Starting out

How to start a contracting business in Washington

Get a Washington business license (which gives you a UBI number), buy a contractor bond and liability insurance, then register with L&I as a general or specialty contractor. The bond is $30,000 for general contractors and $15,000 for specialty contractors, and L&I's fee is $150.20.

1. Pick your structure and get a business license

Decide whether you'll trade as a sole proprietor, an LLC or a corporation, and under what name. Then apply for a Washington business license with the Department of Revenue. Online is fastest: the Department says about 10 business days, against up to 6 weeks by mail. The license comes with your UBI number, which every other form asks for.

2. Buy your bond and insurance

L&I won't register you without both. The bond protects your customers if a job goes wrong; you buy it from a surety company and pay a yearly premium, not the full amount.

Bond: $30,000 for a general contractor, $15,000 for a specialty contractor
Liability insurance: $200,000 public liability and $50,000 property damage, or $250,000 combined single limit

3. Register with L&I

Take your application, bond and insurance certificate to a local L&I office, or mail them. The registration fee is $150.20. L&I's public register shows each registration running for two years before it has to be renewed.

Electricians and plumbers need more

Electrical work needs an electrical contractor license from L&I, and plumbing work has to be done by certified plumbers. Both are separate from general contractor registration, so check L&I's electrical and plumbing pages before you take on that work.

Then: get found

The day you're registered, you're on L&I's public list, and so is your phone number. Before the work dries up, set up a Google Business Profile, ask your first customers for reviews, and get a simple website that says what you do and where.

We'll keep your Google profile working. Reviews answered, a post every week and your details kept accurate, as part of Cakewalk. Free until we send you your first new customer enquiry, then $197.50/mo for 6 months, then $395/mo.

See how it works

Questions

How much does it cost to register as a contractor in Washington?

L&I's registration fee is $150.20. On top of that you pay a yearly premium for the bond ($30,000 general or $15,000 specialty) and for liability insurance, plus the business license fee.

Do I need a UBI number to register as a contractor?

Yes. L&I asks you to have your business set up with the Department of Revenue first, and the business license gives you your UBI number.

How long does a Washington contractor registration last?

Two years. L&I's public register shows each registration expiring two years after it takes effect.

Sources

Washington L&I: register as a contractor: “General contractors: $30,000 bond. Specialty contractors: $15,000 bond. Insurance: $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. Fee: $150.20.”
Washington Department of Revenue: apply for a business license: “When you receive your business license, you'll be assigned a Unified Business Identifier (UBI) number.”
Washington L&I contractor register (public data): “Each registration lists the date it took effect and the date it expires, two years later.”

More guides: What it costs to become a contractor in Washington · How to get a contractor's license in California · How to get your first customers as a new contractor · Do I need a website for my new contracting business? · How to get your new business on Google Maps