Is it cheaper to form an LLC in Washington than Pennsylvania?

No. Washington costs more upfront ($200 vs $125), and if you operate in Pennsylvania you must also register there as a foreign LLC ($250) plus pay a Washington registered agent. Realistic first-year cost is roughly $600 versus $125 for forming locally.

Can I form my Pennsylvania business in Washington?

Yes. Any Pennsylvania business can form its LLC in Washington. But if the business operates in Pennsylvania, it must also register there as a foreign LLC ($250 filing fee) and maintain a registered agent in Washington, so you take on two states' fees and filings instead of one.

Does Washington have better asset protection than Pennsylvania?

Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.

State Comparison

Pennsylvania LLC vs Washington LLC (2026)

Written for owners based in Pennsylvania.

Verdict: for most owners, form where the business is based

Washington's $200 online formation is $75 above Pennsylvania's $125, and filing by mail is actually cheaper there at $180 because a Washington rule adds a $20 online processing fee. The annual report is $70 against Pennsylvania's $7. The no-income-tax reputation is misleading for a business: the Business and Occupation tax applies to gross receipts with no deduction for labor or materials, so an unprofitable year can still owe tax. Budget a $50 Business License Application and $5 a year to renew it, plus $250 to register in Pennsylvania.

Based in Washington? Read Washington LLC vs Pennsylvania LLC →

Compare Pennsylvania LLC vs Washington LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.

By Edmond Hui · Last updated: October 5, 2026

If your business is based in Pennsylvania, a Pennsylvania LLC needs no foreign registration there; a Washington LLC run from Pennsylvania generally must also register in Pennsylvania as a foreign LLC (Pennsylvania's $250 filing fee). If your business is based in Washington, a Washington LLC needs no foreign registration there; a Pennsylvania LLC run from Washington generally must also register in Washington as a foreign LLC (a filing fee of at least $180). An LLC formed in one of these states and run from the other owes whatever filings, fees and taxes each state requires. A Pennsylvania LLC runs $132 in year one and $7/yr after; a Washington LLC runs $270 and $70/yr. See the full breakdown below.

Using a formation service? We compare the 4 formation services that pay us a commission, on three-year service cost, BBB rating and Trustpilot score.

Compare LLC formation services →

Or by state: Best LLC services in Pennsylvania, Best LLC services in Washington

Ready to file? Our affiliate partner ZenBusiness files your LLC formation paperwork, from $0 + state fee.

Start your LLC with ZenBusiness →

Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.

Factor	Pennsylvania	Washington
Filing Fee	$125	$180 by mail, $200 online ($20 online surcharge)
Processing Time	2 to 4 days	Within 15 business days (paper)
Annual Report Fee	$7	$70
Annual Report Due	September 30	Last day of anniversary month
State Income Tax	Yes	None through 2027; 9.90% above $1M from 2028
Anonymous LLC	No	No
Publication Requirement	No	No
Foreign LLC Cost (if forming out-of-state)	N/A, you're in your home state	$250 + registered agent ~$150/yr

Full fee breakdown for either state: Pennsylvania LLC cost and Washington LLC cost. Owner privacy options for either state: Pennsylvania anonymous LLC guide and Washington anonymous LLC guide.

Business Climate: Pennsylvania vs Washington

Factor	Pennsylvania	Washington
5-year business survival rate	57.1% (#1 of 51)	42.2% (#51 of 51)
Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months))	+6.5% YoY (#12 of 51 by volume)	-25.5% YoY (#15 of 51 by volume)

Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)

See the full 50-state survival ranking.

Compare LLC Costs: Pennsylvania vs Washington

State A

State B

Pennsylvania

✓ Cheaper Upfront✓ Cheaper Long-Term

Formation fee$125

Annual report fee$7

State entity taxNone

Report dueSeptember 30

Processing time2 to 4 days

Late penalty$0

Washington

Formation fee$200

Annual report fee$70

State entity taxNone

Report dueLast day of anniversary month

Processing timeWithin 15 business days (paper)

Late penalty$25

Total Cost

Pennsylvania

Washington

1 Year

$132

$270

3 Years

$146

$410

5 Years

$160

$550

Will you operate outside your home state?

A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.

Filing Fees & Formation Costs

Pennsylvania charges $125 to form an LLC, while Washington charges $200. Pennsylvania is $75 cheaper upfront. The cost that usually gets overlooked: if you form in Washington but operate in Pennsylvania, you must also register as a foreign LLC in Pennsylvania (a $250 filing) and maintain a registered agent in Washington (typically around $150 per year). That puts the realistic first-year cost of the Washington route at roughly $600, versus $125 for simply forming in Pennsylvania. Both states publish a standard turnaround, Pennsylvania (2 to 4 days) and Washington (within 15 business days, paper), though a published figure is a norm, not a guarantee.

Taxes: Pennsylvania vs Washington

Washington has no personal income tax through 2027 while Pennsylvania does (from 2028 Washington taxes individuals at 9.90% on income above a $1,000,000 standard deduction), but forming your LLC in Washington won't change that. LLC profits pass through to you and are taxed where you live and operate (in Pennsylvania), not where the LLC is registered, so a Washington LLC offers no income-tax savings for a Pennsylvania-based business. Pennsylvania levies a flat 3.07% personal income tax. Washington imposes the Business & Occupation (B&O) tax on gross receipts.

Privacy & Asset Protection

Neither Pennsylvania nor Washington offers anonymous LLC formation: both states require owner or manager information on public filings. Washington's report records the LLC's governors (members/managers) on the public record. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.

Annual Maintenance Costs

Pennsylvania LLCs file an annual report ($7, due September 30), and Washington LLCs file an annual report ($70, due in the anniversary month). If you form in Washington while operating in Pennsylvania, you maintain filings in both states, Washington's report plus Pennsylvania's equivalent for your foreign registration, and pay a Washington registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Washington route to roughly $227 a year, versus about $7 to keep a domestic Pennsylvania LLC in good standing. The tax inside those totals: Washington imposes the Business & Occupation (B&O) tax on gross receipts.

When Washington Actually Makes Sense

Forming in Washington makes sense in a few specific situations: your business genuinely operates in Washington, with a real office, employees, or property there, or you're relocating to Washington in the near future, which would also move you out of Pennsylvania's personal income tax. For a typical small business based in Pennsylvania, none of these usually apply. Registering a Washington LLC to do business back home means $250 in Pennsylvania foreign-registration fees, on top of Washington's $200 formation fee, while Pennsylvania's own annual report runs $7 a year and is due September 30. When in doubt, form where you actually do business.

Frequently Asked Questions

: No. Washington costs more upfront ($200 vs $125), and if you operate in Pennsylvania you must also register there as a foreign LLC ($250) plus pay a Washington registered agent. Realistic first-year cost is roughly $600 versus $125 for forming locally.
: Yes. Any Pennsylvania business can form its LLC in Washington. But if the business operates in Pennsylvania, it must also register there as a foreign LLC ($250 filing fee) and maintain a registered agent in Washington, so you take on two states' fees and filings instead of one.
: Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.
: It depends on where the business is based. For a Pennsylvania-based business, Pennsylvania: forming where the business is based keeps costs and compliance simple, and Washington is worth considering only if you actually do business there. For a Washington-based business, the same reasoning points to Washington.
: Both states publish a standard turnaround, Pennsylvania (2 to 4 days) and Washington (within 15 business days, paper), though a published figure is a norm, not a guarantee. Whichever you pick, remember that forming in Washington while operating in Pennsylvania means you're not fully set up until the Pennsylvania foreign registration is also processed, so the out-of-state route is rarely the faster path end to end. If your timing is genuinely fixed, buy the state's expedite tier rather than relying on a standard turnaround.

Comparison chart of forming an LLC in Pennsylvania versus Washington, contrasting filing fees, annual report cost and ongoing obligations across 8 factors. — Pennsylvania and Washington side by side on the factors that decide where to form. Source: MyStateLLC 50-state cost dataset, verified against each Secretary of State's published fee schedule, July 2026.

Ready to form your LLC?

Using a formation service? We compare the 4 formation services that pay us a commission, on three-year service cost, BBB rating and Trustpilot score.

Compare LLC formation services →

Or by state: Best LLC services in Pennsylvania, Best LLC services in Washington

Our affiliate partner ZenBusiness files your LLC formation paperwork, from $0 + state fee.

Start your LLC with ZenBusiness →

Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.

More State Comparisons

Pennsylvania vs West Virginia →Pennsylvania vs Wisconsin →Pennsylvania vs Wyoming →Pennsylvania vs Delaware →Washington vs Delaware →

Pennsylvania LLC Guide →Washington LLC Guide →

📎

Embed this comparison, free

Add the Pennsylvania vs Washington cost calculator to any page. Works in WordPress, Squarespace, Webflow, and any HTML site.

<iframe src="https://www.mystatellc.com/tools/compare-states?embed=1&stateA=PA&stateB=WA" width="100%" height="720" frameborder="0" style="border:0;max-width:900px;display:block;margin:0 auto;" title="Pennsylvania vs Washington LLC Cost Comparison" loading="lazy"></iframe>
<p style="text-align:center;font-size:.8125rem;color:#6b7280">Source: <a href="https://www.mystatellc.com/llc/compare/pennsylvania-llc-vs-washington-llc">MyStateLLC, Pennsylvania vs Washington LLC Comparison</a></p>

Sources

Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.

Pennsylvania law: Act 122 of 2022 (annual report replacing decennial report)
Washington regulation: WAC 434-112-075 (online processing fee)
pa.gov/agencies/dos/programs/businessPennsylvania Department of State, Bureau of Corporations and Charitable Organizations: business entity filings
pa.gov/agencies/dos/programs/business/fees-and-paymentsPennsylvania LLC filing fees
sos.wa.gov/corporations-charities/business-entities/limited-liability-company-llc-professional-llc-pllc-filing-resource-pageWashington Secretary of State: business entity filings
sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/fee-scheduleexpedited-serviceWashington LLC filing fees

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.