Washington LLC Costs 2026: $180 to Form + $70/yr (No Income Tax)
Quick Answer
Washington LLCs pay $180 to form (Certificate of Formation) and $70/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, the state imposes a Business & Occupation (B&O) tax on gross business receipts, with rates from 0.471% (retailing) up to 2.1% (high-revenue service businesses as of October 1, 2025). Washington also has a 7% capital gains excise tax, and sales tax must be collected if you sell taxable goods or services.
Key Takeaways
- $180 LLC formation fee (Certificate of Formation) filed with the Secretary of State
- $70 annual report due by the last day of the formation anniversary month ($25 delinquency fee if late)
- No Washington personal income tax — members pay $0 in state income tax on distributions
- Business & Occupation (B&O) tax on gross receipts: 0.471% retailing, 0.484% wholesaling/manufacturing, 1.5%–2.1% services
- 7% state capital gains excise tax on long-term gains above the annual standard deduction ($278,000 for 2025)
- Sales tax: 6.5% state + local rates (combined rates commonly 8.5%–10.6%)
- Foreign LLC registration: $180
| Item | Cost/Details | Notes |
|---|---|---|
| LLC Formation (Certificate of Formation) | $180 | One-time filing fee to the Secretary of State |
| Annual Report | $70 | Due last day of anniversary month |
| Late Annual Report Delinquency Fee | $25 | Added once status is delinquent |
| Reinstatement | $70/yr + $140 | $70 per missed annual report year, plus $140 penalty |
| 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%–2.1% | Tiered by prior-year service income (Oct 1, 2025) |
| Personal Income Tax | None | Washington has no income tax |
| Capital Gains Excise Tax | 7% | On long-term gains above the standard deduction |
Washington State LLC Formation Costs
Forming an LLC in Washington State requires filing a Certificate of Formation with the Washington Secretary of State and paying a $180 filing fee. This is a one-time cost to create your LLC. For a full overview of state requirements, see our Washington LLC compliance hub.
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): Faster processing available for an additional $100
Within 120 days of formation you must also file an Initial Report. There is no extra charge if it is submitted with your Certificate of Formation; filed separately, it costs $10.
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 $70 and it is due by the last day of the LLC's formation anniversary month each year. If you miss the deadline and your LLC becomes delinquent, a $25 delinquency fee is added.
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, and Washington lets you set up email reminders for the deadline. For step-by-step instructions, see our Washington LLC annual report guide.
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 — under $1M prior-year service income | 1.5% |
| Services — $1M to $5M prior-year service income | 1.75% |
| Services — $5M+ prior-year service income | 2.1% |
| Wholesaling | 0.484% |
| Manufacturing | 0.484% |
The Service and Other Activities rate became tiered on October 1, 2025. The rate that applies for the year is based on your prior calendar year's taxable service income, so most small service LLCs stay at 1.5%.
Small business filing threshold: Businesses with gross income under $125,000 per year across all B&O classifications generally are not required to file a B&O return. Washington also applies an automatic Small Business Credit that reduces or eliminates B&O tax for many low-revenue LLCs; the credit is calculated for you when you file electronically.
B&O Tax Examples
| Annual Gross Revenue | B&O Tax (Services, 1.5% tier) | 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
- Members still owe federal income tax (pass-through to Form 1040)
- Non-resident members have no Washington income tax obligation on WA-sourced income
- No corporate income or franchise tax on the LLC itself (the B&O tax applies instead)
Tax advantage: Washington's lack of income tax can be a major benefit for LLC members compared to states like California (13.3% top rate) or Oregon (9.9%). For typical operating businesses, the B&O tax on gross receipts is much smaller than an income tax would be.
One Exception: The 7% Capital Gains Excise Tax
Washington is not entirely tax-free on investment income. Since 2022 the state has imposed a 7% capital gains excise tax on individuals' long-term gains from selling assets such as stocks, bonds, or business interests. It applies only to gains above the annual standard deduction ($278,000 for 2025), and beginning in tax year 2025 an additional 2.9% applies to gains above $1 million. This can matter if you eventually sell your LLC interest at a substantial long-term gain, though sales of certain qualified small business and real estate interests may be excluded.
Total Annual Cost Estimate
| Item | Typical Cost |
|---|---|
| Annual Report | $70 |
| B&O Tax (varies by revenue) | $0–varies |
| Registered Agent (if using service) | $50–$150 |
| State Income Tax | $0 |
| Minimum Annual Total (filing only) | $70 |
Late Filing Penalties
- Late annual report: a $25 delinquency fee is added once the LLC's status becomes delinquent
- Administrative dissolution: extended non-compliance can result in the LLC being administratively dissolved
- Reinstatement: $70 per missed annual report year, plus a $140 penalty fee
- B&O tax penalties: late B&O tax filings can incur penalties of 5%–25% of the unpaid tax, plus interest
Simple rule: Washington's $70 annual report is straightforward to file online. The $25 delinquency fee is minor, but reinstating an administratively dissolved LLC costs $70 per missed year plus a $140 penalty. Set a calendar reminder for your anniversary month. See our Washington LLC compliance guide for the full annual checklist.
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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