United States

Company Formation in Washington

State of Washington — Secretary of State

Formation Time

2–4 business days

Min. Capital

No minimum

Corporate Tax

0% state corporate income tax (Business & Occupation gross receipts tax applies)

Foreign Ownership

100%

Overview

Washington State is the Pacific Northwest's economic titan and home to two of the world's most valuable tech giants: Microsoft and Amazon. Washington stands out with a uniquely attractive fiscal structure: 0% personal income tax, 0% state corporate net income tax, and 0% franchise tax. Instead of income tax, Washington levies a Business & Occupation (B&O) gross receipts tax (ranging from 0.471% for retailing to 1.5% for service businesses), allowing highly profitable companies to retain significantly higher margins than in California or New York. Seattle is an elite international hub for cloud computing (AWS, Microsoft Azure), aerospace (Boeing), e-commerce, biotechnology, and gaming (Valve, Nintendo of America), combined with Pacific gateway maritime shipping through the Northwest Seaport Alliance.

0% state corporate tax

0% personal income tax

Microsoft & Amazon hub

Cloud computing capital

Pacific trade gateway

Why Choose Washington

0% state corporate net income tax, 0% personal income tax, and 0% franchise tax

Headquarters of global innovators Amazon, Microsoft, Costco, Starbucks, and Valve

Seattle is the world's leading cloud computing capital (AWS and Azure)

B&O tax structure allows high-margin software/tech firms to minimize state tax liabilities

Pacific gateway location with world-class maritime infrastructure connecting directly to Asia

Low annual report fee ($70 per year) and straightforward Secretary of State compliance

Top-ranked state economy for innovation, patent generation, and engineering talent

Remote US corporate banking support with tier-one financial institutions

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
LLC	100%	N/A (member or manager managed)	None	Pass-through taxation; 0% state CIT; B&O tax applies to Washington gross receipts	Software development, e-commerce, cloud consulting, logistics, international trade
Corporation	100%	1	None	21% federal CIT; 0% state corporate income tax; B&O tax applies	Venture-funded tech startups, cloud infrastructure, aerospace manufacturing

Step-by-Step Formation Process

Name Availability Verification

1 day

Search Washington Corporations Division database.

Filing Formation Documents

2–4 business days

File Certificate of Formation with the Secretary of State.

IRS EIN Registration

3–10 business days

Obtain Employer Identification Number from IRS.

Washington Business License (DOR)

2–3 days

FinCEN BOI & Corporate Banking

3–7 business days

Complete federal beneficial ownership filing and open US corporate bank accounts.

Costs & Fees

Government / License Fee	USD 200+
Our Service Fee	USD 850 – 2,200
Annual Renewal	USD 70+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Washington entities have exceptional banking credibility worldwide due to Seattle's tech prominence. Accounts can be established remotely with Mercury, Relay, Chase, or Bank of America.

Account Opening Time

3–7 business days

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

JPMorgan ChaseMercuryRelayWaFd Bank (Washington Federal)Bank of America

Tax Overview

Corporate Tax

0% state corporate income tax; 21% federal CIT

Personal Income Tax

0% state personal income tax

VAT / Sales Tax

6.5% state sales tax (up to 10.5% combined local)

Capital Gains Tax

7% state tax on individual long-term capital gains over $262,000 (standard deductions apply; 0% for non-residents)

Withholding Tax

30% federal statutory (reduced by treaties)

Double Tax Treaties

68 countries

Washington State levies a Business & Occupation (B&O) tax on gross receipts generated in Washington. The rate is 0.471% for retailing, 0.484% for wholesaling, and 1.5%–1.75% for services and other activities. Small business B&O tax credits apply for entities with low revenues.

Frequently Asked Questions

How does Washington's Business & Occupation (B&O) tax work for online businesses?

The B&O tax is a gross receipts tax, not a profit tax. If your company is formed in Washington but conducts 100% of its business with customers located outside Washington State, out-of-state sales are generally deductible or not sourced to Washington under market-based sourcing rules, leaving you with minimal or zero B&O liability.

Why do tech founders choose Washington over California?

Washington has 0% state corporate income tax and 0% personal income tax, compared to California's 8.84% corporate tax, 13.3% top personal income tax, and mandatory $800 annual franchise fee. Seattle offers a tech talent pool rivaling Silicon Valley at substantially lower corporate tax costs.

What is a Washington Unified Business Identifier (UBI) number?

A UBI number is a unique nine-digit number issued by Washington State that identifies your business across multiple state agencies, including the Secretary of State, Department of Revenue, and Department of Labor & Industries. Incorp International secures your UBI as part of our formation service.

Can foreign non-residents incorporate in Washington State?

Yes. Washington law has no restrictions regarding nationality or residency. Foreign founders can form and own 100% of a Washington LLC or Corporation remotely.

What are the annual maintenance fees for a Washington entity?

Washington State charges an annual report fee of $70. Combined with our statutory registered agent service, annual ongoing state compliance is straightforward and affordable.

Can I open a US bank account for my Washington company without visiting Seattle?

Yes. Incorp International facilitates 100% remote digital corporate bank account opening with Mercury, Relay, and our partner US banking network without requiring travel.