The short answer
Yes — Washington is a reasonable LLC home for the right founder. Strong points: No personal income tax, Strong banking.
Three deciding questions
1. Do you live or operate in Washington?
If yes, form here. Out-of-state formation while operating in Washington costs double, not half.
2. What is the 5-year all-in cost?
$800 (filing + 5 × annual report + $50 registered agent + franchise minimums). This is the actual number to compare across states.
3. What are your three real requirements?
- Privacy: 5/10 (moderate — members appear on public filings).
- Banking: 9/10 (top-tier — Mercury, Brex, every bank accepts).
- Cost: low 5-year total.
Washington pros
- No personal income tax
- Strong banking
Washington cons
- B&O tax on gross receipts (no deductions)
- 7% capital gains tax (>$262k)
Most common alternative
Wyoming for cost + privacy. Delaware for VC-backed startups. Your home state if you operate there. Run the 5-question quiz for a personalized shortlist.