Washington compliance annual performance audit

Key findings and summary (what to include in the blog)1) Secretary of State (annual reports and initial report) — what LLCs/corporations must do- Annual reports: All domestic and foreign business entities must file an Annual Report each year to maintain active status and keep the UBI in good standing.

The annual report is due by the last day of the month in which the business was originally formed or registered. You may file up to 180 days before the expiration date. (Source: WA SOS annual reports page.)- Fees and penalties: Standard annual report fee for LLCs and most corporation types is $70; a delinquent filing adds a late/delinquency fee (commonly a $25 penalty, making a delinquent total $95).

Initial or amended annual report fees are lower ($10 for initial or amended where specified). Reinstatement after administrative dissolution includes additional fees (reinstatement fee $140 plus missed annual report fees). (Source: SOS fee schedule & fee pages.)- Initial report: For domestic entities, an Initial Report must be filed within 120 days of formation (fee $10 if filed separately; it can be filed with formation for free).

The Initial Report records principal office info and governors/members. (Source: SOS initial report instructions/PDF and online instructions.)- Filing methods: File online via the Secretary of State’s Corporations and Charities Filing System (CCFS) (recommended); mail is available but slower.

Filing early (within 180 days) does not change your next year’s expiration month. If the report is not filed by the expiration date, the entity becomes delinquent and may face administrative dissolution. (Source: SOS pages.)2) Business registration & licensing — Department of Revenue and Business Licensing- Before applying for a Business License through DOR/BLS, domestic corporations/LLCs should be formed/registered with the Secretary of State.

The Department of Revenue issues a Unified Business Identifier (UBI) when you apply via the Business Licensing Wizard. You need a UBI for tax filing and interactions with state agencies. (Source: DOR business license page.)- Registration triggers: You must register with DOR and get a business license if you hire employees in the next 90 days, sell taxable goods/services, have gross income $12,000 or more, or meet other endorsements.

Use the Business Licensing Wizard to identify required endorsements. (Source: DOR page.)

Key findings and summary (what to include in the blog)1) Secretary of State (annual reports and initial report) — what LLCs/corporations must do- Annual reports: All domestic and foreign business entities must file an Annual Report each year to maintain active status and keep the UBI in good standing.

The annual report is due by the last day of the month in which the business was originally formed or registered. You may file up to 180 days before the expiration date. (Source: WA SOS annual reports page.)- Fees and penalties: Standard annual report fee for LLCs and most corporation types is $70; a delinquent filing adds a late/delinquency fee (commonly a $25 penalty, making a delinquent total $95).

Initial or amended annual report fees are lower ($10 for initial or amended where specified). Reinstatement after administrative dissolution includes additional fees (reinstatement fee $140 plus missed annual report fees). (Source: SOS fee schedule & fee pages.)- Initial report: For domestic entities, an Initial Report must be filed within 120 days of formation (fee $10 if filed separately; it can be filed with formation for free).

The Initial Report records principal office info and governors/members. (Source: SOS initial report instructions/PDF and online instructions.)- Filing methods: File online via the Secretary of State’s Corporations and Charities Filing System (CCFS) (recommended); mail is available but slower.

Filing early (within 180 days) does not change your next year’s expiration month. If the report is not filed by the expiration date, the entity becomes delinquent and may face administrative dissolution. (Source: SOS pages.)2) Business registration & licensing — Department of Revenue and Business Licensing- Before applying for a Business License through DOR/BLS, domestic corporations/LLCs should be formed/registered with the Secretary of State.

The Department of Revenue issues a Unified Business Identifier (UBI) when you apply via the Business Licensing Wizard. You need a UBI for tax filing and interactions with state agencies. (Source: DOR business license page.)- Registration triggers: You must register with DOR and get a business license if you hire employees in the next 90 days, sell taxable goods/services, have gross income $12,000 or more, or meet other endorsements.

Use the Business Licensing Wizard to identify required endorsements. (Source: DOR page.)

Employer obligations — Labor & Industries (L&I) and Employment Security Department (ESD)- Workers’ compensation (L&I)

Washington requires most employers to provide workers’ compensation insurance (industrial insurance) for their workers; coverage is mandatory unless a statutory exclusion applies. Coverage is normally provided through the State Fund via premiums paid by employers (unless self-insured). L&I provides guidance and an employers’ guide to workers’ compensation. (Source: L&I employers’ guide PDF.)- Unemployment insurance and employer reporting (ESD): Employers must file periodic tax and wage reports (quarterly reports) and pay unemployment taxes. ESD enforces reporting and may audit employers; employers should be prepared for ESD audits, understand tax rate determination, and comply with reporting requirements to avoid penalties. (Source: ESD employer requirements and unemployment tax pages.)

Washington State Auditor (SAO) — performance audits vs. business compliance- The Office of the Washington State Auditor conducts financial and performance audits of state and local government entities (including the annual Single Audit for federal funds). A “performance audit” generally applies to public entities to evaluate program performance, internal controls, legal and financial compliance. The SAO does not conduct annual performance audits of private LLCs; business owners need to be aware that “annual performance audit” mostly refers to public-sector audits. For private businesses, the comparable concerns are internal financial controls, tax compliance, and readiness for state agency audits (e.g., ESD audits). (Source

SAO about audits page and RCW authorizing the state auditor.)Practical compliance checklist & timeline for Washington LLCs / corporations (actionable items for the blog)A. Formation and first 120 days- File Certificate of Formation with WA SOS (fee $180 online standard). At formation, either include the Initial Report (free if filed with formation) or plan to file the Initial Report within 120 days (fee $10 if filed separately). (SOS resource, initial report instructions, and LLC filing page.)- Apply for a business license via the DOR Business Licensing Wizard after SOS filing to receive UBI. (DOR Business Licensing page.)B. Ongoing annual compliance (every year)- Annual Report: Mark your calendar for “last day of your formation month.” File your Annual Report by that date each year (file online up to 180 days early). Fee: $70 for LLCs/corporations; $25 late fee if delinquent. (SOS annual reports and fee schedule.)- DOR requirements: Renew business license / file any state tax returns (B&O tax, sales tax, excise taxes) per DOR guidance. If you sell taxable items or meet gross income thresholds, maintain sales tax registration and timely filings. (DOR Business Licensing & DOR tax pages.)- Employer obligations (if you have employees): Register and file with ESD (quarterly wage/tax reports), obtain L&I workers’ compensation coverage, withhold/pay state/federal payroll taxes, and comply with workers’ compensation rules. (L&I and ESD sources.)- Maintain registered agent info and update SOS records promptly when the agent or principal office changes.C. If you miss a filing or get audited- If Annual Report is missed: there is a delinquency fee; extended noncompliance can lead to administrative dissolution. Reinstatement requires payment of missed reports and a reinstatement fee ( $140) plus any other fees. (SOS fee schedule and FAQ.)- If audited by ESD or L&I: Cooperate, supply requested records (payroll, worker classification), correct any deficiencies, and appeal or dispute assessments per the agency’s procedures. (ESD and L&I employer guidance.)Recommended practical guidance for the blog audience (LLC founders / business owners)- Set recurring reminders: Use calendar alerts for 6 months, 60 days, 30 days, and 7 days before the anniversary-month deadline. File within the 180-day early window if convenient. - File online via SOS CCFS for faster approval and an immediate record. Keep copies of filed receipts and confirmation. - Keep the Registered Agent current and use a professional registered agent if privacy and continuity matter. - Maintain a separate business bank account, up-to-date payroll records, and bookkeeping so you can respond quickly to ESD or L&I audit requests. - Consider a compliance service or annual report reminder service for multi-entity owners. - If you operate in multiple states or receive federal funds, expect different or additional reporting and audit obligations (e.g., SAO Single Audit applies to government federal fund recipients; private businesses may need to prepare financials for lenders or federal grant audits if they receive pass-through federal funds).