How Much Does It Cost to Start an LLC in Washington State?

What Are the Costs Associated with Starting an LLC in Washington State?

Starting a Limited Liability Company (LLC) in Washington State can be an exciting yet complex process. The cost to start an LLC in Washington State varies based on several factors, including the type of LLC, the number of members, and the services you choose to hire.

### Types of LLCs in Washington State

Washington State allows for two primary types of LLCs: single-member LLCs and multi-member LLCs. Each type has its own set of requirements and costs.

#### Single-Member LLCs

A single-member LLC is owned by one individual. The primary advantage is that it provides personal liability protection for the owner's assets. To form a single-member LLC in Washington State, you will need to file Articles of Organization with the Washington Secretary of State's office.

### Cost Breakdown for Single-Member LLCs

The cost to form a single-member LLC in Washington State includes:

• Articles of Organization Filing Fee: $200
• Name Reservation Fee: $20 (optional but recommended)
• Registered Agent Fee: $50-$150 per year (depending on the service provider)
• Business License Fees: Varying costs depending on local jurisdictions

### Multi-Member LLCs

A multi-member LLC is owned by two or more individuals. This type of LLC offers more flexibility in management and taxation compared to single-member LLCs. To form a multi-member LLC in Washington State, you will need to file Articles of Organization with the Washington Secretary of State's office.

### Cost Breakdown for Multi-Member LLCs

The cost to form a multi-member LLC in Washington State includes:

• Articles of Organization Filing Fee: $200
• Name Reservation Fee: $20 (optional but recommended)
• Registered Agent Fee: $50-$150 per year (depending on the service provider)
• Business License Fees: Varying costs depending on local jurisdictions

### Additional Costs Associated with Starting an LLC in Washington State

In addition to the initial filing fees, there are several other costs you may incur when starting an LLC in Washington State:

• Business Entity Search Fee: $20-$30 (optional but recommended)
• Operating Agreement Preparation Fee: $100-$500 (depending on complexity)
• Tax ID Number Application Fee: Free through IRS website

### Steps to Form an LLC in Washington State

Here’s a step-by-step guide on how to form an LLC in Washington State:

1. Choose Your Business Name: Ensure your chosen name is available by conducting a business entity search. You can reserve your name for $20.
2. Prepare Articles of Organization: Draft your Articles of Organization document according to state requirements.
3. File Articles of Organization: Submit your completed Articles of Organization along with the filing fee ($200) via mail or online through the Washington Secretary of State’s website.
4. Appoint a Registered Agent: Designate someone who will receive legal documents on behalf of your LLC. You can hire a professional registered agent service provider.
5. Obtain Any Necessary Licenses & Permits: Check with local authorities regarding any specific licenses or permits required for your business.
6. Create an Operating Agreement: Draft an operating agreement outlining roles, responsibilities, profit distribution, etc., among members.

### Conclusion

Starting an LLC in Washington State involves several steps and associated costs. By understanding these costs upfront, you can better plan your finances and ensure compliance with state regulations. Whether you choose a single-member or multi-member LLC, following these guidelines will help you navigate through the process efficiently.