Do Washington contractors need a city business license?

Short answer: Often, yes. Many Washington cities require a city endorsement or license when you do business inside city limits, including some that apply to contractors based outside the city. For cities on the Department of Revenue list, you add the endorsement to your state business license. For other cities, you apply with the city directly.

Updated October 12, 2026. Requirements and fees change; confirm with the agency named on this page.

Your L&I registration lets you contract anywhere in Washington, but it is not a city license. Cities set their own business licensing rules, and a contractor who works in several cities can owe several of them. This guide explains how the system works and how to check each city before the job starts.

Do you need a state business license first?

Usually, yes. The Department of Revenue says "Register with the Department of Revenue and get a business license if you meet any of the following conditions:" including "Your gross income is $12,000 per year or more." and "Your business requires city endorsements, county endorsements, and state endorsements." Your UBI number comes with that license, and L&I needs it before it will register you. See how to get a contractor license in Washington.

What is a city endorsement?

It is a city business license added to your state business license. The Department of Revenue runs licensing for many cities, and its city endorsements page says "If your business is physically located in, or will travel to the cities listed," "you can apply for their endorsements at the same time you file for your state licenses and registrations." "There are additional fees for each additional endorsement."

Do you need a city license if your shop is in another city?

Often, yes. Contractors travel to the work, and many cities license businesses that work inside city limits, not only ones with an office there. Enumclaw is one example: "The city of Enumclaw requires a license for all businesses located within city limits," and its page goes on to cover a business that "is physically located outside city limits, but conducts business within city limits," with a fee based on income earned inside the city. Thresholds and fees differ from city to city, so read each city's own page.

What about cities that are not on the state list?

Call or check the city. The Department of Revenue says "If you will perform your work in any city not listed below, contact them directly for more information." Some larger cities run their own licensing and taxes.

How do you keep track across many cities?

1. Before you bid, check whether the job site is inside city limits or in unincorporated county.
2. Look the city up on the Department of Revenue city endorsements list.
3. If listed, add the endorsement to your business license. If not, contact the city.
4. Note each city's renewal rules. Confirm with the Department of Revenue or the city whether the endorsement renews with your state business license.
5. Keep a list of the cities you hold, and watch for local business and occupation taxes.

City licensing is separate from building permits. See permits for Washington contractors, and for state tax registration, B&O tax basics.

This guide is general education, not legal advice. Rules and fees change, so confirm the current requirement with the Department of Revenue and the city before you act.

Common questions

Sources

Official pages checked on 2026-10-12.

• dor.wa.gov/open-business/apply-business-license
• dor.wa.gov/manage-business/city-endorsements
• dor.wa.gov/manage-business/city-endorsements/enumclaw