Forming an LLC in Washington costs $200 online (or $180 by mail — but mail is slower) to file the Certificate of Formation with the Washington Secretary of State, with online approval through the Corporations and Charities Filing System (CCFS) in 2 business days. The annual report is $70, due by the end of the LLC's anniversary month. Washington has no personal income tax — but the Business & Occupation (B&O) tax applies to gross receipts and varies by activity: 0.471% (retail), 0.484% (wholesale/manufacturing), or 1.5–1.75% (services). Service businesses with low margins feel the B&O hardest because it's on revenue, not profit. Washington's economy is anchored by tech (Microsoft and Amazon HQ'd in the Seattle metro, plus Google, Meta, and Salesforce all with major Seattle offices), aerospace (Boeing's commercial airplane assembly), and a deep startup ecosystem. For tech founders, Washington offers world-class infrastructure — but model the B&O tax carefully before assuming "no income tax" means low-tax.
Why form your LLC in Washington
Tech (Microsoft, Amazon, Google Cloud), aerospace (Boeing), and a deep startup ecosystem in Seattle. No income tax helps high-earning founders, but model the B&O carefully before relying on it.
- No personal income tax
- Tech capital — Microsoft, Amazon, Google, Meta, Salesforce all in Seattle
- Boeing commercial airplanes — major aerospace base
- Deep startup and venture capital ecosystem
- 2 business day online approval
- No state-level franchise tax (B&O is gross-receipts based)
Best fit for: Tech (Seattle/Redmond) · Aerospace (Boeing) · E-commerce
Don’t want to file yourself? Northwest Registered Agent files your Washington LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Washington LLC in 7 steps
- 1Search the Washington business name database
Use the Washington SOS Corporations and Charities Filing System (CCFS) to search names. The name must include "Limited Liability Company", "Limited Liability Co.", "L.L.C.", or "LLC". Reserve a name for $30 (held 180 days) if needed.
- 2Appoint a Washington registered agent
Required to have a physical Washington street address. Can be the LLC owner if they're a Washington resident, or a commercial registered agent service.
- 3File the Certificate of Formation
File online through Washington SOS CCFS for $200 (or $180 by mail — but mail takes 4–6 weeks). Online standard processing is 2 business days. The Certificate includes LLC name, registered agent, principal office, mailing address, member/manager structure, and effective date.
- 4Draft an Operating Agreement
Not required by Washington law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the Washington Department of Revenue, and filing federal taxes.
- 6Register with the Washington Department of Revenue
Register through Washington DOR My DOR portal for the Business & Occupation (B&O) tax (mandatory for virtually every WA business), sales and use tax (if you sell taxable goods/services), and any industry-specific accounts. The state Business Licensing Service handles the actual business license, often combined with B&O registration.
- 7Calendar the annual report
Washington LLC annual reports are due by the end of the LLC's anniversary month each year. The fee is $70. File through Washington SOS CCFS.
File directly with Washington Secretary of State →
Washington LLC taxes & compliance
No income tax — but the B&O tax applies to gross receipts (not profits), which can be brutal for low-margin businesses. Service businesses pay the highest B&O rate (1.5–1.75%).
Ongoing compliance checklist
- Annual report — $70, due by end of anniversary month
- Business & Occupation (B&O) tax filings — monthly, quarterly, or annual
- Sales and use tax filings (Washington DOR)
- Withholding tax filings if you have WA employees
- Local B&O tax (Seattle, Tacoma, others)
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — WA street address.
Hidden costs new Washington LLC owners forget
- B&O tax on gross receipts: 0.471%–1.75% depending on activity
- B&O service rate (1.5–1.75%) hits service businesses hard — applies to revenue, not profit
- Annual report: $70, due by end of anniversary month
- Combined sales tax averages 9.4% (6.5% state + local) — among the highest in the U.S.
- Foreign LLC qualification: $200
- Seattle and other cities layer their own B&O on top of state
Should you use a formation service in Washington?
You can absolutely file directly with the Washington Secretary of State for the $200 state fee. The reasons most Washington owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Washington LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
Washington LLC: frequently asked questions
How much does it cost to start an LLC in Washington?
Washington SOS charges $200 online (or $180 by mail) to file the Certificate of Formation. The annual report is $70, due by the end of the anniversary month. Realistic year-one cost: $200. Ongoing yearly cost: $70 plus B&O tax on gross receipts.
How long does it take to form an LLC in Washington?
Online filings through Washington SOS CCFS approve in 2 business days. Mail filings take 4–6 weeks. Pay the extra $20 for online — it's much faster.
What is the Washington B&O tax?
The Business & Occupation (B&O) tax is Washington's tax on the gross receipts of nearly every business activity in the state. Rates vary by activity: 0.471% (retail), 0.484% (wholesale/manufacturing), 1.5% (most services), 1.75% (services with revenue over $1M). Unlike a typical income tax, B&O is on revenue (not profit) — so it can be brutal for low-margin businesses. Many Washington founders consider whether the no-income-tax benefit is worth the B&O cost.
Does Washington really have no income tax?
Yes — no personal income tax on wages or salaries. But the B&O tax functions as a state-level business income tax in practice, especially for service businesses (1.5%+ on gross revenue). For LLC owners, the trade-off is: no personal income tax + B&O on the LLC's gross receipts. Whether that's a net positive depends on your margin profile.
When is the Washington LLC annual report due?
By the end of the LLC's anniversary month each year. The fee is $70. File through Washington SOS CCFS. Late filings risk administrative dissolution.
Does Washington have an LLC franchise tax?
No traditional franchise tax — the B&O tax functions similarly. Pass-through LLCs don't pay separate income tax (Washington has no income tax), but they pay B&O on gross receipts. LLCs that elect C-corp taxation also pay B&O (no separate corporate income tax in Washington).
Can a non-resident form an LLC in Washington?
Yes. Washington has no residency requirement for LLC members or managers. You only need a WA-based registered agent. Out-of-state owners commonly use a commercial registered agent service.
Is Washington a good state to form an LLC?
For Washington residents and tech businesses tied to Seattle (Microsoft, Amazon, Google, Meta) or aerospace (Boeing): yes — the talent pool and ecosystem justify the costs. The no-income-tax structure helps high-earning founders. The B&O tax on gross receipts is the main consideration for service-based and low-margin businesses. Combined sales tax averaging 9.4% is among the highest in the U.S.