An LLC must file an annual return with the Secretary of State’s office every year. This includes filing information about the LLC’s members, directors, officers, managers, registered agent, address, name, principal place of business, date formed, type of organization, number of shareholders, and total assets.
A Washington LLC must pay taxes each year. If the LLC does not have enough income to cover its tax liability, it must make quarterly payments. These are called “quarterly payment installment agreements.”
To avoid penalties, you should file your LLC registration paperwork within 30 days after forming the LLC. You can do this online via the Secretary of State‘s website.
If you fail to file your LLC annual returns, you could face fines and even jail time.
Table of Contents
Washington Information Needed for an LLC Annual Report
An LLC annual report must include certain information. This includes the name, address, telephone number, email address, date of organization, principal place of business, type of entity, registered agent, and filing fees. If you want to make changes to the information included in the report, you can do so online.
If you don’t know what to put in the report, here are some examples:
Principal Place of Business: 123 Main Street,Anytown,USA
Type of Entity: Limited Liability Corporation
Registered Agent: John Doe
Filing Fees: $10.00
Annual Reporting for an LLC in Washington
You can file an annual report for your limited liability company (LLC) online or on paper. There are different filing requirements depending on whether you file electronically or on paper. If you file electronically, you must submit it to the Secretary of State no later than 120 days after the date of formation. You can do this online or print out a form and mail it. If you file on paper, you must send it to the Secretary of state no later than 30 days after the end of the calendar year. You can do this either electronically or on paper.
The deadline for filing your annual report is January 31st. Failing to file your annual report by the deadline could lead to fines up to $25 per day.
Washington does not impose a personal income tax. However, there are several types of taxes that businesses must pay. These include sales tax, property tax, excise tax, and franchise tax. Some states do impose an income tax, but Washington is one of the few remaining states without such a tax.
Businesses in Washington file annual returns with the Franchise Tax Board. This includes corporations, limited liability companies (LLCs), partnerships, sole proprietorships, and unincorporated associations. Each type of entity has different filing requirements. For example, a corporation must file a Form BR, while an LLC must file a Form LL.
A corporation must report its taxable income on its Federal Income Tax Return. If you are incorporated in another state, you must file a W-8 form with the IRS to declare the amount of foreign earned income. You must also complete Schedule SE, Self-Employment Tax, to calculate self-employment tax. In addition, most corporations must file a Form 1065, U.S. Return of Partnership Income, to report partnership items.
An LLC must file a Form M-1, Application for Registration, to register its name and address. This form must be filed within 30 days of formation. Once registered, the LLC must file a Form SS-4, Application for Employer Identification Number, to obtain a taxpayer identification number.
The LLC must file a Form 1041, U.S. Income Tax Return, every year. On this form, the LLC reports its gross receipts, deductions, credits, and payments. It also calculates its adjusted basis in assets and liabilities. Finally, the LLC must file Forms K-1, Shareholder’s Share of Income, Deductions, Credits, etc., for each partner.
Partnership returns are similar to those of a corporation. Partnerships must file a Form 1066, U.S. Partner’s Foreign Account Report, if they maintain a bank account outside the United States. They must also file a Form 8886, Information Returns of Wholly Owned Subsidiaries, if the partnership owns a subsidiary located overseas.
Annual Report
The IRS requires every limited liability company (LLC) to submit an annual report. This includes information about the company’s name, address, number of members, type of business activity, and financial statements.
Fees depend on the complexity of the company’s operations and the method used to prepare the documents. Electronic filings are free; paper filings cost $75 per member.
Deadlines vary depending on the type of LLC. An LLC formed under state law must file within 30 days of formation. A federal tax ID number is needed to form an LLC under federal law. Federal taxes must be filed within three months of forming the LLC. If there are multiple owners, each owner must complete Form 8832, “Information Return of Organization Exempt From Income Tax.” Each owner must sign and date the return.
The IRS defines “state employer tax” as including federal payroll tax, unemployment insurance, income tax withholdings, sales tax, and all other fees related to employment. Employers are required to pay these taxes regardless of whether the employee works within the state. If you run a business out of your home, you must still report your personal earnings and file your individual tax returns.
State Employer Taxes
Employers are required to withhold state employment tax payments from employees’ paychecks. These are called “state employer taxes.”
Federal employers must withhold federal employee payroll taxes from workers’ paychecks. This includes Social Security, Medicare, Unemployment Insurance, and Income Tax withholding.
The amount withheld depends on the number of employees paid during each period covered by the tax.
If you work in Washington, you’ll likely owe both state and federal employment taxes.
Sales and Use Taxes
The state imposes a sales tax on most goods and services sold within the state. Businesses are required to collect and remit sales tax unless exempt under federal law.
Businesses are allowed to deduct expenses associated with collecting and remitting sales tax. However, there are certain items that cannot be deducted such as interest paid to finance purchases, advertising costs, employee salaries, utilities, rent, insurance premiums, etc.
Every quarter, businesses must file a sales tax report with the state. This includes information about gross receipts, taxable income, deductions, exemptions, credits and refunds.
A summary of the quarterly returns filed during 2018 is shown here.
Registration in the Other States
Many states require businesses to register for legal protection. If you are starting a business, it’s important to know what registration requirements apply in each state. Some states require filing articles of organization with the secretary of state, while others require registering your LLC with the county clerk’s office. You may even need to pay fees to register your LLC in some states.
Here are some examples of states that require filing articles of organization:
California – California requires filing articles of organization with either the Secretary of State or the County Clerk.
Connecticut – Connecticut requires filing articles of organization within 30 days of forming the LLC.
Delaware – Delaware does not require filing articles of organization. However, you do need to file annual reports with the Division of Corporations.
Florida – Florida requires filing articles of organization.
Illinois – Illinois requires filing articles of organization or formation documents with the Secretary of State.
Frequently Asked Questions
Why You Should Get an Operating Agreement in Washington
An operating agreement isn’t just for startups anymore. In fact, it’s one of the most important documents to consider when forming a limited liability company (LLC) in Washington. While some states require operating agreements, others don’t. But even if you’re required to have one, it doesn’t mean you have to draft one yourself.
The best way to start drafting an operating agreement is to use a template. Our templates contain everything you’ll need to ensure that everyone knows what’s expected of them, how much each partner owns, and how profits will be shared. They also include sections about conflicts of interest, termination provisions, and other important topics. And since we’ve already drafted hundreds of operating agreements for businesses just like yours, we know exactly what information you need to put into your document.
Can You Become Your Registered Agent?
As an LLC member, you must designate one person as your “registered agent.” This individual holds power over many aspects of your business operations including receiving legal notices, filing tax returns, and being able to accept payments on behalf of your LLC. However, there are some instances where it makes sense to become your own registered agent. Here are three reasons why becoming your own registered agent might be better than hiring someone else to do it.
1. Avoiding Service Fees
If you hire a third party to serve as your registered agent, you’ll pay a fee for each document sent out. In addition, you’ll still have to send out the documents yourself, which could cost money. By contrast, we charge a flat $75 monthly fee for our registered agent service.
2. Protecting Personal Privacy
When you register to act as your own registered agent, you’re protecting your personal privacy. For instance, if you’re getting married and registering to represent your spouse’s interests, you won’t want to disclose your name and address on public records. Likewise, you wouldn’t want your home address listed on the internet because it could lead to unwanted solicitations. When you use our registered agent service, we keep your information confidential and only release it when necessary.
3. Saving Time
You’ll save time when you choose to become your own registered representative. With us, you simply provide us with basic contact information and we handle everything else. Our registered agent service takes care of sending out legal notices, accepting payments, and filing taxes.
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.
