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- Step 5 - You're in Business
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
| Topic | Agency | Report/Payment Frequency |
| Employee Reports | ||
| State Unemployment Insurance | Washington State Employment Security Department | Quarterly |
| State Workers' Compensation Insurance | Washington State Department of Labor & Industries | Quarterly |
| 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 | Annually |
| Business Taxes | ||
| Benton County Property Tax and Benton County Personal Property Tax | Benton County Treasurer | Annually |
| 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 License | Washington State Business Licensing Service | Annually |
| 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.