How to Start a Business in Washington
Everything you need to form your Washington LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Washington has no corporate income tax and no individual income tax, changing the typical tax obligations for businesses. An LLC costs $180 to form and $70 annually to maintain. Businesses pay the state business and occupation (B&O) tax on gross receipts rather than corporate income tax.
This guide covers every step to start a business in Washington, from choosing a structure through obtaining licenses and filing your initial documents.
Choosing Your Washington Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Washington small businesses.
| Entity Type | Liability Protection | Taxation | Washington Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $180 | $70 Annual Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $180 | $70 Annual Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Washington Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Washington Secretary of State, Corporations and Charities Division database. Reserve for $30 (180 days).
- 3
Appoint a registered agent
Must have a physical Washington street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Certificate of Formation with Initial Report ($180) or Articles of Incorporation with Initial Report ($180) with the Washington Secretary of State, Corporations and Charities Division.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Washington State Department of Revenue. State sales tax rate: 6.5%.
- 7
Get required licenses and permits
Washington runs a statewide Business License Application through the Department of Revenue's Business Licensing Service, which issues the 9-digit Unified Business Identifier...
- 8
Register for Washington taxes
Personal income tax: none.
How Much Does It Cost to Start a Business in Washington?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Washington Secretary of State, Corporations and Charities Division) Required | $180 | The Secretary of State does not publish a standard turnaround for online business filings; |
| Corporation filing fee Required | $180 | If forming a corporation instead |
| Annual Report Required | $70 | By the last day of the month in which the LLC was originally formed or registered, every year. |
| Name reservation | $30 | 180 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Washington runs a statewide Business License Application through the Department of Revenue's Business Licensing... |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $180 to $550 |
Start a Specific Business in Washington
Washington Business Guides
- How to Start an LLC in Washington
- How to Start a Corporation in Washington
- Sole Proprietorship in Washington: How to Start One
- Washington Business License: What You Need and How to Get It
- Washington Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Washington
- Washington Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Washington
- Washington Registered Agent: Requirements and How to Choose One
- Best LLC Services in Washington
- Washington Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Washington
Why Start a Business in Washington?
- Washington had 8,176,300 residents as of the state's official April 1, 2026 population estimate, and 5,396,145 of them live inside incorporated cities.
- The state economy ran at $924.5 billion in current-dollar GDP in the first quarter of 2026, the 10th largest of the 50 states.
- Washington real GDP grew 4.5 percent at an annual rate in the first quarter of 2026, the fastest of any state that quarter, led by the information sector.
- There is no corporate income tax and no individual income tax today; businesses pay the B&O gross receipts tax instead, and a 9.9 percent income tax starts January 1, 2028 only on individuals and joint filers with adjusted gross income above $1 million.
- Forming an LLC or a corporation costs the same flat $180 with the Secretary of State, and the annual report to stay in good standing is $70.
- The state sales tax rate is 6.5 percent before local rates, and the Business License Application that issues a UBI number costs $50 to open a business.
Washington Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Washington?
- The Secretary of State processes filings in the order received. Expedited filings are generally processed within three business days, while standard processing times vary.
- What does it cost to start an LLC in year one?
- An LLC filing costs $180 and the Business License Application is $50 to start. The annual report of $70 is due each year, beginning in the year after formation, plus the state B&O tax on gross receipts.
- Can a non-resident form an LLC in Washington?
- No residency requirement is specified in Washington's LLC formation process.
- What's the cheapest way to start a business in Washington?
- An LLC and a corporation both cost $180 to file with the Secretary of State, and both require the $50 Business License Application to start, making the startup cost $230 before ongoing B&O tax and endorsement fees.
- Is an operating agreement required for an LLC in Washington?
- Washington does not require an operating agreement to be filed when forming an LLC.