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/counties (e.g., Seattle/King County) require local business licenses or business & occupation taxes on top of state requirements — check city/county endorsements in the Business Licensing Wizard and local city websites.- Penalties and reinstatement: administrative dissolution for missed reports can result in reinstatement fees and a $140 penalty per SOS guidance; SOS payments are nonrefundable (WAC citations) — keep a compliance calendar.Actionable step-by-step (for a new consulting LLC)

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/counties (e.g., Seattle/King County) require local business licenses or business & occupation taxes on top of state requirements — check city/county endorsements in the Business Licensing Wizard and local city websites.- Penalties and reinstatement: administrative dissolution for missed reports can result in reinstatement fees and a $140 penalty per SOS guidance; SOS payments are nonrefundable (WAC citations) — keep a compliance calendar.Actionable step-by-step (for a new consulting LLC)

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

Decide entity type

LLC vs PLLC (if you provide licensed professional services, consider PLLC rules).

Reserve/choose a business name and file Certificate of Formation online at SOS (CCFS)

pay the filing fee ( $180) and designate a registered agent with a WA physical address. File the Initial Report or note the 120-day initial report requirement. 3. Apply for a Washington business license via DOR’s Business Licensing Wizard to get your UBI (required for taxes and many licenses). If you expect to hire within 90 days or expect gross receipts >= $12,000, do this promptly.

Get an EIN from the IRS for banking, hiring, and tax filings.

Register with DOR for B&O and any applicable sales tax accounts; determine if your consulting services are taxable under recent changes (ESSB 5814, effective Oct 1, 2025).

If hiring

Create an Operating Agreement, open a business bank account, obtain insurance (professional liability/E&O and general liability), and track deadlines (annual report, tax filings, license renewals).

Check local city/county license requirements; pay any local business taxes (e.g., Seattle business license tax).

Maintain records, keep the registered agent info current, and file annual reports on time to avoid penalties or administrative dissolution.Why the sources are sufficient- I prioritized official Washington government pages (Secretary of State and Department of Revenue). Those pages provide filing fees, required filings (Certificate of Formation, initial reports, annual reports), UBI/business license rules, business tax categories, and the retail sales tax changes (ESSB 5814 note). SOS pages include exact filing fees and penalties (annual report fee, reinstatement penalty). DOR pages include registration thresholds and the Business Licensing Wizard process. L&I and ESD are referenced for employer-specific obligations. These official pages are the authoritative compliance sources for state requirements.Next recommended steps for content creation (blog/newsletter)- Use the action checklist above as the structure for the blog post

Formation → State registration/UBI → Taxes (B&O + sales tax changes) → Hiring/employer obligations → Local licenses → Ongoing compliance and common pitfalls. - Quote and link directly to the SOS and DOR pages for key facts (fees, deadlines, UBI criteria, sales-tax-effective-date change). - Add practical examples for consultants (e.g., sample B&O scenarios, when a consulting engagement becomes a taxable retail service after Oct 1, 2025) — check DOR’s “services newly subject to retail sales tax” guidance for specifics to cite. - Recommend templates/checklists: Operating Agreement checklist, compliance calendar (initial report within 120 days, annual report each anniversary month), registration links, and employer onboarding checklist (ESD, L&I, new-hire reporting, EIN). Citations (official pages to cite in your blog and newsletter)- Washington Secretary of State — LLC & PLLC filing resource: https://www.sos.wa.gov/corporations-charities/business-entities/limited-liability-company-llc-professional-llc-pllc-filing-resource-page- SOS — Start a Domestic WA LLC (online filing & Certificate of Formation / Initial Report details; fee and registered agent requirements): https://www.sos.wa.gov/corporations-charities/business-entities/online-filing-instructions/start-domestic-wa-limited-liability-company-llc-online- SOS fee schedule / Annual report fee: https://www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/fee-scheduleexpedited-service- Washington Department of Revenue — Apply for a business license (Business Licensing Wizard; UBI; registration triggers like $12,000 gross and hiring within 90 days): https://dor.wa.gov/open-business/apply-business-license- Washington Department of Revenue — Retail sales tax (sales tax rules; 6.5% state portion; services newly subject to retail sales tax effective Oct 1, 2025): https://dor.wa.gov/taxes-rates/retail-sales-tax- Department of Labor & Industries (workers’ compensation info / employer obligations): https://www.lni.wa.gov/workers-compensation/insurance/- Employment Security Department (employer/unemployment insurance registration and employer resources): https://esd.wa.gov/employersIf you want, I can now:- Draft the full blog post (1500–2,200 words) using the structure suggested, with SEO headings, meta description, slug, and embedded links to the official pages above; or- Produce a short-form newsletter (email) using the 'default' template and subject line "Washington compliance for consulting LLCs"; or- Produce both a blog post and the newsletter-ready excerpt plus a compliance checklist PDF.