Washington LLC Costs
A limited liability company is one of the most popular entity structures due to its many benefits. The lower cost to form an LLC in Washington is just one of several other advantages this type of business structure offers. You can choose to form a sole proprietorship and treat it like a single-member LLC (SLLC) or start a Multi-member LLC and elect S Corporation status. If you are interested in forming an LLC in Washington, then let us take a look at the several costs you may encounter.
Costs of forming an LLC in Washington
The cost to form an LLC in Washington should include the initial new business registration fee, as well as annual maintenance costs. Making the business operational may include several other expenses. The principal fees are:
- Reserving a business name is the primary step to forming an LLC in Washington. You will have to file the name reservation form along with a fee of $30.
- According to state laws, you will need to hire and maintain a registered agent for the service of process. The cost or fee would vary depending on the service you select.
- The business registration fee is the single most significant cost to form an LLC in Washington. You will have to file a Certificate of Formation along with a filing fee of $180. If you want to expedite the process, there is an additional fee of $50.
Annual maintenance costs for a Washington LLC
Once you have registered your limited-liability company in Washington; it is critical that you meet all state requirements including the annual business maintenance requirements. This includes the Washington LLC annual fee for keeping the business active and operational. The fees involved are included in the following:
- Annual Report – Filing annual reports is a mandatory annual requirement for all LLCs.
- The Washington LLC maintenance cost for an annual report is $60. The report has to be submitted annually by the end of the LLC’s registration anniversary month. Failure to submit this report can lead to penalties and even dissolution of the company.
- Taxes – Since a limited liability company is considered a “Pass-through Entity”; the company will not file any taxes on the business income. Instead, the owners or members will have to file taxes on their share of profits. There are other taxes that your company may have to file and are considered part of the cost to form an LLC in Washington.
- Business Licenses – Once you have filed the Certificate of Formation, you will need to apply for a business license or permit to operate in the state. This is another form of Washington LLC maintenance costs and will vary according to the type of licenses, the number of permits or licenses, and the county where your business is located. It is important to remember that business licenses have to be renewed annually.
There are several processes involved in a new business formation as well as keeping the business active and operational. There are different expenses involved including a Washington LLC annual fee. We, at IncParadise, can assist you with the registration of your LLC in Washington and provide guidance and expertise wherever you may require it.
Register your LLC in Washington Today!