How to Start an LLC in Washington State in 2026: Formation, UBI, B&O Tax and First-Year Cost

Forming an LLC in Washington State takes two filings with two agencies, and most guides only explain the first. You file a certificate of formation with the Secretary of State, which creates the company and assigns its Unified Business Identifier (UBI). Then you file a Business License Application with the Department of Revenue, which opens your tax account and adds any city licenses. After that come B&O tax returns and an annual report that falls due in your formation month. This guide walks through both filings, explains the current fees, which changed in October 2023, and builds a realistic first-year budget. Every fee was checked against the Secretary of State and Department of Revenue websites in October 2026.

Quick answer

To start an LLC in Washington State, file a certificate of formation with the Secretary of State for $180 plus an online processing fee, then wait one business day and file a Business License Application with the Department of Revenue ($50 plus endorsements). File an annual report for $70 by the end of your formation month every year.

• File the initial report with the certificate (free) or within 120 days for $10

• Name a registered agent with a physical Washington address and an email

• No state income tax, but B&O tax on gross receipts and sales tax on retail sales

• Late annual report: $95 instead of $70

• Expedite for $100 if you need the LLC within about three working days

What a Washington LLC is and who should form one

A Washington limited liability company is created under chapter 25.15 RCW, with the shared rules on names, registered agents and annual reports in chapter 23.95 RCW, the state's Uniform Business Organizations Code. Like an LLC anywhere, it keeps business debts and lawsuits separate from your personal assets, as long as you keep the company's money separate from your own and sign contracts in its name.

For federal tax, a one-owner LLC is a disregarded entity and a multi-owner LLC is a partnership, unless you elect corporate treatment. Washington does not tax income at all, so the LLC's state tax burden comes from gross-receipts B&O tax and sales tax, which apply whatever entity you choose.

A Washington LLC suits contractors, consultants, online sellers, cafés, cleaning and landscaping businesses and anyone signing commercial leases in the state. Members do not need to live in Washington. If you live in Oregon or Idaho and only occasionally work in Washington, forming in your home state and registering in Washington as a foreign LLC may be simpler; if your business is based here, form here.

Washington LLC at a glance (2026)

$180

Certificate of formation

plus online processing fee

$70

Annual report

due end of formation month

$50

Business License Application

Department of Revenue

$0

State income tax

B&O tax on gross receipts instead

Step 1: choose a name the Secretary of State will accept

RCW 23.95.305 requires an LLC name to include "Limited Liability Company", "Limited Liability Co.", "L.L.C." or "LLC". The name must be distinguishable from every other business already registered with the Secretary of State, and it cannot contain words reserved for regulated institutions, such as "bank", "banking", "trust" or "cooperative", or certain combinations such as "savings" with "loan".

Search the name in the Corporations and Charities Filing System (CCFS) before you start. The online form also checks availability, but the Secretary of State warns that the lookup does not see filings still waiting to be processed, and a final reviewer makes the call. A name that looks free can still be rejected, so have a second choice ready.

If you are not ready to form yet, reserve a name for $30. When you file the certificate later, enter your reservation number and the name fills in automatically. A trade name you plan to use instead of the legal name is registered separately with the Department of Revenue for $5, on the Business License Application.

Step 2: name a registered agent

Every Washington LLC must designate and keep a registered agent (RCW 23.95.405). The agent accepts lawsuits, summonses and official notices for the company, and the Secretary of State sends annual report reminders to the agent's address too.

Washington recognises two types of agent:

• Noncommercial registered agent: any person or business with a Washington address who agrees to accept legal papers for your LLC. This can be you, a co-owner, a relative or your accountant. You can even appoint a job title, such as "Office Manager", so whoever holds the role serves.
• Commercial registered agent: a person or company that has filed a commercial listing statement with the Secretary of State and is listed in CCFS. You simply pick them from the search results.

Either way, the agent needs a physical street address in Washington (no PO boxes or private mailboxes), an email address, and must sign a consent to serve. Online, the person submitting the filing affirms that consent.

Registered agent options in Washington

	You (noncommercial)	Commercial registered agent
State fee to appoint	Included in $180	Included in $180
Yearly cost	$0	About $50–$300 (market estimate)
Address on public record	Your home or office	The agent's office
Works if you live out of state	No	Yes
Change later	No fee	No fee

State fee to appoint

You (noncommercial)

Included in $180

Commercial registered agent

Included in $180

Yearly cost

You (noncommercial)

$0

Commercial registered agent

About $50–$300 (market estimate)

Address on public record

You (noncommercial)

Your home or office

Commercial registered agent

The agent's office

Works if you live out of state

You (noncommercial)

No

Commercial registered agent

Yes

Change later

You (noncommercial)

No fee

Commercial registered agent

No fee

The commercial agent price range is our estimate from published provider pricing, not an official figure. Changing your agent is free: within 180 days of your annual report due date you update it on the annual report itself; outside that window, file an amended annual report or statement of change.

Step 3: file the certificate of formation and initial report

You file online through CCFS: log in, choose Create or Register a Business, pick WA Limited Liability Company, and complete the certificate of formation. The form asks for:

• UBI. If the business already has a UBI from earlier registrations, enter it (but not a UBI from a sole proprietorship or general partnership). Otherwise one is assigned when the filing is accepted.
• Name and registered agent, as above.
• Principal office: a physical street address where records are kept, which does not have to be in Washington, plus an email address.
• Duration: perpetual by default, or a set end date.
• Effective date: the filing date, or a future date up to 90 days ahead.
• Executors: the people forming the LLC.
• Governors and nature of business: these belong to the initial report.

Forming a Washington LLC online

1. 1

   Log in to CCFS

   Create a Secretary of State account and choose Create or Register a Business → I would like to form a Washington State business.

2. 2

   Enter the name and agent

   Look up the name, then select a commercial agent or add a noncommercial agent with a Washington street address and email.

3. 3

   Add office, duration and effective date

   Give the principal office address. Leave duration as perpetual unless the LLC has a set life. Pick a future effective date if needed (up to 90 days).

4. 4

   List executors and governors

   Executors form the LLC. Governors are the members or managers who run it, listed in the initial report.

   Tip: Keep the initial report box ticked; deferring it adds a $10 filing and a deadline.

5. 5

   Pay and submit

   Pay $180 plus the online processing fee. Add $100 at checkout for expedited review.

The initial report. Washington bundles a short initial report, listing governors and the nature of business, into the formation. If you file both together, the report costs nothing. If you tick Defer Initial Report, you must file it within 120 days of the effective date and pay $10. There is rarely a good reason to defer.

Don't upload your operating agreement. The Secretary of State does not record operating agreements, ownership details or minutes, and removes them if uploaded. If you upload a prepared certificate of formation, it must match what you typed in the form exactly; the Secretary of State says conflicts between the two are a very common reason online filings are sent back.

Processing and expedite. Standard filings are reviewed by staff, and the confirmation letter appears in your account's Notices and Filed Documents folder. If you need the LLC quickly, expedited service costs $100 and is generally processed within three working days, and in-person same-day service in Tumwater or Cheney costs $150.

Step 4: EIN, operating agreement and bank account

Once the LLC is active, apply for an employer identification number from the IRS. It costs Free ($0) online; our EIN guide covers the form. Banks and the Department of Revenue both ask for it.

Write an operating agreement even if you are the only member. Chapter 25.15 RCW lets the LLC agreement set how profits are shared, how decisions are made and what happens when someone leaves; without one, the statute's default rules decide. It is also the first document a bank asks for and the first thing a court looks at to decide whether your LLC is genuinely separate from you.

Then open a business bank account in the LLC's exact legal name. Mixing personal and business money is the most common reason courts disregard an LLC's liability protection.

Beneficial ownership. Since FinCEN's March 2025 interim final rule, companies formed in the US do not file beneficial ownership information reports, so a new Washington LLC has nothing to file with FinCEN (current position: Not required for US-formed companies).

Step 5: get your Washington business license

The Secretary of State's own next-steps page tells new LLCs to wait one business day after formation and then complete a Business License Application with the Department of Revenue's Business Licensing Service. The Department says a domestic LLC must file with the Secretary of State first, and that you need the license if any of these apply:

• your gross income will be $12,000 a year or more
• you will collect sales tax
• you will hire employees within the next 90 days
• you trade under a name other than the LLC's legal name
• your business needs city, county or state endorsements
• you owe any tax or fee to the Department

The application fee is $50, plus the fee for each endorsement you add. Many cities issue their local license as an endorsement on this same application: Olympia's general business license, for example, costs $30 and Spokane's starts at $131. Seattle, Tacoma, Bellevue and Everett license separately through FileLocal. Online applications take about 10 business days, and endorsements needing approval can add two to three weeks. Renewal costs $5 plus endorsement fees each year.

The license uses your LLC's UBI, and it also opens your excise tax account in My DOR, where you will file B&O and sales tax returns. If you plan to hire, the same application can set up your Labor & Industries account for workers' compensation, and you also need an Employment Security Department account for unemployment insurance and paid family and medical leave. Our Washington business license guide covers endorsements and city licenses in detail.

How a Washington LLC is taxed

No income tax. Washington taxes neither personal nor corporate income, so your LLC's profit is not taxed by the state. You still pay federal income tax on the profit and federal self-employment tax on a working member's share.

B&O tax. In place of income tax, the state charges business and occupation tax on gross receipts, with no deduction for wages, rent or cost of goods. The rate depends on what you do: 0.471% for retailing, 0.484% for wholesaling and 1.5% for service and other activities when the business had under $1 million of such income the year before. Since October 1, 2025, larger service businesses pay 1.75% or 2.1%. A small business credit reduces or eliminates B&O tax when your liability is low, and My DOR calculates it automatically when you file.

Sales tax. If you sell goods or retail services, collect the state rate of 6.5% plus the local rate where the customer takes delivery. From October 1, 2025, a range of services such as advertising, IT services and temporary staffing also became subject to retail sales tax. Our Washington sales tax guide has local rates.

How often you file. The Department assigns a frequency based on expected tax: annual returns for businesses with gross income of $60,000 or less, quarterly for $60,001 to $100,000, and monthly above that. If your gross income stays under $125,000 and you collect no sales tax, you can request active non-reporting status and stop filing returns while keeping the license.

A Washington LLC's year

Formation day

Certificate of formation and initial report filed; UBI assigned

Next business day

Business License Application with DOR ($50 + endorsements)

the 25th of the following month

Monthly excise return (B&O and sales tax), if assigned monthly

April 15

Annual excise return, if assigned annual filing

60 days before formation-month end

Secretary of State emails and mails an annual report reminder

Last day of formation month

Annual report due to the Secretary of State ($70)

The annual report and staying active

Every Washington LLC files an annual report with the Secretary of State to keep its status, and its UBI, in good standing. The report is due by the last day of the month in which the LLC was formed, every year. You can file up to 180 days early, and filing early does not move next year's due date. The Secretary of State sends a courtesy notice 60 days before the deadline, but says not receiving it is no excuse.

The fee is $70. File after the due date and the LLC goes into delinquent status, and the report costs $95, which includes the $25 delinquency fee. A domestic LLC then has 120 days from the delinquency notice to file the past-due report; after that it is administratively dissolved. A dissolved LLC can reinstate within 5 years for $140 plus every missed annual report fee. After five years you would have to form a new company.

Use the annual report to update anything that has changed, such as your agent, principal office or governors. An amended annual report does not satisfy the yearly requirement; it is only for changes outside the filing window.

What it costs: a worked first-year budget

State fees below come from the Secretary of State and DOR. Agent prices, city endorsements for cities not listed and the online processing fee are not fixed statewide, so they are shown as estimates or left to your checkout total.

A worked B&O figure. The Vancouver consultant bills $90,000 in her first year. At the 1.5% service rate, her B&O tax before credits would be $1,350. The small business B&O credit may trim that figure, and My DOR works it out when she files on the frequency DOR assigns; she should set aside the full amount until she sees the credit. A retail shop with $90,000 of sales pays 0.471%, or $423.90 before credits, plus the sales tax it collects from customers, which is not its own money.

Year two onward. Budget $70 for the annual report, $5 plus endorsements for the business license renewal, any agent fee, and your B&O tax.

Worked examples

A Vancouver IT consultant. Aisha files her certificate of formation online on February 10, 2026, with the initial report included and herself as noncommercial agent at her home office. The next business day she applies for her business license, paying $50 plus the City of Vancouver endorsement. Because IT services became subject to sales tax from October 1, 2025, she also collects sales tax on qualifying services to Washington customers. Her first annual report is due by February 28 the following year.

An Olympia gift shop that deferred its initial report. Ben forms his LLC on May 5 but ticks Defer Initial Report because he is still deciding who will be a governor. He must now file the initial report within 120 days, by early September, and pay $10. He sets a reminder, files it in July, and applies for his license with the Olympia endorsement for $30.

A Seattle contractor who missed the annual report. Chris's LLC was formed in June 2024. He misses the June 30, 2026 deadline and gets a delinquency notice. He files in August, paying $95. Had he ignored the notice for more than 120 days, the LLC would have been administratively dissolved and he would have had to reinstate for $140 plus missed fees.

Washington LLC launch checklist

0/10

• Name searched in CCFS (and reserved if needed)
• Registered agent chosen, with a Washington street address and email
• Certificate of formation filed with the initial report
• UBI number noted from the confirmation letter
• EIN obtained from the IRS
• Operating agreement signed
• Business License Application filed with DOR one business day after formation
• City endorsement or FileLocal license (Seattle, Tacoma, Bellevue, Everett)
• L&I and ESD accounts opened before hiring
• Calendar reminder: annual report by the end of your formation month

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Common mistakes and how to fix them

Budgeting with old fees. Many guides still say $200 to form and $60 a year. The Secretary of State's current schedule shows $180 plus an online processing fee to form and $70 for the annual report.

Thinking the Secretary of State filing is the business license. It isn't. The certificate of formation creates the LLC; the Department of Revenue's Business License Application is what lets you trade, collect tax and hold city endorsements.

A prepared certificate that doesn't match the form. If you upload your own certificate, every detail must match the online entries. Fix a rejected filing by correcting the mismatch and resubmitting.

Using a PO box for the agent or office. Both the agent and principal office need a physical street address. Agents must be in Washington.

Missing the formation-month deadline. The annual report is due on the anniversary month, not in spring like many states. Set a recurring reminder for the month before.

Ignoring B&O tax because there is no income tax. B&O is due on gross receipts even when the business makes a loss. File every assigned return, including zero returns, unless you are on active non-reporting status.

Paying look-alike notices. The Secretary of State warns that it does not send text messages requesting payment. File your annual report only through CCFS.

Official links

• Corporations and Charities Filing System (CCFS)Form the LLC, file annual reports, change agents
• LLC online filing instructionsField-by-field guide to the certificate of formation
• SOS fee scheduleCurrent LLC fees and priority services
• Annual reportsDue dates and filing window
• DOR — Apply for a business licenseBusiness Licensing Service, UBI and endorsements
• DOR — B&O tax classificationsRates by activity
• IRS — Apply for an EINFree

What to do next

Check your name with the LLC name checker, then form the LLC and file your business license the next business day. Use the startup cost calculator to fold the $180 formation, $50 license and endorsements into your opening budget, and read the Washington business license guide before you choose endorsements.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start an LLC in Washington State?

The Secretary of State charges $180 for a certificate of formation, plus an online processing fee shown at checkout. Most new LLCs then file a Business License Application with the Department of Revenue, which costs $50 plus any city or state endorsement fees. From the second year, budget $70 for the annual report.

Is the Washington LLC filing fee $200 or $180?

The Secretary of State's fee schedule lists $180 for an LLC's original filing, and its online instructions say that amount is charged in addition to an online processing fee. Older guides often quote $200 because they bundle the processing charge or pre-date the October 2023 fee update. Check the total in your cart before paying.

When is the Washington LLC annual report due?

By the last day of the month in which the LLC was formed, every year. An LLC formed in March 2026 files its first annual report by March 31 of the following year. You can file up to 180 days early without changing the due date. The fee is $70, or $95 once the report is late.

Do I need a business license if I have a Washington LLC?

Usually, yes. The Department of Revenue requires a business license if you will earn $12,000 a year or more a year, collect sales tax, hire within 90 days, need endorsements or trade under another name. The Secretary of State tells new LLCs to wait one business day after formation and then file the Business License Application. The license uses the same UBI number.

Does a Washington LLC pay income tax?

Washington has no personal or corporate income tax, so the state does not tax the LLC's profit. Instead it charges business and occupation (B&O) tax on gross receipts, at 0.471% for retailing and 1.5% for most services under $1 million. Federal income and self-employment tax still apply to the owners.

Can I be my own registered agent in Washington?

Yes. Anyone who consents to accept legal papers and has a physical street address in Washington can be a noncommercial registered agent, including you. PO boxes and private mailboxes are not allowed, and an email address is required. If you have no Washington address, hire a commercial registered agent listed in the Secretary of State's filing system.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Fee Schedules & Priority Services — Washington Secretary of State · accessed 9 October 2026
2. 2.WAC 434-112-085 — Fees for business entities — Washington State Legislature · accessed 9 October 2026
3. 3.Certificate of Formation with Initial Report of a Limited Liability Company: Online Instructions — Washington Secretary of State · accessed 9 October 2026
4. 4.Annual Reports — Washington Secretary of State · accessed 9 October 2026
5. 5.Registered Agents — Washington Secretary of State · accessed 9 October 2026
6. 6.Return a Business to Active Status — Washington Secretary of State · accessed 9 October 2026
7. 7.Steps after Registration with the Secretary of State — Washington Secretary of State · accessed 9 October 2026
8. 8.Apply for a business license — Washington State Department of Revenue · accessed 9 October 2026
9. 9.Variable business license processing fees — Washington State Department of Revenue · accessed 9 October 2026
10. 10.Business & occupation tax classifications — Washington State Department of Revenue · accessed 9 October 2026
11. 11.Filing frequencies and due dates — Washington State Department of Revenue · accessed 9 October 2026