City of Ellensburg Requirements and Fee Calculation Instructions

City of Ellensburg Requirements and Fee Calculation Instructions

General businesses

License fee is determined by number of employees (FTEs) who work within the city limits of Ellensburg.


Method for calculating FTEs:
Total hours worked in the year by all employees, both full and part time, divided by 1,600 hours, equals number of FTEs. This includes self-employed persons, sole proprietors, owners, managers, and partners. New businesses must estimate the first year’s employee hours.


Full-Time Equivalent (FTE)

Employee fee calculation

Total number of employees

License fee

1 through 5


6 through 12


13 through 25


26 through 50




Non-Resident businesses

The license for a business operating in this city, but based outside this city, is determined by gross annual income earned within this city’s limits and number of employees (FTEs):


Reported gross annual income License fee

$0 through $2,000

No License Required

Above $2,000

See table above


Nonprofit businesses

License fee: There are no Ellensburg city fees for nonprofit businesses. Enter the total number of employees in the appropriate space, but enter $0.00 in all fee boxes.


Nonprofit businesses, other than religious organizations, must provide a copy of the confirmation from the Internal Revenue Service of tax exemption under IRS Code 501(c)(3) to qualify for a nonprofit license from the City of Ellensburg.