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Start a Business in Washington

Costs, permits, taxes, and requirements for WA.

Cost rank
43rd of 50
112% of the national average · tied with 1 other state
State income tax
None
One of 9 states with none — federal tax still applies
Sales tax
6.5%
You collect it on taxable sales and remit it to the state
LLC filing fee
$200
One-off, paid to the Secretary of State · 5th most expensive of 50 (median $100)

Where Washington sits on cost

Cheapest third to most expensive third, by startup cost index. Hover a state for its index and rank.

WA Lower cost Mid Higher cost

What's different in Washington

Washington has no personal income tax, and the trade for that is a tax on business gross receipts rather than on profit, which means a high-turnover, low-margin operation can owe a meaningful amount in a year it barely broke even. Seattle and several other cities run their own version on top, so the same revenue can be taxed at two levels. The wage floor is among the highest in the country and several cities set it higher still, so payroll modelling that assumes the federal minimum is wrong before it starts. The state is also two economies, and the eastern half prices like a different place.

Taxed on turnover, not profit
Low-margin models feel this hardest; run the numbers on revenue rather than on what is left over.
The city taxes it too
Several cities levy their own receipts tax, so check the municipal rules alongside the state ones.
Wage floor
State and city minimums both run above the federal figure, which changes the first hire's cost.
Two economies
Puget Sound rents and eastern Washington rents are not in the same conversation.

Business Guides for Washington

All 53, cheapest first. Ranges are what that business actually costs in WA.

Under $10K 19

$10K – $50K 17

$50K and up 17

Get a personalized cost estimate for Washington

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Business Requirements in Washington

1

Register Your Business

File with Washington Secretary of State. LLC fee: $200

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 6.5%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

Q.01 How much does it cost to start a business in Washington?
Startup costs in Washington are 12% higher than the national average. LLC filing costs $200, plus business license ($50-$300). Total varies by business type.
Q.02 Does Washington have income tax?
Washington has no state income tax, making it attractive for business owners.
Q.03 What is the sales tax in Washington?
The state sales tax in Washington is 6.5%. Local taxes may apply.
Q.04 How do I form an LLC in Washington?
File Articles of Organization with the Secretary of State (fee: $200). You'll also need an Operating Agreement and EIN from the IRS.

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