Starting an LLC in Washington is not for the faint of heart. Maintaining one isn’t, either. There’s a bunch of annual requirements: annual taxes, business licenses to renew, and of course, annual reports. A lot of the annual requirements can be pretty complicated, too.
Annual reports can be pretty complicated…but only if you don’t know what to expect. That’s what we’re here for. In this guide, we’ll cover all the essentials to annual reports in Washington: LLC filing fees, where to file, due dates, and if you want, where to go to get help filing. By the end, the annual report won’t feel so daunting anymore.
Quick Tip
What is an annual report?
An annual report is a lot like an annual newsletter for your LLC—except you only send it to one place: the state government. Each year, the state needs updated information about your business. And this isn’t a requirement that’s unique to Washington. In fact, nearly every state requires some form of annual (or similar timeline) update.
That said, the newsletter analogy falls short because you don’t need to tell the state what you did each month. You don’t even have to tell them the highs and lows of your year. And thankfully, you don’t have to write it out as a letter. All you’ll have to do is fill out the requested information.
Here’s a quick glance at the information Washington will require from you:
- Legal name of your LLC
- Unified Business Identifier (assigned by the state; can be found on your online business profile)
- Principal office address
- Mailing address (only needed if different from the principal office address)
- Name each member or manager
- Nature of the business
- Name and address of your registered agent
Sound overwhelming? Don’t panic. It’s actually a lot easier than you might think! In the rest of this guide, we’ll cover all the essentials to annual reporting—including a DIY approach and how to get help if you’d rather not file on your own.
Where do I start?
When the time comes to file your annual report, your gut might tell you to head to the Secretary of State’s website. And that’s a good instinct; the Secretary of State handles a wide variety of business filings, annual reports included.
More specifically, you’ll want to head to the Washington Corporations and Charities Filings System. There, you can log in and tackle your annual report. Alternatively, if you’d rather not log in (or you don’t have an account), you can click on one of two options: “Express Annual Report With Changes” or “Express Annual Report Without Changes.” If you need to make any updates to your business information, you’ll use the “with changes” option. Either way, online filing is a great way to finish off your report all in one place.
Want to file by mail? That’s an option, too. Simply download the form, fill it out, and address it to the Secretary of State’s office in Olympia.
Quick note: Washington also requires you to file an Initial Report. It’s a similar concept to the annual report, but this one is cheaper ($10) and due within 120 days of filing your Certificate of Formation. Be sure to file it if you haven’t done so yet.
The annual report isn’t extremely difficult to fill out, honestly. But if you’re extremely busy (and who isn’t these days?), the report can seem overwhelming—it’s yet another thing you have to do. That said, you can hire a Washington LLC Service to handle the work for you. Not only will these services actually form your business for you (if you need it), but they’ll also help you handle annual requirements like the annual report.
How much does Washington’s Annual Report cost?
Some states have a pretty hefty price tag of several hundred dollars for their annual report. Other states charge more reasonable fees of less than $100. Thankfully, Washington keeps a lower-end fee of just $60. It’s not a huge expense, but you will want to include it in your annual budget.
How you choose to file your report will also affect how you pay the filing fee. If you file by mail, you’ll need to use a payment method like check or money order. Online filers should have a credit or debit card on hand to pay the filing fee while logged in (or using the express portal).
When is the Annual Report due?
In most states, the annual report is due, well, annually. In other states, entrepreneurs often refer to it as an annual report even though it’s due every other year. But in Washington, the annual report fits its name; you’ll file every year.
Each LLC has a slightly different due date based on when they filed their Certificate of Formation. More specifically, your annual report is due by the end of your LLC’s anniversary month. So if you filed your Certificate last year on July 7th, you need to file your annual report by July 31st this year.
What happens if you don’t file your annual report?
Sometimes annual check-ins are a pain, right? And we get it: with some things, like annual physicals, dental cleanings, and eye appointments are tempting to skip. Usually, there isn’t a big penalty if you skip them for a year or two (aside from a minor scolding from your doctor).
However, that isn’t the case with annual reports. You should never skip filing your annual report, and you should always do it on time. For one thing, filing on time ensures that you don’t spend any more than you have to.
More importantly, though, failing to file your annual report can cost you your good standing in the state. Plus, late reports incur a $25 late fee.
But that’s not the only thing. If you leave your report delinquent for 120 days after your due date, the state will administratively dissolve your LLC. If that happens, don’t panic; you can get reinstated. But it costs you time and money. You’ll have to file an application for reinstatement, which costs $140 to file. It’s far easier to simply avoid that hassle entirely by filing the annual report on time each year.
Conclusion
Quick Tip
Maintaining a Washington LLC is no laughing matter, and the annual report is without a doubt one of the most important annual filings. Thankfully, it doesn’t have to be too complicated. Hopefully this guide has helped take out some of the guesswork. And don’t forget: an LLC Service can make things even easier.