To start an LLC in Washington State, you file a Certificate of Formation with the Secretary of State and pay a $180 filing fee. Before you file, pick a name that meets Washington’s rules and line up a registered agent with a physical in-state address. After formation, you’ll typically need an EIN from the IRS, a Washington state business license through the Department of Revenue, and a dedicated business bank account. Washington governs LLCs under Chapter 25.15 of the Revised Code of Washington, and the whole process can be done online in an afternoon if your paperwork is ready.
Pick a Name That Meets Washington’s Rules
Your LLC’s name has to include “Limited Liability Company,” “Limited Liability Co.,” “L.L.C.,” or “LLC.” It cannot include “corporation,” “incorporated,” “partnership,” or their abbreviations.1Washington State Legislature. Washington Code 23.95.305 – Name Requirements for Certain Types of Entities The name also has to be distinguishable from every other entity name already on file with the Secretary of State, including reserved names and assumed business names.
Search the Secretary of State’s online business database before you file to make sure your name is available. If you’ve landed on a name but aren’t ready to file the Certificate of Formation yet, Washington lets you reserve it in advance.
Designate a Registered Agent
Every Washington LLC must designate and maintain a registered agent in the state.2Washington State Legislature. Washington Code 23.95.405 – Entities Required to Designate and Maintain Registered Agent The registered agent is your LLC’s official contact for legal documents like lawsuits, subpoenas, and state correspondence. You can appoint yourself, another individual, an officer of the company, or a commercial registered agent service. Whoever you pick must consent in writing, and that consent is filed with the Secretary of State.3Washington State Legislature. Washington Code 23.95.415 – Designation of Registered Agent
Serving as your own agent requires a physical street address in Washington where you can reliably receive service during business hours. Commercial registered agents typically run $50 to $150 per year and are worth it if you don’t want your personal address on public filings or if you’re not always in one place.
File the Certificate of Formation
The Certificate of Formation is the document that actually creates your LLC. It goes to the Washington Secretary of State and asks for four things:4Washington Secretary of State. Washington Certificate of Formation – Limited Liability Company
- Your LLC’s name, with the required designator.
- Your registered agent’s name and address, with their signed consent.
- A principal office address where business records are kept. P.O. boxes are not accepted.
- Duration — perpetual, or a specific end date or number of years.
The filing fee is $180 whether you file online or by mail.5Washington Secretary of State. Limited Liability Company and Professional LLC Filing Resource Page Online filings carry a small additional processing fee. If you’re in a hurry, $100 buys expedited service, generally processed within three working days.6Washington Secretary of State. Start a Domestic (WA) Limited Liability Company (LLC) Online
Write an Operating Agreement
Washington does not require an operating agreement, and you don’t file one with the state. Skip it anyway and you’re leaving yourself exposed. The operating agreement is your LLC’s internal rulebook: who owns what percentage, how profits and losses are split, who makes decisions, what happens when a member exits or the business winds down.
Without one, you fall back on Washington’s statutory defaults under the LLC Act, which may not match what you and your co-owners actually agreed to. Even single-member LLCs benefit, because a written agreement reinforces the separation between you and the business if your liability protection is ever challenged in court.
Get an EIN From the IRS
An Employer Identification Number (EIN) is a federal tax ID from the IRS. If your LLC has employees or any excise tax obligations, an EIN is required. Single-member LLCs with no employees don’t technically need one for federal tax purposes, but most will want one anyway because banks typically require an EIN to open a business account, and Washington state tax filings may require it too.7Internal Revenue Service. Single Member Limited Liability Companies Applying is free and takes a few minutes at irs.gov.
Register for a Washington State Business License
Most LLCs operating in Washington need a state business license through the Department of Revenue. You must register if your gross income is $12,000 or more per year, you plan to hire employees, you collect sales tax, or you owe any taxes or fees to the Department of Revenue.8Washington Department of Revenue. Apply for a Business License File your Certificate of Formation with the Secretary of State first; then apply for the business license. The annual renewal processing fee is $5, though specific endorsements carry their own fees.9Washington Department of Revenue. Variable Business License Processing Fees Some cities require their own local business licenses on top of the state one.
Open a Business Bank Account
A dedicated business bank account is essential for maintaining liability protection, not just a nice-to-have. You’ll need your Certificate of Formation and your EIN to open one. Run all business income and expenses through that account and keep personal transactions out of it. Commingling funds is the quickest way to weaken the liability shield that an LLC exists to provide.
File Your Annual Report Every Year
Every Washington LLC must file an annual report with the Secretary of State. It’s due by the last day of the month in which your LLC was originally formed, and you can file it up to 180 days before that deadline.10Washington Secretary of State. File an Annual Report (Multiple Entity Types) Online The filing fee is $70 for LLCs.
Miss the deadline and you’ll owe a $25 delinquency fee, and your LLC lands in delinquent status.11Washington Secretary of State. Annual Report Instructions – Profit Business Entities Stay delinquent long enough and the state can administratively dissolve your LLC, which ends your ability to do business and wipes out your liability protection.12Washington Secretary of State. Annual Reports This is the most common compliance failure for small LLCs, and it’s entirely preventable. Put the date on your calendar.
Know About the B&O Tax
Washington has no state income tax, but your LLC still owes state tax. Every LLC doing business in Washington owes the Business and Occupation (B&O) tax, which is calculated on gross receipts rather than net profit.13Washington Department of Revenue. Business and Occupation Tax Rates vary by activity: retailing at 0.471%, wholesaling and manufacturing at 0.484%, and service businesses at 1.5%.14Washington Department of Revenue. Business and Occupation (B&O) Tax If your LLC performs more than one type of activity, you may owe under more than one classification. Because B&O tax hits gross receipts rather than profit, even a business operating at a loss still owes it. Factor this in before you set prices.
On the federal side, an LLC is a pass-through entity by default. A single-member LLC is taxed like a sole proprietorship, and a multi-member LLC is taxed like a partnership, so profits and losses flow through to members’ personal returns instead of being taxed at the business level first.