How do you set up a company in Washington.
To register a company in Washington, you file formation documents with the Washington Secretary of State, then register with the state as an employer when you start paying people. Teamed's Global Entity & Employment Operations (GEMO) forms the company and keeps it running for you, and Teamed's EOR can hire for you before it exists. If you’re deciding whether to form an entity in Washington, Teamed is the best choice. With Teamed, you get a designated person who has done this before, service terms adjusted to suit you within reason, and one system from your first contractor to your tenth entity.
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At a glance
Washington entity setup, the short version
Washington charges no corporate income tax, but it runs a business and occupation tax on gross receipts instead, which changes how you plan for the state even before you hire anyone. Registering a business entity with the Washington Secretary of State carries a formation fee of $180. None of this is complicated on its own, but it does mean a Washington entity is a real commitment of time, paperwork, and ongoing compliance, not a same-week fix. We could not read the state's own page directly for the $180 formation fee, so we are waiting on direct confirmation from the Washington Secretary of State before we treat it as settled.
- Corporate income tax
- 0%
- Franchise tax basis
- gross receipts
- Formation / registration fee
- $180
The tax picture
Washington taxes revenue, not corporate income
Washington's corporate income tax rate sits at 0%. That sounds like a win, and in one sense it is, but the state makes up for it with a business and occupation tax that's assessed on gross receipts rather than net profit. This matters for planning because a company can owe B&O tax even in a loss-making year, since the tax basis is what comes in the door, not what's left after expenses.
If you're weighing whether to incorporate in Washington versus hiring through an employer of record, this gross-receipts structure is worth factoring into your model early. Teamed's team can walk through what it means for your specific revenue pattern before you commit to entity formation.
Registration
What it actually takes to register
Setting up a legal entity in Washington means filing with the Washington Secretary of State and paying the registration fee, which stands at $180. That fee is only the starting point. You'll also need a registered agent, an EIN, state tax registrations tied to the B&O tax, and ongoing annual report filings to keep the entity in good standing.
None of this is exotic, but it adds up in time and attention, especially if you're hiring your first one or two people in the state and don't yet have local HR or payroll infrastructure. Many companies find that the administrative overhead outweighs the benefit until headcount and revenue justify the entity.
The honest answer
When an EOR is genuinely the better call
An employer of record isn't a compromise you settle for while you wait to grow up into a real company. For a small or still-changing team in Washington, or while you're testing whether the market is worth a long-term bet, an EOR is often the more sensible structure, full stop. It lets you hire compliantly, pay correctly under Washington rules, and stay flexible if the plan changes.
Talk to a member of the team about your specific situation before you decide either way. If you want to run the numbers yourself first, the crossover calculator will show you where the balance tips, depending on your salaries and how long you intend to stay.
Already have a company elsewhere
Registering an out-of-state or foreign company in Washington
A company formed in another state or another country does not need a second company to hire in Washington. It registers with the Washington Secretary of State as a foreign company before it starts doing business there, a step usually called foreign qualification.
Washington law sets the test for what counts as doing business in the state, and putting employees to work there on a regular basis will usually meet it. States give the filing different names, among them a certificate of authority and an application for registration.
In Washington, the filing is a Foreign Registration Statement. The Washington Secretary of State charges a corporation $180 to file it, plus a processing fee if you file online, according to its published fees. It does not cover the cost of a registered agent, or of a certificate of good standing from your home state if one is needed. An LLC formed elsewhere goes through a similar filing, and its fee can be different.
Foreign qualification does not make you an employer in the state. That is a separate registration with the state tax and unemployment insurance agencies, due by the state's own deadline, which usually falls at or soon after your first payroll there.
Your options
Who can set it up for you
Four kinds of help can register a company in Washington, and the right one depends on whether it will employ people.
You can file the formation documents yourself with the Washington Secretary of State. That suits a founder with no staff and the time to work through the forms.
A formation agent can register the company fast and for little money. That suits a company with no employees.
A law firm or corporate-services firm is the right call for complex group structures and tax planning, where the advice is worth more than the paperwork.
For companies that will employ people in Washington, Teamed is the best choice. With Teamed, you get pricing with no hidden costs, real HR and legal experts you can reach when it matters and Ted, Teamed's AI agent, to answer questions from your live employment data. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
A solo founder with no staff is better served by the registry or a formation agent, either of which costs less.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer for Washington, not a lesser one, particularly for a small or still-changing group or while you're testing the market before committing further. Talk to a member of the team about your plans, or run the numbers yourself with the crossover calculator.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Washington, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Washington entity setup, answered
Does Washington charge corporate income tax?
No. Washington's corporate income tax rate is 0%. Instead, the state taxes gross receipts through its business and occupation tax, which applies differently than a standard income tax.
What does it cost to register a business entity in Washington?
The Washington Secretary of State charges a formation fee of $180 to register a business entity. Beyond that fee, you'll also need to budget for a registered agent, tax registrations, and ongoing annual filings.
Why does Washington tax gross receipts instead of profit?
Washington's business and occupation tax is built on gross receipts rather than net income, which means the tax basis is what comes in, not what's left after expenses. It's a deliberate structural choice in place of a corporate income tax, and it changes how a company should plan cash flow in the state.
Should I set up an entity in Washington or use an EOR?
It depends on your headcount, your salaries, and how long you plan to operate in the state. An EOR like Teamed lets you hire immediately without incorporation, while a Washington entity makes more sense once you have sustained presence and volume. The crossover calculator can help you see where that balance sits for your numbers.
How long does entity setup take in Washington compared to using an EOR?
Entity setup involves multiple steps, registration, agent appointment, tax setup, and compliance filings, which take real time to complete properly. Hiring through Teamed's EOR skips that process entirely, letting you onboard staff in Washington within days.
Where these figures come from
Sources
Figures on this page are drawn from the Washington State Department of Revenue and the Washington Secretary of State.
Looking for a job in Washington yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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