LLC Cost in Washington State – How Much to Pay for an LLC


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Perhaps you are hoping to form an LLC in Washington State. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Washington State.

Washington State LLC Cost of Filing

Here are the costs involved in forming an LLC in Washington State.

Cost of Filing Formation Certificates

The Washington State Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Washington State Secretary of State

Washington State Domestic LLC

  • Online Filing costs $200. 
  • Annual Report filing costs $60
  • Name Reservation fee costs $30
  • By Mail: Fill out the application form, and send it to Secretary of State Corporation Division 801 Capitol Way S P.O. Box 40234 Olympia, Washington 98504-0234. Costs $180.

Washington State Foreign LLC

  • Online Filing costs $200.
  • Annual Report filing costs $60
  • Name Reservation fee costs $30
  • By Mail: Fill out the application form, and send it to Secretary of State Corporation Division 801 Capitol Way S P.O. Box 40234 Olympia, Washington 98504-0234. Costs $180.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Washington State LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Washington State, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Washington State Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes Payable to the Washington Department of Revenue

To incorporate and register an LLC in Washington, one has to pay taxes to State & Federal Government. Some of the essential business taxes are enlisted below.

State Income Tax

As the LLC owner, you don’t have to pay state tax on any amount you earn via your LLC. Businesses may have to pay a Business & Occupation tax on all the earnings in Washington. Some companies are also subjected to the public utility tax. The gross receipts drawn by the businesses define the amount of tax they have to pay. 

State Sales & Use Tax 

Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the Washington Department of Revenue. The state sales & use tax rate on LLC in Washington is 6.5%.

Federal Self-Employment Tax

The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in Washington is 15.3%. 

Federal Income Tax

The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year. 

Employee & Employer Taxes

LLCs that have appointed several employees have to pay Employee  & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.

Cost Comparison between states

Washington shares its border with the Pacific Ocean, British Columbia, Canada. It has only two American states that share the same boundaries, namely Idaho & Oregon. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Washington$200$606.5%
Idaho$100None6%
Oregon$105$30None

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in Washington.

Other Costs

How Much Does It Cost to Maintain an LLC in Washington

Depending on the size of your business, there may be many costs associated with operating your LLC. In addition to paying taxes, you’ll also need to pay unemployment insurance, which is a mandatory requirement if you have employees. You may also have additional costs associated with your business, such as permits. The Washington Department of Revenue has additional information. You’ll also have to pay annual report fees, although most reputable companies offer this service for a fee.

There are several steps to forming an LLC in Washington, including obtaining tax IDs, setting up company records, and filing formation documents. Although forming an LLC is free, it does take time. The ongoing costs of operating an LLC depend on how many employees you have. An attorney should be consulted if you’re unsure of the amount. If you have a lot of questions, you should consider hiring a business lawyer.

In addition to the initial license fee, you’ll need to pay annual reports. This is a requirement of Washington state law. The fee for filing annual reports is $50. In addition to annual reports, you’ll need to pay business taxes, such as sales and use taxes. These taxes vary by state and county, but they are usually less than $100. A business owner should carefully calculate these costs and keep in mind any special requirements that may affect the amount of their taxes.

In Washington, you’ll also have to pay annual reports to the Secretary of State. These reports are simple but essential to keeping the state informed about your business. They cost about $50 per year. Depending on the size of your business, other ongoing costs may arise. For example, you may need to pay sales and use taxes if you’re selling goods to customers. Fortunately, these taxes are generally under $100, so it’s easy to keep up with the state’s requirements.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Washington is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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