How to Start an LLC in Washington (Step-by-Step) 2025 Guide

It costs $200 to start an LLC in Washington.

And then it costs $60 per year.

What are these fees for?

• The $200 is to file the Certificate of Formation – the document that creates an LLC.
• The $60 per year is for your Annual Report – a mandatory filing that keeps your LLC in good standing.

To learn more about LLC Costs, see LLC Costs in Washington.

If you file by mail, your LLC will be approved in 3-4 weeks (plus mail time).

But if you file online, your LLC will be approved 5 business days.

Please see How long does it take to get an LLC in Washington to check for any delays.

Getting an EIN Number from the IRS is completely free.

If you apply online, it takes 15 minutes to get an EIN for a Washington State LLC.

If you apply by mail or fax, it can take 1-3 months.

You’ll want to open a business bank account for your LLC.

This makes accounting and record-keeping much easier for your business finances.

Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business entity finances separate from your personal finances.

All Washington LLCs must file an Annual Report every year.

The Annual Report keeps your LLC in good standing with the state.

How much does a Washington LLC Annual Report cost?

The Annual Report filing costs $60 per year.

When is the Annual Report due?

Your LLC’s Annual Report is due by the end of your LLC’s anniversary month. (Your anniversary month is the date your LLC is approved.)

For example, if your LLC was approved on March 16, your Annual Report is due by March 31 every year.

When is my first Annual Report due?

Your first Annual Report is due the year after your LLC was approved.

For example, if your LLC was approved on March 16, 2025, your first Annual Report is due by March 31, 2026.

How do I file my LLC Annual Report?

You can file your LLC’s Annual Report online or by mail. We recommend the online filing because it’s easier to complete.

Follow our step-by-step guide here: Washington LLC Annual Report.

LLCs don’t pay federal taxes. Instead, the LLC Members pay the taxes for the LLC.

Said another way, the owners pay taxes for the LLC as a part of their personal tax return.

How will my LLC be taxed?

By default, an LLC is taxed by the IRS based on the number of owners your LLC has:

• A Single-Member LLC is taxed like a Sole Proprietorship.
• A Multi-Member LLC is taxed like a Partnership.

Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.

Married Couples: Instead of having your LLC taxed as a Partnership, married couples can elect to be taxed as a Single-Member LLC (aka Qualified Joint Venture). This is allowed in Washington because Washington is a community property state.

Besides federal taxes, there are also state and local income taxes – and gross receipts tax.

The good news is that Washington doesn’t have state-level income tax.

This means you don’t have to file an individual state-level income tax return with the Washington Department of Revenue for your Washington LLC income.

That said, all businesses must pay the Business & Occupation Tax (B&O Tax) every year.

The B&O Tax is a gross receipts tax. This means the amount you owe for this tax is based on the total amount of money your LLC makes each year.

There are also other types of Washington business tax that apply to certain industries and types of businesses.

Learn more in Washington LLC Taxes.

Yes, you can file your LLC online in Washington. The Certificate of Formation filing fee is $200.

When you start your LLC online, it will be approved 5 business days.

The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.

This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.

This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.

Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.

And Washington state income taxes are very similar, since the state honors the federal tax treatment of your LLC.

To learn more, please see How are LLCs taxed.

Whether Washington is a good state to start an LLC depends on where you live – and where you’re doing business.

Meaning, if you live in or do business in Washington, then you should start your LLC there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.

For example, if you form an LLC in Delaware, but live in and conduct business in Washington, you’ll also need to register your Delaware LLC in Washington (and pay extra fees). And you’ll end up paying Washington taxes anyway. This ends up leading to more costs and more headaches with no advantages.

In summary, if you live in and conduct business in Washington, then yes, Washington is a good state to start a business. If you don’t live in and do business in Washington, then no, Washington isn’t a good state to start a business.

Real estate exception: If you’re purchasing real estate outside of Washington, you should form your LLC in the state where the property is located.

For more information, please see Best State to Form an LLC.

The main differences between Domestic LLCs, Foreign LLCs, and Professional LLCs are where they are formed and their business purpose.

A Domestic Limited Liability Company is an LLC that is formed in its “home state”, meaning, where the business owner lives and does business.

For example, if you live in and do business in Georgia, you would form your Domestic LLC in Georgia.

A Foreign Limited Liability Company is an LLC that is formed in a state that isn’t its home state. In this case, the term “foreign” simply means that the LLC is foreign to its “home state”.

For example, if you live in and do business in Georgia, you would form your Domestic LLC in Georgia. If you later expand into Florida, you would register your existing Georgia LLC as a Foreign LLC in Florida.

Said another way, LLCs are created at the state-level.

So if you want your LLC to do business in two separate states, you have to form or register an LLC in both states.

This works by forming a Domestic LLC in your home state, and a Foreign LLC in the other state.

What is a PLLC?

A Professional Limited Liability Company (PLLC) is a type of LLC formed for the purpose of providing “professional services”.

In this case, “professional” refers to business types that require special permissions (like a license, registration, or certification from the state) in order to do business legally.

For example, architects, attorneys, and social work counselors, doctors, and veterinarians often form their business practices as PLLCs.

You can read more about PLLCs, their availability, and their stricter requirements in: What’s a Professional LLC?

And for more information on Foreign and Domestic LLCs, please see:

• Foreign LLCs by State
• Difference between Domestic LLCs and Foreign LLCs