You're only exempt in Washington if you have ZERO employees.
Was getting tired of all the BS, so when secretary/bookkeeper left in May, I didn't replace her. WooHoo! No withholding, no L&I, no Unemployment.
But the downside is, now I have to do everything myself. Quarterly B&O taxes (business and occupation tax- a tax on your GROSS, not net, earnings). And I forgot to file by end of January for 4th quarter 2012, so now I'll have a penalty. Swell.