How Much Does an LLC Cost in Washington State?

Are you thinking about starting an LLC in Washington? To kick things off, you’ll need to budget about $200 for filing the Certificate of Formation, $90 for a business license application, and don’t forget the $60 for the annual report.

But here’s the scoop—many folks think they’re done once they’ve tackled these initial costs.

Not quite! You’ll also need to plan for ongoing expenses like registered agent services, name reservations, local licenses, and taxes.

Plus, there might be costs for legal or accounting help, business insurance, and any other state or local requirements.

How Much Does an LLC Cost in Washington?

Thinking about starting an LLC in Washington?

Here’s a breakdown of the costs you’ll need to plan for:

• Certificate of Formation: Filing this essential document costs $200 if you file online.
• Initial Report: This is required within 120 days of formation and costs $60 annually. When filed online, this fee is included in the registration process.
• Business License Application: The fee for this is $90. Additionally, you might need local city endorsements, which typically cost around $50.
• LLC Name Reservation: If you reserve your LLC name before filing, it costs $30.
• DBA (Doing Business As): Registering a DBA, if needed, costs $5.
• Registered Agent Services: If you use a professional registered agent service, expect to pay around $100 annually.

Understanding these costs upfront can help you budget effectively and avoid any surprises.

LLC Costs in Washington State (Formation Fees)

Here’s a table showing the main requirements and their fees for starting an LLC in Washington:

Washington LLC Requirements	Cost
LLC Business Name Cost	$0
Certificate of Formation	$200
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$60
State Business License Application	$90
City Business License	varies
Specialty Business License	Varies
LLC Name Reservation Fee (optional)	$30
Certificate of Existence (optional)	$20
Foreign LLC Registration (optional)	$200
Fictitious Name (DBA) (optional)	$5
Taxes	Varies
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Washington	$350 – $769

Total LLC costs in Washington range from $350 to $769. If you do everything yourself and skip the optional extras, you might only spend around $350. However, if you decide to pay for additional services and requirements, your costs could go up to between $600 and $769.

The first mandatory expense is the $200 fee for the Certificate of Formation, which is essential for officially establishing your LLC. You’ll also need to budget for the annual report, which costs $60, and a state business license application, which costs $90.

Now, let’s discuss the optional costs.

Obtaining an Employer Identification Number (EIN) is free from the IRS, and you can also reserve your LLC name at no cost. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest. If you want to reserve your LLC name, that will cost you $30.

You may also need a Certificate of Existence, which costs $20. If you plan to register a foreign LLC in Washington, that incurs a fee of $200. If you wish to operate under a different name (DBA), you must pay an additional $5.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300, depending on the provider.

Suppose you use an LLC formation service that typically costs around $39. Additionally, remember that taxes can vary based on your specific business activities, and city and specialty business licenses can also vary in cost.

Washington LLC Business Name Cost ($0)

When forming an LLC in Washington, reserving your business name might be a concern. The good news is that you can choose a name for your LLC without any cost.

To register your desired business name, you must ensure it is unique and complies with state guidelines. You can check its availability by searching the Washington Secretary of State’s business name database.

If you decide to reserve a business name, you can do so for a fee. However, simply using it when you file your LLC does not incur any cost.

When filing the Certificate of Formation, the name you select will be included at no additional charge. It’s essential to remember that while the name registration is free, other fees, such as the filing fee for the LLC formation, may apply.

Washington Certificate of Formation ($200)

To start your LLC in Washington, you must file a Certificate of Formation. This document officially registers your company with the state.

The filing fee for the Certificate of Formation is $200 if you file online. Washington LLC processing time depends on the filing method. If you file online, expect approval in 2 weeks (12-14 business days). If you prefer to file by mail, expect approval in 7-8 weeks.

When you file, you will need to provide some essential information. This includes your LLC’s name, the purpose of your business, and details about your registered agent. A registered agent is a person or service that acts on behalf of your LLC for legal documents.

After submitting your Certificate of Formation, you will receive your approval fairly swiftly. It is wise to keep track of the processing time, especially if you plan to launch your business soon.

LLC Operating Agreement Cost in Washington ($0 with Northwest)

When forming an LLC in Washington, you can obtain an Operating Agreement at no cost through Northwest Registered Agent. This document is important for your business as it outlines the rules and structure of your LLC.

An Operating Agreement includes details like:

• Ownership Interests: Who owns what percentage of the LLC.
• Management Structure: How decisions are made and who manages the business.
• Profit Distribution: How profits will be shared among members.

Having an Operating Agreement helps prevent confusion and disputes among members. While the state does not require it, it’s a good practice to have one.

Using Northwest Registered Agent gives you access to a free template. This can save you time and ensure your document is up to standard.

Washington Registered Agent Fee ($0-$300/year)

When forming an LLC in Washington, you must choose a registered agent. This can be a person or a service that handles legal documents for your business. The costs can vary widely.

If you decide to be your own registered agent, there is no fee. You will need to provide your name and address. If you’re comfortable with the responsibilities, this is a great way to save money.

Hiring a professional Washington registered agent service typically costs between $100 and $300 per year. These services not only handle legal documents but also help protect your privacy by keeping your information off public records.

For example, LegalZoom charges about $249 annually for their registered agent service. ZenBusiness offers a similar service for around $199 yearly.

A noteworthy option is Northwest Registered Agent. If you use them to form your LLC, their services are free for the first year. After that, their annual fee is just $125, making it a competitive choice.

EIN Cost in Washington ($0 from the IRS website)

Obtaining an Employer Identification Number (EIN) is important when starting your LLC in Washington. The good news is that you can get your EIN for free.

You don’t have to pay any fees to the IRS for this service. Just go to the IRS website, fill out Form SS-4, and submit it online or by mail.

While some companies charge fees to obtain an EIN, you can avoid these costs. Getting your EIN for free is straightforward, making starting your LLC in Washington even more affordable.

Washington Annual Report Fee ($60/annually)

In Washington, an LLC must file an annual report each year. The annual report fee is $60. This fee is due by the end of your LLC’s anniversary month, the month your LLC was formed.

For example, if your LLC was approved on March 15, your annual report is due by March 31 each year. It’s important to be timely. If you fail to file, your business could face penalties, including a delinquent status.

Expedited services are available for an additional fee. If you need your filing processed faster, you can choose to expedite it for an extra cost. This can be helpful if you’re under time constraints.

Staying current with this annual report is essential for maintaining your LLC’s good standing in Washington. Mark your calendar and set reminders so you don’t miss the deadline.

Washington State Business License Application ($90)

When you start your LLC in Washington, you must apply for a State Business License before conducting any business activities. This license costs $90 and is a one-time fee. Once issued, it does not expire, allowing you to operate without renewing it annually.

The term “State Business License” can be misleading. It serves as both a business license and a bulk registration application. This means it registers your LLC with the state for various taxes and other requirements.

In addition to the State Business License, you may also need a City Business License and possibly a Specialty Business License, depending on your city and the nature of your business. Unlike the State license, city and specialty licenses typically require annual renewals.

If you have employees, the business license application helps register your LLC with the Department of Labor & Industries and the Employment Security Department. This ensures compliance with state labor laws.

Washington City Business License (Varies but renewed each year)

You’ll likely need a City Business License if you have an LLC in Washington. This requirement can depend on where your business is located.

In some areas, your City Business License might be included in the State Business License Application. If it’s not, you can use FileLocal for cities in the Puget Sound region.

Fees for the City Business License can vary widely. Some cities charge no fee, while others may ask for $5 or $10. In contrast, some might have fees ranging from $100 to $150.

On average, you can expect to pay around $40 to $50 for the initial license and the annual renewal.

Check your city’s specific requirements to avoid surprises. Timely renewal is important to keep your business compliant and avoid penalties.

Washington Specialty Business License (Varies but renewed each year)

In Washington, if your LLC operates in an industry that presents risks to the public or customers, you may need a Specialty Business License. This license ensures that your business meets additional safety and regulatory standards.

The application process for a Specialty Business License can vary. You can sometimes obtain this license while applying for your Business License. In other situations, you may need to apply separately after submitting your primary application.

Research your industry’s specific licensing needs to ensure you’re fully covered. This proactive approach will help your LLC operate smoothly and safely in Washington.

Fictitious Name/DBA Cost in Washington ($5)

If you want to operate your business under a name that isn’t your legal name, you must file a Doing Business As (DBA), also known as a fictitious name. In Washington, the cost to register your DBA is $5.

This fee makes it affordable for many small business owners. The registration process is straightforward. You can file online or use paper forms.

Important points to remember:

• Payment Options: You can pay the $5 fee using cash, money order, or credit/debit card.
• No Expiration: Once registered, your DBA does not expire. There’s no renewal fee or requirement.
• Name Restrictions: Your DBA name should not include restricted terms, like “bank” or “insurance,” unless you meet specific conditions.

Registering a DBA can enhance your brand. A memorable name helps customers recognize your business. Plus, it keeps your legal name private, which some owners prefer.

LLC Name Reservation Fee in Washington ($30)

In Washington, if you want to reserve a name for your LLC, you must pay a fee of $30. This fee allows you to hold your chosen business name for up to 180 days before officially forming your LLC.

Reserving your name can be beneficial. It gives you time to prepare your business plans without worrying about someone else taking the name you want. You can submit a form online or by mail to reserve your name.

It’s important to note that while reserving a name is not required, it can provide peace of mind. This option is especially useful if you are still finalizing your business details before filing your LLC formation documents.

Washington Certificate of Existence ($20)

A Certificate of Existence is an important document for your LLC in Washington. It shows that your business is registered and is in good standing with the state.

You can order this certificate online, by mail, or in person. The normal processing time is 5-7 business days. If you choose to order online, the cost is $20.

If you need the certificate faster, expedited service is available for an extra fee. For $50 more (or $20 when ordering online), you can receive it more quickly.

You can no longer order this certificate by phone or fax, so your best options are online or in-person requests. Be sure to have your LLC details ready when you apply.

Washington Foreign LLC Registration Fee ($200)

If you have a business formed in another state and want to operate in Washington, you must register as a Washington foreign LLC. The fee for this registration is $200 if you choose to file online.

To complete the registration, you must submit a Foreign Registration Statement to the Washington Secretary of State. This form provides essential details about your business, including its name, address, and the state where it was originally formed.

Here are the key steps for registering:

• File the Foreign Registration Statement: This is the official document required for the registration.
• Pay the Registration Fee: The standard fee is $200 for online submissions. If you decide to file on paper, the fee is $180.
• Appoint a Registered Agent: You must have a registered agent with a physical address in Washington to receive legal documents.

After submission, your application is typically processed within five business days if filed online. This makes the online option a quicker choice for many business owners.

Washington LLC Taxes (varies)

Regarding taxes for your LLC in Washington, the costs can differ based on several factors. Here are some common taxes you may need to consider:

• Federal Taxes: LLCs must pay federal taxes based on their income.
• State Income Tax: Washington does not impose a state income tax on individuals; however, your LLC may be subject to other state business taxes.
• Business and Occupation (B&O) Tax: This is a tax on gross revenue, and the rate varies depending on your business activity.
• Self-Employment Taxes: If you’re self-employed, you’ll pay these taxes on your share of the LLC’s income.
• Sales and Use Tax: If you sell products or services, you may need to collect sales tax from your customers.
• Payroll Tax: If your LLC has employees, you must pay payroll taxes.
• Property Tax: Property taxes will apply if your LLC owns real estate.

Your total tax burden can vary widely, depending on your LLC’s structure, location, and industry.

Washington LLC reinstatement fee ($140)

If your LLC in Washington has been dissolved, you may need to reinstate it to continue business. The reinstatement process includes a fee of $140, which is required for all profit corporations, LLCs, and limited partnerships.

In addition to the reinstatement fee, you must pay any delinquent fees for reports not filed on time. If you missed filing your Annual Reports, it costs an extra $60 for each missed year.

Remember that you must complete the reinstatement within five years from the date of dissolution. If you miss this window, you must start a new LLC.

To reinstate, you’ll submit the necessary paperwork along with the fees. It’s essential to check for additional requirements that could apply based on your specific situation. Keeping your LLC active can provide legal protections and maintain your business reputation.

Washington LLC dissolution fee ($20)

Dissolving an LLC in Washington is a straightforward process. You must file an Article of Dissolution to close your business officially. When you do this, the dissolution fee is $20 if you file online.

If you choose to file by mail, there is no fee. This means you can submit your documents without paying for the service, saving you money.

Washington offers an expedited service for those who need to finish the process quickly. If you file online, you can pay an additional $50 to speed up your filing. This is a helpful option if you have time constraints.

When preparing to dissolve your LLC, gather all necessary documents and double-check the details on your filing to avoid mistakes that could delay the process.

Washington LLC Change of Registered Agent fee ($0)

Changing your registered agent in Washington is a straightforward process and comes at no cost. The state allows you to update your registered agent without incurring any fees, making it simple to keep your LLC compliant.

To change your registered agent, you must complete the Statement of Change form, which can be submitted online, by mail, or in person.

While the basic change is free, you can choose expedited service, which costs $50 and speeds up processing times.

It’s essential to keep your registered agent information current. Your registered agent is the official contact point for legal papers and important notices.

Submit the form accurately to avoid any delays. Once processed, you will receive confirmation of the change, and your LLC will remain in good standing with the state.

What is the Cheapest Way to Start Washington LLC?

Starting an LLC in Washington can be done in a few ways. You generally have two options: online filing and paper filing.

Online Filing costs $200. This method is fast and efficient. Your documents are processed in just 2-3 days.

On the other hand, paper Filing costs $180, making it the cheapest option. However, you need to consider the trade-off. Processing time can take 7 to 10 days when filing by mail.

While paper filing is cheaper, it may delay your business operations. If you need to start quickly, spending $20 on online filing is worth it.

Should You Use an LLC Formation Service in Washington?

Creating an LLC in Washington is a big step. You might wonder if using a formation service is worth it. From my experience, there are solid reasons to consider it.

• Time Savings: Using a service like Northwest Registered Agent can save you a lot of time by handling all the paperwork. This means fewer headaches and less stress about compliance.
• Privacy: These services can act as your registered agent, keeping your address off public records. This is a smart move if you value your privacy.
• Peace of Mind: Many formation services offer free access to experts and attorneys. This means you can ask questions and get guidance whenever needed, making the process smoother, especially if you’re new to LLCs.
• Costs: While the initial filing fee for an LLC in Washington is $200, formation services charge extra for their help. It’s important to consider your budget.

An LLC formation service can simplify the process by helping you stay compliant and manage the paperwork while providing expert support. Weigh the benefits against the costs to determine if it fits your needs.

Frequently Asked Questions

Is Washington LLC friendly?

Yes, Washington is considered fairly friendly to LLCs. The state offers flexibility in management and a straightforward formation and maintenance process.

Do I need to hire an attorney to form an LLC in Washington?

You are not required to hire an attorney to form an LLC in Washington. Many people choose to handle it themselves, especially with readily available online resources.

Should I hire an LLC formation service in Washington?

An LLC formation service can save you time and ensure everything is done correctly. This is a good option if you prefer assistance or want to avoid potential mistakes.

Are there penalties for paying my fees late in Washington?

Yes, late payments for LLC fees can result in penalties. Keeping your filing and payment schedules current is important to avoid these extra costs.

What happens if I do not file my Washington LLC annual report?

Failing to file your annual report can result in the state considering your LLC inactive or dissolved. You may also incur fines, so staying compliant with reporting requirements is crucial.