Washington LLC vs Delaware LLC (2026)
Compare Washington LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Washington | Delaware |
|---|---|---|
| Filing Fee | $200 | $90 |
| Processing Time | 2 day(s) | 7 day(s) |
| Annual Report Fee | $60 | $300 |
| Annual Report Due | Anniversary month | June 1 |
| State Income Tax | No | No |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$200 + registered agent ~$100-200/yr |
Verdict: Washington wins for most businesses
For most small businesses operating in Washington, forming locally is the smart choice due to lower ongoing costs and no foreign registration requirements. Delaware only makes financial sense if you need anonymous ownership or have investors specifically requiring Delaware formation.
Filing Fees & Formation Costs
Delaware has a lower initial filing fee at $90 compared to Washington's $200, saving you $110 upfront. However, if you operate in Washington but form in Delaware, you must register as a foreign LLC in Washington, which costs approximately $200 plus annual registered agent fees. This means Delaware formation actually costs $290+ initially versus $200 for Washington formation. The apparent savings quickly disappear when you factor in the required foreign registration.
Taxes: Washington vs Delaware
Both Washington and Delaware are tax-friendly states with no state income tax on LLC profits. Washington doesn't impose franchise taxes on LLCs, while Delaware charges an annual franchise tax of $300 for LLCs. If you form in Delaware but operate in Washington, you'll still pay Washington's Business & Occupation (B&O) tax if applicable. The tax burden essentially remains the same, but Delaware adds its $300 annual franchise tax on top.
Privacy & Asset Protection
Delaware offers superior privacy protection by allowing anonymous LLC ownership — your name doesn't appear in public records if you use a registered agent service. Washington requires member names in formation documents, making ownership information publicly accessible. Both states offer strong asset protection through charging order protections, but Delaware's court system is more business-friendly with specialized chancery courts. For business owners prioritizing privacy, Delaware has a clear advantage despite the higher costs.
Annual Maintenance Costs
Washington LLCs pay just $60 annually for their report, while Delaware charges $300 in franchise taxes plus filing fees. If you form in Delaware but operate in Washington, you'll pay both states' annual fees plus $100-200 yearly for a Delaware registered agent. Total annual costs for a Delaware LLC operating in Washington can reach $500-600 versus $60 for a Washington LLC. Over five years, this difference amounts to $2,200-2,700 in additional expenses.
When Delaware Actually Makes Sense
Delaware formation is worthwhile for businesses seeking anonymous ownership, companies planning to raise venture capital (many investors prefer Delaware), or multi-state operations where you're not tied to Washington. If privacy is critical to your business model or you're building a startup that may seek investment, Delaware's benefits can justify the extra costs. For typical small businesses, service providers, or local retailers operating primarily in Washington, the additional expense rarely provides meaningful value over Washington's simpler, more cost-effective formation process.