Do I need to register and pay state taxes?
You are likely an independent contractor if you performed work for a business, individual, or any other organization and you received a 1099-MISC form for your work. As an independent contractor, you are engaged in business in Washington.
You must register with and pay taxes to the Department of Revenue (DOR) if you meet any of the following:
- You are required to collect sales tax.
- Your gross income equals $12,000 or more per year.
- You are required to pay other taxes or fees to DOR.
What taxes do I owe?
Business and Occupation (B&O) tax: Most businesses owe B&O tax on their gross income. The B&O tax rate changes based on the classification. If you don’t know your B&O classification, visit our tax classifications for common business activities web page.
You may qualify for the small business B&O tax credit if your annual B&O tax liability is less than $1,681. Visit our small business B&O tax credit web definition for more information. Also visit our B&O tax web page.
Retail Sales Tax: Generally, you must collect and report retail sales tax on sales of tangible goods, digital products, and certain services defined as retail sales. Visit our webpage on services subject to sales tax for retail service examples. Also visit our retail sales tax and reseller permit web pages.
How do I register?
Use My DOR to apply for a business license.