How Much Does an LLC Cost in Washington State?

A limited liability company (LLC) is a common choice for new small to medium companies in Washington state. Washington LLCs have more management flexibility than corporations, but benefit from the same limited liability. In other words, an LLC is a separate entity from its owner under Washington state law, and therefore is less liable for business debts than the owner of a sole proprietorship.

An LLC also benefits from flexible tax options that allow them to avoid certain types of taxation, making it a cost-effective business structure. That said, there are some upfront costs to consider before forming a new business, such as state filing fees, licenses, and an operating agreement.

How much is the Washington state LLC formation filing fee?

The price of a Washington LLC filing fee varies based on a few factors, including whether your business is for-profit or nonprofit, foreign or domestic, and whether you file online or by mail. An experienced business attorney can guide you through the filing process.

Domestic LLC

You have two options for filing an LLC in Washington as a domestic business. The first option is to file a Certificate of Formation (COF) online by creating an account with the Washington Corporations and Charities Filing website. The online process is significantly quicker—you’ll typically get your registration finalized within five business days—and costs $200.

If you prefer to submit a paper form, the cost is $180. You can expedite the process by paying an additional $100 per business entity and filing by mail or in-person. You can qualify for same-day service if you file in-person before 3:30 p.m. at the Washington Secretary of State office.

Foreign LLC

In Washington, foreign LLC registration is fairly similar. You can file a Foreign Business Entity Registration form online through the Washington Corporations and Charities Filing website and pay the standard $200 filing fee. Otherwise, you can file by mail or in-person for $180, with the option to pay an additional $100 per business to expedite the process.

How much do LLC Articles of Organization cost in Washington?

Articles of Organization may also be called Certificate of Formation or, in the case of foreign and nonprofit LLCs, Business Entry Registration. Filing this document legally establishes your organization in the state. In other words, if you've paid for a Certificate or Formation or Business Entry Registration, you don't need to file Articles of Organization in Washington—the cost is folded into your Certificate of Formation fee.

How much is the Washington state initial report fee?

Once your LLC is formed, you'll have to submit an initial report within 120 days of your company's legal formation date. The initial report will cost an additional $10.

After the initial report, both foreign and domestic businesses have to submit an annual report every year (sometimes called a Statement of Information in other states). The annual report updates your company's information and keeps your Unified Business Identifier (UBI) active and in good standing. The UBI is a 9-digit number specific to individuals or companies operating in Washington. As per WAC 434-112-085 of Washington state legislature, the price of an annual report is $70. If you file your report late, you’ll have to pay an additional $25 late fee. 

If you previously had a registered LLC in Washington state but you are more than a year delinquent and would like to re-register, you may be subject to back fees for each missed annual report, so be sure to stay current with your documentation!

How much are registered agent services in Washington?

In Washington, all domestic and foreign entities doing business in the state must have a registered agent according to RCW 23.95.105(35). A Washington registered agent is someone (or some entity) designated to serve as a legal middleman between you and the state.

Anyone with a physical Washington address (not a P.O. box) may consent to be your LLC’s registered agent. Their job is to receive all legal mail and accept litigation notices (also called “process”) on your behalf. While you or another member of your business can legally act as your registered agent, many companies find it easier to work with a registered agent service that can handle tedious paperwork and stay ahead of deadlines for them.

LegalZoom’s registered agent services cost $249/year and include the following benefits:

• Timely alerts when we receive important mail for you
• Documents scanned and uploaded for digital access from anywhere
• Email reminders about annual report deadlines through the Compliance Calendar
• Unlimited cloud storage for all your business documents
• All paperwork needed to switch RAs completed for you, plus state fees covered

How much does a Washington reseller permit cost?

Reseller permits allow businesses to purchase items for resale from retailers and wholesalers or ingredients or components from manufacturers without paying sales tax. The permit is generally valid for four years, unless your business is new and was recently inactive. Luckily, reseller permits are free to qualified individuals or entities.

If you’re wondering how to get a Washington seller’s permit: you don’t need one! This is a requirement in some states, but not in Washington.

How much do local business licenses cost in Washington?

The state Department of Revenue requires nearly all businesses to apply for a general business license. On average, the initial application fee for those opening or reopening a business in the state is $50 plus an annual renewal processing fee.

However, fees vary based on city, county, and state endorsements. For example, a state endorsement fee to operate as a limousine carrier is $350 per location, plus $75 per limousine for a vehicle certificate and an additional $25 per limousine for a vehicle inspection report. However, there’s no state endorsement fee to operate as a rental car dealership.

Use the Department of Revenue’s Business Licensing Wizard site to determine which license(s) you need for your LLC and the associated costs. You can also apply online or download forms to fill out and deliver by mail once you're ready.

How much is the annual LLC fee in Washington state?

There is no specific annual LLC fee in Washington state other than your annual report filing fee, which is $70. You will also need to renew your business licenses and permits, and any other services with annual plans, such as a registered agent service, virtual mail, web hosting, or a domain name reservation.

How much does business insurance cost in Washington state?

State law requires most businesses with employees to purchase workers' compensation insurance from the Department of Labor and Industries. Premiums will vary company to company based on several factors, so you'll need to create an account with the Department to determine your rate. That said, composite rates in 2024 showed a mean premium rate of $0.40 per $100 of payroll.

Despite having limited liability as an LLC, it's wise to consider liability insurance to protect your business from potential lawsuits. This number also depends on several factors—including the type of business—but ranges from an average of $30 to $90 per month.

How much is Washington state franchise tax?

There is no franchise tax or corporate income tax in the state of Washington. However, Washington does impose a 6.50% sales tax and an average 9.38% combined state and local sales tax rate. For federal taxes, the Internal Revenue Service treats LLC as either a corporation, partnership, or as part of the owner’s tax return depending on how you want to file.

Washington LLC taxes also include a Business and Occupation (B&O) tax that varies depending on your tax classification. The B&O tax rate for retail businesses is 0.471% and is 1.5% service and other activities.

Other Washington fees and business costs you might encounter

In addition to these essential fees, there are some other optional fees that are important to consider as an LLC in Washington.

Operating agreement

Forming a Washington LLC operating agreement is not a requirement in the state. However, it's smart to have a fully-formed operating agreement on hand should other institutions request one. An operating agreement is a contract document that outlines financial and functional decisions within your business including rules, regulations, and provisions. A business law attorney can help you draft an operating agreement. LegalZoom’s operating agreement services start at $99.

Certificate of existence

A Certificate of Existence—called a Certificate of Good Standing in some states—validates that your business exists and is in good standing with your local jurisdiction. Banks or investors may ask for this document when determining whether to provide you with funds or a loan.

To order a Certificate of Existence, make an account with the WA Secretary of State and pay a $20 processing fee—or an additional $100 for expedited service.

Name reservation

Business names in Washington must be distinct from all other businesses registered in the state. If you've conducted a Washington business name search and found that your ideal name is available but you're not quite ready to officially register your business, it's wise to file a name reservation for $30.

What is the total cost to start an LLC in Washington state?

So, how much does it cost to start an LLC in Washington state? Without including operating costs, marketing, or annual report fees, the upfront cost of starting an LLC in Washington ranges from $600 to $1500 depending on the type(s) of business license(s) your LLC needs and other unique factors.

FAQs

Does it cost more to register a foreign LLC in Washington?

No. The initial cost of registering a foreign LLC in Washington state is the same as registering a domestic business. Annual report, insurance, and business license costs also remain the same for both foreign and domestic businesses.

Can you get grants to help cover the cost of starting a business in Washington?

Yes, the Washington state Department of Commerce offers several grants and other funding options to support small local businesses growing in their state.

What’s the cheapest way to start an LLC in Washington?

That depends. There are several ways to cut corners and start your business DIY, but that might not be the cheaper option in the long run. Instead, working with a legal service like LegalZoom to jump-start your LLC with the guidance of an experienced attorney can ultimately be more cost-effective than paying to fix mistakes or rectify noncompliance.