Washington LLC's cost $180 to file with the state. It takes forever if you don't pay the extra $20 expedite fee. With the expedited fee, we'll have your LLC done in 1-3 days. If you really don't want to pay the extra $20, the state will take between 1-2 months to process the application.
Washington LLC's are governed by chapter 25.15 RCW.
Washington LLC's are nice because you don't have to keep the formalities of annual minutes, directors, and officers that a Washington corporation is required to keep.
If you are a sole proprietor, you are crazy not to have an LLC. You are paying the same B & O tax as an LLC with zero personal liability protection. If you would like help converting your current DBA to an LLC, we can help you accomplish this while keeping all your information the same with Labor and Industries.
Requirements for a Washington LLC:
- The name must have LLC in it or a variation.
- You must have a Washington Registered Agent, which we provide for you for only $65 a year.
- RCW 25.15.040 eliminates the personal liability of the members and/or managers of the LLC., except regarding intentional misconduct or knowing violation of a law.
- Indemnifies the members and/or managers from judgments, settlements, penalties and fines of the LLC, providing they acted within the law.
- Indemnifies the members or managers from the LLC itself.
- RCW 25.15.235 specifically prohibits members from taking abnormal distributions when they know the LLC cannot meet the LLC's financial responsibilities because of the distribution. This is called a fraudulent transfer of assets.
- RCW 25.15.060 specifically says that failure to hold corporate formalities such as meetings is not sufficient means to pierce the corporate veil. It does say that the corporate veil can be pierced, but veils get pierced by swapping money around where you shouldn't, intermingling accounts, and doing illegal activities and fraudulent transfers. This section protects the common business owner, and should ease the fears of the formalities of having an LLC.
- LLC's have to file initial reports within 120 days. The Washington initial report costs $10. We include filing this when we form Washington LLC's.
- You will have an annual report due each year on the anniversary of your initial filing of the Washington LLC. They cost $69.
- Washington LLC's have the first roughly $40,000 of income tax free. It then gradually fades into the full gross income tax.
- Washington has a gross income tax. Most people fall under the "service and other activity" classification of 1.8% of your gross income.
Washington State tax rates:
|Service and anything that doesn't fall in anything else:||.015|
There is no personal income tax in Washington State.
If you would like Washington Registered Agent LLC, your local Washington incorporation service, to form a Washington LLC for you, you can sign up below.