Washington compliance performance checkpoints

For Washington State LLC founders and business owners, staying compliant is both a legal obligation and business hygiene. Missing a single filing or employer payroll responsibility can lead to penalties, loss of active status, or trouble accessing contracts and banking services. This guide walks through the essential compliance checkpoints Washington businesses must monitor, with state-specific actions, deadlines, and practical next steps to keep your company in good standing. 1) Core entity filings — Secretary of State (annual report & maintenance) - What: All domestic and foreign business entities registered in Washington must file an Annual Report each year to maintain active status and keep the Unified Business Identifier (UBI) in good standing. - Deadline & window: The annual report is due by the last day of the month in which the business was originally formed or registered in Washington. You may file up to 180 days before the expiration date. (Use a recurring yearly reminder keyed to your formation month.) - Late effects & reinstatement: Failure to file can result in delinquent status and administrative dissolution; reinstatement is possible but may require paying annual report fees for missed years and penalties (the Secretary of State assesses reinstatement penalties—plan to act quickly if you fall behind). - Practical checklist: Create an annual calendar reminder (formation-month end); enable SOS email notifications; keep registered agent, principal office, and governor/member/manager details up to date; use the SOS online filing portal to file early where possible. - Where to file / forms: Washington Secretary of State annual report pages and online filing system (see resources). 2) Business Licensing & UBI — registration and local permits - Unified Business Identifier (UBI): Washington uses a UBI assigned via the Business Licensing Service when you register. The UBI is the central identifier used across state agencies (DOR, L&I, ESD, Paid Leave) — keep it handy and accurate. - Business license vs. local permits: Many businesses must register with the state Business Licensing Service, but you may also need city or county business licenses, health permits, professional licenses (e.g., health, construction, professional services), or industry-specific permits. - Renewals & notifications: Business licensing often requires periodic renewals; verify both state and local renewal cycles. - Practical checklist: At formation, register immediately with the Business Licensing Service to obtain your UBI; search local municipality websites (Seattle, Tacoma, Spokane, etc.) for local license requirements; maintain a list of required industry-specific permits and renewal dates. 3) Washington taxes — Department of Revenue (registration, B&O, sales & use) - Register early: If you make taxable sales in Washington or conduct business there, register with the Washington Department of Revenue (DOR) to obtain the proper tax accounts. - B&O tax: Washington does not tax corporate income; instead businesses pay a Business & Occupation (B&O) tax on gross receipts. Rates vary by business classification (service, retailing, wholesaling, etc.). Determine your classification and filing frequency. - Sales & use tax and remote seller rules: Washington enforces sales tax collection on taxable retail sales. For remote sellers and marketplace facilitators, verify economic nexus thresholds and registration obligations (Washington’s rules require registration and collection when thresholds are met). Filing frequency (monthly/quarterly/annual) depends on your tax volume. - Penalties & interest: Late filing or not registering can trigger penalties and interest. Use DOR’s online services and consider tax calendar reminders or an accountant to manage returns and payment schedules. - Practical checklist: Register with DOR when you start or before you make taxable sales; identify B&O classification; set up sales tax collection in your POS/e-commerce platform; monitor nexus thresholds for remote sales; determine filing frequency and automate filings where possible. 4) Payroll & employment — ESD, L&I, Paid Family & Medical Leave - Employer accounts: If you hire employees in Washington, register as an employer with Employment Security Department (ESD) for unemployment insurance reporting and taxes and with L&I for workers’ compensation coverage. - Quarterly wage reporting: Employers must submit quarterly wage reports and pay unemployment taxes to ESD; follow ESD’s quarterly reporting timelines and file through EAMS or ESD’s portal. - Workers’ compensation (L&I): Washington requires employers to provide workers’ compensation coverage for most employees (exceptions exist for sole proprietors, partners, etc., only in limited circumstances). Check L&I for coverage rules, premium calculations, and mandatory reporting. - Paid Family & Medical Leave: Washington’s Paid Family and Medical Leave program requires employers to withhold and remit premiums and file quarterly reports; employers must also provide employee notices and may be responsible for a share of premiums depending on employer size. Small businesses have special guidance and grant/assistance programs. - Practical checklist: Register with ESD and L&I before paying wages; set up payroll system to withhold and remit unemployment, workers’ comp premiums and Paid Leave premiums; run quarterly payroll reports and reconcile accounts; notify employees of Paid Leave rights and collect signed notices where required. 5) Federal filings and reporting intersecting with state compliance - Beneficial Ownership Information (BOI): FinCEN’s Corporate Transparency Act (CTA) initially required many entities to report beneficial ownership information. Important update: FinCEN published an interim final rule (March 26, 2025) that exempts entities formed in the United States (domestic entities) from BOI filing; foreign entities registered to do business in U.S. jurisdictions may still be required to file under adjusted deadlines. Confirm your status (domestic vs. foreign reporting company) and any exceptions applicable to your organization. - Practical checklist: If you’re a foreign entity doing business in Washington, review FinCEN BOI rules and filing deadlines; consult counsel if you have complex ownership or foreign members. 6) Industry-specific & environmental compliance - Health, food service, alcohol, construction, child care, professional services, and environmental permits each have distinct state and local requirements. Identify your industry’s regulators (Dept. of Health, Liquor & Cannabis Board, Dept. of Ecology, county health departments, municipal building departments) and track license renewals and inspections. - Practical checklist: Compile a short inventory of industry permits; calendar renewals and inspection windows; designate an internal compliance owner to manage renewals. 7) Recordkeeping, corporate formalities & best practices - Corporate records: Even LLCs should maintain a registered agent, operating agreement, member meeting minutes (if applicable), and up-to-date ownership records. These documents support limited liability protection and are often required for banking, investor diligence, or legal defense. - Bank & contracts: Keep up-to-date formation docs and UBI information for banks, lenders, and vendors. Use consistent legal entity name and EIN on contracts and invoices. - Compliance cadence: Set recurring quarterly and annual compliance reviews: payroll and tax filings (monthly/quarterly), DOR sales/B&O (as required), Paid Leave and ESD quarterly reports, SOS annual report (yearly), local license renewals, and L&I insurance audits. - Practical checklist: Assign responsibilities internally or to a third-party (CPA/registered agent/service); maintain an electronic compliance binder with UBI, EIN, SOS filings, tax registration certificates, insurance proof, and licenses. 8) Penalties, common pitfalls, and remediation - Common failures: missing SOS annual report, failing to register for DOR tax accounts before making taxable sales, not obtaining workers’ compensation, missing Paid Leave remittance, and forgetting local licenses. - Consequences: penalties, interest, administrative dissolution, loss of UBI, inability to bid on government contracts, and in some cases criminal penalties for intentional tax evasion. - Remediation: If you fall behind, act quickly: file delinquent reports, register accounts, pay due amounts and penalties; contact agencies where possible to set up payment plans or correct filings; consider professional help for complex back taxes or reinstatement. Actionable 30/60/90 day checklist for a Washington LLC founder - Day 0–30: Confirm formation month and calendar annual SOS report; register with Business Licensing Service for UBI; register with DOR if you’ll make taxable sales or have nexus; register as employer with ESD and L&I if hiring; obtain any required local permits and professional licenses. - Day 30–60: Configure POS/ecommerce to collect WA sales tax where applicable; set up payroll system to remit ESD, L&I, and Paid Leave premiums; obtain proof of workers’ comp coverage; confirm B&O classification with DOR and set tax filing frequency. - Day 60–90: Perform first payroll/quarterly report as required; file any initial SOS Initial Report (if within first 120 days) and confirm all filings appear on public record; create recurring reminders for quarterly and annual filings and assign a compliance owner. Resources & official links (reference sources) - Washington Secretary of State — Annual Reports and Maintain Business Compliance: https://www.sos.wa.gov/corporations-charities/business-entities/maintain-business-compliance/annual-reports - Business Licensing Service / Business.wa.gov — licenses & UBI: https://business.wa.gov/start-business/business-licenses-permits - Washington Department of Revenue — B&O tax and sales & use tax info: https://dor.wa.gov/taxes-rates/business-taxes/business-and-occupation-tax and https://dor.wa.gov/taxes-rates/sales-and-use-tax - Employment Security Department (ESD) — employer taxes and quarterly reporting: https://esd.wa.gov/employer-taxes - Washington L&I — workers’ compensation insurance requirements: https://www.lni.wa.gov/employer-insurance/insurance-requirements - Washington Paid Family & Medical Leave — employer roles and reporting: https://paidleave.wa.gov/employers - FinCEN — Beneficial Ownership Information (BOI) reporting updates: https://www.fincen.gov/boi Closing / Recommended next steps - Use this blog checklist to create a 12-month compliance calendar keyed to your formation month and calendar. If you prefer, hire a registered agent or compliance service and a CPA experienced in Washington taxation to reduce risk. Keep a single, synced calendar (or the business’s project management tool) with owner assignments for each filing. Finally, verify links and agency guidance annually — state rules and federal intersections (like BOI) can change. If you want, I can: (a) Draft the newsletter content (subject line and 2–3 paragraph summary) for immediate emailing; (b) Produce a downloadable, printable compliance checklist or calendar you can import to Google Calendar/Outlook; or (c) Build a short compliance SOP tailored to a specific industry (e.g., retail, food service, contractor).