Best LLC Formation Services in Washington State

Washington is one of only seven states with no personal income tax, putting it alongside Wyoming, Nevada, and Texas. But unlike those states, Washington applies its B&O tax to gross revenue at rates ranging from 0.471% to 3.3% depending on your business classification.

The state also charges a 6.5% sales tax, and local jurisdictions add their own on top. In Seattle, the combined rate exceeds 10.25%. If your LLC sells taxable goods or services, you will need to register with the Department of Revenue immediately after formation.

Washington does not offer anonymous LLCs. Your name and address will appear on public filings with the Secretary of State, unlike in Wyoming or New Mexico where members can stay off the public record entirely.

Every Washington LLC receives a Unified Business Identifier (UBI) number at formation. This single number is used across all state agencies, from the Department of Revenue to Employment Security, which simplifies registration compared to states that assign separate IDs per agency.

1. File your Initial Report within 120 days of formation. This costs $10 and is filed with the Secretary of State. Missing the deadline triggers a $25 late fee, and your LLC can be administratively dissolved after 90 days of noncompliance.
2. Register for a Washington State business license through the Department of Revenue if your LLC expects gross income over $12,000 per year or will hire employees. Most businesses need this license to legally operate.
3. Register for B&O tax and sales tax with the Department of Revenue using your UBI number. Even though Washington has no income tax, the B&O tax applies to nearly all business activities based on gross receipts.
4. File your Annual Report by the last day of your anniversary month each year. The fee is $60. Late filings result in penalties and potential administrative dissolution.
5. File your federal BOI report with FinCEN. Most new LLCs formed in 2026 must submit a Beneficial Ownership Information report within 30 days of formation. This is a federal requirement, not a state one.
6. Draft an operating agreement. Washington does not legally require one, but banks often ask for it when opening a business account, and it protects your limited liability status if your LLC has multiple members.

• Initial Report ($10, due within 120 days) - This is separate from your annual report and easy to overlook. Missing it triggers a $25 late fee and possible dissolution.
• Business License Registration - Most LLCs earning over $12,000 per year must register with the Department of Revenue for a state business license. The license itself is free in many cities, but some localities charge their own fees.
• Annual Report ($60/year) - Due by the last day of your LLC's anniversary month every year. There is no grace period before late penalties apply.
• Expedited Processing ($50) - Cuts processing from 5 business days to 3. Not a huge time savings, so most founders skip it unless timing is critical.