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


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing 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.

One of the key aspects of maintaining an LLC in Washington is the requirement to file an annual report with the Secretary of State. This report is due each year by a specific deadline and requires business owners to provide updated information about the company, such as the names and addresses of members, managers, and registered agents. Failure to submit this report on time may result in hefty fines or even the dissolution of the LLC.

In addition to the annual report, LLC owners in Washington are also required to pay an annual renewal fee to keep their business entity active and in good standing with the state. The amount of this fee can vary depending on the size of the LLC and other factors, but it is an ongoing cost that should be factored into the overall budget of the business.

Another ongoing expense associated with maintaining an LLC in Washington is the requirement to appoint and maintain a registered agent. This individual or company is responsible for accepting legal documents on behalf of the LLC and must have a physical street address in Washington where they can be reached during normal business hours. Hiring a registered agent is an additional cost that LLC owners should consider when calculating the total expenses of running their business.

Beyond the mandatory fees and requirements imposed by the state, LLC owners in Washington may also incur other costs associated with maintaining their business entity. For example, some businesses may choose to hire accounting or legal professionals to help them stay compliant with state laws and regulations. While these services are not required, they can be valuable resources for LLC owners looking to minimize the risk of costly mistakes or oversights.

Overall, the cost of maintaining an LLC in Washington can vary depending on a variety of factors, including the size and nature of the business, as well as the level of support and assistance needed to keep the company running smoothly. While some expenses, such as the annual report and renewal fees, are non-negotiable, there are ways for LLC owners to manage and minimize their ongoing costs through careful planning and budgeting.

In conclusion, the financial responsibility of maintaining an LLC in Washington should not be taken lightly. Business owners should carefully consider the costs associated with running their LLC, including mandatory fees, ongoing expenses, and additional services that may be necessary to ensure compliance with state laws. By staying informed and proactive, LLC owners can effectively manage their expenses and focus on growing their businesses.

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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