Federal Way city license

Requirements and fees

General business license
Variable

The city of Federal Way requires a license for all businesses located within city limits, or conducting business within city limits. If you are not sure if you will do business within the city limits, contact the city directly before you apply.

License fee is determined by number of employees who work within the city limits of Federal Way.

Method for calculating FTEs

Add up all employees, part-time and full-time, which will give you the number of FTEs. This includes self-employed persons, sole proprietors, owners, managers, and partners.

Origination fee:

Total number of employees

License fee

0 through 10 $81
11 through 25 $126
26 through 50 $251
51 through 100 $1501
101 through 500 $4501
501 or more $9501

Renewal fee:

Total number of employees

License fee

0 through 10 $81
11 through 25 $126
26 through 50 $251
51 through 100 $1501
101 through 500 $4501
501 or more $9501
Nonprofit businesses
$0

If you are a nonprofit business, you may be exempt from city fees. To qualify you must submit a copy of your business’ IRS 501(c) certificate with your application.

Origination fee: $0

Renewal fee: $0

Home business
$51

If your business is in a residence within the city, you must comply with Federal Way Municipal Code 19.270. For more information on home occupation requirements, contact the city directly.

Origination fee: $51

Renewal fee: $51

Non-resident businesses
Variable

If your business is physically located outside city limits, but conducts business within city limits, your license fee is determined by gross annual income earned within this city’s limits:

Origination fee:

Reported gross annual income

License fee

$0 through $2,000 $0
Above $2,000 $81

Renewal fee:

Reported gross annual income

License fee

$0 through $2,000 $0
Above $2,000 $81
Businesses exempt from city licensing

Your business may be exempt from getting a city business license. For more information, please contact the city directly.

Apply for a city license

State tax registration $0
Registering your business name as a trade name $5
Business license application fee Variable

Online

Need help?
Setting up your business licensing and tax account
How to add a city license endorsement


By mail

Complete the following and mail to:

Business License Application and City Addendum

Business Licensing Service
P.O. Box 9034
Olympia, WA 98507-9034