Does Kirkland collect B&O tax? No, the city of Kirkland does not collect any Business and Occupation (B&O) tax.
Will I need to buy a business license if my office isn’t in Kirkland? Yes, you are required to obtain a city business license and pay the associated fees. The fees consist of two parts: a base fee of $100 and a revenue generating regulatory fee based on number of employees. Certain activities may require additional city licenses and fees.
Why doesn’t the city collect B&O tax? To foster new business. The city goes so far as to make new companies with ten or less employees exempt from the Revenue Generating Regulatory License (RGRL) for the first year. Kirkland wants to diversify business in the area and one of the ways is incentivizing startups to plant their roots in Kirkland.
If you’re looking to start a business, Kirkland might be the place for you. You can apply for the state and city license simultaneously, which makes it easy to operate in the area. Plus, given the incentives (such as no B&O tax or RGRL fees) and diverse businesses creates healthy competition. Kirkland features a number of industries, including tech, manufacturing, healthcare, and education (among others).