Launch Your Washington LLC in the Evergreen State

Washington LLC Formation Costs

Washington LLC formation costs:

• State filing fee: $200
• Initial report: $60 (due within 120 days)
• Annual report: $60 (due on anniversary)
• Registered agent: Required (typically $99-$299/year)

The total first-year cost is $320 plus registered agent fees. While the filing fee is moderate, the lack of state income tax provides significant ongoing savings.

Business Climate and Advantages

Washington has no personal or corporate income tax, making it one of seven states with this advantage. However, Washington does have:

• Business & Occupation (B&O) tax: Gross receipts tax of 0.471% to 1.9% depending on business type
• Sales tax: Combined state and local rates of 6.5% to 10.4%
• Higher property taxes in some areas

Despite the B&O tax, most businesses save money compared to traditional income tax states.

Ongoing Compliance Requirements

Washington requires filing an initial report within 120 days of formation, with a $60 fee. This report confirms your business information and must be filed to maintain good standing. After the initial report, annual reports are due on the formation anniversary date. Late filing results in a $25 penalty.

Formation Timeline

Washington processing times:

• Standard online filing: 2-3 business days
• Paper filing: 7-10 business days
• Expedited processing: 1 business day for $50 additional fee

Washington’s online filing system is efficient, with some of the fastest standard processing times nationally.

Key Industry Sectors

Washington offers unique advantages for technology businesses:

• No income tax: Keeps more profits in the business
• Tech ecosystem: Seattle rivals Silicon Valley for talent and investment
• Major companies: Amazon, Microsoft create robust supplier ecosystem
• Engineering talent: University of Washington and tech workforce
• Quality of life: Natural beauty attracts top talent
• Asia-Pacific gateway: Proximity to Asian markets

These factors make Washington particularly attractive for software, e-commerce, and tech startups.

Registered Agent Requirements

Washington requires all LLCs to maintain a registered agent with a Washington street address. The agent must be available during business hours to receive legal documents and official correspondence. You can serve as your own registered agent if you have a Washington address, but professional services provide reliability and privacy protection.

Washington’s Business & Occupation tax is applied to gross receipts rather than profits, with rates varying by industry from 0.471% to 1.9%. Small businesses with gross receipts under $125,000 annually may qualify for exemption.