Federal Way city requirements and fees
General business license
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. New businesses must estimate the first year’s employee count.
Full-time equivalent (FTE) employee fee calculation
|Total number of employees||License fee|
|0 through 10||$81|
|11 through 25||$126|
|26 through 50||$251|
|51 through 100||$1,501|
|101 through 500||$4,501|
Home businesses - $51
A business owner who intends to conduct business from a residence within the city must comply with Federal Way Municipal Code 19.270. For more information on home occupation requirements, contact the city directly at 253-835-2526.
General non-resident businesses
License fee for a business operating in this city, but based outside this city, is determined by gross annual income earned within this city’s limits.
Non-resident fee calculation
|Reported gross annual income||License fee|
|$0 through $2,000||$0|
Nonprofit businesses - $0
There are no Federal Way city license fees for nonprofit businesses. To qualify you must submit a copy of your business’ IRS 501(C) certificate with your application.