For contractors who would rather be on the job than in the books

When you build or repair on a customer's property, Washington generally treats the whole contract, labor included, as a retail sale. That means collecting sales tax at the rate for the job site, not your shop.

Speculative building is different: you pay sales tax on your materials and subcontracted labor instead of charging it on the sale. Mixing the two up is one of the most common audit findings for Washington contractors.

Subcontractors usually don't charge sales tax to the prime contractor. They need the prime's reseller permit on file to back that up. Missing permits turn into tax you owe out of pocket.

We keep the permits organized and make sure the right tax is on every invoice.

Workers' comp premiums are based on hours worked in each risk class. Wrong classes or missing hours show up later as back premiums and penalties.

We tie L&I reports to payroll so the numbers match when L&I looks.

Every subcontractor you pay $600 or more generally needs a 1099-NEC by January 31. Collecting W-9s when you hire them, not in January, is what makes that painless.

We also flag workers who look more like employees than subs, before it becomes an L&I or IRS problem.

Knowing your total profit isn't enough. Job-level costing shows which kinds of work make money, which bids were too low, and where materials or hours are leaking.

Equipment purchases can often be deducted in the year you buy them, but timing and financing matter. If you run an S corporation, your own salary has to be reasonable. We plan both before year-end, not at filing time.