Starting a business in Washington State is an exciting step toward financial independence and entrepreneurship. One of the most popular business structures for small business owners is the Limited Liability Company (LLC), thanks to its flexibility, liability protection, and tax advantages. However, before launching your venture, it’s important to understand the total cost of forming and maintaining an LLC in Washington State. This article breaks down all the essential expenses so you can plan your budget with confidence.
Initial Filing Fee: Certificate of Formation
The first and most essential cost of starting an LLC in Washington State is filing the Certificate of Formation with the Washington Secretary of State. This document officially registers your LLC and includes basic information such as your business name, registered agent, and principal office address.
- Online filing fee: $200
- Mail-in filing fee: $180
Online filing is faster and more convenient, with processing typically completed within 2–3 business days, while mail-in applications may take up to 2–3 weeks.
Registered Agent Service (Optional but Recommended)
Every LLC in Washington must designate a registered agent—a person or business entity responsible for receiving legal documents on behalf of your company. You can act as your own registered agent, but many business owners choose to hire a professional service for privacy and reliability.
- Registered agent service cost: $100–$300 per year (depending on the provider)
Hiring a professional registered agent ensures that you never miss important legal notices and helps maintain compliance with state requirements.
Washington State Business License
Most businesses in Washington are required to obtain a state business license through the Washington Department of Revenue. This license registers your business for state taxes and allows you to operate legally.
- Business license application fee: $90 (one-time fee)
Depending on your business type and location, you may also need additional city or county licenses, which can range from $25 to $200 or more.
Local Business Licenses and Permits
In addition to the state license, many cities and counties in Washington require local business licenses. For example, Seattle, Spokane, and Tacoma have their own licensing requirements.
- Local license cost: $50–$150 annually (varies by location and business activity)
You may also need industry-specific permits, such as health permits, signage permits, or professional licenses, which can add to your startup cost.
Operating Agreement (Optional but Recommended)
Although not required by Washington law, creating an LLC Operating Agreement is highly recommended. This internal document outlines the ownership structure, roles of members, and procedures for managing the business.
- DIY cost: Free (if you draft it yourself)
- Legal service or attorney: $100–$500 (depending on complexity)
An Operating Agreement helps prevent disputes and reinforces your LLC’s limited liability status.
Employer Identification Number (EIN)
An EIN is required if your LLC has employees or more than one member. It’s also necessary for opening a business bank account and filing federal taxes.
- Cost: Free (apply directly through the IRS website)
Some third-party services charge a fee to obtain an EIN, but you can easily apply for one yourself at no cost.
Annual Report Filing Fee
To keep your LLC in good standing, you must file an Annual Report with the Washington Secretary of State.
- Annual report fee: $60 (due each year by the end of your LLC’s formation anniversary month)
Failing to file on time can result in late fees or administrative dissolution of your LLC.
Conclusion
The total cost to start an LLC in Washington State typically ranges from $350 to $1,000, depending on whether you use professional services and the specific licenses your business requires. While the upfront investment may seem significant, forming an LLC provides long-term benefits like liability protection, tax flexibility, and enhanced credibility. By understanding these costs in advance, you can budget effectively and set your business up for success.
