Frequently Asked Questions
What types of businesses need to have a business license?
All entities engaged in business within the Redmond city limits, including those physically located in commercial or in-home locations inside the city limits, those coming inside the city limits to perform work, and those who earn money without physical presence by providing services, such as telecommunications or by receiving rents. Exceptions to this are:
- Governmental entities
- Farmers, gardeners, or other persons who sell and deliver self-grown produce
- Residential rental or leasing of four or less units
- Insurers or their agents who represent their own brand of insurance
- Newspaper carriers under the age of 18
- Businesses exempt by state or federal law
All nonprofit businesses are required to obtain a business license. Those providing proof of their IRS 501(c)(3) Federal Tax Exemption Status will be exempt from the license fee.
How long is the license in effect?
All business licenses expire December 31 of each calendar year and must be renewed by February 15 if business will continue in Redmond.
Can I assume the former owner's license?
No, business licenses are nontransferable. A new owner must apply for a new business license.
How soon will I get my license?
Your license will be mailed within 10 business days.
When is a business license denied?
In most cases, a business license is denied because of zoning or code violations on the premises. A business license can also be denied because of legal violations or indebtedness to the City.
What are the funds collected from Business Licensing used for?
Sixty-one percent of the business license fees collected is earmarked for transportation improvements to the City's transportation infrastructure, increasing overall business accessibility and mobility. To date, the money collected from Business Licensing has helped fund many projects. The balance of fees collected contributes to maintaining and enhancing the City's levels of service
How do outside contractors and consultants determine the license fee?
For new applications, estimate the maximum number of employee hours expected to be worked in the city during the current calendar year. Once there is an established calendar year of history in Redmond, the fee is calculated based on the total number of hours worked in the previous calendar year.
There is a minimum license fee of $92, which covers up to 1,920 hours worked in the city.
When there are no employees actually working in the city, as is the case with telecommunications providers, how is the fee determined?
If you do not have any employees actually working in the city, the minimum license fee of $92 would apply.
Does the City of Redmond charge quarterly taxes on incomes?
The City of Redmond does not charge a B&O tax. The City does charge admissions taxes, gambling taxes, and occupational utility taxes on applicable businesses. For more information on City of Redmond taxes, visit the Redmond Municipal Code (RMC).