Resources for Law Firms in Seattle
Washington has no personal or corporate income tax, which simplifies part of the compliance picture for Seattle firms, but the state and city both impose gross receipts-based business and occupation (B&O) taxes that run parallel to each other and must be filed separately.
On the trust accounting side, the WSBA and the Legal Foundation of Washington play distinct roles, similar to how other states split those functions between a bar association and an IOLTA foundation. The resources below cover the basics across trust accounting, local taxes, court procedures, and professional support.
Trust Accounting: WSBA Rules and the Legal Foundation of Washington
Washington's trust accounting rules are found in RPC 1.15A (Safeguarding Property) and RPC 1.15B (Required Trust Account Records). Compliance is overseen by the WSBA, and the IOLTA program (including the list of authorized financial institutions) is managed separately by the Legal Foundation of Washington (LFW).
When opening an IOLTA account, the account must carry LFW's tax identification number (91-1263533), not the firm's. Banks holding these accounts are required to notify the WSBA's Office of Disciplinary Counsel if any trust account is overdrawn or if a check is presented against insufficient funds, whether or not the bank honors the payment. Attorneys are separately required to self-report the same.
The annual Trust Account Declaration is completed during the WSBA license renewal process, typically beginning in November, with a deadline of around February 1st. Every active licensed attorney must file it, including those who don't handle client funds, who simply certify that no account exists. Skipping the declaration can result in administrative suspension.
Note: This information is maintained by the Washington State Bar Association and the Legal Foundation of Washington and is subject to change.
- WSBA - IOLTA and Client Trust Accounts: The WSBA's central page for trust accounting guidance, including sample check register and client ledger templates in Excel, links to RPC 1.15A and 1.15B, and contact information for the Ethics Line as well as Practice Management Advisor for account-specific questions.
- Managing Client Trust Accounts - WSBA Booklet: The WSBA's practical manual covering account setup, recordkeeping requirements, day-to-day operations, and what to do with unidentified or unclaimed funds. Records must be retained for a minimum of five years.
- WSBA - Trust Account Declaration FAQs: Guidance on the annual declaration process, including what to report, what not to report, and how to handle multi-state IOLTA accounts.
- LFW - Eligible Financial Institutions: IOLTA accounts may only be held at institutions that have signed the required overdraft notification agreement with the WSBA and meet the interest rate comparability standards under ELC 15.7.
Seattle and Washington State B&O Tax
Washington imposes a state-level B&O tax on gross receipts, administered by the Department of Revenue. Seattle imposes its own separate B&O tax on gross receipts, filed independently with the city. Both apply to law firms, and the two filings are not coordinated. Firms must track and remit them separately.
Professional service firms are taxed under the "service and other activities" classification on gross receipts. There is no deduction for expenses, which is the feature of gross receipts taxes that most often surprises firms used to income-based tax regimes. Current rates are tiered based on prior-year gross income and are available on the Department of Revenue website.
For the Seattle B&O tax, Proposition 2, passed by Seattle voters in November 2025, made significant changes effective January 1, 2026, including a higher taxable threshold, a standard deduction for firms above that threshold, and a rate increase for professional services firms. Firms below the new threshold owe no Seattle B&O tax but are still required to file and report gross revenue. Current rates and thresholds are available on the city's tax portal.
- Seattle - Business Taxes: The city's main portal for B&O tax filing, due dates, rates, and the FileLocal system. Quarterly filers must submit returns and payment within one month of the close of each quarter. Annual filers are due by April 30.
- Seattle - Tax Rates and Classifications: The rate schedule by business type, including the professional services classification that applies to law firms.
- Seattle Shield B&O Tax Changes: The city's FAQ on the Proposition 2 changes, covering the new threshold, standard deduction mechanics, and how to calculate liability under the updated structure.
- Washington State Department of Revenue - B&O Tax: State-level B&O tax guidance, including rate schedules, filing frequency requirements, and the voluntary disclosure program for firms not yet registered with the state.
- Seattle - Business License Registration: Firms doing business in Seattle must obtain a Seattle Business License Tax Certificate and renew it annually by December 31. This is separate from the state business license.
King County Superior Court
Attorneys are required to file electronically in King County Superior Court under LGR 30. Paper filing without an approved waiver results in a fee assessed per document. The court operates across multiple locations; the main civil courthouse is in downtown Seattle. The current fee schedule is effective July 27, 2025. New civil case filing fees and the full schedule are available directly from the court.
Professional Networks and Local Resources
Seattle's legal community is organized primarily through the WSBA at the state level and the KCBA locally. The WSBA's practice management resources are worth knowing about. The Practice Management Advisor offers free consultations for members on trust accounting, technology, and firm operations, which is a more direct resource than what most state bars provide.
- King County Bar Association (KCBA): The local bar for Seattle and King County, with practice-area sections, CLE programming, a Lawyer Referral Service, and a Moderate Means Program. The KCBA runs a Legal Assistance for Military Personnel (LAMP) program and a Pro Bono Program, both of which affect how some firms structure certain matter types.
- WSBA - Practice Management Assistance: Free consultations with the WSBA Practice Management Advisor on billing systems, trust accounting setup, technology integration, and internal controls. More practically useful than most bar member benefits of this type.
- Washington Employment Security Department (ESD): Unemployment insurance and employer tax obligations, including quarterly reporting requirements and new hire reporting. Washington does not have a state income tax, so ESD obligations represent the primary state-level employer payroll compliance burden alongside L&I.
Our team offers bookkeeping services, tax services, tax planning, and advisory services tailored to law firms across Seattle. Whether you need help with payroll, cash flow, or the day-to-day bookkeeping demands of running your firm, we're here to help. Schedule a consultation today.
