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Who Pays B&O Tax in Washington?
- If there are sales of goods and services to a person who will resell to others, you need to report income. The B&O tax rate is 0.484 percent of gross receipts.
Filing Requirements in Washington
- LLCs are required to file an annual report within 120 days of formation to update information like addresses and registered agents. New agents must sign the report.
- Articles are filed with the Secretary of State to form corporations and LLCs for a cost of $180 with 3-day processing. Within 120 days, they must file an Initial Report with a $10 fee.
- Following formation, most businesses in Washington must also file a federal Beneficial Ownership Report.
Tax Reporting and Payments
- TaxJar’s AutoFile service for Washington uses the ISR format to file returns and payments, handling sales and use tax liability. TaxJar will file your B&O return at no extra charge.
Exemptions and Credits
- Eligible airplane and parts manufacturers and repairers receive credits and exemptions, most expiring in July 2040. The repair operators sales tax exemption ends January 2027.
Other Tax Guidelines
- The B&O tax applies varying rates against apportioned products, proceeds, or income by business activity.
- Individual returns are due per federal returns, including extensions. Electronic payment is required by the original due date regardless of extensions. Joint filers have joint and several liabilities.
