Doing Business in WA & King County

Tax exemptions and credits, customized employee training, and low interest loans are just some of the incentives for doing business in the Seattle-King County area. Beyond the usual programs of federal government assistance (SBA 504 & 7a loans; Targeted Job Tax Credits and Urban Development Action Grants), state and local governments in the area have responded with a package of incentives designed to meet the individual needs of business and industry.

King County offers an attractive tax structure for many types of businesses. Washington State currently ranks 11th highest on the Small Business Survival Index. Washington requires a 2/3 legislative majority in order to raise taxes. The tax system also features a state and local property tax with annual increases subject to statutory limitations and a Business and Occupation Tax based upon gross receipts. Washington State’s tax system features:

• No corporate income tax
• No unitary tax
• No inventory tax
• No personal income tax
• No tax on interest, dividends or capital gains
• No sales or use tax on machinery and equipment used in manufacturing operations
• A state and local property tax with annual increases subject to statutory limitations
• A business and occupation (B&O) tax which is based on gross receipts