Business Licensing

The City is pleased that you have chosen Lynnwood as the place to operate your business. The State of Washington and Lynnwood Development & Business Services are available to assist you with your business license application. A city business license is required prior to opening a business.  Lynnwood Municipal Code – Title 5 Business Regulations and Licenses

The City of Lynnwood has partnered with the Washington State Department of Revenue, Business License Service (BLS) so you can now apply for your State and City licenses at the same time.  Before you apply for a business license:

  1. Verify that your business is located within City limits on our City boundary map.
  2. Contact our Planning department to verify that your business type is allowed at your business address at 425-670-5410 or planning@lynnwoodwa.gov

Apply for your Business License

Business Licensing Wizard

You may obtain information about any business licensed by the City of Lynnwood by accessing the Washington State Department of Revenue website.  You will need to know the business name or address to search this database.  If you would like to report an unlicensed Lynnwood business, please email businesslicense@lynnwoodwa.gov or call 425-670-5421.

Businesses that are currently not licensed and doing business in Lynnwood will need to apply for a business license with the City of Lynnwood through the Washington Business Licensing Service’s (BLS) one-stop online business licensing portal.  If you would like assistance applying for your business license, you can use the Business Licensing Wizard.  If you would like to fill out the application by hand, you can print out a form here.

The application process takes approximately 8-10 business days if all information and payments are submitted correctly.  If the application indicates any problem areas, the department concerned will contact the business owner and work through questions the City may have.

A City of Lynnwood Business License is required if you are operating a business from your home located within the City limits. The Planning Department will review any land use/zoning issues as part of your license application.  You may contact the Planning Department at 425-670-5410 for more information.

A Washington State Business License is required in addition to your City License. Applications for both are available through the State BLS portal. Helpful information about licensing your business in Washington State is also available on the State of Washington Department of Licensing website.

Depending on the type of business, you may need additional state or local licenses:

 

Be aware that some Lynnwood postal addresses are not within the City limits.  If your business is located outside city limits and no activity or services are provided in city limits, a Lynnwood license may not be required.  Contact the City of Lynnwood at 425-670-5421 or businesslicense@lynnwoodwa.gov prior to applying for a Lynnwood endorsement.  A Snohomish County license may be required for certain businesses located in unincorporated Snohomish County. Snohomish County does not require licenses for all businesses. Check with Snohomish County at 425-388-3371 for licensing requirements. A license from the State of Washington is also required. 

Any retail sales tax generated in Lynnwood needs to be reported to the Washingon State Department of Revenue, under sales tax code #3110.  You can contact the Department of Revenue at 360-705-6705 with any questions related to sales tax reporting. 

The City of Lynnwood does not levy any type of business and occupation taxes. 

The business license fee consists of two parts: a base fee of $125, plus $93 per full-time employee and $48.50 per part-time employee.  Full-time employees are those who work 15 or more hours per week and part-time employees are those who work 14 or less hours per week.   A $90.00 registration fee is paid to the Department of Revenue for new businesses.

Origination fee:

License fee:  $125
Employee fee: 

$48.50 fee per part-time employee (14 or less house per week)

$93.00 fee per full-time employee (15 or more house per week)

 

Renewal fee:

License fee:  $100
Employee fee:   

$48.50 fee per part-time employee (14 or less house per week)

$93.00 fee per full-time employee (15 or more house per week)

 

Special Fees Assessed:

These fees are in addition to any fees assessed by the Department of Revenue and are invoiced separately by the City of Lynnwood.

Late business license application:    15% of total fee  (If renewal is not paid by the due date.)
 Liquor license:    Max. person load capacity     $1.00 per occupant

 


Some entities may claim an exemption from the license fees but registration and annual renewal of information are required. These businesses include:

  • Non-profit organizations with a 501(c)(3). (A copy of the 501(c)(3)is required) 
  • Religious entities (only the core religious functions are exempt)
  • Governmental entities (only activities that are exclusively government related are exempt).

Business licenses are valid for one year from month of issuance. A renewal notice will be mailed approximately 45 days prior to expiration date of the current license. 

Non-resident businesses are businesses based outside City limits who conduct business in Lynnwood, such as contractors.  Non-resident businesses are required to have a business license.  If your gross sales within Lynnwood city limits are less than $2,000 annually, no license is required.

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

 

Short-term resident and non-resident license fee:

Apply for a short-term license directly through the City of Lynnwood by contacting Business Licensing at 425-670-5421 or businesslicense@lynnwoodwa.gov

Short-term License: License Fee:
60 days $40
Technology fee $1

 

 

Certain activities require additional city licenses, including Special Event Permits, Adult Entertainment, Day Spas, Garbage Collection, Panorams, Secondhand Dealers, Pawnbroker, Peddlers and Salesman.  These fees are paid directly to the City of Lynnwood.  Contact City of Lynnwood Business License at 425-670-5421 or businesslicense@lynnwoodwa.gov.