Lynnwood | Washington Department of Revenue

Requirements and fees

General business license

Variable

The city of Lynnwood 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.

If you will have more than one business located on a single property, you must complete a separate application for each business.

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

Method for calculating employees

Count the number of part-time and full-time employees separately and multiply each number by their respective fees.

Employee definition: Any individual person employed at any business enterprise who performs any part of his duties within the city, except casual laborers not employed in the usual course of business. A sole proprietor is not an "employee." All officers, agents, dealers, franchises, etc., of a corporation or business trust, and all but one partner of partnership (except limited partners), are "employees" within the definition.

Origination fee:

License fee:	$125
Employee fee:	$48.50 fee per part-time employee (14 or less hours per week) $93.00 fee per full-time employee (15 or more hours per week)

Renewal fee:

License fee:	$100
Employee fee:	$48.50 fee per part-time employee (14 or less hours per week) $93.00 fee per full-time employee (15 or more hours per week)

Nonprofit businesses

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 businesses

$30

If your business is in a residence within the city, you must comply with Lynnwood Municipal Code 5.06.090. For more information on home occupation requirements, contact the city directly.

Origination fee: $30

Renewal fee: $30

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	No license required
Above $2,000	$125

Renewal fee:

Reported gross annual income	License fee
$0 through $2,000	No license required
Above $2,000	$100

Fee-exempt license

Businesses may be exempt from the city licensing fee if they comply with Lynnwood Municipal Code 5.04.050. The business will apply for a General Business license; the city will review the application to determine if your location qualifies for a Fee-exempt license. It will be up to the city to refund any extra general business fees upon approval.

Businesses exempt from city licensing

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