OLYMPIA, WA (MyBellinghamNow.com) – Business owners across the state are having more difficult conversations about staying open.

That’s according to the Association of Washington Business, which released its quarterly employers’ survey earlier this week.

In comparison to the first three months of 2026, more owners are making plans to move their businesses out of Washington within the next year or two.

A majority of those who said they’re considering the big move are exploring their options and researching locations. Just over half of business owners who took the survey said they’re considering moving their personal residence out of state, which is a slightly higher number than was reported in Q1.

Overall tax burdens remain at the top of the list for the biggest challenges facing employers in Washington. Concerns over the cost of health care, government regulations, the cost of fuel, and inflation round out the top five issues.

Nearly half of business owners now believe that Washington’s economy could soon head into a recession, compared to just 34% earlier this year.