StructureCost2026

Washington: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $3,319 a year less than a sole proprietorship in Washington. All figures are 2026 tax and fees.

$3,319 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Washington, at these numbers.

More settings revenue, salary, filing status, payroll costs, PTET

Washington, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $23,929 $0
Itemized: $23,929
Washington business and occupation (B&O) tax, service and other activitiesdor.wa.gov, checked Oct 23, 2026$2,250
Self-employment taxirs.gov, 2026 rates$13,812
Federal income taxirs.gov, 2026 rates$7,867
Yearly cost$23,929
Single-member LLC $23,978 +$49 $200
Itemized: $23,978
Annual Reportsos.wa.gov, checked Oct 23, 2026$70
Washington business and occupation (B&O) tax, service and other activitiesdor.wa.gov, checked Oct 23, 2026$2,250
Self-employment taxirs.gov, 2026 rates$13,802
Federal income taxirs.gov, 2026 rates$7,856
Yearly cost$23,978
LLC taxed as an S corp lowest $20,610 −$3,319 $200
Itemized: $20,610
Annual Reportsos.wa.gov, checked Oct 23, 2026$70
Payroll tax on your salaryirs.gov, 2026 rates$6,786
State disability and paid leaveesd.wa.gov, checked Oct 23, 2026$555
Payroll service and tax return (estimate)$1,800
Washington business and occupation (B&O) tax, service and other activitiesdor.wa.gov, checked Oct 23, 2026$2,250
Federal income taxirs.gov, 2026 rates$9,149
Yearly cost$20,610
S corporation $20,610 −$3,319 $200
Itemized: $20,610
Annual Reportsos.wa.gov, checked Oct 23, 2026$70
Payroll tax on your salaryirs.gov, 2026 rates$6,786
State disability and paid leaveesd.wa.gov, checked Oct 23, 2026$555
Payroll service and tax return (estimate)$1,800
Washington business and occupation (B&O) tax, service and other activitiesdor.wa.gov, checked Oct 23, 2026$2,250
Federal income taxirs.gov, 2026 rates$9,149
Yearly cost$20,610
C corporation $27,515 +$3,586 $200
Itemized: $27,515
Annual Reportsos.wa.gov, checked Oct 23, 2026$70
Payroll tax on your salaryirs.gov, 2026 rates$6,786
State disability and paid leaveesd.wa.gov, checked Oct 23, 2026$555
Payroll service and tax return (estimate)$2,000
Washington business and occupation (B&O) tax, service and other activitiesdor.wa.gov, checked Oct 23, 2026$2,250
Federal corporate income tax (21%)irs.gov, 2026 rates$10,910
Federal income taxirs.gov, 2026 rates$4,944
Yearly cost$27,515
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Washington

Electing S corp tax treatment for an LLC starts to pay in Washington at about $55,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,181$5,236$7,231$7,633
$50,000$9,732$9,786$10,277$12,182
$75,000$15,495$15,548$12,677$17,432
$100,000$23,929$23,978$20,610$27,515
$150,000$39,953$40,003$34,573$46,569
$200,000$56,514$56,561$49,316$64,789
$300,000$94,797$94,828$80,811$102,265

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Washington

LLCCorporation
Filing to form$200Certificate of Formation$200Articles of Incorporationapp.leg.wa.gov
Yearly reportAnnual Report, $70 a yearAnnual Report, $70 a yearsos.wa.gov
Report dueLast day of the anniversary month of formationLast day of the anniversary month of incorporation
Washington business and occupation (B&O) tax, service and other activities1.5% of gross receipts, none up to $128,000yesyesdor.wa.gov

Not in the calculator: Many Washington cities (Seattle, Tacoma, Bellevue, Everett and others) charge their own local B&O tax on gross receipts and require a city business license; Seattle also has a payroll expense tax on large employers.

Switching calculators for Washington

By profession in Washington

Questions

Is an S corp worth it in Washington?

On these figures, from about $55,000 of profit. At $100,000 an LLC taxed as an S corp costs $20,610 a year against $23,978 for a plain LLC, $3,368 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Washington?

The state charges Annual Report, $70 a year. LLCs can also owe Washington business and occupation (B&O) tax, service and other activities. Forming one costs $200.

Does Washington recognise the S corp election?

Yes. The federal election carries over with no separate state form. No state income tax, so the S election has no state income tax effect; B&O tax still applies to the entity.

What income tax does Washington charge?

Washington has no personal income tax on wages or business income. Washington has no corporate income tax.

How this page models Washington (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

Other states