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Business Licensing

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1. Can I renew my license before December 31, for the following year?

City of Redmond General Business Licenses are no longer on a calendar year renewal cycle and will change to your existing anniversary/renewal date with the State of Washington in an effort to streamline and simplify the application and renewal process for you.

2. What types of businesses need to have a business license?

All entities engaged in business within the Redmond City limits, including those physically located in commercial or in-home locations inside the City limits, those coming inside City limits to perform work, and those who earn money without a physical presence by providing services, such as telecommunications, must obtain a City of Redmond general business license. Washington State Law provides a model definition for “engaging in business” in order to create consistency amongst all Washington State cities who enforce a business licensing program. The complete definition can be found at Redmond Municipal Code 5.04.030.

Businesses Located Outside of Redmond

If your place of business is not located within the City limits, but you or your agents will be physically coming into the City limits to conduct business or to call on clients, you will need a Non-Resident Redmond business license. In addition, those who earn money without physical presence, by providing services such as telecommunications or by receiving rents, need to obtain a Non-Resident Redmond business license.

Washington State Law also requires an established minimum sales/revenue threshold for those coming into the City to conduct business. If your business is located outside of Redmond AND you will gross less than $2,000.00 in Redmond, applying for a Non-Resident Redmond business license is still required but will be exempt from the licensing fee.

3. When there are no employees actually working in the City, how is the fee determined?

If you do not have any employees actually working in the City and do not have a physical location/presence in the City, but are providing services in the City as is the case with telecommunications providers for example, a Non-Resident Business License is required and the minimum license fee of $132.00 in 2023 would apply.

This does not pertain to a City of Redmond Business with a physical location/presence in the City and meeting the definition of "Engaging in Business" as outlined in the Redmond Municipal Code Chapter 5.04.030 - General Business Regulations - Definitions, that has employees telecommuting/working remotely outside of the City. All employee hours worked for that business, including those hours worked remotely and/or from home, must be reported for the purpose of determining the fee per the definition of "Employee".

4. What if my business is located outside of Redmond?

If your place of business is not located within the City limits, but you or your agents will be physically coming into the City limits to conduct business or to call on clients, you will need a Non-Resident Redmond business license. In addition, those who earn money without physical presence, by providing services such as telecommunications or by receiving rents, need to obtain a Non-Resident Redmond business license.

5. What is a home based business?

A home based business allows limited commercial activity within residences providing the business does not interfere with the residential character of the neighborhood through noise, traffic, over-sized vehicles, signs, or safety hazards that may be generated. Complete information on home based business regulations can be found at Redmond Zoning Code 21.08.340. 

Home based businesses must apply/renew their City of Redmond General Business License through the Washington State Business Licensing Service (BLS) portal and select the license type of "home occupation business".

6. What entities are exempt from business licensing requirements?

The following list summarizes the entities that are exempt from licensing requirements. Complete details can be found at Redmond Municipal Code 5.04.130.

• Governmental entities
• Farmer, gardener, or other person who sells, delivers or peddles any farm produce generated by such person in the state
• Residential rental or leasing of four or less units at any one location within the City
• Insurance producer who represents companies or sells insurance to the public and is properly licensed by the state
• Newspaper carriers under the age of 18
• Any person, business, enterprise, firm or corporation which is exempt from licensing or taxing under state or federal law
• Community special events that are sponsored by the City and are open to the public without admission fees
• A seller located outside the City merely delivering goods into the City by means of a common carrier

All nonprofit businesses are required to obtain a business license. Those providing proof of their IRS 501(c)(3) Federal Tax Exemption Status will be exempt from the licensing fee.

7. How soon will I get my license?

General business licenses typically take 14-21 days from application submittal to license issuance provided all state licensing is in place. Review of the license application takes place by multiple City departments to ensure accuracy, compliance with zoning and other municipal codes, and all other requirements are met for the business activity to take place at the specific location. Licenses will be sent to you upon final approval by the Washington State Business Licensing Service (BLS), not the City of Redmond.

In most cases, Non-Resident Redmond Business Licenses (those coming into the City from outside of the City limits to engage in business) are approved in less time as the review process is not as extensive. If you have applied for a business license but have yet to receive it and need to pull a permit, in which a current business license is required, you can print/provide proof of your application confirmation from the Washington State Department of Revenue Business Licensing Service (BLS) website and we will then be able to proceed with Development Services for the permit.

8. How long is the license in effect?

Once your City of Redmond General Business License is aligned with your State anniversary/expiration date, your Redmond license is valid for one year and requires annual renewals on or before your anniversary date.

9. Can I assume the former owner's license?

No, business licenses are nontransferable. A new owner must apply for a new business license.

10. Who can help me confirm the zoning requirements applicable to the location of my business?

If your business is located in a commercial location, please contact the Planner on Call at 425-556-2494 or via email at planneroncall@redmond.gov to confirm zoning requirements applicable for your location. To confirm that the building, space, or suite is an appropriate use for your type of business please contact the Plans Examiner at 425-556-2493 or via email at plansexaminer@redmond.gov.

11. What happens if I move my business to a new location?

All updates/changes to a business’s information, including contact information, mailing address, new business location address, or change in business activities should be processed through the Washington State Business Licensing Service (BLS). 

Please visit www.dor.wa.gov/change to request changes. You may need to file a new business license application to change the physical address of a business.

12. What happens if I add another location within the Redmond City limits?

All updates/changes to a business’s information, including contact information, mailing address, new business location address, or change in business activities should be processed through the Washington State Business Licensing Service (BLS). 

Please visit www.dor.wa.gov/change to request changes. You may need to file a new business license application to change the physical address of a business or add another location.

13. How do businesses determine the license fee?

For new applications, estimate the maximum number of employee hours expected to be worked in the City of Redmond during the upcoming year. Once there is an established year of history in Redmond, the hours and resulting fee should be calculated based on the sum of the four quarterly reports submitted to the Washington State Department of Labor and Industries (L&I) for the previous year.

Businesses that did not file quarterly reports with L&I must determine the number of hours worked within the City and demonstrate, if required, to the satisfaction of the City, that the number of employee hours worked inside the City is correct.

The 2023 minimum license fee is $132.00, which covers up to 1,920 hours worked in the City.

14. What are the funds collected from Business Licensing used for?

57% of the general business license fees collected are earmarked for improvements to the City’s transportation infrastructure that increase/improve overall business access and mobility. To date, the money collected has helped fund many beneficial transportation projects. The balance of collected fees contribute towards maintaining and enhancing the City’s other community defined priorities.

15. When is a business license denied?

In most cases, a business license is denied because of zoning or other code restrictions that conflict with the business activity type and the location’s zoning.  A business license can also be denied because of legal violations or indebtedness to the City.

16. Does the City of Redmond charge quarterly taxes on incomes?

The City of Redmond does not charge a business and occupation (B&O) tax. The City does charge admissions taxes, gambling taxes, and occupational utility taxes on applicable businesses. For more information on City of Redmond taxes, see Taxes and Fees.

17. What are miscellaneous business licenses?

A "miscellaneous" license is also known as a regulatory or temporary license, which is separate from and in addition to a general business license. Regulatory licenses are required for the following business/activity types:

• Adult Entertainment Facilities
• Cabaret Dances
• Carnival, Circus, and Amusement Activities
• Master Event License
• Music Boxes
• Pawnbrokers
• Peddlers, Solicitors, and Canvassers
• Public Bathhouses
• Public Dances and Dance Halls
• Shooting Sports Facilities
• Tow Trucks

Most regulatory/miscellaneous licenses are valid February 1 to January 31 of each calendar year and must be renewed annually. Please reference the specific portion of the Redmond Municipal Code Chapters 5.05 - 5.80 for complete details if you operate one of the business types outlined above.

For peddling, soliciting, and canvassing each person going door to door must obtain a license, submit a copy of their driver’s license, and agree to a background check. The approval process for a Peddler, Solicitor or Canvasser License takes approximately two weeks and an issued license is required prior to going door-to-door. 

If you have any questions or would like a regulatory/miscellaneous license application sent to you please contact the City of Redmond at 425-556-2193 or businesslicense@redmond.gov.

18. What if I'm not able to use the online system?

Paper copy applications are available through the Washington State Business Licensing Service (BLS) website. For a City of Redmond General Business License you will need to complete the standard Business License Application and the City Addendum. 

If you have any additional questions or need assistance with the paper application process please contact the Washington State Department of Revenue Business Licensing Service at bls@dor.gov or (360) 705-6741.

19. Where are the State Business Licensing Service physical locations if I wanted to process in person?

Washington State Business Licensing Service (BLS) has multiple locations throughout the region where you can access services in person. Please visit www.dor.wa.gov/contact-us for information and office locations.

20. I have additional general business licensing questions, where can I find more information?

Please visit the Washington State Business Licensing Service (BLS) FAQ’s for additional information regarding applications, renewals, fees, endorsements, and the overall process, steps, and what to expect.