How to start an LLC in Washington State?
Forming an LLC in Washington provides flexibility, limited liability protection, and tax advantages for small and medium-sized business owners. Here's how to do it step by step:
1. Choose a Name for Your LLC
Your LLC name must be unique and distinguishable from existing businesses registered in Washington.
- It must end with “Limited Liability Company,” “LLC,” or “L.L.C.”
- Check name availability via the Washington Secretary of State's business name search tool.
- You may reserve a name for 180 days for a $30 fee (optional).
2. Appoint a Registered Agent
You must designate a registered agent with a physical address in Washington.
- This can be an individual or a registered agent service.
- The agent is responsible for receiving legal documents and official notices.
3. File a Certificate of Formation
Submit the Certificate of Formation with the Washington Secretary of State.
- File online or by mail.
- Filing fee: $200 (online) or $180 (by mail)
- Processing time: 2–5 business days (online), longer by mail.
4. Create an Operating Agreement (Recommended)
Although not legally required, an Operating Agreement defines the LLC’s structure, ownership, and operating procedures.
- Helps prevent disputes and supports legal separation between personal and business assets.
5. Obtain an EIN (Employer Identification Number)
Apply for an EIN from the IRS for free via irs.gov.
- Required to open a business bank account, hire employees, and file federal taxes.
6. File the Washington State Business License Application
You must file a Business License Application with the Washington Department of Revenue.
- Fee: $90
- Register your trade name and obtain other necessary local or state licenses here.
7. Comply with Ongoing Requirements
- Annual Report: File annually with the Secretary of State ($60 fee).
- Taxes: Washington has no state income tax but levies a Business & Occupation (B&O) tax on gross receipts.
- Additional industry-specific licenses may apply.