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

To maintain an LLC in Washington you will need to pay an annual fee of $60 along with sales & use tax at 6.5%, and federal taxes.

Keeping a Washington LLC in good standing requires filing with the Secretary of State. Failure to do so can lead to penalties and loss of good standing with the state. In addition, the state requires the business to pay sales taxes and business and occupation tax on gross income. The tax rates vary by type of business and company activities. The state also requires the business to register for a business license. Business licenses may be required at the time of formation or periodically on an ad hoc basis.

Keeping a Washington LLC in good standing also requires the business to hire a registered agent. The agent must be available to accept legal documents on behalf of the business and must have a physical address in the state. The registered agent can be a member of the LLC or a third party. The agent is required to be available to accept legal documents on behalf of your business during regular business hours. The registered agent can be a business owner or a registered agent company.

In addition, every Washington State LLC must file an annual report with the Secretary of State. Failure to file an annual report can lead to penalties and loss of good standing. The first annual report must be filed within 120 days of filing the LLC. The report includes a brief description of your business’ purpose and names of members or managers. Each subsequent report is due on the dates set by the Secretary of State. The annual report is available in hard copy or online. The cost to file an annual report is $60.

The Washington business license and taxes may be required when you first start your business or periodically on an ad hoc schedule. The business and occupation tax is based on gross business income and is 1.5% of the total gross business income. Other taxes include unemployment taxes and use taxes. You can find more information at the Department of Revenue’s website.

The most costly type of form to file for a Washington LLC is the Certificate of Formation. This one-time filing makes your business official in the state. It costs $200 to file online and $180 to file by mail. The online filing is typically processed within two business days. The Certificate of Formation can also be amended. The cost to file an amended Certificate of Formation is $30.

The costs to maintain an LLC in Washington are not excessive. However, it is important to know exactly what the state requires before registering your business. A few of the fees you will be required to pay include business and occupation tax, sales taxes, federal taxes, payroll taxes, and self-employment taxes. Other fees may be required on ad hoc basis. You may need to pay annual maintenance fees to keep your records current.

If you have an out-of-state business, you will also need to register for a Certificate of Existence. You can do this online with the Secretary of State or by mail. The Certificate of Existence is not a required document for most businesses, but it is required if you plan to open a branch in Washington.

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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