How to Form an LLC in Washington (2026)

1. 1Choose a name for your LLC and verify availability by searching the Washington Secretary of State business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in Washington.
3. 3File a Certificate of Formation with the Washington Secretary of State. The filing fee is $200. Online filing processes in 3-5 business days.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Washington but strongly recommended.
6. 6Open a business bank account with your Certificate of Formation, EIN, and operating agreement.
7. 7Register for a Washington State Business License and any required city licenses.
8. 8File your first annual report by the last day of your formation month. The fee is $71.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Washington's Business & Occupation (B&O) tax with the Department of Revenue
• ✓Register for a Washington State Business License
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓File your first annual report ($71) by the last day of your formation month

Your Washington LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities in Washington. Washington uses "Certificate of Formation" rather than "Articles of Organization."

Washington has no state income tax — LLC members pay zero state tax on their pass-through profits. However, Washington imposes a Business & Occupation (B&O) tax on gross receipts (rates range from 0.138% to 3.3% depending on classification). The B&O tax applies to gross revenue, not net profit, which can be significant for high-revenue, low-margin businesses. The annual report costs $71.

LLC vs. other structures in Washington

Washington's lack of state income tax is offset by the Business & Occupation (B&O) tax on gross receipts. For high-margin businesses, this is advantageous since you pay a small percentage of gross revenue instead of income tax. For low-margin businesses, the B&O tax can be more burdensome than an income tax. The $200 filing fee and $71/year annual report are moderate costs.

• •File an annual report by the last day of your formation month — $71 fee
• •File and pay Business & Occupation (B&O) tax returns with the Department of Revenue
• •Maintain a registered agent with a physical address in Washington at all times
• •Keep your operating agreement current and update it when membership changes
• •Renew your Washington State Business License as required

Washington has higher-than-average LLC costs. Weigh the total cost of formation and annual maintenance against your expected revenue before deciding.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Washington, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Washington LLC Owners Need to Know

• •Washington has no state income tax, benefiting LLC members
• •Uses Certificate of Formation rather than Articles of Organization
• •Washington charges a Business & Occupation (B&O) tax on gross receipts instead of income tax
• •Annual report is $71 and due on the last day of the month in which the LLC was formed

Official Washington Resources

• Washington Secretary of State — Corporations & Charities
• Washington LLC Filing Resource Page
• Fee Schedule