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


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Perhaps you are hoping to form an LLC in Washington State. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Washington State.

Washington State LLC Cost of Filing

Here are the costs involved in forming an LLC in Washington State.

Cost of Filing Formation Certificates

The Washington State Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Washington State Secretary of State.

Washington State Domestic LLC

  • Online Filing costs $200.
  • Annual Report filing costs $60
  • Name Reservation fee costs $30
  • 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. Costs $180.

Washington State Foreign LLC

  • Online Filing costs $200.
  • Annual Report filing costs $60
  • Name Reservation fee costs $30
  • 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. Costs $180.

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

You need a registered agent to form an LLC in Washington State, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

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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$200$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.

How Much Does It Cost to Maintain an LLC in Washington

To maintain an LLC in Washington you will need to pay an annual fee of $60 along with sales & use tax at 6.5%, and federal taxes.

The cost associated with maintaining an LLC in Washington can be roughly divided into two categories: initial formation expenses and ongoing compliance requirements. Initially, entrepreneurs must complete the formation process, which includes filing the Articles of Organization with the Washington Secretary of State. There is a non-refundable filing fee for this, which varies depending on the filing method chosen by the entrepreneur. However, this is a one-time expense.

Moving on, maintaining the good standing of an LLC requires periodic expenses. An annual report must be filed with the Washington Secretary of State, typically within 120 days of the anniversary of the LLC’s formation. This report ensures accurate records that publicly reflect the organization’s current managerial and operational structure. It is crucial not to miss this deadline, as late fees may apply, throwing off a smooth operation of the LLC.

Another ongoing expense entails the acquisition of a Unified Business Identifier (UBI) number, which is key for conducting business within the state of Washington. Typically, acquiring this number has associated costs. Moreover, certain businesses might need to obtain a special permit, such as for sales taxes or regulated activities, which incurs additional expenses.

We must also consider potential costs associated with professional services. Many new entrepreneurs choose to seek legal assistance for the formation and maintenance of their LLC. While this can help ensure compliance and avoid costly mistakes, it undoubtedly adds to the overall expenses. It should be noted, however, that legal assistance is not obligatory.

Additionally, the choice of business services to support ongoing operability could create additional costs. Utilizing online services designed to help with administrative tasks, such as annual report filings or regular bookkeeping, may be beneficial for entrepreneurs lacking experience or time. While such services come at a certain price, they can ultimately save valuable time and effort, allowing business owners to focus on core activities.

Lastly, it is essential to take into account that the costs of maintaining an LLC may fluctuate depending on external factors such as changes in regulations or unexpected circumstances, like compliance audits. Entrepreneurs must remain cognizant of the dynamic nature of legal requirements and news affecting businesses to ensure uninterrupted and cost-effective operations.

In summary, the cost of maintaining an LLC in Washington should be factored into every business owner’s strategic planning. Initial formation expenses are limited to one-time fees, which entrepreneurs must carefully manage when kickstarting their enterprise. However, ongoing compliance in the form of annual report filings, acquiring necessary permits, legal counsel or professional services, and potential unforeseen expenses may incur significant costs. Therefore, to ensure smooth and prosperous operations, entrepreneurs must consider these aspects in budgeting and adapt to the evolving legal landscape that surrounds business operations in the fantastic state of Washington.

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.


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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