Washington compliance for hybrid e-commerce/service LLCs

Research summary and findings for: 'Washington compliance for hybrid e-commerce/service LLCs' — steps taken, analysis performed, and consolidated state-specific compliance information necessary to produce the requested blog and newsletter content.Steps taken and research approach- Ran targeted web searches across official Washington state sources and trusted tax/legal guidance to assemble authoritative, up-to-date compliance rules (search terms included Washington LLC formation, Secretary of State annual reports, Business Licensing Service/UBI, Department of Revenue B&O and retail sales tax, economic nexus thresholds, marketplace facilitator rules, ESSB 5814 changes to services taxability, registered agent rules, local/city endorsements, workers’ compensation and payroll tax registration, Paid Family & Medical Leave, paid sick leave, independent contractor rules, data breach and consumer protection laws, home-based business zoning). - Emphasized primary state sources (dor.wa.gov, sos.wa.gov, business.wa.gov) and high-quality interim guidance (DOR interim guidance on ESSB 5814). - Extracted practical thresholds, filing requirements, effective dates, fees, and procedural notes (what to file, when, and where).

Key findings (concise, actionable summary for hybrid e-commerce/service LLC owners in Washington)1) Formation & entity maintenance (Secretary of State)- Forming an LLC: file a Certificate of Formation with WA Secretary of State (domestic and foreign filing options).

Filing fee cited on the SOS resource: $180 for Certificate of Formation. Registered agent with a Washington street address is required. - Annual reports: All domestic and foreign business entities must file an Annual Report yearly.

The report is due by the last day of the month in which the business was originally formed/registered; it may be filed up to 180 days before the expiration date. Current SOS filing fee guidance indicates profit entities (including LLCs) pay a profit annual report fee (recent WAC updates show $70 for profit business entity types) and a $25 delinquency fee if late. (Keep reminders—failure to file can lead to administrative dissolution and reinstatement penalties.)2) State registration, unified business identifier (UBI), and local endorsements (Department of Revenue / Business Licensing Service)- Register with WA Department of Revenue / Business Licensing Service (BLS) to obtain a UBI and business license when you: collect sales tax, plan to hire employees, use a trade name, have gross income of $12,000+ per year, or otherwise meet listed conditions.

Filing a Business License Application (BLA) registers you for multiple state endorsements and forwards information to L&I and ESD for payroll accounts when you hire employees. There is a nonrefundable Business License Application processing fee for opening/reopening ($90) plus any endorsement fees.- City and county endorsements: many cities require local business licenses or endorsements (Seattle, Spokane, etc.).

Use the Business Licensing Wizard and check local requirements for each location you serve or operate from.3) Taxes that commonly apply to hybrid e-commerce/service LLCs- Business & Occupation (B&O) tax: Washington imposes excise taxes (B&O) computed on gross receipts (no typical cost deductions).

Classification/rates depend on activity (retailing, services, etc.). - Retail sales tax: Washington historically taxes sales of tangible personal property and certain services; effective law changes (ESSB 5814) expanded retail sales tax to specific services (IT/digital/custom website development, advertising, live presentations, security services, temporary staffing, custom/prewritten software) effective October 1, 2025 — meaning many service providers who didn’t previously collect sales tax may now have retail sales tax collection obligations. - Economic nexus and sourcing: Washington uses economic nexus thresholds for out-of-state sellers (DOR guidance references a $100,000 combined gross receipts threshold sourced or attributed to Washington).

Sales of taxable services are sourced based on where the purchaser receives the service (destination-based sourcing rules apply), which affects which local rate applies. - Marketplace facilitator law: marketplace facilitators who make sales on behalf of sellers may be required to collect and remit sales tax and must provide gross sales information to sellers for Washington sales made on the seller’s behalf.

This affects sellers who use Amazon, Etsy, Shopify + marketplace integrations, etc.- Reseller permits and exemptions: resellers must obtain reseller permits for purchases for resale; understand available exemptions and how to document them.

Research summary and findings for: 'Washington compliance for hybrid e-commerce/service LLCs' — steps taken, analysis performed, and consolidated state-specific compliance information necessary to produce the requested blog and newsletter content.Steps taken and research approach- Ran targeted web searches across official Washington state sources and trusted tax/legal guidance to assemble authoritative, up-to-date compliance rules (search terms included Washington LLC formation, Secretary of State annual reports, Business Licensing Service/UBI, Department of Revenue B&O and retail sales tax, economic nexus thresholds, marketplace facilitator rules, ESSB 5814 changes to services taxability, registered agent rules, local/city endorsements, workers’ compensation and payroll tax registration, Paid Family & Medical Leave, paid sick leave, independent contractor rules, data breach and consumer protection laws, home-based business zoning).

5814). - Extracted practical thresholds, filing requirements, effective dates, fees, and procedural notes (what to file, when, and where). Key findings (concise, actionable summary for hybrid e-commerce/service LLC owners in Washington)1) Formation & entity maintenance (Secretary of State)- Forming an LLC: file a Certificate of Formation with WA Secretary of State (domestic and foreign filing options).

Filing fee cited on the SOS resource: $180 for Certificate of Formation. Registered agent with a Washington street address is required. - Annual reports: All domestic and foreign business entities must file an Annual Report yearly.

The report is due by the last day of the month in which the business was originally formed/registered; it may be filed up to 180 days before the expiration date. Current SOS filing fee guidance indicates profit entities (including LLCs) pay a profit annual report fee (recent WAC updates show $70 for profit business entity types) and a $25 delinquency fee if late. (Keep reminders—failure to file can lead to administrative dissolution and reinstatement penalties.)2) State registration, unified business identifier (UBI), and local endorsements (Department of Revenue / Business Licensing Service)- Register with WA Department of Revenue / Business Licensing Service (BLS) to obtain a UBI and business license when you: collect sales tax, plan to hire employees, use a trade name, have gross income of $12,000+ per year, or otherwise meet listed conditions.

Filing a Business License Application (BLA) registers you for multiple state endorsements and forwards information to L&I and ESD for payroll accounts when you hire employees. There is a nonrefundable Business License Application processing fee for opening/reopening ($90) plus any endorsement fees.- City and county endorsements: many cities require local business licenses or endorsements (Seattle, Spokane, etc.).

Use the Business Licensing Wizard and check local requirements for each location you serve or operate from.3) Taxes that commonly apply to hybrid e-commerce/service LLCs- Business & Occupation (B&O) tax: Washington imposes excise taxes (B&O) computed on gross receipts (no typical cost deductions).

Classification/rates depend on activity (retailing, services, etc.).

5814) expanded retail sales tax to specific services (IT/digital/custom website development, advertising, live presentations, security services, temporary staffing, custom/prewritten software) effective October 1, 2025 — meaning many service providers who didn’t previously collect sales tax may now have retail sales tax collection obligations. - Economic nexus and sourcing: Washington uses economic nexus thresholds for out-of-state sellers (DOR guidance references a $100,000 combined gross receipts threshold sourced or attributed to Washington).

Sales of taxable services are sourced based on where the purchaser receives the service (destination-based sourcing rules apply), which affects which local rate applies.

• Emphasized primary state sources (dor.wa.gov, sos.wa.gov, business.wa.gov) and high-quality interim guidance (DOR interim guidance on ESSB
• Retail sales tax: Washington historically taxes sales of tangible personal property and certain services; effective law changes (ESSB
• Marketplace facilitator law: marketplace facilitators who make sales on behalf of sellers may be required to collect and remit sales tax and must provide gross sales information to sellers for Washington sales made on the seller’s behalf. This affects sellers who use Amazon, Etsy, Shopify + marketplace integrations, etc.- Reseller permits and exemptions: resellers must obtain reseller permits for purchases for resale; understand available exemptions and how to document them.

Registration & reporting mechanics for sellers and service providers- If you meet registration criteria, file a Business License Application (myDOR) to obtain a UBI and the required state tax accounts; the system will automate notifications to L&I and ESD for employer accounts. Keep tax accounts and filings current (excise returns, sales tax returns, B&O reporting). - Bundled transactions

bundled sales that combine taxable and non-taxable items may be taxable in whole if not separately itemized — review RCW and DOR guidance and consider itemizing invoices where appropriate.

Employment, contractor classifications & payroll obligations- Hiring employees triggers employer obligations

workers’ compensation (L&I), unemployment insurance (ESD), Paid Family & Medical Leave premium reporting (PaidLeave.wa.gov), payroll tax withholding rules, minimum wage (state and local higher rates), and required postings. Most employers must set up payroll accounts via the Business Licensing Service. - Independent contractor classification: be careful—Washington has detailed rules and agency guidance that influence whether workers are employees or independent contractors; misclassification risks payroll tax and L&I liabilities.

Consumer protection, data breach, and privacy- Consumer Protection

Washington’s Consumer Protection Act (RCW 19.86) can apply to unfair/deceptive business practices — be transparent about returns, warranties, shipping, charges and advertising. - Data breach and privacy: Washington has data breach notification statutes (RCW 19.255 series) and DOR guidance references handling and sourcing rules for digital/IT services; e-commerce/service businesses should implement data security measures, a breach response plan, and include terms/privacy policy. Monitor state developments for any new statewide privacy law or updates.

Local zoning, home-based business rules, and required local permits- Home-based and remote operations

local city/county zoning and business license rules may restrict certain home-based activities (e.g., signage, customers on-site, employees, storage). Check city/county planning, business license requirements and obtain any local approvals or home-occupation permits.

Practical compliance checklist & recommended next steps for hybrid e-commerce/service LLCs- Form properly

file Certificate of Formation with SOS; appoint registered agent; adopt an operating agreement; obtain EIN. - Register for a UBI/business license with the DOR Business Licensing Service (myDOR) if you meet thresholds. - Determine tax obligations: review DOR guidance for B&O classification, retail sales tax (post-ESSB 5814), economic nexus thresholds ($100,000), and marketplac e rules; register for appropriate tax accounts and obtain a reseller permit if needed. - Update contracts/pricing and billing: re-evaluate contracts and pricing where services may now be taxable (itemize bundles when helpful). - Set up payroll/employer accounts before hiring and follow L&I and ESD registration. - Review local licensing and zoning for each location served. - Adopt data security, privacy, returns, and consumer protection practices. - Keep deadlines and fees on a shared calendar: SOS annual report monthly anniversary deadline; myDOR filing dates; excise/ sales tax return dates; renew city licenses as required.Limitations and notes- Legislative change in 2025 (ESSB 5814) materially expanded taxability of many services effective October 1, 2025; businesses should consult DOR interim guidance and, if needed, a Washington state tax professional to understand how the changes apply to particular service offerings. - Local requirements vary by city and county; confirm city-specific licensing and zoning rules for each location where you operate or deliver services.