CobaltProsper

How to start an LLC in Washington

By Brent Chudoba, editor Updated

Forming an LLC in Washington costs $200 to file the Certificate of Formation with the Washington Secretary of State. After that you file an annual report of $70. Washington charges no franchise tax on a standard LLC. Online filing costs $200 total: a $180 Certificate of Formation fee plus a mandatory $20 online processing fee (paper filing is $180 but takes longer to process). A registered agent with a physical Washington street address is required, PO boxes and virtual offices do not qualify under RCW 23.95.410, and as of January 20, 2026 the Secretary of State rejects any filing that lacks a valid email address on file for both the registered agent and the principal office. The $70 annual report is due every year by the last day of the LLC's anniversary month; filing late triggers a delinquency fee, and the entity can be administratively dissolved if the report remains unfiled roughly 120+ days past due (RCW 23.95.605-.615).

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

Washington LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Formation)$200
Annual report$70/year
Franchise or business taxNone
Registered agentRequired

Source: Washington Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Washington?

  1. Name your LLC. Pick a name that is available and meets Washington naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Washington requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Formation. Submit it to the Washington Secretary of State and pay the $200 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Washington charges $70 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Washington have a franchise tax on an LLC?

No. Washington has no franchise tax and no LLC net-income tax. However, virtually every LLC doing business in the state owes the Business & Occupation (B&O) tax, a gross-receipts tax with no deduction for cost of goods or expenses, at rates that vary by activity (roughly 0.471% retailing, 0.484% wholesaling, 1.5% for services/other activities as of 2026). A small-business B&O credit currently exempts firms with about $125,000 or less in annual Washington gross income from owing B&O tax (a later law, SB 6346, would raise this threshold and the credit further starting in 2029, contingent on that law surviving legal challenge). This B&O exposure is the real ongoing state-tax cost for a WA LLC in place of a franchise tax.

How is an LLC taxed in Washington?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Washington has no state individual income tax, so those pass-through profits face no state income tax, only federal tax. That is one reason Washington is a popular state to form in.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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