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Various factors determine whether one is an independent contractor or employee....Registering your business Make less than $12,000 a year before expenses; Do not make retail sales; Are not required to pay or collect any taxes administered by the Department of Revenue.
Construction Contractors Must Be Registered. Washington State requires all construction contractors to register with L&I. State law also requires construction contractors to be bonded and insured to protect the public. Once registered, contractors can bid, advertise, and perform construction work.
Contractors performing retail services must collect sales tax based on the tax rate of the jurisdiction in which they perform their services.
After all, you aren't required to hire a contractor to make improvements to your own property. The law allows you to do it yourself. However, keep in mind that every community has its own rules regarding owner-builders. Always check with your local building department or permit office for specifics.
Do You Need a General Contractor's License in Washington State? Yes! Washington state imposes substantial penalties and fines on people who complete work for others without first obtaining a Washington state general contractor's license.