wa-llc-tax

Washington State LLC Tax Guide

LLC Taxation in Washington

Understanding your tax obligations is key to running a successful LLC in the Evergreen State. While Washington offers significant advantages like no personal income tax, it has a unique business tax structure you need to know. This guide simplifies the essentials.

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No State Income Tax

Washington is one of the few states with no personal or corporate income tax. Profits passed through your LLC are not taxed at the state level.

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B&O Tax on Gross Receipts

Instead of income, the state levies a Business & Occupation (B&O) tax on the gross revenue of your business activities.

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Sales & Use Tax

If you sell goods or provide certain services, you'll need to collect and remit retail sales tax to the state Department of Revenue.

Federal Tax Obligations

By default, the IRS treats an LLC as a "pass-through" entity, meaning the profits and losses are passed to the owners' personal tax returns. However, you can elect for different tax treatment. Select an option below to learn more about how your LLC might be taxed.

Washington State Taxes

The primary tax for most LLCs in Washington is the Business & Occupation (B&O) tax. It's calculated on your gross receipts, and the rate depends on your business classification. You may also need to manage sales tax, use tax, and other local or industry-specific taxes.

Business & Occupation (B&O) Tax

This is a tax on the value of products, gross proceeds of sale, or gross income of the business. Unlike an income tax, there are generally no deductions for the costs of doing business. Rates vary significantly. Below are some of the most common classifications:

Classification	Tax Rate	Common Activities
Retailing	0.471% (0.00471)	Sales of goods to consumers.
Wholesaling	0.484% (0.00484)	Sales of goods for resale.
Manufacturing	0.484% (0.00484)	Creating products from raw materials.
Service & Other Activities	1.5% (0.015)	Professional services, consulting, repairs, recreation.

*This is not an exhaustive list. Rates are subject to change. Always consult the WA Department of Revenue for the most current information.

B&O Tax Estimator

Get a rough idea of your annual B&O tax liability. Enter your estimated annual gross revenue and select the B&O classification that best fits your business. This tool provides an estimate for informational purposes only.

Estimated Annual Gross Revenue ($)

B&O Classification

Your results will appear here.

Key Filings & Deadlines

Annual Report

Due Date: End of your anniversary month

All LLCs must file an annual report with the Washington Secretary of State to maintain good standing. This is separate from your taxes and confirms your business information.

B&O Tax Filing

Due Date: Varies (Monthly, Quarterly, or Annually)

Your filing frequency is assigned by the Department of Revenue based on your estimated tax liability. For new businesses, it's typically quarterly, due by the last day of the month following the quarter's end (e.g., April 30 for Q1).

Federal Income Taxes

Due Date: March 15 (Partnerships/S-Corps) or April 15 (Sole Props)

Deadlines for filing your federal return depend on your LLC's tax classification. Owners should also pay quarterly estimated taxes on their income throughout the year.