The city of Vancouver requires a license for all businesses located within city limits, or conducting business within city limits.
To confirm if your business location is within city limits, go to the city limits map or call the city at 360-487-8410 option 3, before applying for a city license.
If you will have more than one business located on a single property, you must complete a separate application for each business.
License fees are determined by a business’s reported gross annual income generated in the city, and by hours worked by its employees engaged in business in the city.
Method for calculating employee number for employee fee calculation
For a new business license, report estimated total employee hours to be worked in city in coming 12 months; and for renewing license holders, report total employee hours worked in city in previous 12 months or 4 quarters. (See definition of “employee” below.) Total hours are then divided by 1,664 hours, and result is rounded to nearest whole number before multiplying it by per employee fee; see examples below. Note: Resulting employee number may exceed business’s employee headcount.
Minimum employee number is one.
Examples
Example 1: 600 hours divided by 1,664 hours equals 0.36, rounded to 1. Example 2: 6,000 hours divided by 1,664 hours equals 3.6, rounded to 4. Example 3: 75,000 hours divided by 1,664 hours equals 45.1, rounded to 45.
“Employee” definition: Pay-rolled employees, self-employed persons, sole proprietors, owners, managers, and partners that work in city limits.
Origination fee:
Reported gross annual income |
License fee |
---|---|
$0 through $2,000 |
$0 |
Above $2,000 through $50,000 |
$51 |
Above $50,000 | $315 license fee + $125 per calculated employee number |
Renewal fee:
Reported gross annual income |
License fee |
---|---|
$0 through $2,000 |
$0 |
Above $2,000 through $50,000 |
$51 |
Above $50,000 | $315 license fee + $125 per calculated employee number |
A business that expects to generate $2,000 or less in annual gross receipts in city limits must hold a city business endorsement but is exempt from paying all city business endorsement fees upon reporting that income amount on the city part of the Business License Application. For questions about this exemption, contact the city at business.licenses@cityofvancouver.us or 360-487-8410 option 3, before applying for this city license.
REFUND PROCESS; CITY FEES ONLY: After applying, if you determine you obtained a city business endorsement in error or paid the incorrect employee fee amount, you may be eligible for a full or partial refund of city license fees. See “How to Request Refund of City Fees” at: cityofvancouver.us/businesslicense or contact the city at business.licenses@cityofvancouver.us or 360-487-8410 option 3.