Why Form an LLC in Washington
Washington is home to Amazon, Microsoft, Boeing, Starbucks, Costco. No personal or corporate income tax.
But the B&O tax applies to gross receipts (revenue, not profit). Rates: 0.471% services, 0.484% manufacturing.
The $200 filing fee is higher than most states. The $70 annual report adds to costs.
Seattle is a world-class tech hub with deep talent and venture capital.
Washington LLC Costs and Fees
Complete fee breakdown for Washington LLCs. State fees sourced from the Washington Secretary of State.
| Fee | Amount | When Due |
|---|---|---|
| Certificate of Formation (online) | $200 | One-time |
| Certificate of Formation (mail) | $180 | One-time |
| Annual report | $70/year | Anniversary month |
| Expedited processing | $100 additional | 3 business days |
| Registered agent | $100-150/year | Ongoing |
Step-by-Step: How to Form a Washington LLC
Step 1: Choose your LLC name
Your name must be distinguishable from existing entities. Must include "LLC" or "Limited Liability Company." Check availability on the Washington business search. Reserve a name for 180 days for $30.
Step 2: Appoint a registered agent
Every Washington LLC needs a registered agent with a physical Washington address (not a PO Box). USLLCGlobal includes one year of registered agent service in all packages.
Step 3: File Certificate of Formation
File with the Washington Secretary of State through the Washington filing portal or by mail. Required information:
- LLC name with designator
- Registered agent name and address
- LLC mailing address
- Organizer name and address
- Member-managed or manager-managed
- $200 filing fee
Understanding B&O tax
Washington's B&O tax is on gross receipts (revenue), not profit. You pay even if losing money. Standard service rate: 0.471%. Small business credit exempts first $125,000.
Step 4: Create an Operating Agreement
Not legally required in Washington but essential. Defines ownership, profit distribution, management, and exit provisions. Banks and the IRS expect to see it.
Step 5: Obtain an EIN
Your federal tax ID from the IRS. Required for bank accounts, hiring, and taxes. Non-residents can apply via Form SS-4 (4-6 weeks). USLLCGlobal handles EIN applications in every package.
Step 6: Open a US bank account
With your Certificate of Formation, EIN, and Operating Agreement, open a US business account. Mercury, Relay, and Wise Business allow remote opening for non-residents.
Annual Compliance Requirements
What you need each year to keep your Washington LLC in good standing:
- Annual report: Anniversary month. Fee $70.
- Initial report: Within 120 days ($0-10).
- Federal tax filing: Form 5472 for non-US owners. $25,000 penalty.
- B&O tax: Register with Dept of Revenue.
- Registered agent: Maintain physical WA address.
- FinCEN BOI Report: File within 30 days.
Washington Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| Personal income tax | $0 | No income tax |
| B&O tax (services) | 0.471% | On gross receipts |
| B&O tax (manufacturing) | 0.484% | On gross receipts |
| Franchise tax | $0 | No franchise tax |
| State sales tax | 6.5% + local | Up to 10.4% in Seattle |
Important tax note
Forming in Washington does not eliminate federal US tax obligations. Non-resident owners must file Form 5472 annually ($25,000 penalty for non-filing). Consult a qualified tax professional.
Processing Times
| Option | Time | Fee |
|---|---|---|
| Standard | 3-5 business days | $0 (included) |
| Expedited (3 days) | As described | $100 additional |
Pros and Cons of a Washington LLC
Advantages
- No personal income tax
- No corporate income tax
- World-class tech ecosystem
- Deep tech talent
- Strong VC presence
- Pacific Rim gateway
- No franchise tax
- 180-day name reservation
Disadvantages
- B&O tax on gross receipts (not profit)
- Higher $200 filing fee
- $70/year annual report
- High sales tax (up to 10.4% Seattle)
- High Seattle cost of living
- B&O hits unprofitable businesses
The bottom line
Excellent for Pacific Northwest tech businesses. Zero income tax is genuine, but B&O gross receipts tax means not completely tax-free. For non-residents, Wyoming offers cleaner zero-tax with lower fees.
Our Pricing: Washington LLC Formation
Domestic Filers (US Residents)
$249 service + $200 state fee
International Filers (Non-US)
$349 service + $200 state fee
Every package includes:
- Certificate of Formation filing with Washington Secretary of State
- One year registered agent service
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital delivery within 24 hours of approval
- Compliance calendar
- Dedicated email and WhatsApp support
No hidden fees. No upsells. The price listed is the price you pay.
Form your Washington LLC today
$449 all-in for US residents. $549 for international filers. Formed in 3-5 business days.
Start My Washington LLC →