Step 5 - You're in Business


Congratulations, you’re in business! Keep in mind your ongoing business obligations. Review the following information to stay on track:
• Contractor specific requirements
• Control workers’ comp costs
• Understand business taxes
• Track important reporting and renewal requirements

Contractor specific requirements

Advertising requirements & Model Disclosure
Advertising: By law, when you advertise, solicit bids or offer to perform work, you must use your contractor registration number. Learn more about advertising rules in L & I’s Construction Contractors: Steps for Success guide.

Model Disclosure Statement Notice to Customers: You must provide the Model Disclosure Statement to consumers for all residential jobs of $1,000 or more and for commercial projects of $1,000 to $60,000.

Prime Contractor Liability
You could be liable for unpaid workers’ compensation: Under Washington State law, prime contractors may have to pay for unpaid workers’ compensation premiums for any business you hire or contract with. Review L & I’s Prime Contractor Liability page to learn about the requirements to protect yourself.

Hiring independent contractors
Know the rules: Use L & I’s Independent Contractor Guide for step-by-step information about hiring independent contractors, getting started and applicable laws.

Workers’ comp costs

Control your workers’ comp costs
Keep your premium costs as low as possible: View the resources available on L & I’s Controlling Your Workers’ Comp Costs page to learn how to reduce your premiums and calculate your rates.

Understand business taxes

State business taxes
Get expert advice: Check out the New Business Tax Basics Guide from the WA State Department
of Revenue.

Ongoing Requirements: Filing, Reporting & Inspections

Report/Payment Frequency
Employee Reports
State Unemployment Insurance
Washington State Employment Security Department
State Workers' Compensation Insurance
Washington State Department of Labor & Industries
State New Hire Reporting Program
Washington State Department of Social & Health Services
Within 20 days of hire
Federal Income Tax, Social Security & Medicare (Form 941)
Internal Revenue Service
Quarterly with monthly or semi-monthly payments
Federal Unemployment (Form 940)
Internal Revenue Service
Quarterly with quarterly payments
Federal Income Tax (W-2/W-3)
Social Security Administration
Business Taxes
Benton County Property Tax and Benton County Personal Property Tax
Benton County Treasurer
State B & O Tax; State Retail Sales TAx; and State Use Tax
Washington State Department of Revenue
Agency Determination
Federal Business Income Tax
Internal Revenue Service
Agency Determination
License, Registration/Permit Renewals and Inspections
Corporation and Limited Liability Corporations Annual Report (Renewal); State Business Specialty Licenses; and Kennewick Business
Washington State Business Licensing ServiceAnnually
Contractor Registration
Washington State Department of Labor & Industries
Every two years
Safety & Health Inspection
Washington State Department of Labor & Industries
Possible inspection at any time

*Print the Ongoing Requirements table to take it with you.

These tools are provided for guidance purposes and should not be used as a substitute for codes and regulations. The user is responsible for compliance with all requirements, regardless of whether they are referred to or contained within these documents.