• For Retail + Combo Businesses ~ How To Make Your Annual Report To The City Of Seattle (For B&O Taxes)
Hello + Note from July 2, 2018: The state has a new portal, which looks a little different. I'm hoping to add screenshots of the new one sometime soon. Meanwhile, this post will still give you a good idea of the process. Thanks for your patience!
Does your work include: retail, retail-service, wholesale, manufacturing, or royalties. Or a combination?
Then this post is for you!
If your business is NON-retail SERVICE only, click here to see a different walkthrough.
Due: April 30
Time Required: 2 - 8 minutes to file
Frustration Factor: If you use the SELF Portal, 3 out of 10. If you use the FileLocal, 6 out of 10.
Cost/Taxes Due: If you earned under $100K (gross sales), then you will not pay any taxes to Seattle. To read about tax rates for over $100K with Seattle, click here.
Type of Tax: B&O (business and occupation)
With: City of Seattle
Use: Seattle SELF Portal (Recommended).........or FileLocal-wa.gov.
If you need help, call the city at: 206.684.8484
Summary
1. Log in to Seattle SELF Portal or FileLocal-wa.gov
2. Find that business categories that apply to you: retail, wholesale, service, printing, manufacturing
3. Fill in total sales for each category
4. Hit next until the end, confirm
5. If you earned over $100K in total gross sales, complete the payment screens
One Note: The state collects sales tax for Seattle. So if you have to submit sales tax, you'll do that through the WA state DOR, Department of Revenue.
Some Screenshots below.
How to Prepare - If You are NEW to This :)
Reporting to Seattle is very similar to reporting to the WA state DOR. I recommend preparing for both at once. Everyone's situation is a little different, so it's hard to give estimates or exact instructions.
Here's what I recommend:
1. Schedule some prep time on your calendar in the next week
2. Schedule a 20 - 40 minute block for tax filing, during the weekday, with a plan to call the city if needed (they will walk you through this). This is includes buffer time.
3. Print out the Ready, Set, File - Seattle!
4. During your prep time, fill out as many numbers as you can on the worksheet
5. On your scheduled day, give it a try. If you have to call the city, be prepared to wait...have something fun to do while on hold.
The directions say to choose the last month of the period you're filing for.
With Annual Reports, choose December of the last year.
It took a few seconds for these drop down menus to work. Choose "Seattle B&O tax form" and your Main branch. (Or whatever you named it.)
Fill in each box relevant to your business.
The total sales in each category, NOT including any sales tax that you collected.
This is a second view of the same screen. Note, this symbol means a (confusing) worksheet is about to pop up.
It includes boxes for Royalties and NON-Retail Services
Some questions. Note: you are NOT an employee. You are the business owner.
Royalty information~ enter in the box circled in Orange.
Non-Retail Services, enter in two places.
1. Line 1 for Worldwide Gross Service Receipts. (Worldwide!!!)
2. Line 7 for Seattle Service Receipts
If you did all your work in Seattle, these should be the same.
Notice, the form will fill in some numbers for you.....
A shot after this screen is filled in. You can only change the numbers in White.
This example shows gross sales + taxes in three categories.
Note, no tax is due............because this person earned under $100K.
Eventually, this screen pops up as a confirmation. Hurray! Success!!!!!
FYI - the first 3 times I tried, I got this error message. I waited a few days, and tried again and it worked! One good thing........FileLocal had kept all my numbers, so I just had to move through all the screens.
Well done! Phew! One thing about reporting to the city is that it forces us to know our total sales number. I find that kind of rewarding, how about you?
One more hoop of tax season is all done. Be sure to give yourself a little or even medium reward! Perhaps some Theo's chocolate, some yummy juice from HeartBeet, or a trip to Ladywell's.
: ) Jenny Girl Friday
P.S. Did this help you? Pretty please share with any friends, or post on Facebook. I think self-employed folks are keeping the soul in Seattle. I want to make the chores of business easier, so you all can keep being awesome.
P.S. 2 Are you signed up for Sidekick Services via email? Get reminders and links to how-tos delivered right to your email inbox. :)
• Renew Your Seattle (City) Business License - December 31st
Your first TAX season hoop is here! Renew your Seattle business license by December 31st. Cost is $55 if you earn under $20K, or $110 if over $20K (plus fees if you renew online).
A friendly reminder ~ all self-employed folks need to have two business licenses, one from the state and one from the city.
This post is about renewing your business license with Seattle. (Its longer name is Business License Tax Certificate.) To read more about it, go to: seattle.gov/licenses/get-a-business-license. [Post coming soon about state business licenses.]
Your city business license is the one with the year printed diagonally across ... and the Seattle symbol in the corner.
Due: December 31st
Time: 5 minutes
Frustration: 5 out of 10
(on FileLocal)
Cost:
$57 if you make under $20K annually
$113 if you make over $20K
+Fees: $2 - 7 for processing credit cards
Note: There is a grace period until January 31st. After that, a late penalty applies.
you have 2 options for renewing your license.
Renew through the mail.
Hopefully, you've received a renewal form in the mail. If not, and prefer to renew this way, call the city at: 206-684-8484. Or email them at: tax@seattle.gov
Online ~ FileLocal Portal - This is the new portal.
If you've already created your account, it's pretty easy to renew your license. If you haven't set up your new account, read this article, and plan an extra 20 - 30 minutes for that step. Instructions and screenshots below for renewing your license.
Renew with FileLocal
If you need to set up your account, read this article first. Allow 20 - 30 minutes.
NOTE - The specific screens and steps might have changed a little bit. This will at least give you an idea of what to expect.
1. Sign in to FileLocal
2. Select Renew A License
3. Now you're in the Activity Center. It should have "Renewals and Applications" set as the "TYPE" of activity, with your business information below. [If not, adjust as needed. Call FileLocal if you need help 1.877.693.4435 Select Continue.
4. Continue through screens to confirm your information. Then look for the "READY TO PAY" button.
5. Look for the HOW ARE YOU PAYING tabs. It's set on Bank Account. You can use that, or select the tab for CREDIT CARD.
6. Complete the checkout process.
7. Print a copy for your records. (It's an expense/deduction.) Or, save a pdf and put into special folder.
8. Check this off your Tax Season List!
Well Done! One more Hoop accomplished / one more thing checked off your TAX Season checklist!
♥ ♥ ♥ ♥ ♥ ♥ ♥ ♥ ♥
Are you already signed up for Sidekick Services? Get tax and license reminders delivered right to your Email Inbox, so you can stay current + feel peace of mind all year long. Did this article help you? Please share with a friend or two, or 5!
{I'm on a mission to help every self-employed woman* in Seattle get the support she needs to be awesome.}
Cheers! Jenny Girl Friday
• How to Set Up Your Business in Seattle - as an LLC / PLLC
A Bigger Splash, David Hockney • Credit below.
Setting up an LLC business doesn't take much time! ….That is, if you know what to do, what you need, and the right order of steps. Here's where I've got you covered.
(Not sure if you want an LLC? Read Sole Proprietor or LLC: Which is Best for Me?)
Below is the quick and dirty list. Detailed notes are at the bottom of the post.
If you know your business name(s), the whole process takes about one hour.
Go ahead, take the plunge!
Pro Tip: Get a journal to record all your log-ins, passwords, IDs, and various notes as you go through the process. Use in the future for all research and calls related to taxes and licensing.
1) Register your LLC / PLLC.
Through: the Washington Secretary of State
Click here to go directly to registration.
Cost: $200
Time: 10 minutes
2) Pause + wait for your UBI
You'll need your UBI to go on to the next steps. (Unified Business Identifier.) It's a lot like your social security number, in that it's a tax ID number assigned to you ... and banks and other organizations will ask for it to identify you. It'll be provided along with your LLC documents. Most often, it's in a 9 digit format. Sometimes it'll be in a 16 digit format, where there are 0s and 1s at the end, noting your "business ID" and "location ID".
3) Apply for your state business license.
Through: Washington State Business Licensing Service (BLS)
Uses MyDOR portal.
Click here to go to read more information on the BLS.WA.gov site
Cost: $19 plus $5 for each DBA
Time: 15 - 20 minutes
4) Apply for your city business license.
Through: City of Seattle Business Department
Uses the FileLocal Portal.
Click here to read more on the city’s website
Cost: $113 for standard, $56 if you plan to gross under $20K per year.
Time: 15 - 20 minutes
That's it! You're in business. …but you're not quite done. To be legal, you need to ensure that you have all of the special permits and licenses for your line of business.
5) Optional ~ Apply for an EIN
EIN stands for Employer Identification Number. It's a tax ID number assigned to businesses by the IRS. If you are a sole prop or a single-member LLC, you are allowed to use your SSN for business purposes. Having said that, banks and online forms will often required you to have an EIN. The issue is that the number formatting is different. With your social security number, it looks like 000-00-0000. With an EIN, it looks like 00-0000000.
Good news! It's easy, free, and only takes 10 minutes. Here's the link: Get EIN on IRS.gov. Or, go to IRS.gov and search for EIN. Heads up, this web service is only available during the daytime.
6) Do your due diligence.
At the state level, check the List of Licenses
This is a list by trade, with links to relevant licensing agencies.
Here's the list of Endorsements required by some businesses.
Or, call the BLS: 1-800-451-7985
And, at the city level, check the Regulatory Endorsements page.
Or, call the City of Seattle: 206.684.2489
Another nice tool is the WA Business Hub. It's created to walk anyone through the setting up a business. There's a TON on there.
7) Celebrate!
* * Please note: The intent of this post is to get you started! And, to provide you with the required framework for every business. Your field may require additional permitting or specialty licenses not covered here. For best results, call the city or state.
Happy Working,
Jenny Girl Friday
Some Helpful Details
With the LLC Registration
Some things you'll be asked:
• the legal name of your company
• 2 alternate names
• start date - day of filing, or a specific date
(Tip: pick one that's easy to remember or has meaning for you.)
• perpetual or specific time period
Mostly, you will have to put your name and address in a million times. Because, as a single-member LLC, you are the member, the manager, the agent, and registrar. You fill all the roles.
Even though you will be a limited liability company, LLCs are handled along with the corporations.
For the State Business License
Some things you'll be asked:
• the UBI - you get this when your LLC goes through - it is your Unified Business Identifier
• what bank you'll be using
• your SSN and your partner's SSN
• description of your business: 1- 2 sentences
• trade name(s)
• which cities you'll be doing business in (you need a license for each one)
For the City Business License
Some things you'll be asked:
• the UBI - you get this when your LLC goes through - it is your Unified Business Identifier
• estimated income
• How to Set Up Your Business in Seattle - As a Sole Proprietor
Opening a business as a sole proprietor is the quickest way to achieve lift off! ….Because, there is no business entity to create. In legal and tax terms, you and the business are the same. You simply to need to apply for some licenses, and possibly some permits.
(Not sure if you want to be a sole proprietor? Read Sole Proprietor or LLC: Which is Best for Me?)
Making things official is a great way to build momentum. I encourage you to get your licenses at any time! You can work on the other things later.
Let your dream take flight! (Is that too many metaphors?)
Pro Tip: Get a journal to record all your log-ins, passwords, IDs, and various notes as you go through the process. Use in the future for all research and calls related to taxes and licensing. Read more in Make Your Life Easier! - Simple Tips For Keeping Track Of License And Tax Stuff
1) Apply for your state business license.
Through: Washington State Business Licensing Service (BLS)
Uses MyDOR portal.
Click here to go to read more information on the BLS.WA.gov site
Cost: $19 plus $5 for each DBA
Time: 15 - 20 minutes
2) Apply for your city business license.
Through: City of Seattle Business Department
Uses the FileLocal Portal.
Click here to read more on the city’s website
Cost: $113 for standard, $56 if you plan to gross under $20K per year.
Time: 15 - 20 minutes
That's it! You're in business. …but you're not quite done. To be legal, you need to ensure that you have all of the special permits and licenses for your line of business.
3) Optional ~ Apply for an EIN
EIN stands for Employer Identification Number. It's a tax ID number assigned to businesses by the IRS. If you are a sole prop or a single-member LLC, you are allowed to use your SSN for business purposes. Having said that, banks and online forms will often required you to have an EIN. The issue is that the number formatting is different. With your social security number, it looks like 000-00-0000. With an EIN, it looks like 00-0000000.
Good news! It's easy, free, and only takes 10 minutes. Here's the link: Get EIN on IRS.gov. Or, go to IRS.gov and search for EIN. Heads up, this web service is only available during the daytime.
4) Do your due diligence.
At the state level, check the List of Licenses
This is a list by trade, with links to relevant licensing agencies.
Here's the list of Endorsements required by some businesses.
Or, call the BLS: 1-800-451-7985
And, at the city level, check the Regulatory Endorsements page.
Or, call the City of Seattle: 206.684.2489
Another nice tool is the WA Business Hub. It's created to walk anyone through the setting up a business. There's a TON on there.
5) Celebrate!
* * Please note: The intent of this post is to get you started! And, to provide you with the required framework for every business. Your field may require additional permitting or specialty licenses not covered here. For best results, call the city or state, numbers above.
Happy Working,
Jenny
Some Helpful Details
For the State Business License
Some things you'll be asked:
• what bank you'll be using
• your SSN and your partner's SSN
• description of your business: 1- 2 sentences
• trade name(s)
• which cities you'll be doing business in (you need a license for each one)
For the City Business License
Some things you'll be asked:
• the UBI - it is your Unified Business Identifier, you'll get this with your state license
• estimated income
• note: your legal business name will be the same as your name, to get a different name, you need to by a DBA, doing business as, also called a trade name. They are $5 each.
Photo Credit: Design for a Flying Machine by Leonardo da Vinci - http://www.drawingsofleonardo.org. Licensed under Public Domain via Wikimedia Commons
• Meet FileLocal - Seattle's New Portal for License Renewal and B & O Tax Reporting
Important Note: Filelocal has changed it’s sign up process, so the screenshots will look different than what you see below. This will still give you a general idea. I hope to update soon! ~ January 16, 2019
Grab some coffee (maybe wine), a few deep breaths, perhaps a friend ... and get ready to set up your FileLocal account.
Estimated Time: 10 - 25 minutes
Frustration Factor: 4 out of 10
Cost: Free
Recommended Timeframe: November or December
If you're self-employed in Seattle, the city requires three things of you:
• Get a city business license, when you start
• Renew city business license, annually
• Make a report of Gross Sales, annually*
If you make over $100K, then there's a fourth requirement: paying B & O taxes.
*For most. Some businesses are required to report quarterly.
In the past, Seattle used a portal called SELF. It's now switching over to FileLocal.
The city's encouraging us to set up our FileLocal account sooner than later ... and I can sure see why! I just ran through it this morning, hit a snag, and had to find a ton of information! Not to worry, I've got you covered. :)
FileLocal asks for ALL of your business numbers. You can either find these things as you go, or look them up ahead of time. It definitely took me a little rummaging... This list might vary in order from the application. ProTip: If you haven't already, write all your numbers in one special notebook.
The List in Brief (details below):
1. Federal Tax Number
2. UBI - 16 digit version
3. NAICS code
4. Seattle Customer Number
1. Federal Tax Number. If you are a sole prop or a single-member LLC, you might be using your SSN for this. This is totally fine for the IRS. However, this form requires you to have an EIN! (Or FEIN.) So, if you don't have one already, you'll need to get one. It's easy, free, and only takes 10 minutes. Here's the link: Get EIN on IRS.gov. Or, go to IRS.gov and search for EIN. Heads up, this web service is only available during the daytime.
2. UBI - 16 digit version. This is your WA state business number + some codes. (UBI stands for Unified Business Identifier.) Usually, we only use 9 digits. It's in the form ###-###-###. The 16 digit version asks you to add two numbers at the end. Your Business ID and Location ID. If you only have one office, then it's easy. Business ID is 001, and Location ID is 0001.
So, your number will look like ### ### ### 001 0001. Screenshot below.
To find your UBI, you can: look on your LLC certificate (if you have one), look on your WA state business license, or look on your city license. OR, you can search for your business at the DOR lookup.
3. NAICS code. This is a code assigned to your business by the state. It's used for statistical purposes only. The easiest way to find it is to use the DOR lookup. Once the search results come up, select your business, view your profile, and the code will be listed there. The other option is to select one that matches your business ... using the dropdown menu on the FileLocal form.
4. Seattle Customer Number. Early in the application it asks for "City Account Number". It wants the Seattle Customer Number that's been assigned to you. It also comes up if you want to search for your UBI. On that screen, it asks for your Validation or Verification number. (I can't remember which.) Your Seattle Customer Number is the ticket there.
To find your Seattle Customer Number, look on your city business license, or sign into the SELF Portal, and look at your list of businesses. It's listed next to the name of your business.
Summary
In this process, you provide your basic contact information, then all of your government numbers (so it can link up to those accounts) ... then at the end ... the whole point is to add the Tax Forms you'll be filing. For now, this is only the "Seattle B & O Tax form". Screenshot below.
The SNAG I Hit + Getting Help
On one of the last screens, it said that my UBI didn't match my business location! I called the Help number listed on the FileLocal site. They directed me to the city of Seattle. It turns out, the city had my incorrect UBI! These things happen, I suppose.
The guy helping me was super, super nice. He fixed it and the FileLocal site worked immediately.
Help Numbers:
Seattle: 206.684.8484
FileLocal: 877-693-4435
Now, for some pictures + notes:
Out with the Old - Seattle SELF Portal
In with the New - the FileLocal Dashboard. (You won't see this screen until the very end.)
A few Screenshots along the application
This one shows the 16 digit UBI. Also NOTE: the circles on the left refer to the screens...they don't match the content on the right.
YOU CAN EITHER IMPORT YOUR WA BUSINESS DATA, OR PUT IT IN MANUALLY. IF YOU IMPORT IT, IT WILL ASK YOU FOR A VALIDATION NUMBER. THIS IS YOUR 6 DIGIT CITY CUSTOMER NUMBER.
If you're a PLLC, it looks like you'll have to choose LLC - Single Member.
At the end, they're asking you which Tax Forms you want to file through their portal. The one you want is "Seattle B & O Tax Form".
Haha...when you're all done, it congratulates you in red ... as if it's an error message! Reroute your brain to the word, 'successfully'. Cheers and head out to Ladywell's or have bubble bath. (Maybe Try the amazing Bath Bombs with Braddington Soaps!)
Bravo!
: ) Jenny Girl Friday
P.S. Please share freely with your friends who are self-employed!