Washington contractor guide
Last updated: October 2, 2026
Starting a contracting business in Washington is more than a normal business-license task. Construction contractors generally register with the Department of Labor & Industries (L&I), and the path changes for general contractors, specialty contractors, handymen, and separately licensed trades such as electrical and plumbing.
This guide covers the Washington-specific stack: classification, bond, insurance, L&I registration, construction taxes, employees, local licensing, and project permits.
Bottom line
If your business constructs, remodels, repairs, improves, moves, wrecks, or demolishes real property in Washington, first check whether Chapter 18.27 RCW defines you as a contractor. Covered contractors generally must register with L&I before advertising, bidding, or performing the work.
The ordinary registration path requires a Washington business registration and UBI, a qualifying bond or assigned savings, liability insurance, the L&I application, and a $150.20 fee. Registration lasts two years unless suspended or revoked. Separate trade licenses, construction tax rules, city business licenses, and project permits may still apply.
Quick start: check these in order
- Define the work. List the trades you will perform, whether you supervise the whole job, and whether you use subcontractors.
- Choose the classification. Match the work to general contractor registration or one of Washington’s specialty classifications.
- Set up the business. Use the DOR Business License Application to obtain the business registration and UBI. Form an LLC or corporation with the Secretary of State first when required.
- Get bond and insurance. Use the amount for your classification and make the business name match all records.
- File with L&I. Use the current Application for Construction Contractor Registration.
- Check regulated trades. Electrical, plumbing, and some other work need separate credentials.
- Check each city and project address. Local general business licenses, zoning, building, fire, right-of-way, and other permits can remain.
- Set up tax and employer accounts. Construction tax treatment depends on the type of job; hiring adds workers’ compensation and unemployment steps.
For Washington’s broader business-license system, see BLG’s Washington business license guide. This page focuses on contractor-specific rules.
Washington contractor decision table
| Decision | Government layer | Action |
|---|---|---|
| Am I a contractor? | State / L&I | Check Chapter 18.27 RCW. |
| General, specialty, or handyman? | State / L&I | Match the actual scope to the statutory and WAC classifications. |
| Business registration and UBI? | DOR / Secretary of State | Set up the business before contractor registration. |
| Bond and liability insurance? | L&I | Use the amount for the contractor classification. |
| Electrical or plumbing work? | L&I trade programs | Use the separate contractor-license path. |
| City business license? | City / DOR BLS | Check where you are based and where you perform work. |
| Building or trade permit? | City or county | Use the permit authority for the project address. |
| Sales tax and B&O? | DOR | Classify the construction activity before reporting. |
| Employees or subcontractors? | DOR / L&I / ESD | Open employer accounts and verify subcontractors. |
General, specialty, and handyman classifications
Washington does not treat every contractor the same. Classification affects scope, use of subcontractors, and the required bond.
General contractor
RCW 18.27.010 generally defines a general contractor as one whose business uses more than one building trade or craft on a job, or who superintends or consults on covered contractor work. L&I says general contractors can perform most construction work and hire subcontractors in multiple specialties. General registration does not replace a separate trade license when another law applies.
Specialty contractor
A specialty contractor works within a defined specialty rather than as a general contractor. WAC 296-200A-016 lists 63 specialties, including roofing, painting, landscaping, excavation, tree removal, siding, HVAC/R, and others. State law says a specialty contractor may subcontract only work incidental to that specialty.
Handyman is a specific specialty, not a blanket exemption
Washington’s handyman specialty is limited to minor and casual maintenance or repair of existing residential property. The handyman must personally do the work without employees or other specialty contractors; total time and materials must be under $2,000; and the specialty cannot cover work requiring a building permit. Electrical or plumbing credentials can still be required.
Exemptions are narrow and fact-specific
RCW 18.27.090 contains exemptions from Chapter 18.27, but they depend on the person, property, and activity. Do not assume a small dollar job, side job, or owner-builder situation automatically creates an exemption. The handyman rule is a registered specialty, not a general exemption from contractor registration. If you plan to rely on an exemption, read the exact statutory language and make sure the facts fit before advertising or bidding the work.
Ordinary contractor registration is not an exam-based license
L&I’s current Chapter 18.27 registration checklist focuses on the Washington business registration, bond or assigned savings, liability insurance, application, and fee. It does not list a general-contractor examination or experience test for ordinary general or specialty registration. That changes when the work falls under a separately licensed trade, where Washington may require a designated qualified person, certification, examination, or other credentials.
Choose by work, not by business name
“Handyman,” “remodeler,” or “general contractor” in a business name does not decide the legal classification. Match the registration to the services you actually sell and how the job is performed.
How to register with Washington L&I
The official L&I registration page requires DOR business registration, financial security, liability insurance, the application, and the fee.
1. Get the business registration and UBI
The current contractor application requires a UBI and an open DOR excise tax account. LLCs, corporations, and other entities that must register with the Secretary of State do that first. A business license, entity filing, or trade name does not replace contractor registration; BLG’s business license vs LLC vs DBA vs seller’s permit guide explains the difference.
2. Get the bond or assigned savings and liability insurance
General contractors need a $30,000 continuous contractor surety bond; specialty contractors need $15,000. An approved assigned savings account can be used instead. L&I requires either $200,000 public liability plus $50,000 property damage coverage, or a $250,000 combined single-limit policy. Use the exact registered business name on the required documents.
3. Complete the current application
Use Form F625-001-000. The July 2026 form requires listed principals to complete the affidavit information, and signatures must be notarized. L&I’s instructions for mailed applications require original signatures and required original documents. Do not reuse an old application without checking the current form.
4. Confirm the registration is active
Under RCW 18.27.020, covered unregistered contractors may not advertise, offer or bid to do covered work, submit bids, or perform the work. After activation, confirm the business in L&I’s Verify tool.
5. Use the registration number in advertising
RCW 18.27.100 requires the current registration number on covered advertising that shows the contractor’s name or address. L&I specifically identifies internet ads, estimates, bids, and business cards as common examples.
Bond, insurance, fee, renewal, and customer disclosure
| Item | Current rule |
|---|---|
| General contractor bond | $30,000 |
| Specialty contractor bond | $15,000 |
| Liability insurance | $200,000 public liability + $50,000 property damage, or $250,000 combined single limit |
| Issuance / renewal / reregistration | $150.20 |
| Registration term | Two years unless suspended or revoked |
The fee is in WAC 296-200A-900; bond amounts are in RCW 18.27.040. The bond amount is not the same as the premium a bonding company charges you. Bond or insurance problems can suspend the registration.
L&I also requires the Disclosure Statement Notice to Customers for residential jobs of $1,000 or more and commercial projects from $1,000 through $60,000. Build that disclosure into your contract workflow.
Electrical, plumbing, and other regulated trades
Basic Chapter 18.27 contractor registration does not authorize every trade.
Electrical: L&I requires an electrical contractor license. Current requirements include a valid UBI, a $4,000 electrical/telecommunications contractor bond or assigned savings, and a designated certified electrical administrator or master electrician. Electrical workers also need the appropriate certifications.
Plumbing: Washington has a separate plumbing contractor license. A general contractor may solicit a bid from a licensed plumbing contractor, but a general contractor that wants to perform plumbing work must also meet the plumbing contractor requirements.
L&I also identifies additional rules for activities such as elevators, mobile-home installation, boilers, asbestos, and lead-related work. Check the exact trade before offering it.
What cities and counties can still require
RCW 18.27.130 makes Washington’s contractor registration, licensing, bond, and contractor-registration fee framework exclusive. Local governments generally cannot impose a duplicate contractor registration, license, bond, or fee for the same or a similar purpose.
That does not erase local rules. The same law preserves city authority to impose a general nondiscriminatory business-license fee or gross-business tax. Local governments also control many project permits and land-use approvals.
Use DOR’s city endorsements directory to check cities where the business is located or travels for jobs. Cities not in the state system may license directly. For each project address, check building, demolition, mechanical, fire, sign, right-of-way, or other permits that match the work. Under RCW 18.27.110, a city, town, or county issuing a construction building permit for covered work must verify the contractor’s state registration.
A home-based contractor may also face local zoning or home-occupation rules for vehicles, storage, employees, customer visits, noise, or signs. See BLG’s home occupation permit guide. BLG’s License & Permit Pathfinder can help organize the location questions.
Construction taxes, reseller permits, and employees
Washington construction tax treatment depends on the job. DOR separates custom prime contracting, subcontracting, speculative building, federal government contracting, public road construction, and other categories.
For ordinary custom construction where the prime contractor is hired by the landowner, DOR says gross receipts are generally reported under the Retailing B&O classification and are subject to retail sales tax unless an exemption applies. Retail construction services are sourced to the jobsite for local sales-tax purposes.
Subcontracting can be different. DOR’s contractor reseller-permit guidance explains when qualified contractors can buy materials or contract labor for resale without paying retail sales tax at purchase. Contractor reseller permits are valid for two years. They are not a blanket exemption for tools, equipment, rentals, or supplies consumed in the work. Use DOR’s Construction Industry Guide to classify the project before invoicing.
If you hire employees, the Business License Application can register the employer for workers’ compensation with L&I and unemployment insurance with the Employment Security Department. Start with DOR’s Hiring employees page. When hiring subcontractors, use L&I’s Verify tool to check active contractor registration and workers’ compensation status where applicable.
Public works adds another compliance layer
If you bid or perform Washington public works, ordinary contractor registration is only one part of the job. Prevailing-wage and public-works filing rules can also apply. Use L&I’s Public Works — Contractors and Employers resources before bidding a public project.
Important Washington contractor changes in 2026
Registration fees increased July 1, 2026
Washington adopted new L&I fees effective July 1, 2026. The issuance, renewal, and reregistration fee became $150.20, up from $141.10 under the prior rule. Use the current WAC and application rather than an older saved form.
Homeowner Recovery Program payments began July 1, 2026
Beginning July 1, eligible homeowners with qualifying unsatisfied judgments against registered contractors can apply for payments from Washington’s Homeowner Recovery Program, subject to the statute and available funds. The 2026 rules also address contractor reimbursement after the fund pays a claim. WAC 296-200A-9135 states that a covered final judgment must be satisfied, including interest owed to L&I, before contractor-registration reinstatement.
Common mistakes
- Confusing the DOR business license with L&I contractor registration.
- Choosing a specialty registration while selling multi-trade general-contracting work.
- Assuming small handyman jobs are automatically exempt.
- Using general contractor registration for electrical or plumbing work.
- Letting bond or insurance coverage lapse and trigger suspension.
- Leaving the contractor registration number off covered advertising or bids.
- Ignoring city business licensing or project permits because contractor registration is statewide.
- Using a reseller permit for tools or supplies the business consumes.
- Hiring a subcontractor without verifying registration and workers’ compensation status.
Washington contractor checklist
- Define every trade and service you will sell.
- Choose general contractor or the correct specialty.
- Confirm the handyman limits if that is your planned specialty.
- Complete required entity filing and get the DOR business registration and UBI.
- Obtain the correct bond or assigned savings and liability insurance.
- File the current notarized L&I application and required original documents.
- Confirm active registration before advertising, bidding, or performing covered work.
- Use the contractor registration number in covered advertising.
- Give the customer disclosure statement when the project meets state thresholds.
- Check separate electrical, plumbing, or other trade licensing.
- Check city business licenses and project permits for the exact location.
- Classify construction jobs correctly for DOR tax and reseller-permit treatment.
- If hiring, open employer accounts and verify subcontractors.
- Calendar the two-year renewal and keep bond and insurance current.
What to ask the agencies
L&I registration script
Hello. I plan to offer [exact construction work] in Washington. I will [work alone / use employees / hire subcontractors]. Can you confirm whether I should register as a general contractor or a specific specialty, and whether any separate trade license or certification applies?
City or county script
Hello. I am a Washington-registered [general / specialty] contractor based at [address] and plan to work at [project address]. Which general business license, zoning approval, building or trade permit, right-of-way approval, or other local requirement applies to my business and this project?
If a local office says “contractor license,” ask for the exact license name and code section. A general local business license or project permit is different from a duplicate state-style contractor registration.
What if the process does not work?
If L&I cannot activate the registration, compare the exact business name and UBI across DOR, the application, bond, and insurance. Confirm the DOR tax account is open and the current form, notarization, principals, and original-document requirements were completed.
If a city requests a contractor credential that appears to duplicate state registration or bonding, ask whether it is actually a general business license, city tax, or project permit. Use RCW 18.27.130 as the starting point and ask for the local code section.
Official Washington resources
- L&I — Register as a Contractor
- L&I — Contractor Registration Application
- L&I — Verify a Contractor, Tradesperson or Business
- Washington Legislature — Chapter 18.27 RCW
- Washington rules — specialty classifications
- Washington rules — contractor fees
- Washington DOR — Business License Application
- Washington DOR — City endorsements
- Washington DOR — Construction Industry Guide
- Washington DOR — Reseller permits for contractors
- L&I — Electrical licensing
- L&I — Plumbing contractor licensing
- L&I — Contractor laws, rules, and rulemaking
- Washington Legislature — Homeowner Recovery Program
About BLG
BusinessLicenseGuide.com is an independent plain-English information resource. It is not a government agency, law firm, CPA firm, or filing service. Our goal is to help business owners identify the right government layer, official source, and next action.
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FAQ
Do I need a contractor license in Washington?
Washington generally uses L&I contractor registration for ordinary construction contractors under Chapter 18.27 RCW. Covered contractors must be registered before advertising, bidding, or performing work unless a specific exemption applies. Electrical, plumbing, and some other trades have separate licensing rules.
What is the difference between a general and specialty contractor?
A general contractor generally uses more than one building trade on a job or superintends covered construction work. A specialty contractor works within a defined specialty. Washington has 63 specialty classifications, and the classification affects scope and bond requirements.
Can I work as a handyman without contractor registration?
Do not assume so. Washington has a handyman contractor specialty for minor, casual maintenance or repair of existing residential property under $2,000 total for time and materials. The handyman must personally perform the work without employees or other specialty contractors, and the specialty cannot cover work requiring a building permit.
Does Washington require a general contractor exam?
L&I’s current Chapter 18.27 registration checklist requires business registration, bond or assigned savings, liability insurance, the application, and the fee; it does not list a general-contractor exam. Separately licensed trades can have different qualification rules.
Can a general contractor perform electrical or plumbing work?
Not on general contractor registration alone. Electrical contracting and plumbing contracting have separate L&I licensing requirements, and the people performing regulated trade work must hold the required credentials.
Do I still need a city business license after L&I registration?
Possibly. State law generally blocks duplicate local contractor registration or bonding, but cities can still impose general business licenses or gross-business taxes. Local zoning, building, fire, right-of-way, and project permits can also apply.
How often does Washington contractor registration renew?
Contractor registration is valid for two years unless suspended or revoked. As of October 2, 2026, issuance, renewal, or reregistration costs $150.20. Keep the bond, insurance, business information, and registration status current.
Update note
Last updated: October 2, 2026
Next review: December 31, 2026
Checked against current L&I contractor registration rules and forms, classifications, bond and insurance requirements, state-local preemption, DOR construction tax guidance, local licensing, separate electrical and plumbing paths, employer steps, and the 2026 Homeowner Recovery Program rules.
Disclaimer
This guide is for general information only. Contractor registration, trade licensing, taxes, zoning, permits, bond, and insurance rules can change and depend on the exact work and location. Confirm current requirements with the responsible agency before you advertise, bid, sign a contract, pay a fee, or begin work.