Do I need an LLC?Washington LLC cost: year one and every year after
Short answer. For a solo operator in Washington, the state cost confirmed on official sites is $180 in year one (the Certificate of Formation) and $70 a year after that (the annual report). Washington has no personal income tax and no franchise tax, but nearly every business, including an LLC or a sole proprietor, owes the state B&O gross-receipts tax, which this site does not compute. A registered agent is required but has no price we could confirm. Forming in Wyoming instead costs more ($280 confirmed in year one), because a Washington resident still registers in Washington for $180. Online processing fees, the $50 business license application, city taxes and Washington sales tax on software are not in any total.
Informational only. Not legal or tax advice. Confirmed means read on an official government page on 2026-10-31. Estimates are shown apart and are never added to confirmed totals.
Washington LLC vs Wyoming LLC vs sole proprietor
| Path | Year one | Each year after |
|---|---|---|
| A. LLC in Washington | $180 confirmed ($180 Certificate of Formation) + online processing fee, optional $100 expedite and a $50 business license application: amounts shown below, not in the total + Washington registered agent: no figure found, not included | $70 confirmed ($70 annual report, first one due the year after formation) + B&O gross-receipts tax: a percentage of gross receipts, not computed, not in the total + Washington registered agent if you do not serve as your own: no figure found, not included |
| B. LLC in Wyoming + register in Washington | $280 confirmed ($100 Wyoming + $180 Washington Foreign Registration Statement) + Wyoming registered agent and Washington registered agent: no figures found, not included + a Certificate of Existence/Good Standing from Wyoming (fee set by Wyoming, not included) | $130 confirmed ($60 Wyoming minimum annual report + $70 Washington annual report) + B&O tax still applies, not computed + both registered agents, no figures found |
| C. Sole proprietor (baseline) | $0 in state formation fees: free EIN from the IRS, separate bank account + a Department of Revenue business license ($50 to open) if you meet a registration trigger such as $12,000 a year of gross income or a trade name | $0 in Secretary of State fees; B&O tax still applies to a sole proprietor |
Not in any total above: the B&O tax (gross receipts, not computed), the $50 business license application, online processing fees, optional expedite, a registered agent (no commercial price found), your federal income and self-employment tax, Washington sales tax on software (not computed in the totals; sourced rules are in the section above), city and county business taxes and licenses (not covered), bank fees, and any attorney or CPA time.
Washington LLC fees, line by line
| Fee | Amount | Status | Source |
|---|---|---|---|
| Washington Certificate of Formation (domestic LLC) | $180, plus an online processing fee (amount not found) | verified | Secretary of State LLC filing resource page; online filing instructions |
| Initial report | free with the Certificate of Formation; $10 if filed separately within 120 days | verified | Secretary of State LLC filing resource page |
| Expedited service | $100 optional | verified | Secretary of State LLC filing resource page |
| Annual report (LLC) | $70 a year | verified | Secretary of State annual report instructions; filing resource page |
| Late annual report | $25 delinquency fee | verified | Secretary of State annual report instructions |
| Foreign LLC registration in Washington (Foreign Registration Statement) | $180, plus an online processing fee | verified | Secretary of State foreign LLC instructions; filing resource page |
| Business license application (Department of Revenue) | $50 to open a new business; $10 for other purposes | verified | Business Licensing Service endorsement fee sheet; Apply for a business license |
| B&O tax, Service and Other Activities | 1.5% of gross receipts (prior-year taxable income under $1 million) | verified (rate) | Department of Revenue B&O classifications; rate change notice |
| Washington registered agent | no figure | unresolved | Required by RCW 23.95.415 per the Secretary of State instructions; private companies set the price. |
| Newspaper publication | none found | not verified | No requirement found on the official pages read; an absence is not proof |
| Wyoming Articles of Organization | $100 | verified | Wyoming SOS fee schedule, effective July 1, 2026 |
| Wyoming annual report license tax | $60 minimum | verified | Same schedule: $60 or two-tenths of one mill on Wyoming assets, whichever is greater. |
| Wyoming registered agent | no figure | unresolved | Private companies set the price. Wyoming requires an agent (seen in a search excerpt of an SOS guide, not read in full). |
| EIN | $0 | verified | IRS: "You never have to pay a fee for an EIN." |
Why Wyoming does not help a Washington resident
Washington has no personal income tax and no franchise tax, so there is little for Wyoming to save, and the B&O gross-receipts tax applies to business done in Washington whatever state the LLC is formed in. A Washington-based LLC formed in Wyoming must still register in Washington ($180 plus a Certificate of Existence/Good Standing from Wyoming dated within 60 days), designate a registered agent in Washington, file Washington's $70 annual report, and pay Wyoming's $100 and $60 on top (Secretary of State foreign LLC instructions). The Washington pages read do not state a late fee or penalty for failing to register. For a solo operator the Wyoming route costs more than forming in Washington.
Washington taxes: what an LLC does and does not change
The IRS treats a single-member LLC as "disregarded as separate from its owner": you report profit on Schedule C and pay self-employment tax as a sole proprietor would. Washington does not currently have an individual income tax (Department of Revenue); the same page says a 9.9% tax on adjusted gross income above $1 million starts Jan. 1, 2028. Federal estimated tax for 2026 is due April 15, June 15, September 15 and January 15, 2027 (Form 1040-ES); when a date falls on a weekend or federal holiday it moves to the next business day. See the annual report and B&O page for the Washington-specific duties.
What is different about forming in Washington if you sell an app or SaaS
Washington treats software sales differently from most states, and none of it changes with the entity you pick. Each point below was read on the Department of Revenue site on 2026-10-31; this is information, not tax or legal advice.
- Subscriptions can carry retail sales tax. The Department of Revenue says sales or use tax applies to digital products "regardless of how they are accessed," including streamed or subscription access, and names digital automated services and remote access software. It describes remote access software as prewritten software on the seller's or a third party's server that the buyer pays to use, and says it is a retail sale for B&O purposes. That is a different classification from the service rate on the annual report page; whether your product counts is a question for the Department. (Digital products page)
- The sale is sourced to the buyer, not to your LLC. The same page gives a sourcing order that starts with where the buyer receives the product and falls back to the buyer's address in your records. Putting a product on a server in Washington does not by itself create nexus, per the page. So forming in Wyoming does not move a Washington customer's sale out of Washington's rules. (Digital products page)
- Custom work is taxed since Oct. 1, 2025. A special notice says custom software, customization of prewritten software, custom website development and IT services such as technical support and training are subject to retail sales tax and Retailing B&O tax. If you take freelance builds alongside a product, those invoices fall under this. A temporary penalty relief program exists for uncollected tax from the change. (Special notice, July 30, 2025; services newly subject to retail sales tax)
- The no-return threshold is $125,000 on the page we read. The Department's active non-reporting page says a B&O return is not required for calendar years starting 2023 or later when gross income under all B&O classifications is under $125,000 a year. A search summary showed $250,000; we found that figure on no Department page, so it is not verified and not used here. Whether this threshold also excuses sales tax collected on digital sales is not verified. (Active non-reporting page)
What this Washington page doesn't tell you
Whether you need an LLC yet, which line of the table applies to you, your own dates (the annual report month, estimated taxes), how much B&O tax you would owe, or whether to ask a CPA about an S-corp. The calculator takes your answers and returns a verdict, your numbers and a dated checklist you can download as a PDF and calendar file.
Washington LLC questions
How much does it cost to form an LLC in Washington?
The confirmed state cost in year one for a solo operator is $180 for the Certificate of Formation, plus an online processing fee whose amount was not found. Optional expedited service is $100 more. A $50 Department of Revenue business license application, a registered agent and the B&O tax are not included in the $180.
What does a Washington LLC cost every year?
The confirmed recurring state fee is the $70 annual report, due by the last day of the month in which the LLC was formed. On top of that, most businesses owe the Washington B&O gross-receipts tax, which is a percentage of gross receipts and is not computed here. A registered agent costs extra if you do not serve as your own.
Is a Wyoming LLC cheaper for a Washington resident?
No. A Washington resident forming in Wyoming still registers the LLC in Washington for $180, files Washington's $70 annual report, owes the same B&O tax, and also pays Wyoming's $100 formation fee and $60 minimum annual report, so the total is higher.
Do I need a registered agent in Washington?
Yes. The Secretary of State says all businesses must designate a registered agent in Washington State under RCW 23.95.415. A noncommercial agent must provide a physical street address in Washington, must consent to serve, and an email address is required. No commercial agent price was found.
Does Washington require newspaper publication for an LLC?
We found no publication requirement for Washington LLCs on the official pages we read, but an absence on a page is not proof, so this is not verified. Check with the Secretary of State or an attorney.
Do I pay less income tax with an LLC?
Not by default. A single-member LLC is treated by the IRS as disregarded, so you report profit on Schedule C and pay self-employment tax as a sole proprietor would. Washington does not currently have an individual income tax either way, and the B&O tax applies to sole proprietors and LLCs alike.