How much does an LLC cost in Washington? (details)
Forming a Washington LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.
We outline all up-front and continuing costs for a Washington LLC and advise how to successfully cut these out of the budget.
How Much Does It Cost to Start an LLC in Washington?
There is a $200 filing fee for the Certificate of Formation with the Secretary of State when forming an LLC in Washington.
This is important in creating your LLC's legal standing, allowing it to function under Washington regulations if approved.
Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a Washington LLC (Limited Liability Company).
Costs of Forming a Washington LLC
Forming an LLC includes a one-time state filing fee of $200.
There are also ongoing fees (like a $60 Annual Report fee and potential business license fees), which we discuss below.
LLC Costs in Washington
| Requirement | Cost |
|---|---|
| LLC Name | $0 |
| Registered Agent | $0 or $125 per year |
| Certificate of Formation | $200 (one-time) |
| Operating Agreement | $0 (free on our site) |
| EIN Number | $0 (free to the IRS) |
| Annual Report | $60 |
| State Business License Application | $90 |
| City Business License | Varies (renewed each year) |
| Specialty Business License | Varies (renewed each year) |
| Trade Name (DBA) | $5 (if applicable) |
| Taxes | varies (filed and/or paid every year) |
The filing fee for a Washington LLC Certificate of Formation is $200
In Washington, forming an LLC requires paying the Secretary of State a $200 filing fee for the Certificate of Formation. This paper creates your LLC legally if it is accepted.
After formation, you only need to pay the $200 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your Washington LLC active.
✎ Note:
LLCs represent the predominant business structure in Washington, chosen for their robust liability protection afforded to owners, making them highly favored among business entities.
The form used to establish an LLC can vary by state; it may be called the Certificate of Formation.
In Washington, it is specifically known as the Certificate of Formation. Despite these variations in naming, they all serve the same purpose to create your LLC legally.
Reserving a business name in Washington entails a fee of $0
The creation of your Washington LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.
Remember to include the Name Reservation with your application if you want to file by mail.
But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.
Washington Registered Agent Fee ($0 to $125/ annually)
Under Washington law, every LLC formation requires the appointment of a Registered Agent.
Your Washington Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.
You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.
Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.
Hiring a Registered Agent service is a good idea if:
- You lack a physical address in the state (Washington law mandates Registered Agents to have an address within the state).
- You prefer to keep your address private (some companies allow you to use their address for confidentiality).
Exclusive Offer!
Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
LLC Operating Agreement Fee ($0)
A Washington LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.
Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.
Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.
LLC EIN Number Fee ($0)
An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.
While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.
Washington LLC Annual Report Fee ($60/year)
In Washington, the LLC Annual Report is referred to as the Periodic Report.
The state requires you to keep your LLC's information up to date by filing a Washington Periodic Report annually.
This keeps your LLC in good standing and compliance with state law so it can continue operating. You simply confirm the information on your Periodic Report, file it with the Washington Secretary of State, and pay the Periodic Report filing fee.
The Washington LLC Periodic Report is free annually. These costs are required each year for the duration of your LLC's existence.
✎ Note:
Other business entities may file different reports, but LLCs only need to file the Periodic Report each year.
Washington LLC Business License Application ($90)
All Washington LLCs must obtain a State Business License before they begin conducting business.
The State Business License (“bulk registration”) costs $90. This is a one-time fee, and the license is valid indefinitely.
✎ Note:
The City Business License and Specialty Business License (if applicable) have an initial fee, but you are also required to renew these licenses each year.
The term "State business license" can be a bit misleading because, in addition to being a business license, it also serves as a "bulk registration" application. This registration process not only licenses your LLC but also registers it for taxes and various other requirements.
Your LLC will obtain a State Business License, and depending on your city, you may also need a City Business License. Additionally, depending on your industry, a Specialty Business License may be required.
If you have employees, the business license application will also register your Washington LLC with the Department of Labor & Industries and the Employment Security Department.
City Business License, aka "City Endorsement" (varies)
A City Business License is required for most LLCs in Washington.
Depending on the city where your LLC operates, your City Business License may be included in the State Business License Application.
If not, you may need to use FileLocal if your LLC is located in the Puget Sound region.
In either case, there is an initial fee for the City Business License, along with an annual renewal fee.
Some cities don’t charge anything (you just have to register), while some cities charge $5 or $10. And others can be as high as $100 to $150. The average fee for a City Business License, including the annual renewal, is typically around $40 to $50.
Specialty Business License, aka “Specialty Endorsement” (varies)
If your LLC operates in an industry that poses a risk to the public or customers, it may require a Specialty Business License. In other words, businesses that are more regulated or have safety concerns face additional licensing requirements.
Depending on the industry, you may be able to get your Specialty Business License during the Business License Application or you may have to apply for it manually outside of the Business License Application. The cost of the Specialty Endorsement varies widely depending on the type of occupation or industry it pertains to.
Trade Name ($5)
A e (also known as DBA or "doing business") is not required for an LLC in Washington. You can operate under your LLC’s registered name without needing a separate trade name.
However, if you want to do business under a different name, you can register a Trade Name during the Business License Application process. The cost for each Trade Name in Washington is $5.
LLC Taxes
Washington LLC owners face a range of tax obligations, leading to varying annual costs.
Some of the taxes LLC owners pay include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales and use tax
- Payroll tax (if you have employees)
- Property tax (if the LLC owns property)
The Taxes of Your Washington LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.
✎ Note:
Typically, a Single-Member LLC is taxed similarly to a Sole Proprietorship, while a Multi-Member LLC is taxed similarly to a Partnership.
Hiring an Accountant
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in Washington is a certified accountant.
While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
✎ Note:
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings. We recommend speaking with a few Washington accountants to make sure they can help you with all of your local, state, and federal tax needs. For more advice, see our comprehensive guide on how to find an accountant.
Washington Secretary of State
If you're curious about the expenses involved in starting a Washington LLC, feel free to contact the Washington Secretary of State for detailed information.
Washington LLC Costs FAQs
How much does it cost to open an LLC in Washington?
It costs $200 to start a Washington LLC. This is a one-time filing fee for the LLC Certificate of Formation online. (It costs $210 to file the Certificate of Formation and Initial Report by mail.)
Some LLCs may need a business license in Washington. This depends on your industry and where your LLC is located. The cost of local business permits varies. Depending on what your LLC does, you may need to obtain business insurance.
How much does an LLC in Washington cost per year?
All Washington LLCs need to pay $60 per year for the Annual Report fee. These state fees are paid to the Washington Secretary of State. This is the only state-required annual fee. All Washington LLCs have to pay ongoing fees for Annual Reports to remain in good standing.
If you hire a Registered Agent service, you’ll have an annual subscription fee to pay each year. This is usually about $125 per year.
Some LLCs may need a business license in Washington. This depends on your industry and where your LLC is located. You’ll need to check with your municipality to see if there are any annual renewal fees for the business permit.
Should I hire an LLC formation service?
You aren’t required to hire a professional service company (aka an LLC formation service) to form your Washington LLC. You’re allowed to form your LLC yourself if you’d like. If you do it yourself, you’ll only pay the Washington LLC filing fee, not any service fees to a filing company.
Do I need to hire an attorney to form an LLC?
No, you aren’t required to hire an attorney to form your Washington LLC. You’re allowed to complete the LLC formation process yourself if you’d like.
However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, or requires industry-specific documentation.
A business attorney usually charges between $800 and $2,500 to form an LLC (we can’t say for sure what the minimum fee would be, since every attorney charges differently).
How do I start an LLC in Washington?
Here are the steps to starting an LLC in Washington:
- Choose an LLC business name and make sure it’s available
- Choose who will be your Washington Registered Agent
- File the Washington Certificate of Formation
- Complete and sign an Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC bank account
- Check whether you need a business or sales tax license in Washington
What’s the cheapest way to start Washington LLCs?
You can get an LLC cheaply by filing your formation documents yourself. You’ll also save money by being your Registered Agent and using our free LLC Operating Agreement template.
By forming your LLC yourself, being your Registered Agent, and using our Operating Agreement template, you can save over $400.
Keep in mind, just because a certain state has cheap LLC fees doesn’t mean it’s a good idea to form your LLC there. There are usually disadvantages to forming an LLC out of state. Check out what’s the best state to form an LLC for more information.
How much does a Washington business bank account cost?
It varies. Some banks charge monthly fees ($10 to $20 per month), but these can sometimes be avoided by meeting certain requirements. For example, if you make a certain number of direct deposits or maintain a specified minimum balance, then they’ll waive the monthly fees.
And you might be able to find a bank that doesn’t charge any monthly fees.
Before you open your LLC business bank account, we recommend calling and asking if there are ways to avoid the monthly maintenance fees. You can learn more about LLC bank accounts in our guide.
How much is a Foreign LLC in Washington?
A Foreign LLC is an LLC formed in another state that must register (aka Foreign Qualify) in Washington. This is because the LLC is doing business in both states.
The Washington Foreign LLC cost is $200 for the foreign registration statement.
If you form an LLC in Washington, it is called a “Domestic LLC”. If you formed your LLC in another state, it would be a Foreign LLC once you register it in Washington.
Is Washington a good state for an LLC?
Yes, Washington is a great state to start a business. Washington doesn’t charge a state business license fee, has simple Washington LLC requirements; and the state has quick approval times and helpful representatives at the Secretary of State if you have questions.
However, the most important factors in deciding where to start a business are where you live and where you’re doing business.
Meaning, if you live in or do business in Washington, then you should start your business in Washington. While many websites talk about tax rates and the advantages of certain states, none of that applies if it’s not the state where you live and do business. And just because a certain state has cheaper LLC fees doesn’t mean it’s a good idea to form your LLC there.
For example, if you form an LLC in Wyoming but live in and conduct business in Washington, you’ll also need to register your Wyoming LLC in Washington (and pay fees). And you’ll end up paying Washington taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you are a Washington resident, then yes, Washington is the best state to form an LLC. If you don’t live in and do business in Washington, then no, Washington probably isn’t a good state to start an LLC.