Fees
Washington LLC formation costs
$200 to form + $71/yr annual report = ~$271 first-year state cost (before registered agent service) — CALLOUT: Washington has NO state income tax on wages, salaries, or business income — one of only nine US states with no personal income tax. This is the dominant Washington LLC tax advantage. Note: Washington does impose a Business & Occupation (B&O) tax on gross receipts, but there is no state income tax on pass-through LLC income.
| Fee | Amount | Notes |
|---|---|---|
| Certificate of Formation filing fee | $200 | One-time state filing fee payable to the Washington Secretary of State through CCFS. Compare: California ($70), Florida ($100), Oregon ($100), Nevada ($75 + annual agent fee). Washington's $200 formation fee is standard for a Pacific Northwest commercial state. |
| Annual Report | $71/year | Due in the LLC's anniversary month each year. Filed online through CCFS at ccfs.sos.wa.gov. Failure to file results in administrative dissolution. Compare: California ($800/yr franchise tax), Oregon ($100/yr), Nevada ($350/yr — much higher). Washington's $71 annual report is reasonable for the Pacific Northwest tier. |
| Business & Occupation (B&O) Tax (if conducting WA business activities) | 0.291%–0.484% of gross receipts (varies by classification) | Washington's B&O tax applies to gross receipts from Washington business activities. Rate varies: 0.471% (retailing), 0.484% (service/other), 0.291% (wholesaling/manufacturing). Registered with WA Department of Revenue at dor.wa.gov. B&O tax applies regardless of profitability — a gross receipts tax, not an income tax. LLCs with annual B&O tax liability under $28/month may qualify for quarterly or annual filing. |
| Name reservation (optional) | $30 | Reserves an LLC name for 180 days with the Washington Secretary of State. Optional — most filers confirm availability and proceed directly to filing through CCFS. |
| EIN application | Free | IRS Form SS-4 — free online at irs.gov/ein. No state fee. |
Requirements
What you need to know before filing
- Name must contain 'LLC', 'L.L.C.', 'Limited Liability Company', 'Ltd. Liability Co.', or 'Limited Liability Co.' — Washington accepts standard LLC designators under Washington Limited Liability Company Act, RCW Chapter 25.15.
- CALLOUT — NO STATE INCOME TAX: Washington is one of only nine US states with no personal income tax. LLC pass-through income is not subject to Washington state income tax at the member level. This is a significant tax advantage over high-income-tax states like California (up to 13.3%), Oregon (up to 9.9%), and New York (up to 10.9%). However, Washington imposes a Business & Occupation (B&O) tax on gross receipts — a separate tax that applies even if the LLC has no net profit.
- A registered agent with a physical Washington street address (no PO boxes) must be maintained at all times. The RA must be a Washington resident or a registered Washington business entity. The RA must be available during normal business hours to accept service of process under RCW 25.15.006.
- Certificate of Formation is filed with the Washington Secretary of State through Corporations & Charities Filing System (CCFS) at ccfs.sos.wa.gov. Online filing is recommended. Standard processing: same-day to 2 business days online.
- An Annual Report must be filed with the Washington SOS each year in the LLC's anniversary month. The filing fee is $71. Failure to file results in administrative dissolution.
- An Operating Agreement is not required to be filed with the state but is strongly recommended under RCW 25.15.018 to govern member rights, voting, profit distribution, and dissolution.
- An EIN from the IRS is required to open a business bank account and for tax filing.
- Washington imposes a Business & Occupation (B&O) tax on gross receipts from business activities conducted in Washington. The B&O tax rate varies by business classification: 0.471% (retailing), 0.484% (service and other activities), 0.291% (wholesaling/manufacturing). Unlike income tax, B&O tax applies even if the business has no net profit — it is a gross receipts tax.
- Washington also imposes retail sales tax (6.5% state rate plus local rates — Seattle combined rate approximately 10.25%) on taxable retail sales. LLCs making retail sales must register with the Washington Department of Revenue (DOR) at dor.wa.gov.
- Washington does not require newspaper publication for LLC formation.
Documents
What you'll need to file
- Certificate of Formation — filed through CCFS at ccfs.sos.wa.gov. Requires LLC name (with valid designator), principal office address, registered agent name and Washington street address, and organizer signature.
- Registered agent consent — RA must accept appointment and maintain a physical Washington street address. RA must be a Washington resident or registered WA business entity.
- Operating Agreement — not filed with the state; governs membership percentages, voting rights, profit and loss allocation, and dissolution under RCW 25.15.018.
- Washington Business License Application — required to register with the WA Department of Revenue for B&O tax and retail sales tax purposes. Available at dor.wa.gov.
- Annual Report — filed each year in the LLC's anniversary month ($71 fee). Filed through CCFS.
- Business bank account documentation — EIN letter, Certificate of Formation, and Operating Agreement.
Registered agent
Who receives legal mail for your LLC
Required in every state.
- Required?
- Yes
- Who can serve
- Washington resident individual with a physical WA street address, or a registered Washington business entity — out-of-state individuals cannot serve as Washington registered agent
- Can I serve myself?
- Yes
- Commercial RA cost
- ~$125/yr
Washington requires the RA to be a WA resident or registered WA entity. Self-serving places your home address on the public CCFS record. Commercial RA services ($50–$150/yr) meet Washington's residency requirement, maintain your privacy, and ensure legal mail is never missed.
Renewing or switching? Compare standalone registered agent services — Northwest, Harbor Compliance, Registered Agents Inc., InCorp, and more.
Process
How to form a LLC in Washington
Sequential — each step gates the next.
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Search for name availability through the Washington SOS Use the Washington Corporations & Charities Filing System (CCFS) at ccfs.sos.wa.gov to confirm your desired LLC name is available. The name must include a valid LLC designator under RCW 25.15.006. Optional: reserve the name for 180 days ($30) while preparing documents.
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Appoint a Washington registered agent Designate a registered agent with a physical Washington street address (no PO boxes) who is available during normal business hours. Washington requires the RA to be a Washington resident individual or a registered Washington business entity — out-of-state individuals cannot serve as WA RA. Commercial RA services ($50–$150/yr) ensure compliance and maintain privacy.
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File Certificate of Formation with the Washington Secretary of State File online through CCFS at ccfs.sos.wa.gov ($200 fee). Provide: LLC name, principal office address, registered agent name and WA street address, and organizer signature. Online processing is typically same-day to 2 business days.
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Register with the Washington Department of Revenue Register your LLC with the Washington DOR at dor.wa.gov to obtain a Washington Business License. This registration covers B&O tax, retail sales tax (if applicable), and other state business taxes. There is a $19 fee for the master business license. Washington has no state income tax, but the B&O gross receipts tax applies to most Washington business activities.
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Draft an Operating Agreement Although not required to be filed with the state, an Operating Agreement governs membership percentages, voting rights, profit and loss allocation, member admission and exit rules, and dissolution under RCW 25.15.018. Seattle-area and Puget Sound LLCs in tech, aerospace, and professional services should invest in a comprehensive OA.
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Obtain an EIN from the IRS After the Certificate of Formation is approved, apply for an EIN at irs.gov/ein. The online application takes under 15 minutes and provides the EIN immediately. Print the EIN Confirmation Letter (CP 575).
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Open a business bank account Bring your EIN Confirmation Letter, Certificate of Formation, photo ID, and Operating Agreement. Seattle's banking market includes national banks and regional institutions like HomeStreet Bank and Banner Bank. A separate business account is the most important step to maintaining the LLC's liability shield.
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File the Annual Report in the anniversary month each year Washington LLCs must file an Annual Report and pay the $71 fee in the LLC's anniversary month each year. Filed online through CCFS at ccfs.sos.wa.gov. Failure to file results in administrative dissolution. Calendar the specific anniversary month for this annual compliance obligation.
Annual obligations
What your LLC owes every year
Year-2+ costs most formation guides omit.
| Obligation | Due date | Fee | Consequence if missed |
|---|---|---|---|
| Annual Report | In the LLC's anniversary month each year | $71.00 | Failure to file the Annual Report in the anniversary month results in administrative dissolution of the Washington LLC. Reinstatement requires additional fees. Calendar the specific anniversary month each year. |
| Business & Occupation (B&O) Tax return | Monthly, quarterly, or annually — based on WA DOR filing frequency assignment | $0.00 | Failure to file B&O tax returns or pay the B&O tax triggers penalties, interest, and potential personal liability. B&O rate varies by business classification (0.291%–0.484% of gross receipts). Register at dor.wa.gov and follow the assigned filing frequency. |
Provenance
Statute basis & official sources
Last verified 2026-05-07.
Washington Limited Liability Company Act, RCW Chapter 25.15; Washington Business & Occupation Tax, RCW Chapter 82.04; Washington Retail Sales Tax, RCW Chapter 82.08; IRS Rev. Rul. 77-137 on single-member LLC tax treatment.
Direct filing portal: https://ccfs.sos.wa.gov/
If you skip the LLC
- Without an LLC, the business name is not protected in Washington; another entity can register the same name and force a rebrand. Check availability at https://ccfs.sos.wa.gov/ and, if available, reserve it for 180 days ($30) while you prepare formation paperwork.
- Sole proprietors conducting Washington business activities are still subject to Washington's B&O gross receipts tax — forming an LLC does not eliminate this obligation, but it does provide liability protection.
- Failure to file the Annual Report in the anniversary month results in administrative dissolution. Reinstatement requires additional fees and filings.
- Operating without a Washington Business License and failing to register for B&O and sales tax when required triggers back-tax liability, penalties, and interest from the WA DOR.
Formation context
Who should form in Washington?
- Recommended for
- Washington residents and businesses operating primarily in WA — especially Seattle, Bellevue, Tacoma, Spokane, and the broader Puget Sound region; Tech, aerospace, and professional-services LLCs in the Seattle metro who benefit from Washington's no-state-income-tax environment; E-commerce and online businesses with Washington nexus who want no state income tax on pass-through income; Small business owners and freelancers in Washington who want a fast, online formation process with no income tax on earnings
- Tax treatment (default)
- Pass-through by default: single-member LLCs are disregarded entities (Schedule C); multi-member LLCs are treated as partnerships (Form 1065). Washington has NO state income tax — LLC pass-through income is not taxed at the state level on members' personal returns. Washington does impose: (1) B&O tax on gross receipts from WA business activities (0.291%–0.484% by classification); (2) Retail sales tax on taxable Washington sales (6.5% state + local). Can elect S-corp status (Form 2553) once payroll justifies it. The S-corp election's primary benefit — reducing self-employment tax — is amplified in Washington since there is no state income tax on the saved earnings.
Forming in another state (Nevada, Wyoming, Delaware) does not eliminate Washington's B&O tax or sales tax obligations if your LLC conducts business in Washington. Washington's definition of nexus is broad — physical presence, remote workers, or significant Washington-source sales can trigger registration and tax obligations. For businesses with genuine Washington operations, form in Washington directly.
No publication requirement in Washington — unlike New York or Nebraska, you do not need to publish notice in a newspaper after filing.
FAQ
Common Washington LLC formation questions
Does Washington have a state income tax on LLCs?
No. Washington is one of nine US states with no personal income tax. LLC pass-through income is not subject to Washington state income tax at the member level. This is Washington's primary tax advantage over neighboring states like Oregon (up to 9.9% top rate) and California (up to 13.3%). However, Washington does impose a Business & Occupation (B&O) tax on gross receipts — a flat percentage of revenue that applies even if the LLC has no net profit. The B&O rate varies by business classification (0.291%–0.484%).
How much does it cost to form an LLC in Washington?
The Certificate of Formation filing fee is $200. The Annual Report costs $71/year, due in the LLC's anniversary month. Total first-year state cost: approximately $271 (before registered agent and WA DOR registration fees). Washington has no state income tax, but the B&O gross receipts tax applies to most business activities. Compared to Oregon ($100 form + $100/yr), California ($70 form + $800/yr franchise tax), and Nevada ($75 + $350/yr), Washington is a reasonable-cost Pacific Northwest state.
What is Washington's Business & Occupation (B&O) tax?
Washington's B&O tax is a gross receipts tax on revenue from Washington business activities — it applies even if the LLC has no net profit. The rate varies by business classification: 0.471% for retailing, 0.484% for service and other activities, 0.291% for wholesaling and manufacturing. For example, an LLC generating $200,000 in services revenue would owe approximately $968 in B&O tax (0.484% × $200,000). Small businesses may qualify for the small business B&O tax credit if annual B&O liability is below a threshold — check current DOR guidance at dor.wa.gov.
Does Washington require a registered agent for an LLC?
Yes. Every Washington LLC must maintain a registered agent with a physical Washington street address (no PO boxes). Washington specifically requires the RA to be a Washington resident individual or a registered Washington business entity — out-of-state individuals cannot serve as Washington RA. Commercial RA services ($50–$150/yr) ensure your RA meets Washington's residency requirement and maintain privacy.
How long does it take to form an LLC in Washington?
Washington SOS processes online Certificate of Formation filings same-day to 2 business days through CCFS. After approval, apply for an EIN at irs.gov/ein, which is issued immediately online. Washington's online formation system is among the fastest in the US. Total time from filing to active LLC with EIN: typically 1–5 business days.
When is the Washington Annual Report due?
Washington LLCs must file their Annual Report and pay the $71 fee in the LLC's anniversary month each year. For example, an LLC formed in March must file its Annual Report each March. Unlike states with fixed deadlines (May 1, April 15), Washington uses the anniversary month. Failure to file results in administrative dissolution. File through CCFS at ccfs.sos.wa.gov.
Should I form my LLC in Washington or Oregon?
Washington vs. Oregon is a significant tax tradeoff: Washington has no state income tax but imposes the B&O gross receipts tax. Oregon has no sales tax but imposes a personal income tax of up to 9.9% on pass-through income. For high-revenue, low-margin businesses, Oregon's income tax can be substantial while Washington's B&O is manageable. For businesses with thin margins and high gross receipts, Washington's B&O can exceed Oregon's income tax. Form where you genuinely operate — cross-state qualification eliminates cost advantages. Consult a Pacific Northwest CPA to model the tradeoff for your specific revenue and margin profile.
Not sure yet?
Should I form an LLC?
Still deciding between an LLC, sole proprietorship, S-Corp, or C-Corp? Our entity-type comparison breaks down formation cost, tax treatment, liability shield, and compliance complexity for all four structures side by side.
LLC vs S-Corp vs Sole Prop vs C-Corp — compare all four →Reduce your tax bill
Should you elect S-Corp status for your Washington LLC?
Once your LLC clears ~$80K in annual net profit, an S-Corp election (IRS Form 2553) typically saves $5,000–$15,000/year in self-employment taxes by splitting owner income into a W-2 salary + tax-free distributions. The election is free — Form 2553 has no IRS filing fee. The key decision factors: your net income level, a defensible reasonable-compensation salary, and the 75-day Form 2553 filing window after LLC formation.
S-Corp election guide — $80K breakeven, Form 2553 deadline & reasonable salary →Is a DBA enough?
DBA vs LLC — do you actually need a full LLC?
Already operating as a sole proprietor, or wondering whether a cheap county DBA filing ($10–$100) is enough instead of forming an LLC? A DBA lets you operate under a trade name — but provides zero liability protection. Our DBA vs LLC comparison breaks down exactly when a DBA is sufficient and when you need a state LLC filing.
DBA vs LLC — cost, liability shield & when to upgrade →Stay in good standing
Annual compliance for Washington LLCs
Missing your annual report deadline triggers late fees and — if left long enough — administrative dissolution, which voids your LLC's liability shield until reinstated. Know your Washington deadline, fee, and the consequences of missing it.
Annual report requirements hub — deadlines, fees & administrative dissolution →Also see the LLC annual report requirements hub for state-by-state deadlines, fees, late penalties, and reinstatement rules.
Operating in another state?
Register your Washington LLC in a second state
If your LLC opens an office, hires employees, or regularly does business in another state, you must foreign-qualify there — or face fines, back taxes, and loss of standing to sue. Our foreign qualification guide covers when you need it, how to file a Certificate of Authority, and what it costs.
Foreign LLC qualification guide — Certificate of Authority & multi-state costs →After you file
Next steps after forming your LLC
Your Articles of Organization are filed — now make your LLC operational. Four actions every new LLC owner needs to take:
Legal resources
Online legal services for LLC owners
Formation gets your LLC into existence; contracts, trademark protection, operating agreement review, and vendor-document review keep it usable. Compare subscription and per-document legal platforms before you rely on a template or pay a local attorney retainer.
LLC legal services comparison — contracts, trademarks, OA review & attorney access →Protect your liability shield
Open a business bank account for your Washington LLC
Commingling personal and business funds is the #1 way LLC owners lose their liability shield. A separate business account — in your LLC's legal name, with your EIN — is the foundational act of corporate formality. Mercury, Novo, Bluevine, Relay, and Found open same-day with no monthly fees. Compare online banks vs. Chase and Bank of America.
Business bank account guide — Mercury, Novo, Bluevine & what documents to bring →Owner draws & payroll
How to pay yourself from your Washington LLC
How you pay yourself depends on your LLC's tax classification — not what you call the transfer. A disregarded single-member LLC pays via owner draw with SE tax on all net profit. An S-Corp-elected LLC splits income between a W-2 salary (FICA applies) and tax-free distributions. Getting this wrong triggers IRS audit risk and SE-tax errors.
Pay-yourself guide — owner draws, quarterly taxes & S-Corp salary mechanics →April tax season prep
How your Washington LLC files taxes
Single-member LLCs file Schedule C with their personal Form 1040 (due April 15). Multi-member LLCs file Form 1065 by March 15. S-Corp-elected LLCs file Form 1120-S by March 15. Know your form, your deadline, and the common deductions — home office, vehicle, retirement contributions, and startup costs — before your first April filing.
LLC tax filing guide — forms, deadlines, deductions & audit triggers →§ A Building permits in Washington
§ B Other states & comparisons
- Washington LLC Formation — Seattle city guide→
- Oregon LLC Formation — No sales tax but 9.9% top income tax; Portland city guide→
- Nevada LLC Formation — No state income tax, no B&O tax alternative for some business models→
- Wyoming LLC Formation — No income tax, low fees; privacy formation alternative→
- Best Registered Agent Services — Compare Northwest, ZenBusiness, LegalZoom & Bizee→
- S-Corp Election Guide — How to elect S-corp tax treatment for your LLC→
- LLC Annual Compliance Guide — What filings does your LLC need each year?→
- Real Estate LLC Guide — forming LLCs for rental property, per-property structure, and due-on-sale clause→
- Foreign LLC Qualification — When and how to register in another state→
- Sales Tax Permit Guide — Washington retail sales tax registration at dor.wa.gov→
- Best Payroll Software for LLCs — Gusto vs. OnPay vs. ADP Run vs. Patriot vs. Paychex Flex→
- BOI Report Filing Guide — US LLCs exempt since 2025; how foreign-registered companies file→
- Who Must File a BOI Report? — only foreign companies registered in a US state→
- BOI Report Deadlines — none for US LLCs; 30 days for foreign-registered companies→
- Already have an LLC? Register to do business here as a foreign LLC→
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§ C Companion tools
Disclaimer: Informational only — not legal advice. LLC laws change; verify with a Washington business attorney or CPA before filing.