[WSBARP] NV LLC Holding WA Real Property

[Heather de Vrieze]

This exemption from B&O Tax at the state level has several requirements:
https://dor.wa.gov/forms-publications/publications-subject/tax-topics/rental-vs-license-use-real-estate

So using a rental property for short term rentals does not meet the criteria to exempt the income. More information is needed before determining if B&O taxes would be owed.

The question was about whether a business license is needed. I think the answer is probably no at the state level, and it depends on the city or county rules if a local business license is required.

Heather

Heather S. de Vrieze
(she/her)
Attorney-at-Law
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Mike Zeno
Sent: Wednesday, October 22, 2025 2:43 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] NV LLC Holding WA Real Property

My understanding is that there is no B&O tax on rental income…could be wrong though.

The Law Office of G. Michael Zeno, Jr., P.S.
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Douglas Scott
Sent: Wednesday, October 22, 2025 2:03 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] NV LLC Holding WA Real Property

If a person makes an income in Washington in any kind of business, unless exempted, won;'t they have to pay a B&O tax on the money they make? If so, they need to register.


DOUGLAS W. SCOTT
Rainier Legal Advocates|LLC

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On Wed, Oct 22, 2025 at 10:10 AM Mike Zeno <mikez at zenolawfirm.com<mailto:mikez at zenolawfirm.com>> wrote:
Tim, Paul—I’m not saying you’re wrong, but…Tim, I don’t think your cites to the statute answer the question.  Paul, can you provide a cite to the $12K = doing business proposition?

If a foreign entity owning rental property had to get a business license in Washington, would a private individual who owned a rental property need to get a business license and UBI number?

The Law Office of G. Michael Zeno, Jr., P.S.
T:  (425) 947-8050   F:  (425) 947-8052
135 Lake Street S., Suite 257
Kirkland, WA 98033

Confidential/Privileged Communication: This email and any attachments are confidential, privileged and intended only for the intended recipient(s).  Unauthorized disclosure, copying, distribution or use of this email is prohibited.  If you received this email in error, please notify me immediately so we can arrange for the message and documents to be returned and deleted. Thank you.
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Paul Okner
Sent: Tuesday, October 21, 2025 5:29 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] NV LLC Holding WA Real Property

I agree with Tim, and I think the "without more" exception would naturally mean rental.

You can also work backward from the requirements for business licensing in WA, which would cover generating revenue of $12k or more per year.  If you meet that threshold, then you need a business license.  If you need a business license, it would seem hard to argue that you're not transacting business in WA.

-Paul Okner
Fremont Law PLLC
3429 Fremont Pl. N.,  Suite 305
Seattle, WA 98103
(206) 399 - 1922


On Tue, Oct 21, 2025 at 5:19 PM Timothy Steen <tsteen at andersonhunterlaw.com<mailto:tsteen at andersonhunterlaw.com>> wrote:
Assuming a traditional landlord/tenant rental relationship exists, then I believe registration is required since the LLC is transacting business in WA, rather than just holding the property. See RCW 23.95.505(1), (5).

Best,

Tim

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Timothy E. Steen
Attorney | Anderson Hunter Law Firm
2707 Colby Avenue #1001 | Everett, WA  98201
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Jan Kelly
Sent: Tuesday, October 21, 2025 5:00 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] NV LLC Holding WA Real Property

Thank you, but does having a tenant rise to the “more” part of this exception?

(j) Owning, without more, property;

Jan Kelly, JD, MBA
Attorney at Law
JK Law
PO Box 1964
Poulsbo, WA 98370
Direct Line (702) 338-6733
Licensed in Nevada and Washington.

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Timothy Steen
Sent: Tuesday, October 21, 2025 4:53 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] NV LLC Holding WA Real Property

Jan,

See the exception in RCW 23.95.520(1)(j).

Best,

Tim

[A black sign with white text    Description automatically generated]
Timothy E. Steen
Attorney | Anderson Hunter Law Firm
2707 Colby Avenue #1001 | Everett, WA  98201
P.  (425) 252-5161 | D.  (425) 303-3125 | F.  (425) 258-3345
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This email message may contain confidential and privileged information.  Any unauthorized use is prohibited.  If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message.  To comply with IRS regulations, we advise you that any discussion of Federal tax issues in this e-mail is not intended or written to be used, and cannot be used by you, (a) to avoid any penalties imposed under the Internal Revenue Code or (b) to promote, market or recommend to another party any transaction or matter addressed herein.  We do not accept service of any kind by e-mail unless expressly authorized in writing by the attorney of record.  E-mail communications are not intended to create contracts or CR 2A agreements.  All such agreements must be signed by the attorney of record.  Thank you.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Jan Kelly
Sent: Tuesday, October 21, 2025 4:22 PM
To: wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] NV LLC Holding WA Real Property

I am conveying a rental property here in WA to a Nevada LLC. Does the NV LLC need to file a foreign registration to do business here, even if it is just holding property?

Thank you.

Jan Kelly, JD, MBA
Attorney at Law
JK Law
PO Box 1964
Poulsbo, WA 98370
Direct Line (702) 338-6733
Licensed in Nevada and Washington.

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