Washington compliance playbooks for teams

Comprehensive Washington compliance playbook for teams (blog-style summary) Executive summary - For LLCs and small businesses operating in Washington, core recurring compliance obligations are: entity formation and registration (Secretary of State), a state business license/UBI (Business Licensing Service/Dept. of Revenue), annual reports to the Secretary of State, state excise taxes (B&O and sales tax administered by DOR), employer payroll obligations (workers’ compensation, unemployment insurance, Paid Family & Medical Leave), and state employment rules (minimum wage, paid sick leave, posting/new-hire reporting).

Teams should combine a standing compliance calendar, written policies (employee handbook, data breach/incident response, operating agreement), and delegated owners for each recurring task. Key state-specific compliance items (what teams must know) - Registration & entity maintenance - File formation/registration with the Washington Secretary of State (Corporations & Charities Division).

Choose a registered agent and maintain required records (certificate of formation, operating agreement, member consents). Keep annual company records on-site per WA LLC record rules. - Annual Report: LLCs must file an annual report with the WA Secretary of State to remain active.

The annual report is due every year at the end of the month when the business was originally created. - Business license & UBI - Obtain a Washington Business License (Business License Application via the Business Licensing Service) to receive a Unified Business Identifier (UBI).

The state charges an application processing fee (example: ‘Open/reopen a business - $90’). The business license application also sets up accounts/notifications to other state agencies (Employment Security, L&I, DOR). - Taxes and financial compliance - Business & Occupation (B&O) tax: Washington levies a gross receipts tax; businesses must register with the Department of Revenue, file, and pay B&O and other state taxes.

Filing frequency depends on tax volume. - Retail sales tax: collect where applicable; register for resale permits if purchasing for resale. - Payroll-related: employers are responsible for state unemployment insurance (Employment Security), workers’ compensation (L&I), Paid Family & Medical Leave reporting and (depending on size) premium contributions, and WA Cares Fund considerations.

The state website summarizes employer payroll tax responsibilities and required accounts. - Employment & labor requirements - Minimum wage and local city variations: Washington state minimum wage and certain cities (Seattle, Tacoma, SeaTac) may impose higher minimums.

Check city-specific rules. - Paid sick and safe leave: employers must provide at least one hour of paid sick leave for every 40 hours worked (state minimum); city laws may be more generous. - Posting, new-hire reporting, I-9 and W-4 completion: federal forms and state new-hire reporting within required timelines. - Records & governance - Keep Certificate of Formation, Operating Agreement, annual reports, member votes and consents, financial statements, tax filings, payroll records, and employment records.

The communities resource notes required LLC records and recommends keeping annual reports and three years of records as best practice. Practical compliance playbook (step-by-step, with owner roles)

Comprehensive Washington compliance playbook for teams (blog-style summary) Executive summary

- Obtain a Washington Business License (Business License Application via the Business Licensing Service) to receive a Unified Business Identifier (UBI). The state charges an application processing fee (example: ‘Open/reopen a business - $90’).

The business license application also sets up accounts/notifications to other state agencies (Employment Security, L&I, DOR).

- Paid sick and safe leave: employers must provide at least one hour of paid sick leave for every 40 hours worked (state minimum); city laws may be more generous. - Posting, new-hire reporting, I-9 and W-4 completion: federal forms and state new-hire reporting within required timelines.

• For LLCs and small businesses operating in Washington, core recurring compliance obligations are: entity formation and registration (Secretary of State), a state business license/UBI (Business Licensing Service/Dept. of Revenue), annual reports to the Secretary of State, state excise taxes (B&O and sales tax administered by DOR), employer payroll obligations (workers’ compensation, unemployment insurance, Paid Family & Medical Leave), and state employment rules (minimum wage, paid sick leave, posting/new-hire reporting). Teams should combine a standing compliance calendar, written policies (employee handbook, data breach/incident response, operating agreement), and delegated owners for each recurring task. Key state-specific compliance items (what teams must know)
• Registration & entity maintenance
• File formation/registration with the Washington Secretary of State (Corporations & Charities Division). Choose a registered agent and maintain required records (certificate of formation, operating agreement, member consents). Keep annual company records on-site per WA LLC record rules.
• Annual Report: LLCs must file an annual report with the WA Secretary of State to remain active. The annual report is due every year at the end of the month when the business was originally created.
• Business license & UBI
• Taxes and financial compliance
• Business & Occupation (B&O) tax: Washington levies a gross receipts tax; businesses must register with the Department of Revenue, file, and pay B&O and other state taxes. Filing frequency depends on tax volume.
• Retail sales tax: collect where applicable; register for resale permits if purchasing for resale.
• Payroll-related: employers are responsible for state unemployment insurance (Employment Security), workers’ compensation (L&I), Paid Family & Medical Leave reporting and (depending on size) premium contributions, and WA Cares Fund considerations. The state website summarizes employer payroll tax responsibilities and required accounts.
• Employment & labor requirements
• Minimum wage and local city variations: Washington state minimum wage and certain cities (Seattle, Tacoma, SeaTac) may impose higher minimums. Check city-specific rules.
• Records & governance
• Keep Certificate of Formation, Operating Agreement, annual reports, member votes and consents, financial statements, tax filings, payroll records, and employment records. The communities resource notes required LLC records and recommends keeping annual reports and three years of records as best practice. Practical compliance playbook (step-by-step, with owner roles)

Formation & registration (owner

founder/operations) - File Certificate of Formation (or register as foreign entity) with WA Secretary of State; designate a registered agent. - Obtain UBI via Business License Application; pay the processing fee and collect endorsements for city/state permits as required. - Create and store an Operating Agreement, initial member consents, and corporate records.

Tax & license setup (owner

finance/bookkeeper) - Register with WA Dept. of Revenue for B&O/sales tax and request reseller permit if selling goods. - Determine DOR filing frequency and set up tax calendar. - Confirm local city/county licenses and tax obligations (some localities have B&O/business license taxes).

Payroll & benefits setup (owner

HR/payroll) - Register with Employment Security (unemployment), L&I (workers’ compensation), and Paid Leave (PFML). Set payroll systems to withhold and remit employer/employee PFML contributions where applicable. - Ensure new hires complete I-9 and W-4, file new-hire reports, and post required workplace notices. 4) Policies & employee materials (owner: HR/legal) - Implement state-minimum paid sick leave policy (1 hour per 40) and a PFML process, employee handbook, harassment/discrimination reporting, and privacy/breach response policy. 5) Annual & recurring maintenance (owner: compliance/admin) - Annual Report to Secretary of State: schedule and file by the end of the month of formation every year. - Quarterly payroll filings and premiums; DOR tax filings according to assigned frequency. - Maintain and back up corporate records, financials, and minutes; retain at least 3 years of Annual Reports and key records as a best practice. Templates and checklists (recommended) - Formation checklist: SOS filing + registered agent + UBI + Operating Agreement + EIN + business bank account. - Compliance calendar: Annual Report due date, payroll filing due dates, sales/B&O filing, renewal dates for licenses and insurance. - Employee onboarding checklist: I-9, W-4, new-hire reporting, benefits/PFML enrollment guidance, payroll setup. - Policies: Paid sick leave policy, PFML notice & reimbursement process, workplace safety & L&I reporting, data breach/incident response template, record retention schedule. Risk hotspots for teams - Misclassifying workers (contractor vs employee) — check WA rules and consider local guidance. - Failure to collect/remit sales tax and B&O tax — WA imposes penalties even if taxes were not collected from customers. - Missing Annual Report deadlines or not maintaining a registered agent — risk administrative dissolution or loss of good standing. Recommended next steps and resources - Set up a shared compliance calendar with owners and automated reminders. - Use the Business Licensing Wizard and official agency portals for registrations (Secretary of State online filings, Business Licensing Service, Department of Revenue, L&I, Employment Security, Paid Leave site). - Consult a Washington-licensed business attorney or CPA for entity structuring, tax planning, and employment law guidance.