LLC Cost in Washington State – How Much to Pay for an LLC

Steve Bennett
Business Formation Expert  |   Fact Checked by Editorial Staff
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Starting a limited liability company in Washington State involves a set of costs. In general, the cost of forming an LLC anywhere is much lower than the cost of establishing a corporation or other business structures. To start an LLC in Washington State, you pay $180 ($200 for online filing) as a filing fee. There are other types of fees, like annual reports, licenses, permits, and state taxes (if applicable).

In this article, the LLCBuddy team has summed up the overall projected LLC cost in Washington State. From initial filing fee to maintenance cost, and to annual taxes, you will get it covered here!

Washington State LLC Cost of Filing

The cost to start an LLC anywhere in the US includes many things. Apart from the initial filing fee, it involves license and permit fees, tax filing, sales taxes, other local and state government fees, etc.

Cost of Filing Formation Certificates

The main cost associated with an LLC is the filing fee paid to the state. The fee is different based on which state you’re in. In Washington State, the filing fee is $180. Once you file the Washington Articles of Organization, you must pay the fees to the Washington Secretary of State at the time of form submission. Apart from the filing fee, some other fees and costs are mentioned below,

Washington State Domestic LLC

By Mail: Fill out the application form, and send it to the Secretary of State Corporation Division, 801 Capitol Way S, P.O. Box 40234, Olympia, Washington 98504-0234.

Washington State Foreign LLC

By Mail: Fill out the application form, and send it to Secretary of State Corporation Division 801 Capitol Way S P.O. Box 40234 Olympia, Washington 98504-0234.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Washington State LLC Formation Service or Registered Agent Fee

Hiring a registered agent in Washington is necessary while forming an LLC. LLC formation cost includes the cost of hiring a registered agent. You can be your own registered agent; however, that is not recommended, as a registered agent has to be present at the official physical address during working hours. Here are the best LLC services in Washington that offer registered agent services as well.

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Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Washington State Department of Revenue for regulatory boards or agencies requiring licensing.

Taxes Payable to the Washington Department of Revenue

To incorporate and register an LLC in Washington, one has to pay taxes to State & Federal Government. Some of the essential business taxes are enlisted below.

State Income Tax: As the LLC owner, you don’t have to pay state tax on any amount you earn via your LLC. Businesses may have to pay a Business & Occupation tax on all the earnings in Washington. Some companies are also subjected to the public utility tax. The gross receipts drawn by the businesses define the amount of tax they have to pay.

State Sales & Use Tax: Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the Washington Department of Revenue. The state sales & use tax rate on LLC in Washington is 6.5%.

Federal Self-Employment Tax: The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in Washington is 15.3%.

Federal Income Tax: The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year.

Employee & Employer Taxes: LLCs that have appointed several employees have to pay Employee & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.

Cost Comparison between states

Washington shares its border with the Pacific Ocean, British Columbia, Canada. It has only two American states that share the same boundaries, namely Idaho & Oregon. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Washington$180$606.5%
Idaho$100None6%
Oregon$105$30None

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in Washington.

Other Costs

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Washington is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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