Washington Business Compliance Checklist
Washington is one of only 4 monopolistic state fund workers' comp states, and has the country's most comprehensive paid family leave. This page covers everything from filing fees to sales tax to hiring laws.
$200
$70
Every year
6.5%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $200 |
| Corp filing fee (Articles of Incorporation) | $200 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $70 |
| Franchise tax | None |
3. Sales Tax
| State base rate | 6.5% |
| Combined rate range (with local) | 6.5% – 10.5% |
| Economic nexus (out-of-state seller) | $100,000 per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $16.66/hr (2025) |
| Paid sick leave law | Statewide mandate |
| Non-compete enforceability | Restricted — banned below income threshold; enforceable for high earners |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Washington Hiring Laws.
5. Workers' Compensation
Washington is a monopolistic state — coverage must be purchased through the state fund, not the private market. Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Washington has no state individual income tax. This applies to pass-through business income (sole prop, LLC, S-Corp).
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Washington Distinctive
Compliance quirks and rules that separate Washington from other states — worth understanding before you file.
- Washington charges $200 for LLC formation and $70 for the annual report.
- Washington has no state income tax.
- Washington Department of Revenue collects Business & Occupation Tax (B&O) on gross receipts — rates vary by activity classification (0.13-1.5%).
- Washington Corporations & Charities Filing System (sos.wa.gov/corps) handles entity filings.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Washington Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.