Washington S-Corporation Compliance Guide
Everything you need to legally form and operate a S-Corporation in Washington. Filing fees, tax forms, ongoing requirements, and the trade-offs of this structure.
Is a S-Corporation Right for You?
Profitable businesses generating $60K+ net income where owner can save 15.3% SE tax on distributions above reasonable salary.
Payroll requirement. More paperwork. Reasonable salary is IRS audit target. Max 100 shareholders, no foreign owners.
Tax treatment
Pass-through. Owner takes a 'reasonable salary' as W-2 wages; remainder is distribution (no SE tax on distributions).
| Item | Washington Requirement |
|---|---|
| Formal state filing required | Yes — file Articles of Incorporation with the Washington Secretary of State. |
| State filing fee | $200 |
| Federal tax form filed | Form 1120-S |
| Employer Identification Number (EIN) | Required — apply free at irs.gov (5 minutes online) |
| Registered agent required | Yes — must have a physical Washington address available during business hours. |
| Annual/periodic report | annual — fee $70 |
| State income tax | Washington has no individual income tax. |
| Reasonable salary requirement | Yes — owner-employees must pay themselves a market-rate W-2 salary before taking distributions. IRS audit target. |
| Payroll setup | Required — need a payroll provider (Gusto, ADP, QuickBooks Payroll) to run owner W-2 and any employees. |
Filing Sequence in Washington
- 1
Choose a business name
Search Washington SoS name database. Reserve the name if desired (~$25 fee, optional).
- 2
Get an EIN from the IRS
Free at irs.gov. Takes ~5 minutes online. Required for all business banking, payroll, and tax filings.
- 3
File formation documents ($200)
Submit Articles of Incorporation to Washington Secretary of State. Include registered agent info. Processing ~7 business days.
- 4
File Form 2553 to elect S-Corp status
Must be filed within 2 months + 15 days of the tax year start (or entity formation). Free federal filing.
- 5
Register for state taxes
Register for sales tax if selling taxable goods/services in Washington.
- 6
Open a business bank account
Separate business finances from personal. Bank will require EIN, formation docs (for entities), and often an operating agreement.
Compare Other Structures in Washington
Not legal or tax advice.
State filing requirements change. Verify fees and deadlines with the WashingtonSecretary of State and Department of Revenue before filing. Structure choice has tax and liability implications — consult a licensed CPA or attorney for your specific situation.