Fact Checked by Editorial Staff
Perhaps you are hoping to form an LLC in Washington State. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Washington State.
On this page, you’ll learn about the following:
Washington State LLC Cost of Filing
Here are the costs involved in forming an LLC in Washington State.
Cost of Filing Formation Certificates
The Washington State Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Washington State Secretary of State.
Washington State Domestic LLC
- Online Filing costs $200.
- Annual Report filing costs $60
- Name Reservation fee costs $30
- By Mail: Fill out the application form, and send it to Secretary of State Corporation Division 801 Capitol Way S P.O. Box 40234 Olympia, Washington 98504-0234. Costs $180.
Washington State Foreign LLC
- Online Filing costs $200.
- Annual Report filing costs $60
- Name Reservation fee costs $30
- By Mail: Fill out the application form, and send it to Secretary of State Corporation Division 801 Capitol Way S P.O. Box 40234 Olympia, Washington 98504-0234. Costs $180.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Washington State LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Washington State, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Washington State Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to the Washington Department of Revenue
To incorporate and register an LLC in Washington, one has to pay taxes to State & Federal Government. Some of the essential business taxes are enlisted below.
State Income Tax
As the LLC owner, you don’t have to pay state tax on any amount you earn via your LLC. Businesses may have to pay a Business & Occupation tax on all the earnings in Washington. Some companies are also subjected to the public utility tax. The gross receipts drawn by the businesses define the amount of tax they have to pay.
State Sales & Use Tax
Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the Washington Department of Revenue. The state sales & use tax rate on LLC in Washington is 6.5%.
Federal Self-Employment Tax
The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in Washington is 15.3%.
Federal Income Tax
The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year.
Employee & Employer Taxes
LLCs that have appointed several employees have to pay Employee & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.
Cost Comparison between states
Washington shares its border with the Pacific Ocean, British Columbia, Canada. It has only two American states that share the same boundaries, namely Idaho & Oregon. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Washington | $200 | $60 | 6.5% |
| Idaho | $100 | None | 6% |
| Oregon | $105 | $30 | None |
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in Washington.
Other Costs
- Washington State Name Reservation: $30 for by mail
- Doing Business As (DBA): $24 for online filling or if filing by mail
- Certified Document Copies: $20
- Certified of Good Standing: $20
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Washington State LLC: No fee
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Washington
To maintain an LLC in Washington you will need to pay an annual fee of $60 along with sales & use tax at 6.5%, and federal taxes.
The cost of maintaining an LLC in Washington can vary depending on various factors, such as annual report filing fees, franchise taxes, and other regulatory fees. While these costs may seem relatively small at first glance, they can add up over time and impact the overall financial health of the business.
One of the ongoing expenses of maintaining an LLC in Washington is the annual report filing fee, which must be paid each year to keep the LLC in good standing with the state. Failure to file an annual report can result in costly penalties and potentially even the dissolution of the LLC. In addition to the annual report filing fee, Washington also imposes a franchise tax on LLCs, which is a tax imposed for the privilege of doing business in the state. This tax is based on the LLC’s gross income and can vary depending on the business’s revenue.
In addition to these fees, there are other potential costs associated with maintaining an LLC in Washington, such as legal fees for any changes to the company’s operating agreement, accounting fees for annual tax preparation, and potential licensing or permit costs depending on the nature of the business. It is important for LLC owners to budget for these expenses and ensure they are compliant with all state regulations to avoid any costly repercussions.
While the cost of maintaining an LLC in Washington can be a concern for some business owners, it is important to consider the benefits of operating as an LLC. The limited liability protection that an LLC offers can shield owners from personal liability for the debts and obligations of the business. This can provide peace of mind and allow owners to focus on growing their business without the constant fear of being personally on the hook for business debts.
Additionally, operating as an LLC can provide tax benefits for the business owners. LLCs are considered pass-through entities for tax purposes, meaning that the profits and losses of the business pass through to the owners’ personal tax returns. This can result in lower overall tax liability compared to other business structures, such as a corporation.
Overall, while the cost of maintaining an LLC in Washington should not be ignored, it is important to weigh these costs against the benefits of operating as an LLC. By properly budgeting for ongoing expenses and staying compliant with state regulations, LLC owners can enjoy the protection and flexibility that an LLC offers without breaking the bank. It is a small price to pay for the peace of mind and financial benefits that come with operating a limited liability company.
In Conclusion
The cost of Washington is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
Hello! What are the procedures for foreigners to register a limited company in the United States? thank you!