Businesses operating in Washington are subject to the state’s Business and Occupation (B&O) tax. LLCs are not exempt from the B&O tax, which is determined using the business’s gross receipts. Additionally, LLCs in the state of Washington must submit a $60 yearly report fee to the Secretary of State.
LLCs in the state of Washington could be charged additional taxes like sales tax or use tax on top of the B&O tax and yearly report fee. Depending on the type of business and its operations, an LLC may be obliged to pay specific taxes.
You must report your business income on your personal tax return if you own a small business, whether it is an LLC or another kind of entity. This is so because the majority of small firms are regarded as “pass-through” entities, which means that the owners are given a share of the company’s revenues and losses to declare on their personal tax returns.
You must submit a Schedule C along with your personal tax return in order to claim your small business as an expense on your taxes. This form is used to determine your business’s net income subject to tax and to record your revenue and outgoings.
Depending on the type of your business, you might also need to submit other documents and pay additional taxes in addition to the Schedule C. For instance, if you have employees, you will need to pay Social Security and Medicare taxes as well as file payroll tax forms.
Finally, LLCs in the state of Washington are obligated to pay taxes, such as the B&O tax and annual report fee. Small business owners must include their business income on their personal tax filings, including those who own LLCs. To make sure that you are fulfilling all of your tax duties as a small business owner, it is crucial to speak with a tax expert.