How to Start Your Own LLC in Washington

This guide will walk you through every step of forming your LLC in Washington, from choosing a name to filing with the Secretary of State, securing licenses, and maintaining compliance. By following these steps, you can ensure your LLC is legally established and ready to operate confidently.

1. Name Your Washington LLC

Choosing a business name is one of the most important first steps in forming your LLC because it represents your brand and identity. The name must be unique, easy to remember, and reflective of your business purpose. Start by clarifying your business concept and consider brainstorming with friends, mentors, or colleagues who understand your goals. Online business name generators can provide inspiration, but they cannot replace human creativity or your understanding of your market.

Once you have potential names, check availability using the Washington Secretary of State's business name search tool. Your LLC name must comply with Washington naming rules, including the requirement to include "Limited Liability Company" or its abbreviations (LLC or L.L.C.). Avoid words that could confuse your business with a government agency, and certain terms like "bank," "insurance," or "university" require state approval. Your name must not suggest you are a corporation or partnership and must be distinguishable from all other registered entities in Washington.

After confirming availability, it's recommended to check with the U.S. Patent and Trademark Office to ensure your desired name isn't already trademarked nationally. Washington allows name reservations using a paper form submitted to the Secretary of State along with a $30 fee, reserving the name for 180 days. Expedited processing is available for an additional fee.

Doing Business As (DBA) or Trade Name

If you plan to operate under a name other than your LLC, you'll need to register a trade name. This is useful if you expand product lines or want a separate brand identity under the same LLC. For example, if your LLC is "JJ's Waffles," you could operate "JJ's Muffins" as a trade name. In Washington, trade names are registered through the Department of Revenue via a Business License Application, which allows you to open bank accounts and accept payments under that name.

2. Select a Registered Agent

Washington law requires every LLC to appoint a registered agent, an individual or company authorized to receive legal, tax, and official correspondence. The registered agent ensures that important documents reach you promptly, keeping your LLC in compliance with state requirements.

A registered agent in Washington must be at least 18 years old, have a physical address in the state, and be available during normal business hours. While you can act as your own registered agent, many LLC owners hire a professional service to maintain privacy, flexibility, and reliability. A registered agent service allows you to focus on growing your business rather than managing legal correspondence.

3. Determine Your Management Structure

LLCs in Washington can be either member-managed or manager-managed. In a member-managed LLC, all members share responsibility for day-to-day operations, which is common for small businesses where members are actively involved. Manager-managed LLCs allow non-members to handle management duties, which is ideal for larger LLCs with passive investors.

If you don't specify, your LLC is assumed to be member-managed. Choosing the right structure early helps avoid conflicts later and ensures clear lines of authority, voting rights, and operational control.

4. File a Certificate of Formation

The Certificate of Formation is the legal document that officially establishes your LLC in Washington. You can file online or by mail through the Secretary of State. The filing requires basic information including your LLC name, principal office address, registered agent details, period of duration, and the names and addresses of members or managers. You will also include a brief description of your business purpose.

Online filings cost $180 and are typically approved within 2 business days. Paper filings cost $200 and may take up to two weeks. Once approved, your LLC is officially recognized and can legally conduct business.

Secretary of State Contact

Washington Secretary of State
PO Box 40220
Olympia, WA 98504-0220
Phone: (360) 902-4151

5. Draft an Operating Agreement

Although Washington does not legally require an operating agreement, it is highly recommended. This internal document defines the ownership structure, member responsibilities, profit and loss distribution, voting rights, management procedures, dispute resolution, and procedures for adding or removing members.

Having a well-drafted operating agreement helps protect your liability, prevents misunderstandings, and establishes clear governance. Templates are available online, but reviewing them with an attorney ensures they meet your specific business needs and state regulations.

6. Obtain an Employer Identification Number (EIN)

Your EIN is issued by the IRS and acts as a federal tax identification number. It is required for multi-member LLCs, LLCs with employees, and for opening a business bank account. Applications can be completed online, by mail, or fax. The responsible party must be an individual who controls the LLC, not another business entity.

7. Obtain Business Licenses and Permits

Depending on your industry and location, you may need federal, state, and local licenses or permits. In Washington, most businesses must obtain a state business license through the Department of Revenue. Specific industries such as construction, childcare, food service, or professional services may require additional permits. If you sell taxable goods or services, a sales tax license is also required.

Local licenses may include zoning permits, fire permits, health inspections, or signage approvals. Operating without proper licensing can result in fines or business closure, so it's essential to verify requirements with all applicable authorities. Using online tools like the Business Licensing Wizard can simplify this process.

8. Determine Your Tax Status

By default, an LLC is treated as a pass-through entity for tax purposes. This means the LLC itself does not pay federal income tax. Instead, profits and losses are reported on members' personal tax returns. Single-member LLCs are taxed as sole proprietorships, while multi-member LLCs are taxed as partnerships.

LLCs can also elect corporate taxation. Filing IRS Form 8832 allows C-Corp taxation, subjecting the LLC to corporate income tax but reducing self-employment taxes on dividends. Filing Form 2553 allows S-Corp taxation, passing profits and losses through to shareholders while potentially reducing self-employment tax on distributions, provided members receive a reasonable salary.

In Washington, LLCs are subject to the Business & Occupation (B&O) tax, a gross receipts tax, and may owe sales or use taxes. The state does not have an income tax.

Other Key Steps

Open a Business Bank Account

Keeping personal and business finances separate is crucial for liability protection and accounting accuracy. Bring your EIN and Certificate of Formation when opening your account.

Apply for a Business Credit Card

Helps build business credit and manage operational expenses efficiently.

Obtain Business Insurance

Types of coverage may include:

• General liability
• Professional liability
• Workers' compensation
• Property
• Equipment breakdown
• Commercial auto
• Business owner's policy (BOP)

Maintain LLC Records

Store your Certificate of Formation, operating agreement, contracts, and financial records securely.

Annual Reporting

Washington requires LLCs to file an annual report by the end of the LLC's formation anniversary month. The filing fee is $60.

Washington LLC FAQs