How to Form an LLC in Washington State: Complete 2026 Guide
By Frédéric Deltour, Entrepreneur and Business Consultant, 22+ years forming and operating companies.
Published: April 1, 2026 · Last updated: April 23, 2026
- What You Need Before Filing in Washington
- Step-by-Step: Forming a Washington LLC in 2026
- Washington LLC Formation Costs: Full 2026 Breakdown
- Washington LLC Taxes: What to Expect
- Washington Annual Report Requirements
- DIY vs. Formation Service: What Makes Sense?
- Next Steps: Form Your Washington LLC
- Washington-Specific Pitfalls Most Guides Skip
Washington is one of only nine U.S. states with no state income tax, making it a major draw for entrepreneurs and small-business owners. Forming a Washington LLC costs $200 filed online with the Washington Secretary of State. The trade-off? Washington levies a Business & Occupation (B&O) tax on gross receipts instead of profits, and the $200 filing fee is higher than many other states.
The thing you need to know: B&O tax. While Washington has no income tax, virtually every business operating in the state owes Business & Occupation tax based on gross receipts, not net profit. Rates range from 0.471% (retailing) to 1.75% (service businesses). Small businesses earning under $125,000/year in gross receipts may qualify for small-business non-reporting status, meaning no B&O filing or payment required. If your LLC has low margins, the B&O tax can be more burdensome than a traditional income tax, so plan accordingly.
Our top pick to form your LLC in Washington State: Northwest Registered Agent charges $39 for formation and includes a free year of registered agent service.
Washington LLC at a Glance
| Item | Detail |
|---|---|
| State filing fee | $200 online ($180 + $20 convenience fee) |
| Annual report | $70/year, due last day of LLC's anniversary month |
| State income tax | None (no personal or corporate income tax) |
| B&O tax | 0.471%–1.75% on gross receipts |
| Standard processing | 1–2 business days (online) |
| Expedited processing | $50 extra (same-day or next-day) |
| Registered agent | Required (physical Washington address) |
| Operating agreement | Not required by law, strongly recommended |
| Name reservation | $30 for 180 days |
What You Need Before Filing in Washington
Washington LLCs are filed online through the Secretary of State's Corporations & Charities Filing System. You need:
- LLC name that includes "Limited Liability Company," "LLC," or "L.L.C." and is distinguishable from existing Washington entities. Search the Corporations & Charities Filing System to check availability. Name reservation costs $30 and holds your name for 180 days.
- Registered agent with a physical street address in Washington State (P.O. boxes not accepted). The agent must consent to the appointment and be available during normal business hours to accept service of process. You can serve as your own registered agent if you have a Washington street address.
- Certificate of Formation details: LLC name, effective date (can be future-dated), registered agent name and Washington street address, management structure (member-managed or manager-managed), duration (perpetual or specific term), principal office address, and mailing address.
- Business license plan: Nearly all Washington businesses must register with the Department of Revenue for a UBI (Unified Business Identifier) number. This is separate from LLC formation and handled through the Business Licensing Service (BLS).
Step-by-Step: Forming a Washington LLC in 2026
Step 1: Choose and Verify Your LLC Name
Search the Corporations & Charities Filing System to confirm your name is available. Your name must include "Limited Liability Company," "LLC," or "L.L.C." and cannot be deceptively similar to an existing Washington entity. Optional: reserve the name for 180 days for $30.
Step 2: Appoint a Registered Agent
Every Washington LLC must have a registered agent with a physical street address in the state. The agent receives legal papers and state correspondence on your behalf. You can name yourself (if you have a WA address), a trusted friend, or a commercial registered agent service.
Our pick: Northwest Registered Agent, $39/year and includes a Seattle-area address. They've been one of our recommended providers since 2024 for their privacy-first approach and local expertise in Washington State, where they're headquartered.
Step 3: File Your Certificate of Formation
File online through the Secretary of State's Corporations & Charities Filing System. The filing fee is $200 ($180 + $20 online convenience fee). Online filings are typically processed within 1–2 business days. You can pay an additional $50 for expedited same-day or next-day processing.
The Certificate of Formation requires:
- LLC name
- Effective date (current or future date)
- Registered agent name and street address
- Mailing address
- Principal office address (can be out of state)
- Duration (perpetual or specific term)
- Management type (member-managed or manager-managed)
Step 4: Apply for a Business License (UBI Number)
Washington requires most businesses to register with the Department of Revenue, even if you have no employees. Apply through the Business Licensing Service (BLS) for a Unified Business Identifier (UBI) number. This registration also covers:
- Business & Occupation (B&O) tax registration
- State sales tax (if selling taxable goods/services)
- City business license endorsements (if applicable)
- Unemployment insurance (if you have employees)
There is no charge for registering a UBI number through the state.
Step 5: Get Your EIN (Federal Tax ID)
Apply for a free EIN from the IRS at IRS.gov. You need an EIN to open a business bank account, hire employees, and file federal taxes. The online application takes 5–10 minutes and you receive your EIN immediately.
Step 6: Create Your Operating Agreement
Washington State does not legally require an operating agreement, but you should have one. It establishes member ownership percentages, profit/loss distribution, voting procedures, and what happens if a member leaves. Banks often require a copy when opening a business account, and it strengthens your liability protection by documenting that your LLC is a separate entity.
Step 7: Open a Business Bank Account
Keep personal and business finances completely separate. Bring your Certificate of Formation, EIN letter, operating agreement, and a photo ID to the bank. Washington has strong community banks and credit unions throughout the state. National banks like Chase, Bank of America, and Wells Fargo all have branches in Seattle and major cities.
Washington LLC Formation Costs: Full 2026 Breakdown
Required Costs
| Fee | Amount | When |
|---|---|---|
| Certificate of Formation (online) | $200 | One-time |
| Annual Report | $70 | Yearly |
| Registered Agent | $39–$299/year | Yearly |
Optional Costs
| Service | Cost | Our Pick |
|---|---|---|
| Name Reservation | $30 (180 days) | – |
| Expedited Processing | $50 | – |
| Certified Copy of Certificate | $10 | – |
| Certificate of Existence | $20 | – |
| Amendment to Certificate | $30 | – |
| Operating Agreement (template) | $0–$49 | – |
| EIN (IRS) | Free | – |
Year-One Cost Estimate
| Item | DIY | With Northwest | With Bizee ($0 Basic)* | Our Pick |
|---|---|---|---|---|
| State filing fee | $200 | $200 | $200 | – |
| Registered agent (year 1) | $0 (self) | $39 | $0 (included) | – |
| Formation service | $0 | $0 (included) | $0 | – |
| Year-one total | $200 | $239 | $200 | – |
Ongoing annual costs: $70 (annual report) + $39–$299 (registered agent renewal).
Washington LLC Taxes: What to Expect
No State Income Tax
Washington has no personal or corporate state income tax. Single-member LLCs and multi-member LLCs pass through income to members' federal returns, and there's no additional state tax on that income. This is one of Washington's biggest advantages for LLC formation.
Business & Occupation (B&O) Tax
Instead of an income tax, Washington imposes a B&O tax on gross receipts (total revenue, not profit). Common rates:
| Classification | B&O Rate |
|---|---|
| Retailing | 0.471% |
| Wholesaling | 0.484% |
| Manufacturing | 0.484% |
| Service & Other Activities | 1.75% |
Small business credit: Businesses earning under $125,000/year in gross receipts may qualify for non-reporting status, effectively paying $0 in B&O tax. Businesses earning between $125,000 and $250,000 may receive a partial B&O credit.
Sales Tax
Washington has a state sales tax of 6.5%, plus local additions that bring the combined rate to 7%–10.5% depending on location. If your LLC sells taxable goods or services in Washington, you must collect and remit sales tax.
Self-Employment Tax
Like all states, LLC members pay 15.3% federal self-employment tax on net earnings (12.4% Social Security + 2.9% Medicare). This applies regardless of whether the state has income tax.
2025 Capital Gains / High-Earner Tax
Washington enacted a 7% capital gains tax on gains over $270,000 (adjusted for inflation). In 2025, voters approved a 9.9% tax on adjusted gross income over $1 million (effective 2028). These primarily affect high earners and are separate from LLC business operations.
Washington Annual Report Requirements
Every Washington LLC must file an Annual Report with the Secretary of State. Key details:
- Fee: $70/year
- Due date: Last day of the month in which the LLC was originally formed (your anniversary month)
- Filing method: Online through the Corporations & Charities Filing System
- Late penalty: Failure to file results in administrative dissolution. You can reinstate for an additional $50 fee plus any outstanding annual reports.
The annual report updates your LLC's basic information: principal office address, registered agent, mailing address, and management details. Set a calendar reminder for 30 days before your due date.
DIY vs. Formation Service: What Makes Sense?
Washington's online filing is straightforward, the Secretary of State's portal walks you through each field. DIY is a perfectly viable option if you're comfortable reading instructions carefully.
However, a formation service adds value when:
- You want a professional registered agent address (not your home address in public records)
- You need help coordinating the UBI/business license registration
- You want automatic annual report reminders
- You're forming an LLC in Washington from out of state
Our Recommended Formation Services
Northwest Registered Agent, $39 + $200 state fee. Includes registered agent for one year, a Seattle-area street address for privacy, mail forwarding, and compliance alerts. Northwest is headquartered in Spokane, Washington, making them a true local option with deep knowledge of Washington filing requirements.
Bizee (formerly Incfile), $0 Basic (or $199 Standard) + $200 state fee. The $0 Basic plan covers filing only, no operating agreement or EIN included. The $199 Standard plan adds both, plus compliance alerts, making it the fair comparison to Northwest's $39 package. Processing is slower: 3-4 weeks standard vs Northwest's 1-5 business days. Registered agent renews at $119/year after the free first year.
Frequently Asked Questions
Next Steps: Form Your Washington LLC
If Washington is the right fit:
- Use an online formation service to file through the Secretary of State's portal correctly
- Budget $239 for year one: $39 (Northwest) + $200 (state filing fee)
- Register for a UBI number with the Department of Revenue for B&O tax and business license requirements
→ Form Your Washington LLC with Northwest for $39 + State Fees
→ Form Your Washington LLC with Bizee for $0 + State Fees (Basic plan)
Washington-Specific Pitfalls Most Guides Skip
Business & Occupation (B&O) Tax on gross receipts, no deductions. Washington has no personal or corporate income tax, but every Washington LLC owes the B&O tax on gross receipts with no deductions for cost of goods sold, payroll, or operating expenses. Main rates: Retailing 0.471%, Wholesaling 0.484%, Manufacturing 0.484%, Service & Other Activities 1.5% (tiered up to 2.1% for service income above $5M starting October 2025). Source: Washington Department of Revenue, B&O Tax.
Annual Report due by end of anniversary month. Washington LLCs file an Annual Report with the Secretary of State by the end of the anniversary month, $60 filing fee. Miss it by more than 60 days and the LLC is administratively dissolved. Source: Washington Secretary of State, Corporations & Charities.
Seattle city-level B&O and payroll expense tax. Seattle levies its own B&O tax on gross receipts (rates 0.222% to 0.427%) and a JumpStart payroll expense tax on large employers (rates 0.7% to 2.4% on compensation over $174,337). Both are administered by the City of Seattle Department of Finance and Administrative Services, not the state DOR.
Why I Choose Northwest Registered Agent
After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:
- Remarkable Customer Support: Quick, human responses every time.
- Caring & Privacy-Focused: Genuine service with full respect for your privacy.
- Lightning-Fast Formation: Often faster than promised.
- Incredible Value: $39 includes free business address, mail scanning, phone line, business email, domain name, website, and brand protection.
- Clear & Transparent: No hidden fees or surprises.
Ready to form your business? Choose Northwest today!
How Much Does It Cost to Form an LLC in Washington?
The state filing fee is $200 (online). With a registered agent service like Northwest ($39), your total year-one cost is $239. If you serve as your own agent, the cost is $200 total. Ongoing annual costs include the $70 annual report plus registered agent renewal.
Does Washington Have State Income Tax?
No. Washington has no personal or corporate income tax. However, businesses owe Business & Occupation (B&O) tax on gross receipts, with rates from 0.471% to 1.75% depending on business type. Small businesses under $125,000/year in gross receipts may qualify for non-reporting status.
What Is Washington's B&O Tax?
The Business & Occupation tax is Washington's alternative to income tax. It's calculated on gross receipts (total revenue before expenses), not net profit. Service businesses pay 1.75%, retailers pay 0.471%. Because it's based on revenue rather than profit, it can be significant for high-revenue, low-margin businesses.
How Long Does It Take to Form a Washington LLC?
Online filings are typically processed in 1–2 business days. Expedited processing ($50 extra) is same-day or next-day. Mail filings take 2–3 weeks.
Do I Need to Live in Washington to Form an LLC There?
No. Anyone can form a Washington LLC regardless of where they live. However, you must have a registered agent with a physical Washington address. Non-residents forming a Washington LLC should consider whether the B&O tax obligations justify the no-income-tax benefit.
Is Washington a Good State for an LLC?
For Washington residents, it's excellent, no income tax, fast online processing, and a strong tech-driven economy (home to Amazon, Microsoft, Boeing, Costco, and thousands of startups). For non-residents, it depends on your business type: service businesses face a 1.75% B&O tax on gross receipts, which can exceed income tax in states with low rates. Consider your specific revenue and margin before choosing Washington for a non-resident LLC.
Related Guides
- How to Form an LLC: Step-by-Step Guide
- LLC Formation Cost: What You'll Actually Pay
- Best Online LLC Formation Service (2026)
- LLC Operating Agreement: Template & Guide
- LLC EIN: How to Get Your Tax ID Number
- Registered Agent Service: Complete Guide
- Annual LLC Compliance Requirements by State
- Best LLC Service in Washington
Frédéric has founded and operated businesses across multiple countries, including 3 LLCs formed using Northwest Registered Agent. He holds certifications as a holistic coach and therapist trainer, is a published author, and has been featured in Le Parisien, IMDb, Goodreads, and international encyclopedias.
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