How to Form an LLC in Washington State (Costs and Annual Requirements)

Forming an LLC in Washington is done online with the Secretary of State and usually takes less than an hour of work. Here's what to expect, what it costs, and what you have to do every year to keep your LLC in good standing.

Step 1: Choose a name

Your LLC name must be distinguishable from other businesses registered in Washington and must include "Limited Liability Company," "LLC" or "L.L.C." Search the Secretary of State's records before you file.

Step 2: Choose a registered agent

Every Washington LLC must have a registered agent with a physical Washington address who can accept legal papers during business hours. You can serve as your own registered agent if you have a Washington address and are reliably available, or you can pay a registered agent service. Many home-based owners use a service to keep their home address off public records.

Step 3: File the Certificate of Formation

You file the Certificate of Formation online through the Secretary of State's Corporations and Charities Filing System (CCFS). The state filing fee is $180, plus an online processing fee, so budget about $200. When you file online, you can submit your Initial Report at the same time.

Once approved, your LLC receives its UBI number, which you'll use with Washington State agencies.

Step 4: Write an operating agreement

Washington doesn't require you to file an operating agreement with the state, but you should have one. It documents who owns what, how decisions are made, and what happens if a member leaves. Banks often ask for it when you open an account.

Step 5: Get your EIN and business license

Apply for a free EIN from the IRS, then apply for your Washington State business license (and any city license) through the Department of Revenue's Business Licensing Service.

Step 6: Open a business bank account

Use your LLC's legal name, EIN and formation documents to open a dedicated business account.

What you must do every year

Annual report. Every Washington LLC must file an annual report with the Secretary of State. The fee is currently $70, and it's due by the end of the month in which your LLC was formed. Late filings add a penalty, and if you ignore it long enough, the state can administratively dissolve your LLC.

Keep your registered agent current. If your agent or address changes, update it with the state.

Taxes. Your LLC still has Washington B&O tax obligations (depending on your revenue), possibly sales tax, and federal income tax reporting.

Common LLC mistakes we see

• Forgetting the annual report because the reminder went to an old email
• Using a personal bank account for LLC income
• Never writing an operating agreement for a multi-member LLC
• Assuming the LLC changes your federal taxes (by default it often doesn't)

The bottom line

Forming an LLC is the easy part. Keeping it compliant is what protects you. Put your annual report date on the calendar the day your LLC is approved. Fees can change, so always confirm current amounts on the Secretary of State's fee schedule before you file.

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Need help getting this right? TRIG Bookkeeping & Tax Services helps new business owners in Washington with company registration, monthly and annual bookkeeping, and government compliance. Contact us to talk about your business.

This article is general information, not legal or tax advice for your situation. Tax rules and fees change, so confirm current details with the IRS, the Washington Department of Revenue, or a qualified professional.