Washington tax compliance for LLCs

Washington has no state income tax, but LLCs must navigate Business & Occupation (B&O) excise tax (gross-receipts-based), retail sales and use tax obligations, registration requirements and filing frequencies, employer payroll-related taxes (unemployment, L&I, payroll withholding obligations), local/city taxes and endorsements, nexus/economic nexus rules for out-of-state sellers (including a $100,000 threshold), available credits/incentives (including the small business B&O tax credit), online filing/payment via My DOR, and typical deadlines (monthly returns due on the 25th of the following month; quarterly and annual options assigned by DOR).

Key areas of focus include registration steps, threshold triggers (e.g., $12,000 gross income registration threshold; out-of-state >$100,000), how B&O is reported (excise tax return), filing frequency assignment, and practical compliance steps (register with Secretary of State and DOR, get a business license, set up My DOR account, register for ESD and L&I if hiring employees).

Official guidance, practitioner summaries, and filing/due date rules were captured. No Washington state personal or corporate income tax exists, but B&O (gross receipts) applies to virtually all businesses.

B&O is reported on the state excise tax return; filing frequency (monthly/quarterly/annual) is assigned by DOR, and returns/payments are filed through My DOR. Retail sales tax and use tax obligations apply when selling taxable goods/services in Washington; local rates vary, and marketplace facilitator/economic nexus rules affect remote sellers.

Registration triggers include gross income of $12,000/year or more. For businesses other than sole proprietorships, registration with the Secretary of State is required first, then with DOR.

Out-of-state nexus applies if combined gross receipts attributed to Washington exceed $100,000. Employer obligations include registering with the Employment Security Department for unemployment taxes and with L&I for workers' comp, as well as complying with federal payroll withholding and reporting cycles.

Credits and incentives, such as the small business B&O tax credit, may reduce liability. Typical excise returns are due monthly by the 25th of the following month (quarterly by the end of the month following the quarter; annual by April 15); unemployment/wage reports are due quarterly by April 30, July 31, October 31, and January 31.

Washington has no state income tax, but LLCs must navigate Business & Occupation (B&O) excise tax (gross-receipts-based), retail sales and use tax obligations, registration requirements and filing frequencies, employer payroll-related taxes (unemployment, L&I, payroll withholding obligations), local/city taxes and endorsements, nexus/economic nexus rules for out-of-state sellers (including a $100,000 threshold), available credits/incentives (including the small business B&O tax credit), online filing/payment via My DOR, and typical deadlines (monthly returns due on the 25th of the following month; quarterly and annual options assigned by DOR).

Key areas of focus include registration steps, threshold triggers (e.g., $12,000 gross income registration threshold; out-of-state >$100,000), how B&O is reported (excise tax return), filing frequency assignment, and practical compliance steps (register with Secretary of State and DOR, get a business license, set up My DOR account, register for ESD and L&I if hiring employees).

Official guidance, practitioner summaries, and filing/due date rules were captured. No Washington state personal or corporate income tax exists, but B&O (gross receipts) applies to virtually all businesses.

B&O is reported on the state excise tax return; filing frequency (monthly/quarterly/annual) is assigned by DOR, and returns/payments are filed through My DOR. Retail sales tax and use tax obligations apply when selling taxable goods/services in Washington; local rates vary, and marketplace facilitator/economic nexus rules affect remote sellers.

Registration triggers include gross income of $12,000/year or more. For businesses other than sole proprietorships, registration with the Secretary of State is required first, then with DOR.

Out-of-state nexus applies if combined gross receipts attributed to Washington exceed $100,000. Employer obligations include registering with the Employment Security Department for unemployment taxes and with L&I for workers' comp, as well as complying with federal payroll withholding and reporting cycles.

Credits and incentives, such as the small business B&O tax credit, may reduce liability. Typical excise returns are due monthly by the 25th of the following month (quarterly by the end of the month following the quarter; annual by April 15); unemployment/wage reports are due quarterly by April 30, July 31, October 31, and January 31.