Washington compliance for consulting LLCs
Washington compliance for consulting LLCs
Below is a concise, actionable, and state-specific compliance summary for consulting LLCs in Washington State (for use as a blog / newsletter). It includes the key formation and maintenance steps, tax and employer obligations, local licensing notes, deadlines/fees, penalties, and URLs to the official sources you should cite in the final content.Key takeaways (quick checklist for consulting LLC founders in Washington)- Form your LLC (Certificate of Formation) with the Washington Secretary of State using the Corporations & Charities Filing System (CCFS).
Filing fee: $180 (online) plus processing fee; expedited options available. Registered agent with a physical WA street address is required.- Initial report: an Initial Report is required and is due within 120 days of the effective date of formation (you may defer, but deferral creates an additional fee obligation — see SOS instructions).- Annual report/renewal: Washington requires ongoing maintenance filings; the Annual Report fee for profit entities is $70 (see SOS fee schedule).
Missing annual reports can trigger administrative dissolution and reinstatement penalties.- Business license / registration with Department of Revenue (Business Licensing Service): You must apply for a Washington business license (UBI) via the Business Licensing Wizard if: you’ll hire employees within 90 days, your gross income is $12,000 or more per year, you sell goods or services that require sales tax collection, or you need city/county/state endorsements.
Apply online (processing ~10 business days) to get a UBI.- Washington taxes relevant to consultants: - Business & Occupation (B&O) tax: Washington taxes business gross receipts (B&O). Consulting services commonly fall under B&O tax categories — register with DOR to file excise returns and pay B&O tax as required. (Consult DOR for the exact rate class that fits your services and current rates/rules.) - Retail sales tax: Most professional consulting services historically have not been taxable retail sales, but Washington’s retail sales tax covers certain services.
IMPORTANT: starting Oct 1, 2025 (per state law ESSB 5814), some business services became newly subject to retail sales tax — review DOR guidance to determine whether your consulting services are taxable. - State sales tax has a 6.5% state portion; local rates vary and the total tax is location-based.- Employer obligations if you hire anyone (employees): - Employment Security Department (ESD): register as an employer for unemployment insurance and reporting requirements; the Business Licensing wizard and DOR guidance trigger employer registration if you plan to hire within 90 days. - Department of Labor & Industries (L&I): register for workers’ compensation coverage for employees (employer responsibilities and premium rules apply). - New-hire reporting: employers must report newly hired employees to the state new-hire registry. - Payroll withholding and federal tax filings still apply (EIN from IRS required for payroll and hiring).- Out-of-state (foreign) LLCs: If your LLC was formed in another state and you will do business in WA, file a Foreign Registration Statement with the Secretary of State (same filing fee noted as Formation).- Professional LLCs (PLLC): If you are offering licensed professional services that fall under Washington’s professional statutes (RCW 25.15 and RCW 18.100), form a PLLC and follow licensing board rules; otherwise a standard LLC is typical for consultants.- Local licenses/endorsements: many cities/cou
Below is a concise, actionable, and state-specific compliance summary for consulting LLCs in Washington State (for use as a blog / newsletter). It includes the key formation and maintenance steps, tax and employer obligations, local licensing notes, deadlines/fees, penalties, and URLs to the official sources you should cite in the final content.Key takeaways (quick checklist for consulting LLC founders in Washington)- Form your LLC (Certificate of Formation) with the Washington Secretary of State using the Corporations & Charities Filing System (CCFS).
Filing fee: $180 (online) plus processing fee; expedited options available. Registered agent with a physical WA street address is required.- Initial report: an Initial Report is required and is due within 120 days of the effective date of formation (you may defer, but deferral creates an additional fee obligation — see SOS instructions).- Annual report/renewal: Washington requires ongoing maintenance filings; the Annual Report fee for profit entities is $70 (see SOS fee schedule).
Missing annual reports can trigger administrative dissolution and reinstatement penalties.- Business license / registration with Department of Revenue (Business Licensing Service): You must apply for a Washington business license (UBI) via the Business Licensing Wizard if: you’ll hire employees within 90 days, your gross income is $12,000 or more per year, you sell goods or services that require sales tax collection, or you need city/county/state endorsements.
Apply online (processing ~10 business days) to get a UBI.- Washington taxes relevant to consultants:
- Retail sales tax: Most professional consulting services historically have not been taxable retail sales, but Washington’s retail sales tax covers certain services. IMPORTANT: starting Oct 1, 2025 (per state law ESSB 5814), some business services became newly subject to retail sales tax — review DOR guidance to determine whether your consulting services are taxable.
6.5% state portion; local rates vary and the total tax is location-based.- Employer obligations if you hire anyone (employees): - Employment Security Department (ESD): register as an employer for unemployment insurance and reporting requirements; the Business Licensing wizard and DOR guidance trigger employer registration if you plan to hire within 90 days.
25.15 and RCW 18.100), form a PLLC and follow licensing board rules; otherwise a standard LLC is typical for consultants.- Local licenses/endorsements: many cities/cou
- Business & Occupation (B&O) tax: Washington taxes business gross receipts (B&O). Consulting services commonly fall under B&O tax categories — register with DOR to file excise returns and pay B&O tax as required. (Consult DOR for the exact rate class that fits your services and current rates/rules.)
- State sales tax has a
- Department of Labor & Industries (L&I): register for workers’ compensation coverage for employees (employer responsibilities and premium rules apply).
- New-hire reporting: employers must report newly hired employees to the state new-hire registry.
- Payroll withholding and federal tax filings still apply (EIN from IRS required for payroll and hiring).- Out-of-state (foreign) LLCs: If your LLC was formed in another state and you will do business in WA, file a Foreign Registration Statement with the Secretary of State (same filing fee noted as Formation).- Professional LLCs (PLLC): If you are offering licensed professional services that fall under Washington’s professional statutes (RCW
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