Business Occupation Activities Return - Washington State - dor wa 2025

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A corporation or business entity is doing business in Washington state for purposes of RCW 42.17A. 405 if it conducts continuous or substantial activities in Washington state of such character as to give rise to a legal obligation.
The state of Washington defines a small business as any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, and has fewer than fifty employees.
Virtually all businesses in Washington are subject to the state business and occupation (BO) tax. This includes businesses formed as corporations, limited liability companies (LLCs), partnerships, and sole proprietors, whether nonprofit or for profit. The BO tax is calculated on gross income from business activities.
Professional services are generally not taxable in Washington State. However, some services are subject to sales tax. Constructing and decorating real or personal property for others is taxable. As are digital automated services and digital goods.
We consider you to be doing business if you meet any of the following: Engage in any transaction for the purpose of financial gain within California. Are organized or commercially domiciled in California.
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Washington state does not have a personal or corporate income tax. However, people or businesses that engage in business in Washington are subject to business and occupation (BO) and/or public utility tax.

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