How is a Washington single-member LLC taxed?

Federally it is a disregarded entity, so income goes on Schedule C of the owner's Form 1040 with self-employment tax on Schedule SE. Washington has no income tax, but the LLC pays business and occupation tax on gross receipts at a rate that depends on its activity classification.

What is Washington B&O tax?

It is a gross receipts tax administered by the Department of Revenue. It applies to gross income of the business with no deduction for cost of goods or labor, at rates that vary by classification such as service, retailing, or wholesaling. A small business B&O tax credit reduces the tax for the smallest filers.

Can I be my own registered agent in Washington?

Yes, if you have a physical Washington street address, consent to the appointment, and are available during business hours. A post office box is not acceptable and the address is public, so owners who work from home often appoint a commercial registered agent instead.

Single-Member LLC in Washington (2026)

Q: How much does a single-member LLC cost in Washington?

The Certificate of Formation carries a $180 base filing fee, and filing online adds a processing fee. Expedited service is an extra $100. After formation, the recurring state cost is the $70 annual report, plus any Business License Application and city endorsement fees through the Department of Revenue.

Q: When is the Washington annual report due?

By the end of the LLC's anniversary month each year, with a $70 fee for profit entities. Washington also requires an Initial Report shortly after formation. Missing the annual report leads to delinquent status and eventually to administrative dissolution.

Q: Do I need a Washington business license as well as the LLC?

Usually yes. The Secretary of State filing creates the entity; the Business License Application through the Department of Revenue's Business Licensing Service registers your tax accounts and adds any required city endorsements. Fees vary with the endorsements requested.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

A Washington single-member LLC is created by filing a Certificate of Formation with the Washington Secretary of State, with a base filing fee of $180 plus an online processing fee. It is a disregarded entity for federal income tax, files a $70 annual report, and pays Washington B&O tax on gross receipts rather than state income tax.

Quick Answer

Formation document: Certificate of Formation (Secretary of State)
Filing fee: $180 base fee; online filings add a processing fee
Federal tax: Disregarded entity - Schedule C and Schedule SE with Form 1040
Annual report: $70 for profit entities, due by the end of the anniversary month
State income tax: None - B&O tax on gross receipts applies instead
Governing law: Washington Limited Liability Company Act, RCW 25.15

What a Single-Member LLC Is in Washington

A single-member LLC is a limited liability company with one owner. The Washington Limited Liability Company Act, RCW chapter 25.15, permits an LLC with a single member and treats it as a legal person separate from its owner.

That separateness is the point. Contracts, debts, and most liabilities belong to the company rather than to you personally, while the tax filing stays as simple as a sole proprietor's. If you are currently unincorporated, compare sole proprietorship in Washington.

Filing the Certificate of Formation

Washington creates the LLC when the Secretary of State accepts the Certificate of Formation. The base filing fee is $180; filing online through the Corporations and Charities Filing System adds a processing fee, and expedited service is available for an additional $100 at checkout, generally processed within about three working days. The current schedule is published on the Secretary of State's fee schedule and expedited service page.

The certificate asks for the company name, the registered agent and registered office, the principal office address, the effective date, and the executor's information. The name must include an LLC designator and be distinguishable from names already on the record - check first with the Washington business entity search. Full steps are in how to form an LLC in Washington.

Registered Agent and Initial Report

Washington requires a registered agent with a physical Washington street address who has consented to the appointment. A post office box does not satisfy the requirement, and the address appears on the public record. See Washington registered agent requirements.

Washington also requires an Initial Report shortly after formation, in addition to the recurring annual report. Filing it on time is the first compliance obligation the new LLC has, and it is easy to miss because it falls outside the annual cycle.

Federal Tax Treatment: Disregarded by Default

The IRS treats a single-member LLC as a disregarded entity by default. The company files no separate federal income tax return; its income and deductions go on the owner's Form 1040, normally on Schedule C, with self-employment tax computed on Schedule SE at 15.3% of net earnings.

Two exceptions matter. A single-member LLC is treated as a separate entity for federal employment taxes and certain excise taxes, which is why an LLC with employees needs its own EIN even though it is disregarded for income tax. And the owner may elect corporate treatment - C corporation on Form 8832 or S corporation on Form 2553 - which changes both the return and the payroll obligations.

Disregarded is a tax label, not a liability label. Washington law still treats the company as a separate legal person, so the liability shield does not depend on the IRS classification. See single-member LLC basics and S-corp vs LLC.

Washington Has No Income Tax - It Has B&O Tax

Washington imposes no personal or corporate income tax, so a single-member LLC owner files no state income tax return on business profit. What Washington charges instead is the business and occupation (B&O) tax, a gross receipts tax administered by the Department of Revenue.

The distinction is significant: B&O tax applies to gross receipts, with no deduction for the cost of goods or labor. A low-margin business can owe B&O tax in a year it loses money. Rates differ by classification - service activities, retailing, wholesaling, and manufacturing are taxed at different rates - so classifying your activity correctly is the single most important B&O decision. A small business B&O tax credit reduces or eliminates the tax for very small filers; the Department of Revenue publishes the current rates, classifications, and credit thresholds. Washington also levies a capital gains tax on certain long-term gains, which can matter on a sale of the business.

Washington Business License

Separately from the Secretary of State filing, most Washington businesses must file a Business License Application through the Department of Revenue's Business Licensing Service. That application registers you for state tax accounts, produces the unified business identifier used across agencies, and can add city endorsements for the municipalities where you operate.

Fees vary by the endorsements requested, and the Department of Revenue publishes the variable business license processing fees. Many Washington cities require their own endorsement, so a business operating in several cities can stack several endorsements onto one application. See Washington business license requirements.

The $70 Annual Report

Every Washington LLC files an annual report with the Secretary of State. The fee is $70 for profit entities, and the report is due by the end of the LLC's anniversary month each year. The report confirms the registered agent, addresses, and governing persons.

Missing the deadline moves the LLC to delinquent status and, if it continues, to administrative dissolution - at which point the company loses good standing and the exclusive right to its name. Details are in the Washington annual report guide and on the Secretary of State's annual reports page.

Keeping the Liability Shield Intact

The liability shield is the reason to form the entity, and the part most often lost through sloppy operations. A court can disregard the entity when the owner treats it as an alter ego rather than a separate business. The habits that protect it are cheap:

Keep a dedicated business bank account and never pay personal expenses from it.
Sign contracts in the LLC's name and in your capacity as member or manager.
Keep the registered agent and addresses current with the state.
Adopt a written operating agreement, even with one member.
Capitalize the business adequately for the risks it takes.
File every required state report on time so the entity stays in good standing.

The shield never covers your own negligence, debts you personally guarantee, or unpaid payroll taxes.

Plan the Washington calendar as three separate tracks. The Secretary of State wants the Initial Report and then a $70 annual report each anniversary month. The Department of Revenue wants B&O tax returns on the frequency it assigns you - monthly, quarterly, or annually - and a renewed business license with any city endorsements. The IRS wants quarterly estimates on Form 1040-ES and an annual Schedule C.

Missing one track does not excuse the others, and they are enforced by different agencies with different penalties. Owners who put all three sets of deadlines on one calendar in the first month almost never fall behind; owners who wait for a notice usually do.

Frequently Asked Questions

How much does a single-member LLC cost in Washington?

A $180 base fee for the Certificate of Formation plus an online processing fee, then $70 a year for the annual report. Expedited service is $100 more.

How is it taxed?

Disregarded federally: Schedule C and Schedule SE. Washington has no income tax but charges B&O tax on gross receipts.

What is B&O tax?

A gross receipts tax with no deduction for costs, at rates that vary by classification. A small business credit reduces it for the smallest filers.

When is the annual report due?

By the end of the anniversary month each year, at $70 for profit entities. An Initial Report is also due shortly after formation.

Do I need a business license too?

Usually. File the Business License Application with the Department of Revenue for tax accounts and city endorsements.

Can I be my own registered agent?

Yes, with a physical Washington street address, consent, and business-hours availability. No P.O. boxes.

Sources

Washington Secretary of State - Fee schedule and expedited service ($180 Certificate of Formation; $100 expedite).
Washington Secretary of State - Annual reports ($70 annual report).
Washington Secretary of State - LLC and PLLC filing resource page.
Washington State Legislature - RCW 25.15 (Washington Limited Liability Company Act).
Washington State Legislature - RCW 82.04 (business and occupation tax).
Washington Department of Revenue - Business and occupation tax.
Washington Department of Revenue - B&O tax classifications.
Washington Department of Revenue - Variable business license processing fees.
IRS - Single member limited liability companies.
IRS - About Form 2553 (S corporation election).

LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the Washington Secretary of State and the Washington Department of Revenue before acting.