Washington State LLC Taxes & Fees 2026: Complete Guide
Quick Answer
Washington State LLCs pay $200 to form and $60/year for the annual report (due by the last day of the formation anniversary month). Washington has no personal income tax — LLC members pay zero state income tax on distributions. However, Washington imposes a Business & Occupation (B&O) tax on gross business receipts at rates typically ranging from 0.471% to 1.5%. Sales tax must also be collected if you sell taxable goods or services.
Key Takeaways
- $200 LLC formation fee (Articles of Organization) filed with Secretary of State
- $60 annual report due by last day of the formation anniversary month
- No Washington State personal income tax — members pay $0 in state income tax
- Business & Occupation (B&O) tax on gross receipts: typically 0.471%–1.5%
- Sales tax: 6.5% state + local rates (total typically 8.5%–10.6%)
- Foreign LLC registration: $180
| Item | Cost/Details | Notes |
|---|---|---|
| LLC Formation (Articles of Organization) | $200 | One-time filing fee to Secretary of State |
| Annual Report | $60 | Due last day of anniversary month |
| Late Annual Report Penalty | $25 | Plus potential dissolution risk |
| Foreign LLC Registration | $180 | For out-of-state LLCs |
| B&O Tax (Retailing) | 0.471% | Of gross receipts from retail sales |
| B&O Tax (Services) | 1.5% | Of gross receipts from services |
| Personal Income Tax | None | Washington has no income tax |
Washington State LLC Formation Costs
Forming an LLC in Washington State requires filing Articles of Organization with the Washington Secretary of State and paying a $200 filing fee. This is a one-time cost to create your LLC.
How to File
- Online: File through the Secretary of State's Corporations & Charities Filing System (CCFS) at sos.wa.gov (2-3 business days)
- Mail: Send to the Washington Secretary of State in Olympia, WA (3-5 weeks)
- Expedited (online): Same-day or next-day processing available for an additional fee
What you need: LLC name (must include "Limited Liability Company", "LLC", or "L.L.C."), registered agent with a WA physical address, principal office address, and a brief statement of LLC purpose.
Washington LLC Annual Report Requirements
Washington requires all LLCs to file an Annual Report with the Secretary of State. The fee is $60 and it is due by the last day of the LLC's formation anniversary month each year.
Annual Report Due Date Examples
| LLC Formation Month | Annual Report Due By |
|---|---|
| January | January 31 |
| April | April 30 |
| July | July 31 |
| November | November 30 |
The annual report can be filed online through the Secretary of State's CCFS portal. Washington also allows you to set up email reminders for annual report deadlines.
Washington Business & Occupation (B&O) Tax
Washington's Business & Occupation (B&O) tax is the state's primary business tax. Unlike income taxes, the B&O tax is applied to gross receipts — total revenue before any business deductions. This means even unprofitable businesses may owe B&O tax.
Common B&O Tax Rates
| Business Classification | B&O Tax Rate |
|---|---|
| Retailing (selling goods at retail) | 0.471% |
| Services (professional, business) | 1.5% |
| Wholesaling | 0.484% |
| Manufacturing | 0.484% |
| Printing & Publishing | 0.484% |
Small Business Credit: Washington offers a B&O tax credit for small businesses with annual gross revenue under $125,000. Many small LLCs qualify for the credit and owe little or no B&O tax. Check the Washington Department of Revenue for current thresholds.
B&O Tax Examples
| Annual Gross Revenue | B&O Tax (Services, 1.5%) | B&O Tax (Retail, 0.471%) |
|---|---|---|
| $50,000 | $750 | $236 |
| $100,000 | $1,500 | $471 |
| $250,000 | $3,750 | $1,178 |
| $500,000 | $7,500 | $2,355 |
No Personal Income Tax in Washington
One of Washington State's most significant advantages is that it has no personal income tax. Washington is one of only nine states with no state income tax.
For LLC members, this means:
- Zero Washington state income tax on LLC income distributions
- No state-level tax on capital gains (as of current law)
- Members still owe federal income tax (pass-through to Form 1040)
- Non-resident members have no Washington income tax obligation on WA-sourced income
Tax advantage: Washington's lack of income tax can be a major benefit for high-income LLC members compared to states like California (13.3% top rate) or Oregon (9.9%). The B&O tax on gross receipts is typically much smaller than income tax for most businesses.
Total Annual Cost Estimate
| Item | Typical Cost |
|---|---|
| Annual Report | $60 |
| B&O Tax (varies by revenue) | $0–varies |
| Registered Agent (if using service) | $50–$150 |
| State Income Tax | $0 |
| Minimum Annual Total (filing only) | $60 |
Late Filing Penalties
- Late annual report: $25 late fee for annual report filed after the due date
- Administrative dissolution: Extended non-compliance can result in the LLC being administratively dissolved
- B&O tax penalties: Late B&O tax filings can result in penalties of 5%–25% of the unpaid tax plus interest
- Reinstatement: Dissolved LLCs must file a reinstatement application and pay all overdue fees
Simple rule: Washington's $60 annual report is straightforward to file online. The $25 late fee is relatively minor, but administrative dissolution is a serious consequence of chronic non-filing. Set a calendar reminder for your anniversary month.
Frequently Asked Questions
Does Washington State have an income tax for LLC members?
What is the Washington B&O tax for LLCs?
How much is the Washington LLC annual report fee?
How much does it cost to form an LLC in Washington State?
Do I need to collect sales tax in Washington?
Official Source
For the most up-to-date information, always verify requirements with the official Washington Secretary of State website:
https://www.sos.wa.govImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
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