • Tax reporting required (typically quarterly or annually)

  • Annual license renewal required

• Redmond

  • City license required

  • No city income reporting requirements

    
    

✅ Bottom line: Every time you plan to expand services or sales into a new city (even for mobile/service businesses), check that city’s rules for licensing, renewals, and local tax reporting before you assume you’re covered.