How to Form an LLC in Washington

The picturesque natural scenery of Washington state Seattle’s progressive laws and technology hubs like Seattle are some of the defining features of Washington state. However, Washington also happens to be one of the most business friendly states in the U.S. Business friendly laws make Washington state popular among new business entrepreneurs.

If you are a United States citizen looking to launch a new business, or a foreigner looking to enter the U.S. market, forming a Limited Liability Company in Washington might be the best decision.

In this guide, you will learn every step you need to take, all the way to the form an LLC in Washington, and including the formation’s aftermath, the steps, costs, and benefits breakdown.

Why Start an LLC in Washington?

Both Federal and state governments in the United States provide a plethora of benefits and support to help foreign entrepreneurs. In addition to this, Washington also helps actively support LLC’s, which can be quite handy in this business environment motivated by Seattle’s tech industry.

1. Lack of Personal Income Tax

Another incentive Washington brings to business owners, which propels it to the forewhilst forming an LLC are lack of personal income tax. In addition to this, there are very few states in the US which do not impose a income tax, which is an added bonus for business owners since benefits of taxation will also be availed.

2. Strong Economic Overview

The economy of Washington is varied and booming, as it incorporates technology, aerospace, agriculture, healthcare, and e-commerce. With major companies like Amazon, Microsoft, Starbucks, and Boeing, the state is a focal point of healthcare innovation and entrepreneurship.

3. Laws Have Business Incentives

In Washington, forming and maintaining an LLC is simpler than in most states, and it has lower administrative burdens. There is an online filing system and clear rules for the Washington Secretary of State office, as well as easy compliance requirements.

4. Access to Workforce and Investment

The state is home to the University of Washington, making it an educational hub. Additionally, the state has a thriving startup ecosystem, ensuring an abundant supply of skilled workers. Furthermore, there is a great deal of investment capital ready to fund new ideas in Seattle and Bellevue.

5. Good for Foreigners

Washington has no citizenship and residency restrictions for LLC owners and managers. This makes it great for foreign business owners wanting a legal presence in the U.S. as they do not need to move to the country.

Complete Guide to Starting an LLC in Washington

Creating an LLC in Washington requires following some steps. Below is a thorough analysis of every step you need to take:

Step 1: Selecting the Name for Your LLC

Once you create an LLC, its name will be used for all its documents, accounts, and contracts. Moreover, Washington legislation requires:

• Your LLC name must be distinct and not similar to the names of businesses already registered in the state.
• Your LLC must include the term “Limited Liability,” “L.L.C,” or “ LLC” at the end of its name.
• Cannot include restricted terms (e.g. university, insurance, trust, bank) unless properly licensed.

Feel free to check your name available using the Washington Business Name Search Tool.

💡 Helpful Tip: Make sure to check the availability of the domain name and register a domain for your LLC right away to avoid naming conflicts in the future.

Step 2: Selecting Your Registered Agent for the LLC in Washington

Your LLC will need to have a registered agent. This is an individual or a business that will receive all the legal documents and mails that pertain to the LLC.

Washington Registered Agent requirements:

• Cannot have a P.O. Box address. The agent must have a physical address in Washington.
• Must be present during business hours.
• Can be a resident, a member of the LLC, or a professional Registered Agent svc.

📌 Note for Non-Residents: For people living outside Washington or the U.S., it’s a must to hire a professional Registered Agent. For both U.S. and international clients, qualified registered agent services are offered by Bizstartz.

Step 3: Submit the Certificate of Formation

Your LLC will only be legally recognized once the Certificate of Formation is filed with the Washington Secretary of State. This document contains crucial information like:

• Name of LLC
• Duration (perpetual or a set end date)
• Physical Address of the LLC
• Registered Agent Name and Address
• Name and Signature of LLC organizer

Filing Options:

• Online Filing Fee: $200 (recommended)
• Mail Filing Fee: $180
• Processing Time: 2-5 business days online; 2-3 weeks by mail

Filing is available through the Corporations and Charities Filing System (CCFS).

📥 Bizstartz Service: We offer to file these documents on your behalf, guaranteeing precision and a quick response time.

Step 4 Draft an Operating Agreement

While Operating Agreements are not legally mandated in Washington State, this document is important for the internal structure of your LLC. It details:

• The ownership structure and member contributions
• Management responsibilities alongside voting rights
• Distribution of profits and losses
• Addition or removal of members
• Procedures for dissolution

Greater benefits of Operating Agreements include:

• Reinforces the LLC’s liability protection
• Helps prevent miscommunications/conflicts among members
• Often needed by banks or investors
• Credibility and legal protection for the single-member LLCs.

Step 5 Retreiving an EIN (Employers Identification Number)

The Internal Revenue Service (IRS) provides a federal tax ID known as the Employer Identification Number (EIN). This identification is vital for:

• Creating a business bank account in the U.S
• Filing federal taxes
• Enrolling in Pay-As-You-Earn services
• Creating an account for Stripe, PayPal, or Amazon Seller Central.

Methods of Application

• U.S. Citizens/Residents: Apply online through the IRS EIN Application Portal for instant access.
• Non Residents (No SSN/ITIN): Submit Form SS-4 via mail or fax. Non-residents without a social security number can authorise Bizstartz, a specialized EIN provider, to act on their behalf.

Step 6: Applying for a Washington State business license

Application for a Washington state business license must be done through the department of revenue. This business license is important for the commencement of any business activities.

This license will:

• Enroll your business in the tax system of your state
• Create a Unified Business Identifier (UBI) number
• May have some local endorsements based on your city or county

Fee:

• Start at $90 but local endorsements or specialty licenses will incur extra charges

Apply on MyDOR

Step 7: Register for state tax (if needed)

Unlike other states, Washington does not have a corporate or personal income tax, however, some businesses may incur:

• Business & Occupation (B&O) Tax: Charged on gross income, and applicable to most company types
• Sales Tax: For businesses selling physical goods and some services
• Use Tax: Charged for goods utilized in Washington state without paying sales tax
• Excise Tax: Charged based on industry or services rendered
• Employment Taxes: If you hire workers in the state of Washington

💼 Tax Compliance Tip: A tax professional can help you figure out your tax obligations for your LLC depending on what you do. Work with professionals to register for tax services and stay compliant with regulations on your registered business.

Step 8: Submit Your Annual Report

In the state of Washington, LLCs are required to file an Annual Report to remain compliant with good standing.

• Filing Fee: $60
• Due Date: Within 120 days of forming your LLC and then every year by the end of the anniversary month.
• Where to File: Washington Business Licensing Service.

Not filing on time could lead to penalties and the possible administrative dissolution of your LLC.

Important Information for Non-U.S. Residents Looking to Open Washington LLC

To set up and run a Washington LLC, you do not have to be a U.S. citizen or reside in the U.S. This is how Bizstartz assists global entrepreneurs:

What You’ll Need:

• A proposed name for the LLC that is not already in use
• A U.S. Registered Agent (Provided in our package)
• A mailing address (Provided in our package)
• An EIN (We apply on your behalf)
• Passport or government-issued ID for verification
• Optional: ITIN for those who wish to file U.S. tax return (we apply for ITIN too)

Using our all-in-one package, you can set up and operate a U.S. business from anywhere in the world, including formation and banking.

Open a U.S. Business Bank Account (Optional but Crucial)

After receiving your EIN and forming your LLC, it is highly advantageous to open a dedicated business bank account in the U.S. for the following reasons:

• Keeping business and personal finances separate
• Building a presence for the business in the U.S.
• Facilitating receipt of payments in USD
• Access to Stripe, PayPal, and Amazon Seller Central

Documents Needed:

• Certificate of Formation
• EIN Confirmation Letter (CP 575)
• Operating Agreement
• Proof of identity (passport)
• U.S. address (provided by Bizstartz)

🏦 No visit to the U.S.? Accounts can be set up with non-resident banks and fintechs through Bizstartz.

Washington LLC Formation Checklist

Begin Your LLC in Washington with Bizstartz

At Bizstartz, we assist clients all over the world in setting up their U.S. LLCs seamlessly. We offer services whether you are starting for the first time or expanding your business into the U.S.:

✅ LLC formation in all 50 states

✅ EIN application without SSN

✅ U.S. address and mail forwarding

✅ Registered Agent services

✅ Bank account setup support

✅ Stripe/PayPal & Amazon Seller setup

✅ BOI (Beneficial Ownership Information) compliance

👉 Bizstartz.com is ready for you. Contact the team today for assistance launching your Washington LLC and starting your business with confidence.

Frequently Asked Questions (FAQs)

1. Can a non-U.S. resident open an LLC in Washington?

Yes. There is no citizenship or residency requirement for non-U.S. residents in Washington. For non-residents, you’ll need a registered agent based in the U.S., a mailing address in the country, and an EIN from the IRS. At Bizstartz, we help non-residents form LLCs and get EINs without the need for a Social Security Number.

2. How much does forming an LLC in Washington Cost?

The costs for setting up an LLC in Washington include the following:

• Certificate of Formation: $200 for online applications and $180 for mail-in applications.
• Business license applications: $90.
• Registered agent service: If not hired, the cost is omitted. If hired, the cost range is $49-150 annually.
• Annual report filing: $60 each year.

If worked with a Bizstartz, or a similar formation service, there will be additional costs for things like EIN, U.S. addresses, and compliance.

3. If my LLC is inactive, do I still owe taxes in Washington?

You still have the obligation to pay the Annual Report for the Secretary of State and potentially a “no activity” tax report for the Department of Revenue. If your LLC was registered or active during the year, then you may have to file with the IRS.

4. How is an LLC in Washington different from an LLC in Wyoming or Delaware?

Business owners wishing to operate in Washington often prefer the state in comparison to Wyoming and Delaware. Wyoming and Delaware are known for their business laws and privacy. Key differences include:

• Wyoming and Delaware do not have a B&O tax, Washington does.
• Unlike other states, Washington requires a business license.
• If you’re based in Washington and choose to set up an out-of-state LLC, like in Delaware, you may need to register as a foreign LLC anyway, which increases your costs.

For local operations, a Washington LLC is often the simplest and most affordable choice.

5. What’s the turnaround time for setting up an LLC in Washington?

• Filings submitted online are processed within 2-5 business days.
• Mail filings can take up to 3 weeks.
• With Bizstartz, your documents can be prepared and submitted the same or next business day, which means your LLC can be formed with minimal delays.