So, you’ve decided to form a Washington State LLC — great choice!
Before you hit “submit,” it’s smart to understand the real costs involved: not just the filing fee, but the ongoing expenses that keep your business compliant year after year.
In this post, I’ll break down exactly what it costs to start and maintain a Washington State LLC, what taxes you may owe (and which ones you don’t!), and how to plan your budget with clarity and ease.
🧾 1. Initial Filing Costs
When you first form your LLC, you’ll file a Certificate of Formation with the Washington Secretary of State.
| Filing Method | Fee | Processing Time |
| Online | $200 | 2–5 business days |
| By Mail | $180 | 2–3 weeks |
| Expedited Option | +$50 | Same or next day |
💡 Tip: Online filing is the fastest and most common method.
If you hire a professional (like me 😊), you’ll also want to budget for Registered Agent service or LLC formation assistance, typically around $100–$300/year depending on the level of support you choose.
🪪 2. Washington Business License Fee
Once your LLC is formed, you’ll apply for a Washington State Business License through the Department of Revenue’s Business Licensing Service (BLS).
- Fee: $19 (base application fee)
- Additional fees: May apply for city endorsements or specialty licenses (e.g., Seattle, Tacoma, Spokane often add $50–$150 depending on your activity)
You’ll renew this license every year for $10 plus any endorsement renewals.
🧮 3. Annual Report Fee
Each year, you’ll file an Annual Report with the Secretary of State to confirm your LLC’s information.
- Fee: $60
- Due: By the end of your LLC’s anniversary month (the month it was formed)
- Where: sos.wa.gov/corps
Missing this filing can result in late fees or administrative dissolution — so don’t skip it!
⚖️ 4. Washington LLC Taxes
Unlike some states, Washington does not have a personal or corporate income tax. That’s great news for LLC owners!
However, there are still a few key taxes to be aware of:
| Tax Type | Applies To | Collected By | Notes |
| B&O (Business & Occupation) Tax | Gross receipts of most businesses | WA Dept. of Revenue | Based on revenue, not profit |
| Sales Tax | Product sales or taxable services | WA Dept. of Revenue | You collect and remit |
| Use Tax | Out-of-state purchases used in WA | WA Dept. of Revenue | Common for equipment or materials |
| Employment Taxes | Businesses with employees | WA Employment Security Dept. | Includes unemployment & paid leave |
💡 Tip: Even small LLCs should register with the Department of Revenue to determine their filing frequency (monthly, quarterly, or annually).
🏦 5. Federal Taxes
The IRS treats most Washington LLCs as pass-through entities, meaning profits and losses flow to your personal tax return.
Here’s what to know:
- Single-member LLCs: Taxed as sole proprietors (Schedule C on your 1040)
- Multi-member LLCs: File partnership return (Form 1065)
- Optional election: You can choose S-Corp taxation to reduce self-employment taxes once profits are higher
It’s always smart to discuss tax structure with a bookkeeper or CPA who understands both state and federal rules.
💼 6. Optional / Variable Costs
Your LLC may also incur a few variable or optional costs depending on your business type:
| Expense Type | Estimated Cost | Notes |
| Registered Agent Service | $100–$300/year | Required if you don’t use your own WA address |
| Operating Agreement | $0–$150 | Not required, but highly recommended |
| Bookkeeping Software (QuickBooks, etc.) | $30–$60/month | Helps track income, expenses, and taxes |
| Professional Assistance | Varies | Filing, setup, tax registration, or compliance help |
| City/Local Licenses | $50–$200/year | Depends on city |
🧾 7. Example: First-Year Cost Estimate
| Expense | Approx. Cost |
| Certificate of Formation (online) | $200 |
| Business License Application | $19 |
| Registered Agent (optional) | $150 |
| Annual Report (not due until next year) | $60 |
| Estimated Total Startup Cost | $219–$429 |
After your first year, expect roughly $70–$200/year to maintain your LLC (depending on registered agent and license renewals).
Starting a Washington LLC is surprisingly affordable — especially compared to other states — and the benefits of liability protection, flexibility, and credibility are worth every dollar.
Understanding these costs ahead of time lets you budget smartly and keep your finances flowing with ease.
If you’d like help forming your LLC, setting up your bookkeeping, or tracking your state renewals, I can handle the details so you can focus on building your business — not worrying about compliance.
💌 Ready to form your Washington LLC or need help managing the numbers?
I can assist with formation, registered agent services, bookkeeping setup, and ongoing compliance reminders.
Because when your money flows smoothly, so does your business.
more2heather@gmail.com | (206) 227-6128