When you engage in any activity, including hobbies, for gain, benefit, or advantage (regardless of profit or loss), you are considered a “business” and you may be subject to Washington’s business and occupation (B&O) tax. Because the B&O tax is a gross receipts tax, very few deductions are allowed from the taxable income. Many of the activities associated with the horse industry are taxable business activities. If you are active in the horse industry, you may be required to register if you meet one of the following criteria:
Your gross income from any one or a combination of the activities listed below is $12,000 or more in a calendar year; or
You are engaged in an activity which requires you to collect retail sales tax; or
You are required to pay or collect any other taxes administered by the Department of Revenue.
Independent contractors (persons that are not employees) that engage in business in Washington must register with the Department of Revenue. If you are not sure if you are an independent contractor, please contact us.
If you are conducting business activity, you must register your business with the Department of Revenue. To register, complete a Business License Application. You can also visit our Register My Business section for more information.