All states › Washington
Every step to open an LLC in Washington and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Department of Revenue · Employment Security Department · Paid Leave (ESD) · WA Cares Fund · Labor & Industries.
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Washington business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through CCFS (Secretary of State online filing system).
You need a registered agent with a street address in Washington to receive legal papers and state notices. Use a registered agent service if you have no one local.
Trade names are registered with the Department of Revenue Business Licensing Service, not the Secretary of State. Fee is from a third-party summary.
An initial report ($10) is filed after formation. Expedited service is $100 and same-day service is $150 per entity (profit corporation fee schedule).
Most businesses need a Washington business license from the Department of Revenue Business Licensing Service, including anyone hiring employees, using a trade name, or grossing $12,000+ a year. A third-party summary lists a $50 application fee for a new business and $5 per trade name.
Apply for a Washington business license through the Department of Revenue Business Licensing Service. That account is used for B&O tax and sales tax. There is no state income tax to withhold.
Several cities set higher minimum wages (see below). Local sales tax rates change quarterly. City business license endorsements may be added to your state business license; local B&O taxes were not confirmed.
B&O tax applies to gross receipts with no deduction for costs. Service businesses pay 1.5% under $1 million in prior-year gross income, 1.75% from $1 million to $5 million, and 2.1% above that. Retailing is 0.471% now and 0.5% from Jan 1, 2027.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Washington calls it a State business license with a Unified Business Identifier (UBI), plus a separate Reseller Permit for buying for resale. Register with the Washington State Department of Revenue through Business Licensing Service (BLS) through My DOR before you make your first taxable sale in Washington. You'll collect tax from customers and send it to the state.
Give your supplier Washington Reseller Permit so you don't pay tax on inventory you'll resell. DOR issues the permit for free after you have a UBI number; it is valid for 4 years and you must apply for it separately from the business license. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Washington pass $100,000 (current or previous calendar year), even with no office here.
Washington also has the Business and Occupation (B&O) tax on gross receipts, with no deduction for costs; 2026 law (SB 6346) raised the small business B&O credit and the annual return threshold to $250,000.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Washington. Reports and payments are usually quarterly.
Paid Family and Medical Leave premium is 1.13% of gross wages in 2026, up to the Social Security wage cap ($184,500). Employers with 50+ Washington employees pay up to 28.57% and employees pay 71.43%. Employers with fewer than 50 do not pay the employer share but must collect the employee share.
Required at 1 or more employees. Most employers must buy coverage from L&I (state fund) unless approved to self-insure. Premiums are charged per hour worked; employers pay about three-quarters and workers about one-quarter through payroll deduction. L&I proposed a 4.9% average increase for 2027, with adoption set for Nov 30, 2026.
Report all new hires and rehires (after a 60+ day separation) to DSHS Division of Child Support, online through Secure Access Washington, by fax or by mail.
No state income tax, so no reciprocity.
Washington's wage payment rules:
$17.13 an hour.
Nearly all employees, including part-time and temporary, earn at least 1 hour of paid sick leave per 40 hours worked. Up to 40 unused hours carry over each year.
Starts July 1, 2027 (may be phased in). Covers employers in business in Washington 2+ years whose employees worked 10,400+ combined hours last year and who offer no qualified plan. Penalties ($100 to $500) only for willful violations after Jan 1, 2030.
Washington doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
The state minimum wage rises to $17.73 on January 1, 2027. The overtime-exempt salary multiplier for employers with 51+ employees rises to 2.5x.
Withhold the employee share of the 1.13% Paid Leave premium and the 0.58% WA Cares premium from each paycheck. Employers with 50+ Washington employees also pay up to 28.57% of the Paid Leave premium.
These local laws apply to employees who work within the city or county, on top of the state rules. Where they differ, follow whichever is more generous to the employee. Not in force: Spokane (repealed).
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
No corporate income tax. Washington taxes gross receipts through the Business and Occupation (B&O) tax. Since Oct 1, 2025 the service rate is 1.5% (under $1 million prior-year gross income), 1.75% ($1 million to $5 million) or 2.1% ($5 million+). Retailing is 0.471%, rising to 0.5% on Jan 1, 2027.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
DOR assigns monthly ($4,801 or more in yearly tax), quarterly ($1,051 to $4,800) or annual ($1,050 or less) filing; monthly returns are due the 25th of the next month, quarterly by the end of the month after the quarter, and annual by April 15. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Washington and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 1 | New minimum wage, exempt salary threshold, UI wage base and Paid Leave rates take effect | Washington |
| End of formation month | Secretary of State annual report due ($70) | Washington |
| Within 20 days of hire | Report new hires to DSHS | Washington |
| Jul 1, 2027 | Washington Saves retirement program begins (may be phased in) | Washington |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Washington |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Washington state filing fee for an LLC is $200 online ($180 by paper). That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Washington if you sell taxable products or services there. The state rate is 6.5%, and local taxes may add to it. Registration cost: $50.
Out-of-state sellers must register once their sales into Washington pass $100,000 a year. Having an employee or office in Washington also creates nexus right away.
Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
About · Privacy Policy · Referral Disclosure · Terms of Use · hello@openmybizbystate.com
© 2026 OpenMyBiz by State