Forming an LLC in Washington state requires you to pay $200, plus any extra fees required by your state, such as filing fees, taxes, etc. Depending on the type of entity you want to form, there are several ways to go about it. You can hire a registered agent, pay annual reports, and pay a Business License Application fee, or you can do everything yourself online.
Washington State LLC Costs:
A Washington state limited liability company (LLC) costs about $1,038$2,500 depending upon how many employees you have, according to Inc., a magazine that covers small businesses. The cost of forming an S corporation is around $3,000$5,000. An LLC requires no filing fees, while an S corporation does require an initial fee of $800$1,200. Depending on where you reside, some states charge less than others; California charges $300$600, whereas Texas charges $350$700.
Your registered agent will receive a yearly bill if you do not renew your registration. For example, if you register in New York, you must pay $150$225 per year. If you register in Delaware, you must pay $50$75.
You’ll pay $250$375 for a certificate of formation, and there are additional fees for each document filed with the Secretary of State. For instance, if you form an LLC in Washington state, you’ll pay $60$90 for the Certificate of Formation, $20$30 for the Articles of Organization, $10$15 for the Operating Agreement, and $25$40 for the Annual Report.
If you decide to operate as an LLC, you’ll need to draft an Operating Agreement. This document outlines the responsibilities of members and managers. You’ll pay $100$150 for drafting one, plus $125$185 for a copy.
In most cases, you won’t need to file tax returns as an LLC unless you are doing something illegal. However, if you choose to incorporate in Washington state, you will need to file federal income tax returns.
Washington LLC Name (Free)
There is no fee to register a limited liability company (LLC). You must file the articles of organization with the state within 30 days of forming the company. Once approved, you can use the LLC name for 90 days. After that, it becomes public record. If you don’t want to make your company publicly known, you can change the name to something else.
A company name consists of two pieces: the legal entity name (the part that says “Limited Liability Company”) and the organization name (the part that identifies what type of business it is, such as “Corporation”). When choosing a name for your company, keep in mind that it needs to be unique. Don’t choose anything similar to another company or product. Also, avoid names that are too long or contain special symbols.
There are many reasons why someone might want to hire a registered agent in Washington state. One reason is to protect your personal assets. If you live in Washington and have a home equity loan, it could be important to have a registered agent because it protects your interest in the property. Another reason is to protect your intellectual property. You may have a patent, trademark, copyright, or trade secret that needs protection. In addition, having a registered agent can help you avoid fines and penalties for filing late tax returns.
Hiring a registered agent is free if you form an LLC or corporation yourself. However, there are some costs involved if you choose to use a professional registered agent. For example, most states charge a fee for registering agents. Some states even require that you pay a yearly renewal fee. Other states do not charge any registration fee, but they do charge a monthly agency fee. Finally, some states charge a flat annual fee regardless of how much work you ask your agent to perform.
Certificate of Formation for a Washington LLC ($200)
The Washington LLC certificate of formation costs $200 online or $160 by mail. This option allows you to file electronically with the Secretary of State and provides the same information as the paper form. You must still pay the filing fee of $20.
Online filing is easy. Just fill out the electronic form, upload documents, and submit it. Filing fees are paid directly into our state account. If you want to see how much money we’ve received from filers since July 2017, go here.
Mail filing requires a check or money order payable to “State of Washington.” Once payment is received, the Secretary of State sends us a receipt. We send you a copy of the receipt along with the completed forms.
Filing fees are refundable up to 30 days after filing. After that, there is no refund.
Washington LLC Operating Agreement (Free)
There’s no fee to register a limited liability company (LLC) in Washington State. If you want to start an LLC in Washington, there are three ways to do it. First, you can file online at www.dol.wa.gov/llc. Second, you can call the Secretary of State’s office at 800-332-4483. Third, you can hire a lawyer to help you set up your LLC.
If you choose to use the online form, you’ll pay $50 to register your LLC. The fee covers the cost of processing your application and providing you with a certificate of formation. Once you’ve paid the fee, you’re ready to begin operating your LLC. However, you won’t actually become an LLC until the state approves your filing, which could take several days.
Once approved, your LLC name goes into effect immediately. You don’t need to wait for the state to approve your filing before naming your LLC. In fact, you can name your LLC whatever you like. As long as it doesn’t violate any federal law, you can name your company anything you like.
However, if you decide to use a professional to help you set up an LLC, you’ll need to make sure you pick a name that isn’t already taken. To check whether a name is available, just type “is available?” into Google. For example, typing “is ‘The Seattle Seahawks’ available?” returns a list of companies named “Seattle Seahawks.” Names aren’t available until after the state approves your filing; however, some states require that you reserve certain names prior to registration. Check with your local secretary of state’s office to see what rules apply in your area.
You don’t need to reserve a name before setting up an LLC in Washington. When you register your LLC, you’re simply creating a document called an Articles of Organization. This document contains information about your LLC such as its purpose, members, and registered agent. After you create your Articles of Organization, you can add additional documents to your LLC. These include things like a Bylaws and Operating Agreement.
Washington LLC EIN Number (Free)
There is no charge to apply to receive an Employer Identification Number (EIN). You do not have to pay anything to obtain one. If you are filing federal tax returns, however, you must register for an EIN. An EIN is required to open a business bank account, issue payroll checks, and make purchases over $10,000.
You can find out whether you already have an EIN by calling IRS Customer Service at 800-829-4933.
Annual Report for Washington LLC ($60/year)
In order to avoid penalties, it is important to file annual reports within 30 days after formation and to include the correct information. If you fail to do so, you could face fines. A Washington LLC must report the following information:
• Name of the member(s).
• Address of the principal place of business.
• Date of formation.
• Names of officers and directors.
• Number of shares outstanding.
• Amount of capital contributed.
Frequently Asked Questions
Is an S corp better than an LLC?
An S Corp is one of several different types of business entities you might want to consider forming. This
A sole proprietorship is a simple form of business ownership. You are responsible for paying taxes on your profits, and anyone else involved in running the business must file a separate return. A partnership is similar to a joint venture; however, partnerships are usually formed among individuals rather than companies. Partnerships typically don’t pay corporate income taxes because partners aren’t considered employees. Instead, they split personal income taxes based on their individual incomes.
If you’re starting up a small business, an S Corporation is probably the best choice. With an S Corporation, you set up a legal structure that allows you to limit liability and pass along tax savings to shareholders. Shareholders are treated like owners, not employees. They receive dividends and distributions from the S Corp, just like stockholders in a regular corporation.
Can I pay myself a salary from my LLC?
You can pay yourself a salary directly from your limited liability company (LLC). This is different from a dividend because you are paying yourself out of the profits of your LLC. If your LLC is taxed in a special way, however, you might end up having to pay taxes on those payments.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.
