Annual Filing Requirements for Washington LLC

Learn about Washington LLC annual report and tax filing procedures.

To establish and operate a Washington limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses Washington LLCs’ most essential continuing reporting and state tax filing obligations.

Report Annual

For your LLC, the state of Washington requires you to submit an annual report (also known as an annual renewal). The report must be submitted electronically at the website of the Secretary of State. The first annual report must be submitted within 120 days of the day your LLC was formed. Subsequent yearly reports are due on the Secretary of State’s schedule. The state should notify you around 45 days before a report is due. The current yearly report filing cost is $71. (not including convenience fee for credit and debit transaction).

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members.

Washington is one of just a few states that does not levy a personal or corporate income tax. As a result, most LLCs, even those that may have decided to be taxed as corporations, owe no state income taxes. Furthermore, since Washington does not have a personal income tax, LLC members will normally owe no state tax on revenue earned via a Washington LLC.

Washington, on the other hand, has a so-called business and occupation (B&O) tax. This tax applies to most firms’ gross revenues, including LLCs. The B&O tax rate for a firm is determined by its categorization. Retailing, wholesaling, manufacturing, service, and other operations are examples of major categories. The tax is collected and paid to the Department of Revenue (DOR).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) However, certain Washington firms are also required to pay state taxes.

You will very certainly need to register to pay state unemployment insurance (UI) taxes. The Employment Security Department in Washington is in charge of these levies (ESD). These taxes may be registered for electronically via the state’s Business Licensing Services or on paper using Form BLS-700-028 (Business License Application). Then, each quarter, utilize Forms 5208A and 5208B to record your salary and pay your unemployment insurance taxes.

Taxes on Sales and Use

If your LLC sells items to clients in Washington, you must collect and remit sales tax. This implies you’ll need to register with the Department of Revenue for this reason. Online registration is available via Business Licensing Services, or you may obtain a fillable Form BLS-700-028 (Business License Application).

Other States Registration

If you want to do business in states other than Washington, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.