$240 to form your Washington LLC
$180 state filing fee · $60annual report. 5-year cost of ownership: $480.
By Aissam Baidi · Reviewed against sos.wa.gov · Verified 2026-05-25
How much does a Washington LLC cost in 2026? A Washington LLC costs $240 in year one ($180 filing fee for the Certificate of Formation (online)). Ongoing cost is $60/year ($60 annual report). Five-year total: $480. Standard processing takes about 5 business days; expedite for $50 extra. At $240, Washington runs $85 above the US median of $155 for year-one LLC costs, mostly driven by higher state filing fees. Washington sits in the mid-range for LLC formation costs, competitive enough for in-state operators with no major surprise fees beyond what's listed here. Sourced from sos.wa.gov, verified 2026-05-25.
Washington at a glance
- #1Professional, Scientific & Technical Services
- #2Construction
- #3Retail Trade
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Washington vs the rest of the US
Year-1 LLC cost in Washington is $240. That's $205 more than the cheapest state (Montana). Form there if you can register your business out-of-state.
All figures are year-1 LLC formation cost (state filing fee + first-year report fee + first-year franchise tax). Sourced quarterly from each state's Secretary of State office.
5-year cumulative cost projection
How Washington's LLC cost compares against the popular "shop another state" alternatives over 5 years of ownership. Steeper line = higher recurring cost.
All 50 states + DC, by 5-year LLC cost
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5-year cost = year-1 (state filing + first-year report + first-year franchise tax) + 4 years of ongoing (annual/biennial report + franchise tax). Sourced quarterly from each Secretary of State.
Where would you save the most?
Filing in Montana instead of Washington could save you about $445 over 5 years (93% lower total).
Cross-state filing requires foreign qualification in the state you actually operate from, which adds $50-$300/year in fees plus a registered agent in each jurisdiction. Run the math before deciding.
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Washington LLC formation, decoded
Washington requires a $60 annual report to keep the LLC in good standing. Filing on time avoids late penalties and administrative dissolution.
Full Washington LLC cost guide
Washington LLC Cost: $200 Filing + $60 Annual Report (2026)
Forming an LLC in Washington costs $200 to file the Certificate of Formation online ($180, the $20 difference goes to a separate fund) plus $60/yr for the annual report. Plus a $90 first-year business license required for any business operating in WA. Plus the B&O Tax (0.471%-1.5% of gross receipts depending on classification). Year-one cost: $330 (no B&O). Five-year cost: $570 + B&O.
Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-25 • 5 primary government sources cited
TL;DR
Washington LLCs file a Certificate of Formation with the Washington Secretary of State for $180 online or $200 by mail. The annual report is $60, due during the LLC’s anniversary month. Washington requires every business to also register with the Department of Revenue for the Business License ($90 first year, $39 renewal). Washington has no personal income tax, but it has the Business and Occupation (B&O) Tax: 0.471% retail, 0.484% wholesale/manufacturing, 1.5% service businesses. B&O is on gross receipts, not profit. Seattle and Tacoma also impose city-level B&O.
Washington LLC cost breakdown (2026)
| Line item | Cost | Source |
|---|---|---|
| Certificate of Formation (online) | $180 | sos.wa.gov |
| Certificate of Formation (paper) | $200 | sos.wa.gov |
| Annual Report | $60 | sos.wa.gov |
| Business License (first year) | $90 | dor.wa.gov |
| Business License renewal | $39/yr | dor.wa.gov |
| B&O Tax (retail) | 0.471% gross receipts | dor.wa.gov |
| B&O Tax (wholesale/manufacturing) | 0.484% gross receipts | dor.wa.gov |
| B&O Tax (services) | 1.5% gross receipts | dor.wa.gov |
| Expedited filing | +$50 | sos.wa.gov |
| Year 1 total (online, no B&O) | $330 | (filing + RA + license + report) |
| Year 2+ ongoing | $99 | ($60 report + $39 license + B&O) |
| 5-year total (no B&O) | $726 |
All figures verified 2026-05-25 from primary Washington state sources.
The B&O Tax catches founders off guard
Washington has no personal income tax. The trade-off: every business pays the Business and Occupation (B&O) Tax on gross receipts. A service-business LLC at $200K revenue:
- Gross receipts: $200,000
- B&O service rate: 1.5%
- B&O tax owed: $3,000
The B&O is on gross, not net. A low-margin reseller with $1M revenue and $50K profit pays:
- B&O wholesale rate: 0.484%
- B&O on $1M: $4,840
That’s nearly 10% of profit, not revenue. Combined with Seattle’s separate 0.4847% city B&O on top, Seattle service businesses pay ~2% of gross revenue in B&O alone.
For comparison: Oregon (just south) has a state personal income tax (4.75%-9.9%) but no B&O. The right WA-vs-OR choice depends on whether you’d net more than ~10-15% margin (favoring WA’s gross-revenue B&O) or less (favoring OR’s net-income personal tax).
Filing steps (DIY, no service)
- Pick a name, search availability via SOS Corporations and Charities Filing System (CCFS). Names must include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Designate a registered agent, must have a Washington street address.
- File Certificate of Formation, $180 online or $200 paper. File via CCFS portal.
- Apply for Business License, $90 first year via the Business Licensing Service at bls.dor.wa.gov. Required for any business operating in WA.
- Get a federal EIN, free at irs.gov.
- Register for B&O Tax, automatic through Business Licensing Service. Filing frequency depends on revenue: annual under $28K, quarterly $28K-$340K, monthly above $340K.
- Draft an operating agreement, not required by WA law but recommended.
- Open a business bank account, Washington-located banks (Wells Fargo, Chase, US Bank, KeyBank) accept WA LLC documents.
- File FinCEN BOI report, within 30 days of formation. Free at fincen.gov/boi.
- File annual report, due last day of anniversary month. $60. Calendar this.
Standard online CCFS filings are processed within 5-7 business days. Expedite ($50 additional) cuts to 1-2 business days.
Page-unique facts
- Washington has no personal income tax. Trade-off: B&O Tax on gross receipts at the entity level.
- Seattle imposes its own city B&O on top of the state rate. $0.00219 per dollar of gross receipts for service businesses (~0.22%, lower than the state’s 1.5% but additive).
- Washington Business License is separate from the SOS LLC filing. Two filings, two fees, two systems.
- Tacoma, Bellingham, and other WA cities also impose local B&O. Verify with city revenue offices before assuming Seattle is the only city-tax exposure.
- Washington law requires LLCs to maintain a registered agent with regular business hours availability. Not just a mail-receiving address, physically present 9-5 weekdays.
FAQ
Does Washington have an income tax for LLCs?
Washington has no personal income tax. But LLCs pay Business and Occupation (B&O) Tax on gross receipts: 0.471% retail, 0.484% wholesale/manufacturing, 1.5% services. This is separate from the SOS annual report. B&O is an entity-level tax on gross, not profit, so even unprofitable LLCs owe B&O if they have revenue. Source: Washington Department of Revenue B&O Tax, verified 2026-05-25.
What is the Washington Business License?
Required for any business operating in WA, separate from the LLC formation. $90 first year, $39 renewal annually, plus city endorsements. Filed via Washington Department of Revenue’s Business Licensing Service at bls.dor.wa.gov. The license registers the business for B&O Tax automatically. Cite: dor.wa.gov.
When is the WA annual report due?
End of the LLC’s anniversary month. $60 fee. Late penalty $25 then administrative dissolution after 90 days. File via sos.wa.gov Corporations and Charities Filing System (CCFS). Source: verified 2026-05-25.
Should I form in Oregon to avoid Washington’s B&O?
Only if your operations are in Oregon. WA’s B&O applies based on nexus (where you operate), not formation state. A Washington-headquartered service business with $200K revenue owes ~$3,000/yr in B&O regardless of where the LLC is formed. Forming in Oregon adds OR formation fees + foreign qualification in WA + the WA B&O on WA-source revenue. Source: WA DOR nexus guidance.
Why does Washington require an Initial Report within 120 days of formation?
Washington is one of only a handful of states that requires an Initial Report within 120 days of formation, separate from the formation itself. The Initial Report (filed via the SOS Corporations and Charities Filing System) confirms the registered agent, principal office, and organizer information after formation completes, essentially a 120-day-after check-in. Washington couples this with a parallel requirement to register with the Department of Revenue for the Business License within the same window, so most founders complete both filings simultaneously through the unified Business Licensing Service at bls.dor.wa.gov. The IRS treats Washington LLCs identically to any other state for federal classification purposes; see IRS Washington Small Business Resources.
How do I calculate B&O Tax for a service-business LLC in Seattle?
A Seattle-based service-business LLC pays B&O Tax at three layers: (1) state B&O service rate of 1.5% on gross receipts (paid to WA DOR via the Business License renewal), (2) Seattle city B&O at 0.219% on Seattle-source service receipts (paid to Seattle Department of Finance & Administrative Services), and (3) a quarterly or monthly filing cadence depending on revenue size. A Seattle service LLC with $400,000 gross receipts owes $6,000 state B&O + $876 Seattle city B&O = $6,876 annually in B&O taxes alone, on top of the LLC’s $60 annual report and $39 business license renewal. The SBA local assistance directory lists Washington SBDC offices that offer free B&O filing assistance; the American Bar Association Section of Business Law has cross-state tax comparison materials.
State quirk: the Initial Report and parallel B&O Tax registration
Washington is structurally distinctive in pairing two unusual features: (1) an Initial Report required within 120 days of formation, separate from the formation itself, that confirms registered agent and principal office details; and (2) the Business and Occupation (B&O) Tax, a gross-receipts tax that exists in only four US states (WA, NV, OH, NM). Washington’s B&O is unique because it has no income tax to offset, Washington has no personal income tax, so the entire state-level entity tax burden falls on gross receipts at rates of 0.471% (retail), 0.484% (wholesale/manufacturing), or 1.5% (services). Seattle imposes an additional 0.219% city B&O on services, layered on top of the state rate. The Initial Report and Business License are typically filed together through the unified Business Licensing Service at bls.dor.wa.gov, combining what would be two separate state agency interactions in most states.
Common mistake in Washington
The most common Washington LLC mistake is forming a service-business LLC for the no-state-income-tax benefit and discovering at year-end that B&O Tax consumes 1.5% of gross receipts (not net profit). A Seattle consultancy with $300K gross revenue and $80K profit owes ~$4,500 in state B&O + ~$650 in Seattle B&O = $5,150/year, dwarfing the $99 annual operating cost most cost guides quote. B&O is on revenue, not profit, low-margin service businesses feel it disproportionately.
Sources
- Washington Secretary of State Corporations Division, last verified 2026-05-25
- Washington SOS Corporations and Charities Filing System, last verified 2026-05-25
- Washington Department of Revenue B&O Tax, last verified 2026-05-25
- Washington Business Licensing Service, last verified 2026-05-25
- Washington Limited Liability Company Act (RCW 25.15), last verified 2026-05-25
- IRS Washington Small Business and Self-Employed Resources, last verified 2026-05-25
- American Bar Association Section of Business Law, last verified 2026-05-25
About the author
Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Washington LLC fees directly from sos.wa.gov and dor.wa.gov on a quarterly cycle. Connect on LinkedIn.
Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.
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Pre-answered for the questions founders ask first. Tap one to read the full answer, or write your own.
What's the actual filing fee in Washington?
Washington charges $180 to file the Certificate of Formation (online) with sos.wa.gov. Expedited service is available for an additional $50, reducing turnaround to about 2 business days vs. the standard ~5.
Does Washington have a franchise tax?
No. Washington does not impose a flat franchise tax on LLCs. Some pass-through entity income may still be taxed at the member level under state income tax rules.
What's the annual report situation in Washington?
Washington requires a annual report at $60.
Do I need a registered agent in Washington?
Yes. Every Washington LLC must designate a registered agent with a physical Washington street address (no P.O. boxes), available during business hours to accept legal mail. You can serve as your own agent for free if you live in Washington, but most founders use a commercial service ($100-150/year) to keep their home address off the public record.
Should I form my LLC in Washington?
Form in Washington if you operate primarily in Washington. Out-of-state formation (Delaware, Wyoming, etc.) requires foreign-LLC qualification in your home state, doubling fees. The exception is highly venture-funded startups raising priced rounds, where Delaware is investor-expected.
Washington-specific Operating Agreement preview
Five substantive sections with Washington-specific clauses (filing form, franchise tax, publication requirements, governing law). Use as a starting point with your attorney, or upgrade for the full 12-section document.
OPERATING AGREEMENT OF [COMPANY NAME], LLC
Article I. Formation
This Operating Agreement is entered into as of [date], by and among the undersigned members of [Company Name], a Limited Liability Company organized under the Washington Limited Liability Company Act. The Company was formed by filing the Certificate of Formation (online) with the Washington Secretary of State on [filing date]. The Company's principal office is located at [address], Washington.
Article II. Members & Membership Interests
The members of the Company are listed on Exhibit A. Each member's capital contribution and percentage interest are set forth therein. Members may be admitted only by [unanimous / majority] consent of existing members. Washington law does not mandate a written operating agreement, but the parties agree that this writing governs.
Article III. Management
The Company shall be [member-managed / manager-managed]. Washington default rules apply to any matter not addressed here. The Company shall timely file the annual report ($60) with the Washington Secretary of State to maintain good standing.
Article IV. Distributions & Allocations
Profits, losses, and distributions shall be allocated among members in proportion to their percentage interests, except as otherwise agreed in writing. Distributions shall be made [quarterly / annually / at the discretion of the [members / managers]]. The Company shall maintain capital accounts in accordance with Treas. Reg. § 1.704-1(b).
Article V. Dissolution & Washington-Specific Provisions
The Company shall dissolve upon [vote of majority members / occurrence of specific events]. Upon dissolution, the Company shall wind up its affairs and distribute remaining assets in accordance with Washington law. This agreement is governed by Washington law and any disputes shall be resolved in [forum].
7 more sections in the full document
Tax matters, indemnification, transfer restrictions, dissolution mechanics, signature pages, exhibits A & B (member roster + capital contributions), and amendment procedures. Plus state-specific signature-line text per $Washington convention.
Not legal advice. This template is a starting point for discussion with a licensed Washington attorney. Operating Agreements should be reviewed by counsel for your specific situation.
Washington LLC cost vs popular alternatives
A common decision is whether to form in your home state or an out-of-state filing state (Delaware, Wyoming, New Mexico). Out-of-state formation usually requires foreign-LLC registration in your home state too, adding both filing costs.
| State | First-year cost | Annual renewal | Franchise tax | Processing days | Publication required |
|---|---|---|---|---|---|
| Washington | $240 | $60 | - | 5 days | - |
| California | $890 | $810 | $800/yr | 21 days | - |
| Wyoming | $160 | $60 | - | 14 days | - |
| Delaware | $390 | $300 | - | 14 days | - |
| New Mexico | $50 | $0 | - | 14 days | - |
Fees verified 2026-05-25 from each state's Secretary of State.
Frequently asked questions about Washington LLCs
How much does it cost to form an LLC in Washington in 2026?
Washington charges $180 to file the Certificate of Formation (online). An ongoing annual report fee of $60 keeps the LLC in good standing. Verified 2026-05-25 from sos.wa.gov.
Does Washington require an annual report?
Yes. Washington requires a annual report at $60.
What is the processing time in Washington?
Standard processing in Washington takes about 5 business days. Expedited processing is available for an additional $50, reducing turnaround to about 2 business days.
Does Washington have a publication requirement?
No. Washington does not require LLC formation to be published in newspapers.
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Open the AI advisorNot legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.