The Small Business Guide helps small businesses thrive in Washington State, whether they’re homegrown or out-of-state entrepreneurs. The Small Business Guide provides helpful information, links to valuable resources, and outlines the steps for starting and operating a business in Washington State. To assist businesses with complying with the ADA, Section 44 of the IRS Code allows a tax credit for small businesses and Section 190 of the IRS Code allows a tax deduction for all businesses. The tax credit is available to businesses that have total revenues of $1,000,000 or less in the previous tax year or 30 or fewer full-time employees. Sales Tax Increase in Central Virginia Region Beginning Oct. 1, 2020 Starting Thursday, Oct. 1, 2020, the sales and use tax rates go up by 0.7% for a total of 6%.
- Guide To Portland Small Business Taxes
- Guide To Portland Small Business Tax Rate
- Guide To Portland Small Business Tax Return
- Guide To Portland Small Business Tax Credit
This page provides information about resources for Greater Portland businesses affected by COVID-19. We are updating this page as new information becomes available. For health and safety information and guidance, please consult the Centers for Disease Control, the League of Oregon Cities, the Oregon Health Authority, the Washington State Department of Health or OHSU.
Table of contents
Hotlines
Stigma
Federal Resources
State of Oregon Resources
State of Washington Resources
Free Services, Webinars, Advising Sessions and Guides
Regional Resources
City-Specific Resources and Information
City and County Coronavirus and Economic Development Links
Hotlines: Who to call if you don't know where to start
- In the Portland area (including Washington County), call 971-722-5080, email sbdc@pcc.edu or fill out this form.
- In the Gresham area, call 503-491-7658 or fill out this form.
- In the Clackamas area, call 503-594-0738 or fill out this form.
- In the Vancouver area, call 360-952-4987 or email Jerry Petrick.
- See other Oregon offices here. See all Washington advisors here.
- Call 503-986-2193 or email Business.SOS@oregon.gov
- Call 833-604-0880
City/County-specific:
- Portland: Email ProsperHotline@ProsperPortland.us, leave a voicemail at 503-823-3297 or fill out this form.
- Gresham: Email BusinessCovidSupport@GreshamOregon.gov or call 503-618-2115.
- Clackamas County: Call 503-742-4BIZ(4249) or email4Biz@clackamas.us.
COVID-19 Stigma
A person’s ethnicity, language or association with a country or region is not a risk factor for this virus. If you feel you have experienced or witnessed discrimination motivated by race, color, disability, religion, national origin, sexual orientation or gender identity, report it today. In Oregon, file a report with the Oregon Department of Justice. In Washington, file a complaint with the Washington Human Rights Commission.
Federal Resources
- The SBA has reopened its Economic Injury Disaster Loan and EIDL Advance application portal to all eligible small businesses, non-profits, and agricultural businesses impacted by COVID-19. Learn more and apply here.
- The Federal Reserve has an emergency loan program for small and midsize business. Learn more about the Main Street Lending Program here.
- SBA Express Bridge Loan: This loan allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. Learn more here.
The US Chamber of Commerce has a coronavirus survival guide for small businesses.
State of Oregon Resources
Reopening:
- Allowed social, cultural and business activities are now tied to county risk levels. The state uses four different risk levels for counties based on COVID-19 spread—Extreme Risk, High Risk, Moderate Risk, and Lower Risk—and assigns health and safety measures for each level. Find your county's risk level and see which activities are allowed here.
- All Oregonians must wear face coverings in indoor public places and outdoors where physical distancing is not possible Read mask guidance here.
- Oregon employees are now required to provide face coverings to employees free of charge. Oregonians are required to wear face coverings in all private and public workplaces, except in cases where someone is alone in an office or in a private workspace. Read guidance from OHA here.
- The state is offering free PPE for small businsesses and child care providers. Request supplies here.
- Business Oregon has a portal to connect businesses and communities with PPE manufacturers and suppliers.
- (NEW 1/4) The Oregon Employment Department is working to make changes based on the recently passed Continued Assistance for Unemployed Workers Act (CAUW) of 2020, which extends some provisions of the CARES Act from December 27, 2020 until March 14, 2021. The department is waiting to receive written guidance from the U.S Department of Labor, but claimants will NOT lose a week in PUA, PEUC, or FPUC benefits. They may experience a delay in receiving payments, but will receive benefits retroactively. Continue to file weekly. Learn more.
- Pandemic Unemployment Assistance (PUA): Self-employed people and others who are not eligible for regular unemployment benefits—and who are out of work due to COVID-19—can now get PUA, a new unemployment benefits program (ends December 26, 2020). Take the Eligibility Quiz to see if you may qualify. Apply now. Learn more.
- Pandemic Emergency Unemployment Compensation (PEUC): If your regular unemployment benefits run out, you may be able to get extended benefits for up to 13 more weeks (ends December 26, 2020). Learn more.
- Visit the OED's COVID page to file a claim or check on an existing claim.
- An extra $300 per week is available to those who have lost work due to coronavirus but are not enrolled in the PUA program. To apply, select 'Lost Wages Assistance' from this page.
- Claim-specific questions can be sent to OED_COVID19_Info@oregon.gov.
Employers seeking employees: Employers can manage job listings online and find qualified job seekers via WorkSource.
Layoffs:
- If you have made the decision to temporarily or permanently close or lay off employees, contact the appropriate local Rapid Response Coordinator.
- For layoffs of more than 50 workers, businesses should contact John Asher to file a Worker Adjustment and Retraining Notification (WARN).
Taxes: The Oregon Department of Revenue has extended some tax deadlines, and has eased Corporate Activity Tax requirements for businesses that owe less than $10,000. See the department's tax relief page here.
Loans: Business Oregon has several loan programs. On its business navigator page, click 'Financial assistance' and scroll down to the 'state financial assistance' section.
Grants: The Oregon Cares Fund provides grants to Black individuals, Black-owned businesses, and Black-led nonprofit organizations negatively impacted by COVID-19. Learn more and apply here.
State of Washington Resources
Reopening:
- See a county status dashboard here. Clark County is in Phase 2, and Skamania County has entered Phase 3. Read more about county statuses here.
- Read about the reopening plan (including industry guidance for each phase) here.
- See what's open and what's closed here.
- Find COVID-19 guidance for employers here.
- Direct employees to apply for benefits here.
- The SharedWork program allows employers to reducing the hours of workers while providing benefits to replace a portion of employees' lost wages.
- Partial employment (for reduction in hours): If you are temporarily reducing hours of work for your full-time employees, they may be able to receive unemployment benefits without needing to look for work.
- Standby: In certain circumstances, your employees may be eligible for standby. Standby means they do not have to look for other work but need to be available for any work you offer that they can do if quarantined or isolated.
Taxes: Financial penaltiesmay be waived for employers who file or pay late. See an FAQ here.
- File for an extension for your excise tax return here
- Request a late payment penalty waiver here
More: Find more resources, including assistance with insurance and exporting, on this page from Gov. Inslee's office.
Free Services, Webinars, Advising Sessions and Guides
Guides and toolkits:
- General business COVID survival guides (managing cashflow, developing a staffing plan, etc.):
- Real estate leases: See this tenant FAQ from CBRE, and this Venture Portland template letter to landlords.
- Land use permitting in Oregon: See this post from Miller Nash Graham & Dunn.
- Insurance: See this breakdown of interruption insurance from Tonkon Torp.
- Legal implications: International law firm K&L Gates has a COVID-19 hub.
- Washington SBDC - webinar series (CARES Act updates, SBA disaster loans, and more)
- Miller Nash Graham & Dunn - best practices for construction firms
- CREDC (Clark County) - business resource calls
- Float - interviews featuring local business owners' creative solutions
- Portland consulting firm Pregame is offering free and discounted coaching for distressed small businesses.
- Cascadia Partners has a diverse, multilingual team of trained economic development staff looking to provide direct support to small business owners in a number of languages. Learn more here.
Regional Resources
Grants/Forgivable Loans:
- The Oregonian is offering marketing services grants of $500 to $15,000 per month for local businesses. Apply here.
- Pamplin Media Group is offering advertising grants. Apply here.
- Worksystems has funds for companies looking to further train IT and software employees. Learn more and apply here.
- Portland General Electric (PGE): Learn about payment options here.
- Pacific Power: Call customer service at 1-888-221-7070.
- Portland Water Bureau: Apply for financial assistance here
- NW Natural: Contact the billing department at (800) 226-4211.
- Port of Portland updates
- Port of Vancouver COVID information
City-Specific Resources and Information
Guide To Portland Small Business Taxes
Find a comprehensive list of links to city and county coronavirus pages at the bottom of this page.
Gresham
- Hotline: For technical assistance or information about state, federal and private resources, email BusinessCovidSupport@GreshamOregon.gov or call 503-618-2115.
- Survey: Take the Hillsboro Chamber of Commerce's survey here.
- Support your workers: Tell your employees to add their info to the chamber's virtual tip jar for service workers.
- Hotline: Call 503-635-0257 or email cic@lakeoswego.city for information and assistance with local, state and federal resources.
- Reopening resources:
- Businesses can find information about using a parking lot for outdoor seating here, and information on using space in the public right-of-way here.
- Download 'reopening with care' printable posters and social media assets here. The materials are available in multiple languages.
- Grants:
- (NEW 1/4) Prosper Portland is offering Local Small Business Reopening Grants. Apply here.
- Hotline: Need help? Email ProsperHotline@ProsperPortland.us, leave a voicemail at to 503-823-3297 or fill out this form.
- Stay updated: Sign up for Prosper's COVID-19 email distribution list here.
- Help for existing Prosper customers:
- Prosper is deferring loan payments to its existing borrowers whose business have experienced a decline in revenue of 10% or more. Prosper is prioritizing public-facing businesses with annual revenues under $1 million. Contact Prosper about your existing loan here.
- Prosperis also offering rent relief to its commercial tenants that have experienced a decline in revenue of 10% or more.
- Amplify your business and connect with others:
- ShopSmallPDX (add your business here)
- Survey: Take the Wilsonville Area Chamber of Commerce's Business Impact Survey here.
Guide To Portland Small Business Tax Rate
Clackamas County- The county has opened Business Recovery Centers in Canby, Lake Oswego, Happy Valley, Oregon City, Sandy and Wilsonville. The centers offer free business consulting services for small businesses in the county. Learn more here.
- Discrimination: Clackamas County has modified its emergency order to specifically prohibit discrimination against anyone with a voucher paid by the county or a county contractor. Read more here.
- Hotline: Get assistance from Clackamas County Economic Development by emailing 4Biz@clackamas.us or calling 503-742-4BIZ(4249)
- Reopening resources:
- Download and print signs and posters for maximum occupancy, mask requirements, physical distancing, hand-washing and more here. The materials are available in multiple languages.
- Multnomah County Sheriff's Office is offering free premises checks for businesses with closed storefronts. Request a premises check here.
- Loans: The county is working with Craft3 to offer business resilience loans. Learn more and apply here.
- The county has opened Business Resource Centers in Beaverton, Forest Grove, Hillsboro and Tualatin. The centers offer free one-on-one expert consultations for business owners. Learn more here.
City and County Coronavirus and Economic Development Links
- City of Beaverton
- City of Canby
- City of Cornelius
- City of Estacada
- City of Fairview
- City of Forest Grove
- City of Gresham
- City of Happy Valley
- City of Hillsboro
- City of King City
- City of Lake Oswego
- City of Milwaukie
- City of Oregon City
- City of Portland
- City of Sandy
- City of Scappoose
- City of Sherwood
- City of Tigard
- City of Tualatin
- City of Troutdale
- City of Vancouver
- City of West Linn
- City of Wilsonville
- Clackamas County
- Clark County
- Columbia River Economic Development Council (Clark County Economic Development):
- Columbia County
- Multnomah County
- Skamania County
- Washington County
- Yamhill County
Understanding Washington Business Tax
Washington has the 11th best business tax climate in the country, according to the Tax Foundation. The good news about Washington taxes is that there is no actual income tax. There is, however, a business and occupation (B & O) tax, sales tax, and use tax that affect most businesses in Washington State. Let the following be your guide to understanding Washington business taxes.
Washington Business & Occupation Tax
Washington has a gross receipts tax. While the claim that we don’t have an income tax is technically true, you pay the B&O tax on your gross income. This means you pay taxes on the total amount of revenue you pull in for your business, whether you make a profit or not.
B & O tax rates
When paying the B & O tax to the Department of Revenue, you declare your income in different categories. Most Washington businesses fall under the 1.5% gross receipts tax rate. The following chart gives the rates for each main category:
The B & O tax rate | |
|---|---|
| Services and Other Activities (What most businesses fall into): | .015 |
| Manufacturing: | .00484 |
| Wholesaling: | .00484 |
| Retailing: | .00471 |
So if you’re in the service and sales category, you owe $15 for every $1,000 of income. That may sound high to some of you, but compare to income tax in other states. Let’s say you live in Idaho where there’s an 8% personal income tax. You’ll pay a CPA to file your tax return with the IRS, pay somewhere between 20-25% to the IRS, and then pay another 8% to the Idaho Department of Revenue. If you have a profitable business, it will be way cheaper to pay a gross income tax than to pay 8% of your net income.
The B & O can get complicated if you do business in more than one category; you may need to file in multiple categories. There are also specialty B & O classifications, so for instance, if you’re in the logging industry, you may be required to file in each of the following B & O categories: Extracting, Extracting for Hire, Manufacturing and Wholesaling. Certain Washington cities also charge city B & O rates.
B & O tax credit
There are no deductions for business expenses, except for income from a different state. So, if you went over and did work in Portland, you would pay Oregon income tax and be able to claim a deduction for the gross receipts you made in Oregon.
Also, if you have a small business, there is a tax credit for you—one of the best things about Washington State taxes. The way it works out is that if your gross income is under a certain amount, you pay no B & O tax. As your income goes up, you get a smaller and smaller credit, until you make enough to pay the full percentage. So, for example, if you pay Service/Other B & O annually, and your annual business income is $56,000, this gross income is tax-free. If you make $122,000 or more, you’ll pay the full 1.5%. If you’re in the manufacturing category, you won’t have to pay B & O tax until your annual income is at about $86,000, with a sliding scale after that.
The small business tax credit is broken up, based on how often you file, as follows: $71 for monthly taxpayers, $211 for quarterly taxpayers and $841 for annual tax payers.
Washington Sales Tax
The Washington sales tax you must charge, collect, and pay the state depends on what county you’re in. The interesting part of this is, because Washington has an income tax on your gross receipts, they will always know what your gross sales are, and thus, automatically calculate the sales tax that you should have collected and owe the state. So, if you screw up and don’t collect the right amount of tax, you still will owe the right amount to Washington.
The base Washington state sales tax rate is 6.5, and each location (county or city) charges a local rate on top of that. So, for instance, in Issaquah, total sales tax is 9.5%, but in Pomeroy it’s 7.5%. The Washington Department provides a Tax Rate Lookup Tool for sales and use tax.
Will I have to charge sales tax on services I provide in Washington State?
Yes. Washington businesses must charge sales tax on most services and goods sold, including construction, recreation, digital and personal services. Food and prescriptions drugs are exempt from WA sales tax.
Washington Use Tax
Use tax is a tax law written to tax the heck out of everyone. Let’s say you buy a desk at a garage sale for your office. Technically you should have to pay sales tax for that, but no garage sale person or Craigslist seller is going to charge you sales tax. So, Washington has a law called use tax, governed under Chapter 82.12 of the Revised Code of Washington.
In theory, if you bought a desk for $100 at a garage sale, you should report that and pay use tax because you couldn’t pay sales tax.
Guide To Portland Small Business Tax Return
Another loophole the use tax aims to close is out-of-state purchases. Say someone buys a $750,000 excavator in Oregon or Montana where there’s no sales tax and brings it into Washington State to work with it. If they get caught with it in Washington State, the Department of Revenue will charge that person or business use tax.
Use Tax Rates in Washington
The use tax is always going to be the same as the sales tax in your local area. While the sales tax rate is determined by where you buy something, the use tax is determined by the sales tax rate where you first use it.
Use tax affects individuals also. If a Washington resident went to Portland to buy school supplies or make a big purchase and bring it back to their home in Washington, they are supposed to report that personally to the Washington Department of Revenue and pay sales tax on that.
Guide To Portland Small Business Tax Credit
Washington Property Tax
The Washington State personal property tax is a true double tax by every definition. Again, say you pay sales tax to buy a desk for your office. You’ll first pay sales or use tax, and then business personal property tax every year you own it. Isn’t there just something wrong about business personal property tax?
How Personal Property is Taxed
You will be taxed on the current market value of all your assets you use for business. The funny thing about business personal property tax is that the codes are written so that they can change the rate each year. So let’s say you have a $50,000 commercial saw, but your saw is going at auctions for $15,000 right now because of the economy. You can claim $15,000 as the value, but if you paid a 1% tax rate last year, and the county doesn’t have enough money, they can raise the tax rate to cover the gap. People see this all the time with their home property taxes. The value went down over the last couple years, but their taxes didn’t!
How do I pay property tax?
Personal property taxes in Washington are collected by each county. To find out what your rate is and how to pay, contact your Washington county’s treasurer office. List of WA county assessor/treasurers contact information
Returns are due with your county assessor every April 30th. If you don’t pay them on time, there’s a 1% penalty for every late month.
General Washington Taxes FAQ
How do I know how often I will need to report my Washington business taxes?
When you file your business license application, you will get assigned to a monthly, quarterly or annual filing frequency.
When are Washington business taxes due?
- Monthly returns are due on the 25th of the following month.
- Quarterly returns are due on the last day of the month of regular business quarters.
- Annual returns are due every January 31st following the calendar year.
What method do I use to pay taxes?
Your B & O and use tax can be paid using the Combined Excise Tax Return. The only available option for filing your return is electronically using the Washington Department of Revenue’s e-file system. When we incorporate your Washington business for you, we can also obtain a Master Business License, which functions as your registration with the Department of Revenue. Once registered, you’ll automatically receive an e-file account set up and a packet of information walking you through the process.
How do Washington business taxes affect LLCs vs. Corporations vs. Sole Proprietorships vs. DBAs?
A sole proprietorship and DBA is not an actual business entity in Washington. Rather, it is you operating as a DBA. If you operate personally as a business, you face just the same Washington state taxes as a Washington LLC or a Washington Corporation. You might as well hire a Washington Registered Agent and form a real business entity to have some liability protection for your business.
If you’d like us to help you start your business in Washington, we would love to help you out. It’s all we do, and we try to do it better than any other national incorporation site you’ll find. Plus we actually live here, pay taxes here, and work here, so we know what we’re talking about.