Washington compliance snapshots for teams

Research summary and Washington compliance snapshot for teams (LLC founders, US business owners)Steps taken and sources searched- Searched Washington Secretary of State resources for entity maintenance (annual reports, registered agent rules, filing windows and penalties).- Searched Washington Department of Revenue (DOR) for Business & Occupation (B&O) tax, filing frequencies, sales tax changes (ESSB 5814) and licensing requirements.- Searched Washington Paid Family & Medical Leave (PFML) site and updates for employer premium, job-protection rules and reporting deadlines.- Searched Department of Labor & Industries (L&I), Employment Security Department and employer guidance for paid sick leave, workers’ compensation, posting and recordkeeping requirements, minimum wage and local ordinances.- Reviewed secondary practical guides (LLC University, Communities Rise small-business checklist, employer compliance summaries) to confirm penalties, accrual rules, and practical steps.Summary: Key compliance areas and practical checklist for teams operating in Washington1) Entity maintenance & governance (Secretary of State)- Annual report: All domestic and foreign business entities must file an Annual Report yearly to maintain active status.

The report is due by the last day of the month in which the business was originally formed or registered; filing window opens up to 180 days before the expiration date. (Set calendar reminders for your anniversary month; consider filing early.)- Penalties: Late filings may incur state penalties (example: Secretary of State adds a $25 penalty; continued nonfiling can lead to administrative dissolution).

Keep the registered agent address current and maintain copies of filed annual reports.- Records to keep: Certificate of Formation, operating agreement (recommended), membership records, annual reports and financial statements; RCW requires certain records to be kept at the principal office.Practical actions: add annual report reminders, keep digital copies of SOS confirmations, update registered agent when necessary.2) State tax and licensing (Department of Revenue / Business Licensing Service)- Business License / UBI: Register via WA Business Licensing Service and Department of Revenue to obtain a UBI and tax accounts before operating.- B&O tax: Washington levies a gross receipts Business & Occupation (B&O) tax.

Rates vary by classification (examples: retailing 0.471%; wholesaling 0.484%—classifications determine rate and reporting). The DOR provides classification guides and rate tables.- Filing frequency and due dates: Monthly, quarterly or annual returns depending on volume; DOR guidance notes annual return due date moved from Jan. 31 to April 15th.

Ensure your filing frequency is set correctly in your DOR account.- Sales tax changes (ESSB 5814): As of Oct 1, 2025, certain services (e.g., custom software, IT support, advertising, temporary staffing) were added as taxable retail sales.

Review service offerings, update invoicing and point-of-sale systems to collect sales tax where required.- Large-business surcharge: Recent legislation introduced a 0.5% surcharge on businesses with more than $250M in Washington taxable income beginning Jan 1, 2026 (with limited exclusions).

Monitor if your business approaches thresholds.Practical actions: register for My DOR, confirm tax classification, update invoicing/tax collection for services taxable after Oct 1, 2025, consult tax advisor for complex classifications or large-revenue rules.3) Employment, benefits, and payroll (PFML, Paid Sick Leave, L&I)- PFML (Paid Family & Medical Leave): Employers have job-protection obligations and premium withholding responsibilities.

The ESD updated rules effective Jan 1, 2026; employers must begin collecting the updated premium rate on wages paid on or after Jan 1, 2026 and remit quarterly (first-quarter premiums using new rate due end of April 2026).

Employers with

Research summary and Washington compliance snapshot for teams (LLC founders, US business owners)Steps taken and sources searched- Searched Washington Secretary of State resources for entity maintenance (annual reports, registered agent rules, filing windows and penalties).- Searched Washington Department of Revenue (DOR) for Business & Occupation (B&O) tax, filing frequencies, sales tax changes (ESSB 5814) and licensing requirements.- Searched Washington Paid Family & Medical Leave (PFML) site and updates for employer premium, job-protection rules and reporting deadlines.- Searched Department of Labor & Industries (L&I), Employment Security Department and employer guidance for paid sick leave, workers’ compensation, posting and recordkeeping requirements, minimum wage and local ordinances.- Reviewed secondary practical guides (LLC University, Communities Rise small-business checklist, employer compliance summaries) to confirm penalties, accrual rules, and practical steps.Summary: Key compliance areas and practical checklist for teams operating in Washington1) Entity maintenance & governance (Secretary of State)- Annual report: All domestic and foreign business entities must file an Annual Report yearly to maintain active status.

The report is due by the last day of the month in which the business was originally formed or registered; filing window opens up to 180 days before the expiration date. (Set calendar reminders for your anniversary month; consider filing early.)- Penalties: Late filings may incur state penalties (example: Secretary of State adds a $25 penalty; continued nonfiling can lead to administrative dissolution).

Keep the registered agent address current and maintain copies of filed annual reports.- Records to keep: Certificate of Formation, operating agreement (recommended), membership records, annual reports and financial statements; RCW requires certain records to be kept at the principal office.Practical actions: add annual report reminders, keep digital copies of SOS confirmations, update registered agent when necessary.2) State tax and licensing (Department of Revenue / Business Licensing Service)- Business License / UBI: Register via WA Business Licensing Service and Department of Revenue to obtain a UBI and tax accounts before operating.- B&O tax: Washington levies a gross receipts Business & Occupation (B&O) tax.

Rates vary by classification (examples: retailing 0.471%; wholesaling 0.484%—classifications determine rate and reporting). The DOR provides classification guides and rate tables.- Filing frequency and due dates: Monthly, quarterly or annual returns depending on volume; DOR guidance notes annual return due date moved from Jan. 31 to April 15th.

Ensure your filing frequency is set correctly in your DOR account.- Sales tax changes (ESSB 5814): As of Oct 1, 2025, certain services (e.g., custom software, IT support, advertising, temporary staffing) were added as taxable retail sales.

Review service offerings, update invoicing and point-of-sale systems to collect sales tax where required.- Large-business surcharge: Recent legislation introduced a 0.5% surcharge on businesses with more than $250M in Washington taxable income beginning Jan 1, 2026 (with limited exclusions).

Monitor if your business approaches thresholds.Practical actions: register for My DOR, confirm tax classification, update invoicing/tax collection for services taxable after Oct 1, 2025, consult tax advisor for complex classifications or large-revenue rules.3) Employment, benefits, and payroll (PFML, Paid Sick Leave, L&I)- PFML (Paid Family & Medical Leave): Employers have job-protection obligations and premium withholding responsibilities.

The ESD updated rules effective Jan 1, 2026; employers must begin collecting the updated premium rate on wages paid on or after Jan 1, 2026 and remit quarterly (first-quarter premiums using new rate due end of April 2026).

Employers with