Texas vs Washington LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Texas charges $300 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, Texas runs about $90 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.
On speed, Washington typically clears standard online filings faster than Texas. Both states offer expedited tiers at an additional cost for filers on tight timelines.
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
- Washington costs $120 less to form ($180 vs $300).
- Texas is $70 per year cheaper to maintain ($100 vs $170).
- Texas imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Washington does not.
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 entity-level franchise or LLC tax
Both states
- Online filing
- Paid expedited tier
- No state income 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 Texas, business operates there No foreign LLC registration needed. You pay Texas fees only. | $400 | $100 | $600 |
| You live in Washington, business operates there No foreign LLC registration needed. You pay Washington fees only. | $350 | $170 | $690 |
| Non-resident forming in Texas with operations elsewhere You pay Texas's fees plus a typical home-state foreign LLC registration of about $200 per year. | $600 | $300 | $1,200 |
| 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 |
Texas vs Washington: full comparison
| Dimension | Texas | Washington |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 13 business days | 5 business days |
| Expedited option Paid fast-track filing | $25 | $100 |
| Annual report Required in addition to tax | Required, $0 | 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 | No | 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 | $750 | $180 |
| State sales tax General statewide rate | 6.3% | 6.5% |
Taxes in Texas 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.
Texas tax
No entity-level franchise tax on LLCs. No state income tax.
Washington tax
No entity-level franchise tax on LLCs. No state income tax.
Ongoing compliance
The recurring filings each state requires after formation.
Texas
Annual report $0, due 05/15 each year. Registered agent required in Texas.
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.
Texas
- Check business-name availability on the Texas entity search.
- Appoint a registered agent with a physical Texas street address.
- File Certificate of Formation: Limited Liability Company (Form 205) for $300.
- Wait for approval. Online typically 13 business days. Paid expedite from $25.
- Adopt an operating agreement (recommended, not required by Texas 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 $0 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 Texas 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 Texas 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
Texas Secretary of State, Business & Commercial Section
- Website
- www.sos.state.tx.us/corp/index.shtml
- Phone
- (512) 463-5555
- corpinfo@sos.texas.gov
- P.O. Box 13697, Austin, TX 78711-3697
- Office
- James Earl Rudder Office Building, 1019 Brazos Street, Austin, TX 78701
- Hours
- 8:00 AM to 5:00 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
Texas Comptroller of Public Accounts
- Website
- comptroller.texas.gov
- Phone
- (800) 252-1381
- P.O. Box 13528, Capitol Station, Austin, TX 78711-3528
- Office
- Lyndon B. Johnson State Office Building, 111 East 17th Street, Austin, TX 78774
- Hours
- 8:00 AM to 5:00 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 Texas or Washington?
Washington is cheaper at formation ($180) than Texas ($300). Ongoing costs are also different: $170 vs $100 per year. Total over three years: $690 vs $600.
-
Can I form an LLC in Texas 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 Texas 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 Texas vs Washington?
Texas online: 13 business days; Washington online: 5 business days. Texas offers paid expedite from $25. Washington offers paid expedite from $100.
-
Which state has lower taxes for an LLC, Texas or Washington?
Texas: no state income tax, 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. Texas 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 Texas 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 Texas and Washington comparisons
More Texas vs ...
Sources
- Filing fee: www.sos.state.tx.us/corp/forms/205_boc.pdf · verified April 21, 2026
Texas Secretary of State Form 205 Certificate of Formation for an LLC. $300 filing fee stated on form instructions. Authority: Texas Business Organizations Code §4.152 (formation fees). - Filing fee: www.sos.state.tx.us/corp/sosda/index.shtml · verified April 21, 2026
SOSDirect service charges a 2.7% convenience fee on credit-card transactions on top of the $300 state fee. The stated filingFee of $300 is the statutory fee exclusive of the payment-processing surcharge. - Expedited filing: www.sos.state.tx.us/corp/options.shtml · verified April 21, 2026
Texas Secretary of State expedite service: $25 per document for expedited processing (typically 2 business days). Applies to paper filings mailed or delivered to the SoS. SOSDirect online filings are normally processed within a few business days without a separate expedite fee. - Annual report fee: comptroller.texas.gov/taxes/franchise/ · verified April 21, 2026
Texas LLCs file an annual Franchise Tax Report and Public Information Report with the Comptroller by May 15. No separate filing fee for the PIR. Under SB 3 (88th Leg., 2nd C.S., effective for reports due in 2024 and later), entities with total revenue at or below the no-tax-due threshold no longer file a No Tax Due Report but still file the PIR. - Franchise tax: comptroller.texas.gov/taxes/franchise/ · verified April 21, 2026
Texas Tax Code Chapter 171 (Franchise Tax). No-tax-due threshold raised to $2.47 million for reports due 2024 forward (SB 3, 2023). Rates: 0.375% retail/wholesale margin; 0.75% other. EZ computation 0.331% on revenue up to $20M (no deductions). Confirm current threshold on Comptroller site each year. - Operating agreement requirement: statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm · verified April 21, 2026
Texas Business Organizations Code §101.052 authorizes a company agreement (Texas's term for an operating agreement). Not required to be in writing or filed; LLC may operate under default statutory rules. - Foreign LLC registration fee: www.sos.state.tx.us/corp/forms/304_boc.pdf · verified April 21, 2026
Texas Secretary of State Form 304 Application for Registration of a Foreign LLC. Filing fee $750. Authority: TBOC §9.001. - Publication requirement: statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm · verified April 21, 2026
Texas does not require newspaper publication for LLC formation. TBOC Chapter 3 governs formation filings without any publication requirement. - Business name search: mycpa.cpa.state.tx.us/coa/ · verified April 21, 2026
Texas Comptroller Taxable Entity Search (the broadly-used search for Texas business entities). SOSDirect also offers a paid name search for $1 per request. - Sales tax rate: comptroller.texas.gov/taxes/sales/ · verified April 21, 2026
Texas statewide sales and use tax rate is 6.25%. Local jurisdictions may add up to 2% for a maximum combined rate of 8.25%. - 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.