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Washington - B&O (Business & Occupation) Tax
Washington - B&O (Business & Occupation) Tax
Updated over a week ago

Overview

Washington has the Washington B&O Tax, which is based on gross income from business activities. Washington LLC's can file the Washington Combined Excise Tax Return (which includes both Washington B&O Tax and Sales Tax) electronically after applying for a WA business license and registering with the Washington Department of Revenue (DOR).

This resource gives a nice breakdown of how Washington B&O tax is calculated.

Collective members based in Washington need to file the Washington Combined Excise Tax Return even if you have no business activity to report for the assigned period (monthly, quarterly, or annually). Your filing frequency will be assigned to your business when you register with the DOR.

Member Responsibility

Collective does not support members with Washington B&O Tax or Sales Tax. As a member at Collective with a Washington State LLC, you are responsible for:

  • This is a combined process ; when applying for a WA business license, you will also register with the Washington Department of Revenue and be issued a Unified Business Identifier (UBI)

(b) calculating B&O (Business and Occupation) tax owed and filing the tax returns

(c) Upload a copy of the tax return showing the breakdown of the tax you paid (i.e. the total amount paid, and the sales tax portion, if any) to your Collective member dashboard. See an example of the return below:

What Collective Will Do

Make sure to pay your Washington B&O tax from your company checking account. Collective will categorize this transaction in your books as "Taxes and Licenses." If your payment for B&O tax includes a payment for sales tax, a copy of the return should be uploaded so our accounting team can allocate the taxes correctly. You can upload the tax return to your member dashboard using the "Upload Documents" feature found under the "Documents" tab.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.

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