Last verified: June 1, 2026. Fees, thresholds, and filing rules change; before you file, confirm every number against the official links in this guide — City of Tacoma Tax & License, the Washington Department of Revenue, and business.wa.gov are the authorities of record.
Opening a business in Tacoma is a two-government job. You register once with Washington State to get your business license and UBI number, and you register again with the City of Tacoma so you can operate inside the city limits and file local taxes. Get the sequence right and the whole thing takes a couple of weeks; get it backwards and you spend a month untangling it. Here is how it actually works in Tacoma and Pierce County.
Starting a business in Tacoma at a glance
- Register with the state first. File the Washington State Business License Application through My DOR to receive your business license and nine-digit UBI (Unified Business Identifier) number.
- The state processing fee is $50 to open the first location of a new business or UBI, plus any endorsement or trade-name fees that apply to your filing. Confirm current amounts on the DOR variable processing fees page.
- Get a City of Tacoma business license if you operate or solicit business inside the city limits, or rent real property to others — apply through the City of Tacoma Tax & License office via the FileLocal portal.
- Out-of-city businesses earning less than $4,000 of annual gross income in Tacoma (the threshold raised under the model-ordinance update effective in 2026) generally do not need a city license — verify the current threshold with Tacoma Tax & License.
- Plan for the city B&O tax, a gross-receipts tax filed quarterly on the City Taxes page.
- Free expert help exists. The Washington SBDC, Tacoma-Pierce County Chamber, and SCORE all advise local founders at no cost.
Step 1: Register with Washington State and get your UBI
Everything starts with the state. The Washington Business License Application registers you with several agencies at once and issues your UBI number — sometimes called a tax registration number or business registration number. You will use that UBI on nearly every form that follows, including your City of Tacoma application.
Apply online through My DOR at dor.wa.gov or start at the statewide front door, business.wa.gov. The processing fee to open the first location of a brand-new business or to reopen a UBI with no active locations is $50; you add separate fees for any city, county, or state endorsements and for registering a trade name. Online applications typically take about 10 business days to process; mailed applications can take longer. After approval you will receive your business license and a separate letter from the Department of Revenue confirming your UBI and your tax filing frequency. Because fees and timelines are periodically adjusted, confirm both on the DOR variable processing fees page and the Business Licensing FAQ before you pay.
If you are forming an LLC or corporation rather than a sole proprietorship, you will also register your entity with the Washington Secretary of State before or alongside the license application — the business.wa.gov hub walks you through which order applies to your structure.
Step 2: Get your City of Tacoma business license
State registration alone does not let you operate inside Tacoma. The city requires its own license for, in the city’s words, “any business that is operating or soliciting business in the corporate City limits or any person renting real property to others.” That includes home-based businesses and out-of-area contractors who do work inside Tacoma.
There is a meaningful exception for outside businesses: if your company is located outside Tacoma and generates less than $4,000 in annual gross income within the city (the threshold raised from $2,000 under the model-ordinance update effective in 2026), you generally do not need to register — unless your activity requires a regulatory license, collects admission tax, or remits a city utility tax. The city license fee is tiered by your annual gross income; current tiers are published on the Business Licensing page.
You apply online through FileLocal, the shared portal Tacoma uses for local licensing and tax filing, linked from the city’s Tax & License site. The city reports that mailed applications can take up to about 15 business days to process, while an in-person application at the counter can be handled in roughly an hour — confirm current timing before you rely on it. Questions go to the City of Tacoma Tax & License office at (253) 591-5252 or taxinfo@tacoma.gov; the office is at 747 Market Street, Room 212, Tacoma, WA 98402.
Step 3: Understand Tacoma’s B&O tax
Tacoma, like many Washington cities, levies a local Business & Occupation (B&O) tax — a tax on your gross receipts, not on profit. That distinction surprises first-time owners: you can owe B&O even in a year with no net income. The rate depends on how your activity is classified. Per the Association of Washington Cities rate table (effective January 1, 2026), Tacoma’s published rates are approximately:
- Retailing — about 0.00153
- Wholesaling — about 0.00102
- Manufacturing — about 0.0011
- Service & other activities — about 0.004
Tacoma applies a reporting threshold of $250,000 in companywide annual gross income — below it, many businesses report but owe no city B&O. Because these rates and the threshold are exactly the kind of figure cities revise, treat the numbers above as orientation and confirm the live, authoritative rates and threshold on the City of Tacoma City Taxes page before you file. City B&O returns are generally filed quarterly through FileLocal. Note that the city B&O is separate from the Washington State B&O tax you file with DOR — most Tacoma businesses file both.
Step 4: Tap free local resources and the business community
Tacoma has an unusually deep bench of free help, and using it early is the difference between guessing and knowing. A few anchors:
- Washington SBDC (Small Business Development Center) — no-fee, confidential advising for Pierce County founders, with advisors hosted locally including at Bates Technical College. Book through wsbdc.org.
- SCORE (South Sound/Tacoma) — SBA-supported volunteer mentors offering free counseling, templates, and workshops; reach the local chapter at tacoma.score.org.
- Tacoma-Pierce County Chamber of Commerce — networking, advocacy, and a member directory at 950 Pacific Avenue, Suite 300, Tacoma, WA 98402, (253) 627-2175. See tacomachamber.org.
- Pierce County & City economic development — county-level startup guidance lives at Pierce County’s Start a Business page, and the city points founders to local partners through its economic development team.
For appointment-based advising, have your numbers ready: a basic plan, any sales history, and your UBI. Advisors do their best work when you arrive with specifics, not a blank page.
Frequently asked questions
Do I need both a state and a City of Tacoma business license?
In almost every case, yes. You first register with Washington State through the Business License Application to get your UBI number, then obtain a separate City of Tacoma license to operate inside the city limits. The two are different registrations with different agencies. Confirm your specific obligations with Tacoma Tax & License.
How much does it cost to register a business in Washington and Tacoma?
The state Business License Application carries a $50 processing fee to open the first location of a new business or UBI, plus any endorsement or trade-name fees that apply to your filing. The City of Tacoma license fee is tiered by your annual gross income. Because these amounts change, verify current figures on the DOR variable processing fees page and the City of Tacoma licensing page.
What is a UBI number and how do I get one?
A UBI (Unified Business Identifier) is a nine-digit number that registers you with multiple Washington agencies and lets you legally do business in the state. You receive it after filing the Washington State Business License Application through My DOR at dor.wa.gov. Online applications generally process in about 10 business days.
What is Tacoma’s B&O tax and who has to pay it?
The B&O tax is a tax on gross business receipts — not profit — charged at rates that vary by activity classification (retailing, wholesaling, manufacturing, services). Tacoma applies a reporting threshold of $250,000 in companywide annual gross income, below which many businesses report but owe nothing. Confirm the current rates and threshold on the City of Tacoma City Taxes page.
Where can I get free help starting a business in Tacoma?
Several organizations advise local founders at no cost: the Washington SBDC (no-fee advising, including advisors at Bates Technical College), SCORE (SBA-supported mentoring, South Sound/Tacoma chapter), and the Tacoma-Pierce County Chamber of Commerce. Pierce County also maintains startup guidance at its Start a Business page.
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