How to Start an LLC in Washington

Washington State offers a business-friendly environment for LLC formation, though the $200 filing fee for a Certificate of Formation is higher than the national average. The major advantage of forming an LLC in Washington is that the state has no personal income tax, which means LLC profits passed through to members are not subject to state income tax. However, Washington does impose a Business and Occupation (B&O) tax on gross receipts, with rates ranging from 0.471% to 3.3% depending on your business activity.

Follow these steps to start your Washington LLC in 2026.

How to Start an LLC in Washington (6 Steps)

Step 1: Name Your Washington LLC

Your Washington LLC name must be distinguishable from any other business entity on file with the Washington Secretary of State. The name must include a designator such as “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation. You can search for available names using the Washington Secretary of State business search.

If you find an available name and aren’t ready to file immediately, you can reserve it for 180 days by filing a Name Reservation with the Secretary of State for $30. This prevents anyone else from registering the same name while you prepare your formation documents.

Before finalizing your name, check whether the matching domain name is available for your website and whether the name is available on social media platforms. You should also search the USPTO trademark database to make sure your desired name doesn’t infringe on an existing trademark.

Washington naming rules:

• Must include “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation
• Must be distinguishable from other business names on file with the Secretary of State
• Cannot include words that imply the LLC is a bank, insurance company, or government agency without proper licensing
• Cannot contain language suggesting a purpose the LLC is not authorized to pursue

Step 2: Choose a Registered Agent

Washington requires every LLC to have a registered agent with a physical street address in Washington. The registered agent receives legal documents — including lawsuits, subpoenas, and official state correspondence — on behalf of your LLC. This is a legal requirement, and your LLC cannot be formed without designating a registered agent.

You can serve as your own registered agent (if you have a Washington address), appoint a trusted friend or family member, or hire a professional registered agent service. While acting as your own registered agent saves money, it means your personal address becomes public record and you must be available at that address during all normal business hours to accept documents.

Our top recommendation is Northwest Registered Agent ($39/year), which is actually headquartered in Washington State and also handles LLC formation for $39 + the $200 state fee. Using a professional service provides privacy, ensures you never miss an important document, and frees you from having to be physically present at a fixed address during business hours.

Step 3: File Your Certificate of Formation

To officially create your Washington LLC, you need to file a Certificate of Formation with the Washington Secretary of State. The fastest way to file is online through the Secretary of State’s online filing system. You can also file by mail, but online filing is recommended for faster processing.

When completing the Certificate of Formation, you’ll need to choose between a member-managed and manager-managed structure. In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, one or more designated managers handle day-to-day operations while other members are passive investors. Most small LLCs choose member-managed.

Filing details:

• Filing fee: $200
• Online filing: Washington Secretary of State (recommended)
• Processing time: 3-5 business days (standard)

Information required:

• LLC name
• Registered agent name and address
• Principal office address
• Mailing address
• Management structure (member-managed or manager-managed)
• Duration of the LLC (typically perpetual)
• Effective date (can be a future date up to 90 days)

Step 4: Create an Operating Agreement

Washington does not legally require an operating agreement, but having one is strongly recommended for every LLC, whether single-member or multi-member. An operating agreement is an internal document that establishes the rules for how your LLC is run, including ownership percentages, profit and loss distribution, voting rights, and what happens if a member wants to leave or if the LLC is dissolved.

Without an operating agreement, your LLC will be governed by the default rules in the Washington Limited Liability Company Act, which may not align with your intentions. For example, the default rules assume profits are split equally among members regardless of their capital contributions. An operating agreement lets you customize these terms. Most banks and financial institutions also require a copy of your operating agreement before they will open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. An EIN is a nine-digit number assigned by the IRS that acts as your LLC’s tax identification number — think of it as a Social Security Number for your business. You need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business permits. Even single-member LLCs with no employees should get an EIN, as it helps keep your personal Social Security Number off business documents.

Step 6: Register for Washington B&O Tax and File Your Annual Report

Washington LLCs must register with the Washington Department of Revenue for a Business License and to pay the Business and Occupation (B&O) tax. The B&O tax is a gross receipts tax that applies to virtually all businesses in Washington — it’s calculated on your gross income, not net profits. Rates range from 0.471% to 3.3% depending on your business activity (service, retail, manufacturing, etc.). Most service businesses pay 1.5% and most retailers pay 0.471%.

All Washington LLCs must also file an annual report with the Secretary of State. The annual report costs $60 and is due on the last day of the month in which your LLC was formed. For example, if you formed your LLC in May, your annual report is due by May 31 each year. File your annual report through the Secretary of State’s website. Failure to file can result in administrative dissolution of your LLC.

Washington LLC Costs

Total first-year cost: $260-$560. This range covers the required state filing fee ($200) plus the annual report ($60) and an optional registered agent service. If you serve as your own registered agent, your mandatory costs are $260 in the first year. See our complete guide to LLC costs by state.

Washington LLC Taxes

Washington has no state personal income tax, which is a major advantage for LLC owners. LLC profits passed through to members are not subject to state income tax. However, Washington imposes a Business and Occupation (B&O) tax on gross receipts, which applies to nearly all businesses in the state. Unlike an income tax, the B&O tax is based on gross revenue — not net profit — so you owe it even if your business operates at a loss.

B&O tax rates vary by business classification: retailing is taxed at 0.471%, manufacturing at 0.484%, service and other activities at 1.5%, and some specialized activities can be taxed up to 3.3%. Small businesses may qualify for the Small Business B&O Tax Credit, which effectively exempts businesses earning less than approximately $125,000 per year from most B&O tax liability.

Washington has a state sales tax rate of 6.5%, with local jurisdictions adding anywhere from 0.5% to 4%, for a combined rate that varies by location (typically 7.5% to 10.5%). If your LLC sells taxable goods or certain services, you’ll need to collect and remit sales tax. Register through the Washington Department of Revenue.

Remember that all LLC members still owe federal income tax and self-employment tax (15.3%) on their share of LLC profits. Washington also enacted a 7% capital gains tax on sales of long-term capital assets exceeding $270,000, which may affect some LLC members.

Washington LLC Annual Requirements

Every Washington LLC must file an annual report with the Secretary of State. The report costs $60 and is due on the last day of the month in which your LLC was formed. This report keeps the state updated on your LLC’s registered agent, principal office address, and management information. File online through the Secretary of State’s website for the fastest processing.

In addition to the annual report, you must file and pay B&O taxes on the schedule determined by the Department of Revenue (monthly, quarterly, or annually depending on your revenue). You should keep your registered agent information current and file an amendment if your LLC’s name, registered agent, or other key information changes. Maintain accurate internal records, including your operating agreement, meeting minutes, and financial statements.

If you want to confirm that your LLC is in good standing, you can request a Certificate of Existence from the Secretary of State. This document is sometimes needed when applying for business loans, opening bank accounts in other states, or registering your LLC as a foreign entity in another state.

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Frequently Asked Questions

How much does it cost to start an LLC in Washington?

The state filing fee for a Washington LLC is $200, which is the cost to file your Certificate of Formation with the Secretary of State. Additional costs may include a registered agent service ($39-$299/year), the annual report ($60), and a name reservation ($30, optional). Most people spend between $260 and $560 in their first year.

How long does it take to form an LLC in Washington?

Standard processing takes 3-5 business days when filed online through the Secretary of State’s website. Expedited options are available for an additional fee. Filing by mail takes longer, often 2-3 weeks.

Do I need a registered agent in Washington?

Yes, every Washington LLC is required by law to have a registered agent with a physical street address in Washington. The registered agent accepts legal documents, including lawsuits and official state mail, on behalf of your LLC during normal business hours. A P.O. box cannot be used as a registered agent address.

Does Washington require an operating agreement?

No, Washington does not legally require an operating agreement. However, creating one is strongly recommended because it defines member roles, profit sharing, voting procedures, and decision-making processes. Without one, your LLC is governed by the default rules in the Washington Limited Liability Company Act.

How are LLCs taxed in Washington?

Washington has no state income tax, so LLC profits passed through to members are not subject to state income tax. However, Washington imposes a Business and Occupation (B&O) tax on gross receipts at rates ranging from 0.471% to 3.3% depending on your business activity. Members still owe federal income tax and self-employment tax (15.3%) on their share of profits.

What is Washington’s B&O tax?

The Business and Occupation (B&O) tax is Washington’s primary business tax. It’s a gross receipts tax, meaning it’s calculated on your total revenue rather than net profit. Rates vary by business type: retailing (0.471%), manufacturing (0.484%), and service activities (1.5%). Small businesses earning under approximately $125,000 may qualify for a tax credit that reduces or eliminates their B&O tax.

Can I be my own registered agent in Washington?

Yes, you can serve as your own registered agent in Washington as long as you have a physical street address in the state (not a P.O. box) and are available at that address during normal business hours to accept legal documents. Your address will become part of the public record. Many LLC owners prefer using a professional registered agent service for privacy and convenience.

When is the Washington LLC annual report due?

The Washington LLC annual report costs $60 and is due on the last day of the month in which your LLC was formed. For example, if you formed your LLC in September, your annual report is due by September 30 each year. File online through the Secretary of State’s website. Failure to file can result in administrative dissolution of your LLC.

Can a non-resident form an LLC in Washington?

Yes, you do not need to be a Washington resident or a U.S. citizen to form an LLC in Washington. However, you will need a registered agent with a physical address in Washington. Many non-residents use a professional registered agent service for this purpose. If you conduct business in another state where you live, you may also need to register your Washington LLC as a foreign LLC in that state.