If you are starting a home-based business, you will need to be aware of any restrictions on the operation of your business, and any licenses or permits that will be required—whether you are baking pies, washing cars, babysitting children, grooming dogs, or providing counseling services. Some of the common sources and types of these restrictions, licenses, and permits are: (1) local zoning laws—including for signs for your business; (2) restrictions from your HOA (homeowners’ association), property deed, or residential lease agreement; (3) tax permit (sales and use tax) or resale/reseller’s certificate; (4) occupational license; (5) city or county business license; and (6) health and safety permit.
In Washington State, starting a home-based business requires compliance with various regulations. Local zoning laws may restrict the type of business activities you can conduct in a residential area, including the placement and size of signs. Homeowners' associations (HOAs), property deeds, or lease agreements may also impose additional restrictions. A tax permit is necessary if you are selling goods or services subject to sales tax, and a resale certificate is needed for purchasing products for resale without paying sales tax. Depending on the nature of your business, an occupational license may be required for certain professions. Additionally, you will likely need a city or county business license to operate legally. If your business involves food preparation, childcare, or other activities that could affect health and safety, you may also need to obtain relevant permits. It's important to check with local government offices, such as the city or county clerk, and the Washington State Department of Revenue, to ensure you have all the necessary documentation to legally operate your home-based business.