Rules that apply to a sale in Seattle
| Topic | What the rule says | Source |
|---|---|---|
| Who may broker the sale (Washington law) | Washington defines a "business opportunity" as a business or its goodwill when the transaction includes an interest in real property, bringing it under real estate broker licensing (RCW 18.85.011). | |
| State income tax on the gain | Washington has no personal income tax on wages or business income. | Tax Foundation - 2026 State Individual Income Tax Rates and Brackets |
| Special treatment of the gain | Washington has no income tax but levies a capital gains excise tax: 7% on long-term gains above an annual standard deduction and an additional 2.9% on taxable gains above $1 million. The sale of substantially all of a qualified family-owned small business can be exempt if strict requirements are met. |
What brokers in Seattle charge
Main Street business brokers usually charge a success fee - a percentage of the sale price paid at closing - with a minimum fee; lower-middle-market M&A advisers often use tiered percentages and may charge an upfront retainer credited against the success fee. Few brokers publish their rates. Two that do: Empire Flippers (online businesses) charges 15% of the price up to $700,000, then 8% up to $5M and 2.5% above; Flippa charges a 10% success fee plus a listing fee. Use published schedules as a benchmark when you negotiate, and compare total cost if the deal does not close. See broker vs DIY for the fee math and our broker reviews.
How to vet a broker in Seattle
- Check the license
If your deal includes a lease assignment or real estate (most do), ask for their Washington real estate license and verify it.
- Ask for closed deals like yours
How many businesses in your industry and size range did they close in the last two years, and at what share of asking price?
- Get every fee in writing
Success-fee percentage, minimum fee, any upfront, valuation or marketing fee, and whether buyers you bring trigger the fee.
- Limit exclusivity and the tail
Listing term (6-12 months is common) and the tail period after it ends during which a sale still owes a fee.
- Know who does the work
The person who pitches you should be the person who runs your deal.
- Know your number first
Run the valuation calculator so you can judge whether a broker’s suggested price is a listing tactic.
Selling a specific kind of business
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Frequently asked questions
Do business brokers in Seattle need a license?
Washington defines a “business opportunity” as a business or its goodwill when the transaction includes an interest in real property, bringing it under real estate broker licensing (RCW 18.85.011).
Sources
- RCW 18.85.011 - Definitions (accessed 2026-09-23)
- Tax Foundation - 2026 State Individual Income Tax Rates and Brackets (accessed 2026-09-23)
- Washington DOR - Capital gains tax (accessed 2026-09-23)
- Empire Flippers - Sell your online business (fees and requirements) (accessed 2026-09-23)
- Flippa - Pricing (accessed 2026-09-23)