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.

In Washington, how much does it cost to maintain an LLC? There are some mandatory expenses, like filing fees, and additional costs down the line. It’s a good idea to plan ahead so you don’t forget to pay them. You should also note that you need to file your first report within 120 days after you’ve filed for it. Hopefully, the above information will help you answer this question.

In addition to filing annual reports, LLCs in Washington must also pay certain ad hoc fees. For example, a business owner must pay a DBA (Doing Business As) license to conduct business. This requires a filing fee of $90, plus $5 for each trade name registered. These fees are only applicable if your LLC is in Washington. However, they are well worth it in the long run.

Another important aspect of LLC formation in Washington is a registered agent. This person or entity is responsible for receiving and handling legal mail for the LLC. While LLC members can be the registered agent, a registered agent service may be the best option for you. Depending on your business, you may need a registered agent. The registered agent service will handle filing annual reports and other forms efficiently. If you don’t have the time to handle all these tasks, consider hiring a registered agent service.

Once the company has the necessary documents and is officially registered, you will need to appoint a registered agent. The registered agent will serve as the company’s main point of contact with the state and will accept service of process in case of a lawsuit. Then, your Washington LLC must file its Articles of Organization with the Washington Secretary of State’s Corporations Division. Filing an LLC in Washington involves a filing fee of $200. You can also file for your LLC online by following the instructions provided on the Washington Secretary of State’s website.

The Certificate of Formation is the most expensive form to file when creating an LLC in Washington. Filing the Certificate of Formation online or in person costs around $200. Online filings are processed quickly, and paper filings can take two days. All information on this form becomes part of the public record. In addition to the fees, foreign LLCs must also pay business permits and professional licenses, which can add up.

Another important legal document to file with the Secretary of State is an annual report. The Secretary of State requires that every LLC file a report annually. Washington requires the LLC to file an annual report with the Secretary of State. Filing the annual report isn’t cheap, but it’s essential for your company’s compliance. A registered agent service will help keep you on top of these legal documents and prevent costly penalties later on.

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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