Quick answer

Quick Answer

To start a Washington LLC, you must file a Certificate of Formation with the Washington Secretary of State and pay a $200 filing fee. You must appoint a registered agent with a physical street address in Washington. Once formed, your LLC must file an Annual Report every year by the end of its anniversary month, which costs $70. While Washington boasts zero personal state income tax, it imposes a Business & Occupation (B&O) Tax, which taxes your gross revenue (not net profit) at rates typically ranging from 0.471% to 1.5% or more depending on your industry.

Washington LLC filing fee

The state filing fee for your Certificate of Formation is $200. You can submit this document online via the Washington Secretary of State's Corporations and Charities Filing System (CCFS). Online filings are generally processed within 2 to 5 business days, making it the fastest and easiest method to form your business.

Step 1: Choose a name

Your LLC's name must be entirely unique and distinguishable from other business entities registered in Washington. State law dictates that the name must include an appropriate LLC designator, such as "Limited Liability Company", "LLC", or "L.L.C.". You can search the Washington Secretary of State's online database to verify name availability.

Step 2: Appoint a registered agent

Every Washington LLC must designate a registered agent. This is an individual or authorized business entity responsible for receiving service of process, lawsuits, and official state correspondence on behalf of the LLC. The agent must have a physical street address in Washington (P.O. Boxes are not permitted) and must be available during regular business hours.

Step 3: File formation documents

Your business is officially created when you file the Certificate of Formation with the Washington Secretary of State. You must provide your LLC's name, the name and address of your registered agent, its principal office address, and whether the LLC will be managed by its members or by managers. The state filing fee is $200.

Step 4: Create an operating agreement

Washington law does not legally require you to file an operating agreement with the state. However, drafting an operating agreement is highly recommended to protect your business legally. It serves as the internal governing document for your LLC, establishing ownership percentages, voting rights, and how profits are divided. Additionally, almost all banks will require a copy of your operating agreement to open a business bank account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It functions like a social security number for your business. You will need an EIN to hire employees, open a business bank account, and file federal tax returns. You can apply for an EIN online directly through the IRS website.

Step 6: Register for state taxes if needed

Washington is highly unique when it comes to business taxes. The state has zero personal state income tax, meaning your pass-through LLC profits are entirely tax-free at the personal level. However, virtually all businesses are subject to the Business & Occupation (B&O) Tax. This is a gross receipts tax, meaning you are taxed on your total revenue, not your net profit (you owe it even if you lose money). The rate depends on your industry (e.g., 0.471% for retailing, 1.5% for most services). You must register with the Department of Revenue to receive your Unified Business Identifier (UBI) number and report your B&O taxes.

Step 7: File annual reports and stay compliant

Every Washington LLC must file an Annual Report to maintain its active status with the Secretary of State. The report is due by the last day of your LLC's anniversary month. For example, if you formed your LLC on July 10, your annual report is due by July 31 every year. The filing fee is $70.

Washington LLC Cost

Fee Type Amount
Formation fee $200
Registered agent estimate $39 - $150 / year
Annual report fee $70 / year
B&O tax Varies (Gross receipts tax)
Publication fee if applicable $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in Washington, do not operate from Washington, and do not have a specific Washington-related reason for forming there, a Washington LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

Washington currently charges $200 to form a domestic LLC. Annual reports are currently $70. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing Washington.

Should you form your LLC in Washington?

A Washington LLC usually makes sense if you live in Washington, operate your business from Washington, or have a clear legal or tax reason to use Washington. If you live and operate somewhere else, forming in Washington may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. Washington may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a Washington LLC usually a good fit?
You live in Washington Usually yes
Your business operates in Washington Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

Washington LLC vs Wyoming LLC

For non-resident business owners, Wyoming is a far superior option to Washington. Both states offer zero personal state income tax. However, Wyoming does not impose a gross receipts tax like Washington's B&O tax. Wyoming also offers lower ongoing fees ($60 minimum/year vs. Washington's $70/year) and a lower initial formation fee ($100 vs. Washington's $200). Most importantly, Wyoming provides robust statutory anonymity to keep your ownership details off public registries, whereas Washington does not. If you operate a brick-and-mortar business inside Washington, you must register a Washington LLC. If you run a purely online business, Wyoming is a vastly better choice.