Out of state businesses reporting thresholds and nexus

Updated April 2020

Starting Jan. 1, 2020, a business must register to report B&O tax and collect/submit applicable sales tax, if the business meets any of the following thresholds in the current or prior year:

• Has physical presence nexus in Washington.
• Has more than $100,000 in combined gross receipts sourced or attributed to Washington.
• Is organized or commercially domiciled in Washington.

These thresholds will apply to all Washington income, including retailing, wholesaling, service and other activities, and other apportionable activities.

How to register  

If your business is a corporation, limited liability company, or limited liability partnership, first contact the Corporations Division of the Secretary of State at 360-725-0377.

To register, file a Business License Application. This application will register your business with the Department of Revenue and other state agencies. You will be issued a Unified Business Identifier (UBI)/Account ID  when the application is processed. See our new business information after you have registered.

Many Washington cities and counties have licensing requirements and taxes on business activities. The Business Licensing Service offers more information on licensing requirements for many cities.

The department issues reseller permits to businesses that make wholesale purchases, including qualified contractors. The permits allow businesses to purchase items or services for resale in Washington without paying retail sales tax. For more information, see our Reseller permit page.

Nexus for past periods

Washington’s nexus criteria have changed over the years. For an overview of the changes, see our summary chart of nexus and registration criteria.

2019

July - December

Change: Election and use tax notice and reporting eliminated​

March 14 - June

Change: 200 transaction threshold and click-through nexus eliminated​

January - March 13

2018

October - December

Change: Wayfair​

January - September

Change: Election and use tax notice and reporting​

2017

July - December

January - June

2016

January - December

2015

September - December

Change: Economic nexus for wholesaling & click-through nexus​

January - August

2014 - 2011

January - December

2010

June - December

Change: Economic nexus for service and apportionable activities​

January - May

2009 and prior

January - December

Change: Physical presence only​