Plan Your Business

Getting Started

What business venture are you looking for in Tacoma?

• Starting a Home-Based Business
• Launching A Brick and Mortar Business 
• Find a Location to Fit Your Needs – Continue to Section Below 

Below are common types of business structures, each with its own benefits and restraints. 

• Sole proprietorship
• General Partnership
• Limited Liability Company
• Corporation

For more information about the different business structures you can choose from, please review the Washington Small Business Guide.

Employees!

      A small checklist for reference when it comes time to start hiring your workforce. Beware of the many requirements for your City and State, one of the most important ingredients for your business to succeed is having the right staff, and this entails complexities. Another reference on a starting point on running a business with employed staff: Hiring employees | Washington Department of Revenue

Market Research

        The Washington State Department of Commerce offers access to SizeUp, providing data and analytics you need to see how you stack up with competitors. Run various scenarios on costs, revenue, location, customers and marketing strategies. Click here to see how your business sizes up!

The Tacoma Permit – Tip Sheet is an excellent guide for inquiring on all permitting needs for multiple business outlets

Not sure where to start? That’s what we’re here for. Contact City of Tacoma’s business support team for friendly and experienced guidance.

Available Business Real Estate and Vital Content to Know When Choosing a Space in Tacoma

Finding the right business property and location is a key step in planning your business.

Visit Invest Pierce County to view available properties, be it a retail storefront, restaurant, office or coworking.

Contact us directly for additional assistance with site search and market research.

For your planning information, here are links to the Tacoma Permits permit timeline and fee estimator.

DON’T SIGN A LEASE BEFORE CHECKING ZONING

Check with the City of Tacoma’s Planning and Development Services Department on current zoning, land use, allowable uses and requirements for a particular location. Tacoma Permits – Zoning Map 

Set up a pre-application meeting to check on your plans with the City of Tacoma. Pre-application meetings are intended to provide applicants with the opportunity to present development proposals, discuss applicable codes, ask questions, and determine the requirements for a complete application prior to the actual permit intake process. Permitting – Pre Request Guide

Establishing a Restaurant or Food Service Outlet — Need to Know with Tacoma Permits 

Inspections, Licenses and Certifications are a part of running a business. After the construction phase Tacoma Permits conducts inspections to assure your business is meeting City of Tacoma’s safety standards. Continuous inspections are conducted by various entities depending on your establishment including the City’s Fire Department, Tax and Licensing Department, Tacoma-Pierce County Health Department, WA State Department of Labor & Industries and WA State Liquor and Cannabis Board.

More details on licensing can be found in section below

Certificate of Occupancy

In order for a business to operate in a building, that building must have a certificate of occupancy issued by the City of Tacoma Building Official for the business’s proposed use.  As required by the City’s adopted Building Codes, the certificate of occupancy is issued based on many factors, including proposed occupancy type, occupant load, type of construction of the building, and conformance with all other provisions of the City’s Building Codes.

Licensing

When opening a business in Tacoma one should make sure to be in compliance with State Government, City Government, and the Federal Government.

Please note: All food establishments operating in Pierce County must be licensed or permitted by Tacoma-Pierce County Health Department (TPCHD) unless specifically exempted by code.

The table below list necessary licenses in order to be in compliance with governmental agencies. Additional licenses may be needed depending on the type of business you wish to operate.

State of Washington

Registering Business with the State of Washington (only for Corporations, Limited Liabilities Companies, and Limited Partnerships)

*Skip this step if your business is a sole proprietorship or general partnership.

Corporations & Limited Liability companies need to register with Washington Secretary of State first to obtain a Unified Business Information (UBI) number. After obtaining a UBI from the WA Secretary of State, Corporations, Limited Liabilities Companies, and Limited Partnerships, will need to file the State Business License. Make sure to use the UBI obtained from the WA Secretary of State on the WA Business License Application.

Filing your State Business License

All businesses are required to obtain the Washington State Business License if the business meets one or more of the following criteria:

• Your business grosses $12,000 or more per year.
• You’re doing business using a name other than your full legal name.
• You plan to hire employees within the next 90 days.
• You sell a product or provide a service that is taxable.
• Your business has specialty licenses available through the Business Licensing Service.

To obtain your Washington Business License file the Business License Application.

When you file your Washington Business License Application, be prepared to address the following:

• General business information, including physical location and ownership.
• A rough estimate of your expected gross annual revenues.
• Whether you intend to hire employees within 90 days of start-up (if you check you will hire employees, this will trigger reporting with WA Labor and Industries and the WA Employment Security Department).
• Whether you will want optional workers’ compensation coverage for business owners. If owners don’t opt in, they won’t be covered for on-the-job injuries.

City of Tacoma

Filing your City of Tacoma Business License

Generally, all businesses operating in or soliciting business in the corporate city limits of Tacoma are required to be registered and licensed with Tacoma. You need to register with the City if you are located within the City’s limits, solicit, or conduct business in Tacoma, whether directly or through a representative, or do business with the City of Tacoma through contracts. If you are unsure whether or not your business is required to register, contact the Tax and License Department at (253) 591-5252.

How to Apply

There are three ways to apply for registration and business license:

• By Mail – To apply by mail, download the Application for Registration and Business License form from the City of Tacoma Tax and License site. Complete the form and mail it to the address listed. For Rental businesses, please make sure you are using the Rental Property Owner Guide, available at the page linked above.
• In Person – To apply in person, visit our office at 747 Market St., Room 212, Tacoma, WA 98402-3770. You can complete the applications, pay the license fee and in most cases receive your business license the same day. Please allow 45 to 60 minutes to process a new business license application. Applications received after 4 PM will be accepted, however, may not be processed the same day.
• Online – New businesses can now apply for their City of Tacoma business license online using FileLocal, your one-stop for local business licensing and tax filing. Online user fees apply. Please allow three to five business days to process your application.

Filing your City of Tacoma Home Occupation License

In addition to having obtained a Tacoma Business License, you will need to obtain a Home Occupation License. The Home Occupation license is required to operate your home-based business regardless of the amount of revenue the business generates and whether or not the business is a part-time or full-time enterprise. The Home Occupation license fee is a one-time only fee of $75, as long as you do not change the nature of your business activity. If you change the type of services or goods you are providing for your business, you will be subject to another application and processing fee of $75.

For more information on the Home Occupation License please review this Tip Sheet or contact the Tax and License Department at (253) 591-5252.

Additional City of Tacoma Licenses

Regulatory Licenses

Certain business activities require a Regulatory License in addition to the Tacoma business license. To find out if your business needs an additional license from the City of Tacoma, please contact the Tax and Licensing Division COT web page

Do you plan to have a Rental Business?

Any person who rents or leases out real property within the city limits of Tacoma must obtain a rental business license, please visit the City of Tacoma page here for more details: Rental Business License – City of Tacoma

Federal Government

Apply for a Federal Tax Number with the IRS

You must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) unless your business is a sole proprietorship or one-owner LLC and you won’t have employees.  In that case, you can use your Social Security Number as the business’s federal identification number, although many business owners choose not to for confidentiality reasons. EIN is also known as a Federal Tax Identification Number and you can obtain it the same day if you apply online. There is no charge to file for an EIN with the IRS. It may take up to 5 weeks if you apply by mail.

When filing for your EIN number you will be asked the type of business structure you wish to file under. The IRS doesn’t recognize LLCs as a classification for tax purposes. LLCs default to sole proprietorship taxation if one owner, and partnership taxation if more than one owner. However, LLCs can elect to be treated as standard or S-corporations for federal tax purposes through IRS Form 8832. If you wish to be treated as an S corporation, you must complete Form 2553 – Election by a Small Business Corporation within 75 days of forming your business. Consult your tax professional for further information and advice.