How to Start an LLC in Washington State (Step-by-Step Guide)

If you’re considering forming a Washington LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, file a Certificate of Formation, and file an Initial Report.

But there’s more.

Filing your LLC Certificate of Formation in Washington online costs $200 and takes two to three business days to approve. You can also file your LLC by mail for a $180 fee, but this will take longer to approve.

This guide compiles all the information you need to start an LLC in Washington today.

What Are the Steps to Start an LLC in Washington?

To start an LLC in Washington state, you would need to:

• Step 1. Select a name for your Washington LLC
• Step 2. Designate a registered agent in Washington
• Step 3. File Washington LLC Certificate of Formation
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File an Initial or Annual report

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Select a Name for Your Washington LLC

Choosing a name for your LLC is an essential first step. This official name will be registered with the Washington Secretary of State.

Your LLC’s name must be unique. It cannot be the same as any other registered business in Washington. You can check name availability through the Washington Corporations and Charities Filing System.

Include the terms “LLC,” “Limited Liability Company,” “Limited Company,” or “Limited Liability Co.” at the end of your name. This shows that you are a limited liability company.

If you want to use words like “bank,” “attorney,” or “university,” you’ll need to prove that you are allowed to use them. Avoid terms confusing your LLC with a government agency, such as “FBI” or “Treasury.”

If you want to reserve your chosen name, you can do so for up to 180 days before registering your LLC. To reserve the name, submit a name registration form to the Secretary of State with a $30 fee via mail. You can expedite the process for an extra $50.

If you plan to operate under a different name, a DBA (Doing Business As), you must also register that.

This requires filing with the Washington State Department of Revenue, which can be done online. It costs $5 per trade name.

In Washington State, you can register a trademark locally for regional use or federally with the USPTO for broader protection, with the latter being generally recommended.

It’s crucial to check the uniqueness of your trademark by searching the Trademark Electronic System (TESS) before filing. Filing fees for a state trademark are $55 per classification and expedited service at $50.

For federal trademarks, fees are $250 per class for TEAS Plus and $350 for TEAS Standard, with extra charges for intent-to-use applications. An acceptable trademark image is required for both state and federal filings.

Remember, your name is an essential part of your brand. Make it count!

Step 2: Designate a Registered Agent for Your Washington LLC

A registered agent is a person or service that acts as your business’s official contact for your Washington LLC. They receive critical legal documents, tax notices, and other official mail.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agents in Washington:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for WashingtonRegistered Agents

Washington law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Washington?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: Prepare and File the Washington LLC Certificate of Formation

To start your LLC in Washington, you must file a Certificate of Formation. This document is essential as it registers your LLC with the state. This form includes vital details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Certificate of Formation in Washington, follow these steps:

Step #1. Complete the Form: Obtain and complete the Certificate of Formation from the Washington Secretary of State website.

Your Certificate of Formation must include:

• Name of your LLC: Choose a unique name that follows state rules.
• Unified Business Identifier (UBI): If the business has previously filed with another state agency, such as the Department of Revenue, the Department of Labor and Industries, or the Employment Security Department, it may already have a 9-digit UBI number that can be entered.
• Duration: Indicate if your LLC will exist for a specific time or indefinitely.
• Registered Agent: Provide the name and address of your registered agent, along with their signed consent.
• Addresses: Include both the physical and mailing addresses of your LLC.

Step #2: File Online or by Mail: You can file your Certificate of Formation online through the Washington Secretary of State website or by mailing the completed form to:

Washington Secretary of State
P.O. Box 40234
Olympia, WA 98504-0234

Step #3: Pay the Filing Fee: The filing fee is $200 if filed online and $180 by mail.

Once your articles are filed, the state will review and approve them. It takes 2-3 days for online filings to be processed but longer for mail filings. You can expedite the process for an extra $100.

After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare Your LLC Operating Agreement

An operating agreement is a crucial document for your LLC. It acts as an internal guide for your business. This document outlines how your LLC will be run.

You should include details about your members. List their roles and responsibilities. This clarity helps in managing day-to-day operations smoothly.

Even though Washington doesn’t require an operating agreement, it’s an intelligent choice. Having one can prevent misunderstandings among members. It also protects your limited liability status.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating this document can save you headaches later. You can draft it independently or consult a legal expert to ensure it meets your needs.

If you expand or change members, you can update the agreement quickly. This flexibility helps your business stay organized and compliant.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique number assigned to your business by the IRS. For several reasons, it is necessary to form an LLC in Washington.

You will need an EIN to open a business banking account, apply for specific permits, or take out a business line of credit. It is also helpful when making contracts with wholesale vendors.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

After setting up your LLC in Washington, you must file a Beneficial Ownership Information (BOI) report. This is a federal requirement for new LLCs.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

Here’s what you need to prepare:

• Company Information: Name, address, and formation date.
• Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.

Gather this information along with your LLC formation documents. This will help streamline the filing process.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 7: File an Initial and Annual Report for your Washington LLC

Your Washington LLC must file two critical reports: the Initial and Annual reports. These reports help keep your business in compliance with state regulations.

Initial Report

An Initial Report is your Washington LLC’s 1st Annual Report. The Initial Report is due within 120 days of your Washington LLC’s formation.

It costs $30 if filed online and $10 by mail (the state automatically adds a $20 “expedited fee” to all online filings). There is no fee if you file it with your Certificate of Formation.

The mailing address is:

WA Corporation & Charities Division
P.O. Box 40234
Olympia, WA 98504-0234

Failure to file your Initial Report can lead to your LLC being administratively dissolved by the Secretary of State.

Annual Report

After your Initial Report, you must file an Annual Report each year.

Your LLC Annual Report is due by the end of your LLC’s anniversary month. This month is the same month your LLC was approved. You can find this date in the upper right corner of your stamped and approved Certificate of Formation.

The Secretary of State will mail a courtesy reminder to your LLC’s Registered Agent address. This is sent approximately 45 days before the Annual Report due date.

You can file a Washington LLC Annual Report by mail or online; however, the state prefers that you file it online. If you file your LLC Annual Report by mail, the processing time is 10 to 12 business days.

The filing fee for both online and mail filing is $60 yearly.

The mailing address is:

WA Corporation & Charities Division
P.O. Box 40234
Olympia, WA 98504-0234

Once your LLC misses the due date, the Secretary of State will add a $25 penalty to the filing fee, bringing the total to $85 instead of $60.

If your LLC Annual Report is still not filed within 90 days of the due date, the Secretary of State will administratively dissolve your Washington LLC.

Keeping track of these deadlines will ensure your Washington LLC stays compliant and in good standing.

What are the Different Methods To Start a Washington LLC?

Starting a Washington LLC can be done in several ways. You can do it yourself, use a professional service, or hire an attorney. Each method has its benefits and drawbacks.

DIY LLC Formation in Washington

Forming your LLC yourself can be straightforward if you follow the steps correctly. You must file a Certificate of Formation with the Washington Secretary of State and choose a name for your LLC.

Pros:

• Cost-effective: You only pay the state filing fee.
• Control: You manage every step of the process.
• Learning experience: You gain knowledge about the setup process.

Cons:

• Time-consuming: Researching rules and regulations can take time.
• Errors: Mistakes in paperwork can lead to delays or rejection.
• Limited support: You may struggle if you encounter complex issues.

Using a Professional/Online LLC Formation Services

Many companies offer online services to help you form an LLC. These services guide you through the process, making it easier and faster.

Pros:

• Efficiency: Services streamline the filing process.
• Guidance: They usually provide support for completing forms correctly.
• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Cost: You pay the service fee in addition to state fees.
• Variable quality: Not all services provide the same level of support.

Hiring an Attorney

Hiring an attorney can provide expert help tailored to your needs. This may be a good option if your situation involves complex legal matters.

Pros:

• Expert advice: Attorneys can navigate legal complexities.
• Customized support: You receive tailored assistance for your specific situation.
• Peace of mind: Reduces stress knowing a professional handles your formation.

Cons:

• Higher costs: Legal fees can be significant.
• Less hands-on experience: You may miss learning opportunities about LLCs.
• Time investment: Coordinating with an attorney can delay the process.

What is The Cheapest Alternative Way to Form an LLC in Washington?

If you want to start an LLC in Washington on a budget, the most affordable option is to do it online. By filing the Certificate of Organization directly with the Washington Secretary of State, you can keep costs between $180 and $200, depending on your filing method.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Washington?

There are a myriad of Washington LLC services from which to choose. Choosing the wrong one can affect your Washington LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Washington LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Washington LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Washington?

Forming an LLC in Washington costs around $200, which covers the Washington LLC formation fees. However, there are other fees you need to be aware of.

Here’s a breakdown of the entire Washington LLC costs:

Requirement	Cost
New LLC Filing Fee (Certificate of Formation)	$200 (Online), $180 (By Mail)
Name Reservation (optional)	$30
State Business License	$90
Trade Name Filing (optional)	$5 per trade name
Initial Report	$10 – $30
LLC formation service (optional)	$39 (via Northwest)
Registered Agent Fee (Optional)	$0 (via Northwest)
Total Estimated Cost	$200 – $400

When forming a new company in WA, budgeting about $200-$400 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every Washington business owner is filing the Articles of Organization, which costs $180 – $200.

Pros and Cons of Forming an LLC in Washington

6 Important Things To Do After Creating Your Washington LLC

After forming your Washington LLC, several key steps must be taken to ensure your business runs smoothly. These include obtaining necessary licenses, managing taxes, setting up business accounts, and more.

Here’s what you need to focus on.

1. Research the Best Licenses and Permits for Your Business

The Washington Department of Revenue provides the State Business License, which is essential for your LLC to operate legally in the state.

A Washington State Business License costs $90, payable once without annual renewal.

Depending on the location of your LLC, you may obtain a City Business License through either the Washington Department of Revenue or FileLocal. This license authorizes your LLC to conduct business in a specific city or town.

If your LLC is involved in regulated industries, such as alcohol sales or vehicle-for-hire services, you’ll need a Specialty Business License. This can be acquired at the same time as your State Business License.

During the Business License Application, your LLC will be automatically registered with the Washington Department of Revenue for tax purposes.

This includes registration for the Business & Occupation (B&O) tax and potentially Sales & Use Tax, depending on your business activities.

If your LLC will employ workers, it must register with the Washington Department of Labor & Industries, which manages the state’s workers’ compensation system.

Your LLC must also register with the Washington Employment Security Department to handle employee registration, quarterly wage reporting, and unemployment insurance payments.

2. Create Business Accounts for Your Washington LLC

Setting up separate bank accounts is crucial to separate your personal and business finances. This protects your assets and helps maintain your LLC’s liability protection.

Open a business checking account and a business savings account with a financial institution. Look for features like low fees, online banking, and easy integration with accounting software.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Washington Tax Requirements and Managing Your Taxes

You must register with the Department of Revenue (DOR) and pay taxes if any of the following apply: you’re required to collect sales tax, your gross income is $12,000 or more annually, you need to pay other taxes or fees to the DOR, or you must obtain a city license.

Registering with the DOR is most accessible online, but you can also register by mail or in person at a field office.

The Business and Occupation (B&O) tax applies to most businesses and is calculated on their gross income. The tax rate varies based on the type of business activity and, in some cases, may change depending on the business’s annual gross income.

If your B&O tax liability is less than $3,840 annually, you may qualify for the small business B&O tax credit.

Retail sales tax is generally required for tangible goods, digital products, and certain retail services. You must collect and report this tax.

Set aside funds for taxes regularly to avoid surprises. Consider working with a tax professional for guidance on tax filings and deductions.

4. File your Washington Annual Report

All LLCs in Washington are required to file an Annual Report with the Secretary of State. This report keeps your business information updated and maintains your good standing.

You must file your Annual Report each year. The filing fee is $60, and it can be done online. You’ll need to provide basic information about your business, including your registered agent and principal office address.

Mark your calendar for the filing deadline. Failure to file on time may result in late fees or even the administrative dissolution of your LLC.

All Washington LLCs must also file an Initial Report. An Initial Report is your Washington LLC’s 1st Annual Report. The Initial Report is due within 120 days of your Washington LLC’s formation.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

In today’s digital world, establishing an online presence is essential for attracting customers. Start by creating a professional website that showcases your products or services.

Consider these key aspects:

• Domain Name: Choose a clear and memorable business name.
• Social Media Accounts: Set up profiles on platforms relevant to your audience, such as Facebook, Instagram, or LinkedIn.
• SEO Optimization: Use keywords related to your business to improve visibility on search engines.

Investing time in your online presence can boost your business’s reach and credibility, helping to attract new customers.

Washington LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Washington, you have several structures, each with unique features.

Here’s a breakdown:

Sole Proprietorship

A Washington sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Washington partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too.

Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Washington corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders.

A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Washington

Starting an LLC in Washington is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To start an LLC in Washington, follow these steps:

• Choose a name for your LLC that meets state requirements.
• Select a WA registered agent who will handle legal documents.
• Submit the Certificate of Formation to the Secretary of State.
• Create an Operating Agreement for your LLC’s operations.
• Get an EIN from the IRS for tax purposes.
• File a BOI Report on the FinCEN website
• File an annual report

When considering costs, the initial filing fee for the Certificate of Formation is $200 if filed online or $180 by mail.

Additionally, you must pay an annual renewal fee of $60 to keep your LLC active.

Forming your LLC can provide personal liability protection and a simple structure for managing your business. Starting a business is a significant step, and understanding the requirements is crucial.

Learn More About Starting an LLC in Washington

If you need additional help to start an LLC in Washington, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Washington?

Yes, you can change your registered agent in Washington. You must file a form with the Secretary of State to update your registered agent’s information.

How do I change my Washington LLC’s name?

You must file a fee-based amendment with the Secretary of State to change your LLC’s name.

How do I renew my Washington LLC?

Renewing your LLC involves filing an Annual Report with the Secretary of State. This is typically due every year on the last day of your anniversary month.

How do I dissolve an LLC in Washington?

You must file a Certificate of Dissolution with the Secretary of State to dissolve your LLC. Make sure to settle any debts before filing.

How do I add a member to a Washington LLC?

To add a member, you must typically amend your operating agreement and file any necessary paperwork with the state. Ensure that all members agree.

How do I add a DBA to an LLC in Washington?

To add a “Doing Business As” (DBA) name, you must apply the name with the county auditor. There is a $5 fee per trade name.

Can a minor own an LLC in Washington?

Yes, a minor can own an LLC in Washington. However, an adult must manage the LLC to comply with legal requirements.

When is the Washington Annual Report due?

The Annual Report is due on the last day of the month your LLC was formed. It’s important to file on time to avoid penalties.

Does LLC expire in Washington?

An LLC does not expire as long as you continue to file your Annual Reports and pay the required fees. Failure to do so may lead to administrative dissolution.

Can a non-resident open an LLC in Washington?

Yes, a non-resident can open an LLC in Washington. You will need a registered agent with a physical address in the state.

Can I buy a house or car with my LLC in Washington?

Yes, you can buy a house or car using your LLC. The purchase must be in the LLC’s name, and you should keep proper records.

Can you have multiple businesses under one LLC in Washington?

Yes, one LLC can operate multiple businesses as long as you register each DBA name if applicable. Keep clear records for each business.

Is Washington an excellent state in which to form an LLC? Is it worth it?

Washington offers advantages like business-friendly regulations, but consider your specific needs. Research factors like taxes and fees to determine if it’s your best choice.

Can one person form an LLC in Washington?

Yes, one person can form an LLC in Washington. This is a single-member LLC with benefits similar to those of a multi-member LLC.