Start Your Washington State LLC

Quick facts about forming an Washington LLC

Filing Fee	$200 online or $180 by mail
Processing Time	2-5 business days online; up to 2-3 weeks by mail
Annual Report Fee	$60, due each year by the LLC’s formation anniversary date
Initial Report Required	Free, must file within 120 days of the LLC formation date
Registered Agent Required	Yes, must have a physical Washington address
State Franchise Tax	None for LLCs
Business License	Most businesses must obtain a license through the Department of Revenue
Managing Authority	Washington Secretary of State, Corporations and Charities Division

Advantages of a Washington State LLC

In Washington State, one of the main benefits of choosing an LLC as your business structure is the Flow-Through Taxation. This helps individual members avoid paying corporate and individual tax every year. There are over 50 tax incentives offered by the Washington State Department of Revenue that could benefit your business in addition to deductions, credits, and sales and use tax deferrals. Make sure to review the Washington State’s Department of Revenue website for additional information on incentives and loans.

Washington is considered to be one of the best states to start a business in, boasting the 2# fastest growing economy, and a strong industry and tech sector. It’s been chosen to be the best state in overall score in the US. With its natural resources and thriving small business sector, there is no wonder that Washington is a popular destination for new business owners looking to start an LLC. 

How to start an LLC in Washington in 7 steps

If you’re considering starting a business in the state of Washington, there are a few things you should know. First, the type of business entity you choose is important. The most common is an LLC. 

Forming an LLC and getting your business official is an important step in the growth of your Washington state-based business. We know that as an entrepreneur you have a lot on your plate, and this is exactly why we created this guide! Read on to get a detailed breakdown of each step of the process of forming a new LLC.

Here are the steps you’ll take to file and obtain your LLC in Washington State:

1. Name your Washington LLC
2. Choose your registered agent
3. File certificate of formation
4. File initial report
5. Create an operating agreement 
6. Apply for an EIN
7. Determine if you need a business license

Below, you’ll find a detailed explanation and short video to walk you through each step.

Step 1: Name your Washington state LLC

Washington has very specific guidelines to follow when naming a business to avoid rejection of the application or additional issues with the state.

When naming your business in Washington, there are a few things to know:

• The name must be unique and distinguishable from other business entities – you can conduct a Washington business search using the Secretary of State business name database
• The name must contain the words “Limited Liability Company” or “Limited Liability Co.,” or the abbreviation of “LLC” or “L.L.C.”
• You cannot include any of the following words or phrases: trust, cooperative, bank, banking, banker, or any combination of words using loan or industrial
• Any combination of two or more of the words association, home, loan, savings, building, and society are strictly prohibited — these are outlined in detail on the Secretary of State’s website
• The business name cannot lead anyone to believe the entity is a government agency — any associated words that may confuse affiliation are prohibited

Step 2: Choose a registered agent

Washington State requires each business entity have a Washington registered agent. This is to make sure important documents, legal correspondence, or packages are always able to be delivered during normal business hours. Some states call this a “Resident Agent” or some other term.

There are two types of registered agent in Washington State: Commercial and Non-commercial. The Washington State statutes governing registered agents RCW Title 25, Chapter 25.15, Section 25.15.021 should be carefully read and understood. Generally, registered agent costs vary between $100 and $300 per year. Individuals over the age of 18 can be registered agents.

To be a registered agent:

• Maintain a street address in Washington State for services of process, notice, or demand
• Be over the age of 18
• Three options: You can be your own, use a friend or family member, or use our Registered Agent services. It is important to note that all Registered Agent addresses are public record. A Registered Agent service keeps your information private

Step 3: File certificate of formation

After you named your business and chose a registered agent, it’s time to officially register your LLC! This is done by filling a form called “certificate of formation” to the Washington state Secretary of State. 

This form will contain the basic information about your business, like the purpose of the business, the registered agent, and the contact information of the LLC members. Read on for a detailed walkthrough.

This is an exciting step! Soon, your WA state LLC will be officially registered.

Requirements

Unified Business Identifier (UBI): If the entity has previously filed with another state agency, a 9-digit UBI number may already be issued. If there is no UBI number, select “No.”

Name: The chosen name of the LLC in accordance with the rules of Washington State.

Duration: The intended use and duration of the LLC, whether perpetual or limited.

Effective Date: The effective date of the filing.

Registered Agent: Every business entity must have a Registered Agent in Washington State. Entities are required to select only one type of agent, with the signature of the agent for consent. The name and title of the person must also be printed with the date.

There are two types of Registered Agents. The Commercial Registered Agent is registered with the Office of the Secretary of State whose business is designed to receive legal documents, notice, or demand required or permitted by law to be served on behalf of the entity. Their address is verified and on record with the Office of the Secretary of State.

A Noncommercial Registered Agent has agreed to receive legal documents, notice, or demand or permitted by law to be served on behalf of the entity. The LLC must choose one of these options.

Principal Office: This is the place where the records of the entity are kept. It must be a physical address. Post office boxes are not allowed, but a home address may be listed. The address is not required to be in Washington State.

Return Address for the Filing: This is an optional section used when documents are to be sent in addition to the Registered Agent’s address.

Executor Information: This is the person(s) forming the LLC. Full names and addresses of each Executor are required, along with their signature.

There are no age requirements to file an LLC, and additional members/managers names are not required to be listed in the Certificate of Formation.

WA state fees

The total fees for registering your LLC in Washington are $200, which includes the $180 state filing fee, and a $20 processing fee (for online filing). 

There are other Washington LLC cost factors to consider as well: 

• Fee for expediting: If you need your documents filed quickly, the Secretary of State charges a $50 fee for expedited service
• Reservation of business name: $30 base filing fee and $50 expedited fee. Can only be done by mail
• DBA: $90 business application fee and $5 per trade name
• Trademark registration: In-state fees are $55 per classification number, $50 if expedited, $10 for assignment, $5 for a new certificate $30 for reservation of name, and $10 for certified copies

How to file LLC documents in Washington state

LLC filing documents may be completed online with the Secretary of State. Forms may also be printed, written, or typewritten and mailed to the Washington Secretary of State at P.O. Box 40234, Olympia, WA 98504-0234. Documents sent overnight should be mailed to 801 Capitol Way S, Olympia, WA 98501-1226. Please make sure to follow all instructions and fully complete all documents to avoid delays.

Step 4: File an initial report

Once your LLC is officially formed in Washington, there’s one more step to complete early on: filing your Initial Report. This is a mandatory filing that must be submitted to the Secretary of State within 120 days of your LLC’s formation date.
The Initial Report provides the state with key business information, including:

• Your LLC’s principal office and mailing address
• Your registered agent’s name and address
• Names and addresses of members or managers
• The nature of your business activity

There is no filing fee for the initial report if it’s filed on time, and it can be completed online through the Washington Business Licensing Service.
It’s important not to overlook this step, since missing the 120-day deadline may lead to late fees or put your LLC at risk of losing good standing. We makes it easy for you to stay compliant by providing this service as part of your LLC formation.

Step 5: Create an operating agreement

While Washington State does not require LLCs to have an operating agreement, it is advised to prepare one.

Operating agreements establish how the LLC will be run, setting out the rights and responsibilities of each member and manager. Although an internal document, it helps avoid disputes and discrepancies within the LLC. It helps ensure everyone is on the same page and working in sync toward the same goal.

Is an operating agreement a must?

This is a legally binding document outlining ownership, operating procedures, and parameters for the LLC. It is not required but highly advised to offer protection for each member against conflicts that may occur in the future.

The Washington state LLC operating agreement does not have to be filed with the Secretary of State but should be filed internally with all important formation documents.

Step 6: Apply for an EIN

An Employer Identification Number or EIN is required for every registered business entity in the U.S. by the Internal Revenue Service (IRS). This is like a Social Security number for your business and keeps your personal and business information separate. There are many benefits to having an EIN:

• Keeping your identity safe
• Ability to apply and obtain loans in the business name
• Ability to open corporate business accounts
• Ability to hire employees
• Ability to issue 1099s when paying contractors and freelancers
• Ability to file tax returns
• Ability to build business credit
• Adds to the credibility of your business

It is very simple to obtain an EIN. Go to the IRS website and fill out form SS-4 for an LLC EIN. There are specific questions you must answer, in addition to the Social Security number of the principal(s). A physical address for the LLC is also needed, which can be a principal’s address or the address of the Registered Agent.

All business and tax-related matters will need your EIN, as this is how the IRS identifies you. Tailor Brands can assist in getting your EIN set up for business.

Step 7. Determine if you need a business license

After forming your LLC, you’ll need to check whether your business must apply for a Washington state business license. Not every LLC is automatically required to have one, but most do, especially if you plan to operate beyond a very small scale.
You’re required obtain a business license from the Washington Department of Revenue if any of the following apply:

• Your business earns more than $12,000 in gross annual revenu
• You hire employees
• You sell products or services that are subject to state sales tax
• Your business operates under a name other than your full legal name
• You’re required to register with a state agency (such as for professional licensing)
• You do business in a city or county that has its own business license requirement (many do)

The license is issued through the Washington Business Licensing Service (BLS), and the application can be completed online. In many cases, this is submitted at the same time as your Initial Report.

• Filing fee: $90 (one-time)
• Additional city or specialty license fees may apply, depending on your location and industry

If your LLC is a very small, unregulated business with no employees and minimal earnings, you may not need a license. However, it’s a good idea to check directly with the state or use Tailor Brands to help you assess your obligations during setup.

Unique state requirements in Washington state

Washington State requires LLCs to file an initial report filing within 120 days of incorporation. Additionally, all LLCs must file Washington annual report on or before the last day of the anniversary month of incorporation. The associated fee is $69. A renewal notice is sent to the registered agent 45 days before the annual report is due. An EIN is required for LLCs that have employees. Banks also require this to open a bank account. Washington State also requires a state tax identification number.

All businesses must obtain a state business license. The state license and most city and county licenses can be registered on the Department of Revenue website. If the city or town is not listed, they will have to be contacted separately. This information is further detailed on the Washington State Department of Licensing website. Depending on the nature of your business, you may have to obtain additional permits and licenses. Your local government office will be able to guide you on the requirements to ensure you are compliant with the law.

Sales tax permits may also be required from the Department of Revenue. Businesses with $12,000 or more in revenue or required to collect sales tax must register with the Washington Department of Revenue. There is no income tax on businesses or individuals, but a business and occupation tax is assessed on gross business income.

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