Louisiana vs Washington LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Louisiana charges $100 to form an LLC; Washington charges $180. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Louisiana runs about $200 less in total state fees than Washington. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Louisiana costs $80 less to form ($100 vs $180).
- Louisiana is $40 per year cheaper to maintain ($130 vs $170).
- Washington has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only Washington
- No state income tax
Both states
- Online filing
- Paid expedited tier
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in Louisiana, business operates there No foreign LLC registration needed. You pay Louisiana fees only. | $230 | $130 | $490 |
| You live in Washington, business operates there No foreign LLC registration needed. You pay Washington fees only. | $350 | $170 | $690 |
| Non-resident forming in Louisiana with operations elsewhere You pay Louisiana's fees plus a typical home-state foreign LLC registration of about $200 per year. | $430 | $330 | $1,090 |
| Non-resident forming in Washington with operations elsewhere You pay Washington's fees plus a typical home-state foreign LLC registration of about $200 per year. | $550 | $370 | $1,290 |
Louisiana vs Washington: full comparison
| Dimension | Louisiana | Washington |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 5 business days | 5 business days |
| Expedited option Paid fast-track filing | $30 | $100 |
| Annual report Required in addition to tax | Required, $30 | Required, $70 |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | Yes | No |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $150 | $180 |
| State sales tax General statewide rate | 5.0% | 6.5% |
Taxes in Louisiana and Washington
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
Louisiana tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 5.5%.
Washington tax
No entity-level franchise tax on LLCs. No state income tax.
Ongoing compliance
The recurring filings each state requires after formation.
Louisiana
Annual report $30, due on your anniversary month. Registered agent required in Louisiana.
Washington
Annual report $70, due on your anniversary month. Registered agent required in Washington.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
Louisiana
- Check business-name availability on the Louisiana entity search.
- Appoint a registered agent with a physical Louisiana street address.
- File Articles of Organization (Form 365) for $100.
- Wait for approval. Online typically 5 business days. Paid expedite from $30.
- Adopt an operating agreement (recommended, not required by Louisiana statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $30 when it comes due.
Washington
- Check business-name availability on the Washington entity search.
- Appoint a registered agent with a physical Washington street address.
- File Certificate of Formation - Limited Liability Company for $180.
- Wait for approval. Online typically 5 business days. Paid expedite from $100.
- Adopt an operating agreement (recommended, not required by Washington statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $70 when it comes due.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both Louisiana and Washington (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Louisiana or Washington does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
Louisiana Secretary of State, Commercial Division
- Website
- www.sos.la.gov/Pages/default.aspx
- Phone
- (225) 925-4704
- Commercial Division, Louisiana Secretary of State, P.O. Box 94125, Baton Rouge, LA 70804-9125
- Office
- 8585 Archives Ave., Baton Rouge, LA 70809
- Hours
- 8:00 AM to 4:30 PM Central, Monday to Friday
Washington Secretary of State - Corporations & Charities Division
- Website
- www.sos.wa.gov/corporations-charities
- Phone
- (360) 725-0377
- corps@sos.wa.gov
- Corporations & Charities Division, P.O. Box 40234, Olympia, WA 98504-0234
- Office
- 801 Capitol Way S, Olympia, WA 98501-1226
- Hours
- 8:00 AM to 5:00 PM Pacific, Monday to Friday
Louisiana Department of Revenue
- Website
- revenue.louisiana.gov
- Phone
- (855) 307-3893
- 617 North Third Street, Baton Rouge, LA 70802
- Hours
- 8:00 AM to 4:30 PM Central, Monday to Friday
Washington State Department of Revenue
- Website
- dor.wa.gov
- Phone
- (360) 705-6705
- Washington State Department of Revenue, P.O. Box 47450, Olympia, WA 98504-7450
- Office
- 6500 Linderson Way SW, Tumwater, WA 98501
- Hours
- 8:00 AM to 5:00 PM Pacific, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Louisiana or Washington?
Louisiana is cheaper at formation ($100) than Washington ($180). Ongoing costs are also different: $130 vs $170 per year. Total over three years: $490 vs $690.
-
Can I form an LLC in Louisiana if I live in Washington?
Yes, but your Washington business will almost certainly need to register as a foreign LLC in Washington too, which means paying Washington's foreign registration fee and any ongoing Washington obligations on top of the Louisiana ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in Louisiana vs Washington?
Louisiana online: 5 business days; Washington online: 5 business days. Louisiana offers paid expedite from $30. Washington offers paid expedite from $100.
-
Which state has lower taxes for an LLC, Louisiana or Washington?
Louisiana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Washington: no state income tax, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Louisiana and Washington both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Louisiana or Washington to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More Louisiana and Washington comparisons
More Louisiana vs ...
Sources
- Filing fee: www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsandFeeSc… · verified April 21, 2026
Louisiana Secretary of State Get Forms and Fee Schedule page: Articles of Organization for Domestic LLC (Form 365) filing fee is $100. The Articles must be accompanied by an Initial Report (Form 973). Form must be notarized per La. R.S. 12:1301. Credit card payments carry an additional $5 statutory convenience fee. - Expedited filing: www.sos.la.gov/BusinessServices/FileBusinessDocuments/Pages/default.as… · verified April 21, 2026
Louisiana Secretary of State expedited service: Expedite $30 (24-hour processing) or Priority Expedite $50 (2-4 hour processing). Fees are in addition to the $100 filing fee. We report the cheaper Expedite tier ($30, 24 hours) as the default expedited option. - Annual report fee: www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsandFeeSc… · verified April 21, 2026
Louisiana Secretary of State fee schedule: Domestic Limited Liability Company Annual Reports fee is $30. Due annually on the LLC's anniversary date. Credit card payments subject to a $5 convenience fee. - Franchise tax: revenue.louisiana.gov/tax-education-and-faqs/faqs/corporation-income-f… · verified April 21, 2026
Louisiana Department of Revenue FAQ confirms default-classified LLCs are not subject to Louisiana corporation franchise tax. Per Act 12 of the 2016 First Extraordinary Session and La. R.S. 47:601, franchise tax applies to LLCs only if the LLC is taxed as a C-corporation federally and is not eligible to make an S election. A default partnership-taxed LLC or single-member disregarded LLC owes no franchise tax. Louisiana Act 11 of the 2024 Third Extraordinary Session further repealed corporation franchise tax entirely for periods beginning on or after January 1, 2026. - Operating agreement requirement: legis.la.gov/legis/Law.aspx?d=108568 · verified April 21, 2026
Louisiana Revised Statutes Title 12, Chapter 22 (Limited Liability Company Law), including La. R.S. 12:1301 and 12:1319, permits but does not require a written operating agreement. Recorded as not required. - Foreign LLC registration fee: www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsandFeeSc… · verified April 21, 2026
Louisiana Secretary of State fee schedule: Application of Foreign Limited Liability Company (Form 972) filing fee is $150. Credit card payments subject to $5 convenience fee. - Publication requirement: legis.la.gov/legis/Law.aspx?d=108568 · verified April 21, 2026
Louisiana LLC statute (La. R.S. 12:1301 et seq.) contains no newspaper publication requirement for LLC formation. The Articles of Organization must be notarized but not published. - Business name search: coraweb.sos.la.gov/commercialsearch/commercialsearch.aspx · verified April 21, 2026
Louisiana Commercial Division business filings search (CORA). Name reservations are filed separately for a $25 fee per Form 398. - Sales tax rate: revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax/what-is-th… · verified April 21, 2026
Louisiana Department of Revenue FAQ 'What is the sales tax rate in Louisiana?' confirms the statewide sales and use tax rate is 5.00% as of January 1, 2025 (increased from 4.45% prior, under Act 11 of 2024 Third Extraordinary Session). Local parish and municipal sales taxes stack on top. - Corporate income tax rate: revenue.louisiana.gov/businesses/business-taxes/coporate-income-franch… · verified April 21, 2026
Louisiana corporation income tax historically had graduated rates topping at 7.5% for periods beginning on or after January 1, 2022 (3.5% / 5.5% / 7.5%). Louisiana Act 11 of the 2024 Third Extraordinary Session replaced the graduated rates with a flat 5.5% corporate income tax effective for tax years beginning on or after January 1, 2025. Reported here as the current top/flat rate of 5.5%. - Filing fee: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
WA SoS Corporations & Charities Division Fee Schedule. Under 'Limited Liability Companies (RCW 25.15)': Original Filings = $180. Same $180 fee applies whether filed online through CCFS or by mail. Washington does not charge an online-vs-mail differential for the Certificate of Formation itself. - Expedited filing: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
Expedited service = $100 per business entity, generally processed within three working days. Same-day service = $150 per business entity (front-counter submission only). Mail-in expedited requests must include $100 and label envelope 'EXPEDITE'. We record the $100 three-business-day (approx 72-hour) tier. - Foreign LLC registration fee: www.sos.wa.gov/corporations-charities/business-entities/limited-liabil… · verified April 21, 2026
Foreign Registration for a non-WA LLC = $180 filing fee, matching the domestic Certificate of Formation fee. - Operating agreement requirement: app.leg.wa.gov/rcw/default.aspx?cite=25.15.018 · verified April 21, 2026
RCW 25.15.018 (Washington Limited Liability Company Act) recognizes an LLC agreement that may be oral, written, or implied. There is no statutory requirement that LLCs adopt an operating agreement, so this is recorded as not required. If none is adopted, the default provisions of RCW 25.15 govern. - Publication requirement: app.leg.wa.gov/rcw/default.aspx?cite=25.15 · verified April 21, 2026
Washington imposes no publication requirement on LLCs. RCW Chapter 25.15 contains no publication mandate. - Annual report fee: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
Annual Report fee for profit business entity types (including LLCs) is $70, increased per WAC 434-112-085(7) and codified in RCW 23.95.515. Annual Report with delinquency fee = $95. Initial or Amended Annual Report = $10. - Franchise tax: dor.wa.gov/taxes-rates/business-occupation-tax · verified April 21, 2026
Washington has no franchise tax on LLCs. Washington's Business & Occupation (B&O) tax is a gross-receipts tax, not a franchise tax. B&O rates in 2026: retailing 0.471%, wholesaling 0.484%, manufacturing 0.484%, service & other activities 1.5% (less than $1M in prior-year taxable income), 1.75% ($1M-$5M), 2.1% (over $5M effective Oct 1, 2025). Additional 0.5% surcharge on WA taxable income over $250M from Jan 1, 2026. Because the B&O is structurally a gross-receipts tax on business activity rather than a capital-based franchise tax, franchiseTax.applies is set to false. - Corporate income tax rate: dor.wa.gov/taxes-rates/business-occupation-tax · verified April 21, 2026
Washington has no corporate income tax; maxCorporateRate is recorded as null. The state's business tax is the B&O gross-receipts tax (captured in franchiseTax.notes). Washington also has no state personal income tax, only a 7% long-term capital gains excise tax for individuals above the threshold. - Sales tax rate: dor.wa.gov/taxes-rates/sales-use-tax-rates · verified April 21, 2026
Washington's statewide sales and use tax rate is 6.5%. Cities and counties add local sales taxes, bringing combined rates to roughly 7% to 10.6% depending on jurisdiction. Only the 6.5% statewide rate is recorded here. - Business name search: ccfs.sos.wa.gov/#/AdvancedSearch · verified April 21, 2026
Corporations and Charities Filing System (CCFS) advanced search. Same platform used for online filings. - Online filing portal: ccfs.sos.wa.gov/ · verified April 21, 2026
Washington's Corporations and Charities Filing System (CCFS) portal. Standard online approvals typically complete within 5 business days. Filers can bundle the free Initial Report with the Certificate of Formation to satisfy the 120-day initial report requirement at no extra cost. - Certificate of Formation name: www.sos.wa.gov/sites/default/files/2022-09/12.10.2020---certificate-of… · verified April 21, 2026
Mail-in paper form titled 'Certificate of Formation - Limited Liability Company'. Online filers use the equivalent CCFS on-screen form.