Who is self-employed in Washington
- Tech contractors. Engineers, program managers and designers billing the Seattle and Eastside employers corp-to-corp through an LLC or S-corp — steady deposits, a modest salary, and a return engineered by a CPA who knows the state has no income tax to worry about.
- Commercial fishing. Boat owners and crew paid by share, working Alaska seasons out of Fishermen's Terminal and the Sound, with income landing in a few months and a return heavy with vessel depreciation.
- Agriculture. Orchardists and growers in Yakima, Wenatchee and the Columbia Basin, wineries in Walla Walla, with harvest-timed income.
- Trades, agencies and professionals across the Puget Sound and in Spokane, the Tri-Cities and Bellingham.
What is specific to a Washington file
- Community property. Washington is a community-property state. A non-borrowing spouse signs the security instrument even when the business is one spouse's. It does not add them to the income review.
- No mortgage recording tax. Washington's real estate excise tax applies to sales, not to a mortgage. Recording a home equity line involves county auditor fees only.
- Values run into the program cap. On the Eastside, in Seattle and on the islands, lines are sized on equity up to the program maximum of $750,000; a home worth several million does not produce a larger line.
- Wildfire east of the Cascades. In Central and Eastern Washington's interface areas, the property review confirms coverage is in force.
- Islands and ferry communities change nothing about the process. Valuation in small island markets is more likely to involve a person; the metro has deep automated-valuation data.
The share-fisherman's return
A deckhand or skipper on a Bristol Bay or Bering Sea boat is paid a crew share when the season settles — a few large deposits between July and November — and the return, after gear, travel and vessel costs, shows a thin net. A bank averages two returns and declines. Twelve consecutive months of deposits show the settlements in context, and the line is sized from those.
Common questions
Does my spouse sign if the contracting business is mine?
In Washington, usually yes — it is a community-property state, so a non-borrowing spouse signs the security instrument. It does not make them a borrower.
I'm paid a crew share a few times a year. How is that read?
As 12 months of deposits, settlements included. Nothing is averaged against a prior year's return.
Our house is worth well over a million. Is the line bigger?
The program maximum is $750,000 regardless of value. Equity above what the line needs simply stays yours.
Is there a Washington tax when the lien is recorded?
No. The real estate excise tax applies to sales. A home equity line involves county auditor recording fees only.