
Seattle. The Space Needle. Starbucks and the Seahawks. Washington is known for many things including its superb mountain ranges and also as a place where businesses of all shapes and sizes set up.
Numerous budding entrepreneurs choose Washington to launch their LLC and tap into the state’s tech, real estate and aerospace economy. To find out how to setup your Washington LLC, read our guide below.
Summary
In addition to its many other advantages, a limited liability corporation (LLC) provides small enterprises with protection from legal responsibility and favorable tax treatment.
Follow these easy steps to get your limited liability company (LLC) operating in the state of Washington after you’ve decided that an LLC is the most suitable form of business organization for your requirements.
Note: You have the option of forming the LLC personally or through a business creation service.
1. Naming of your Washington LLC
It is essential that you be aware that the name of your company must adhere to all of the federal and state laws and regulations. The state of Washington mandates that the name of your limited liability company be:
- You are required to have the word “limited liability corporation” or one of its acronyms included in the name of your business (LLC or L.L.C.).
- You are not allowed to use any terms in your company’s name that might lead to confusion with a public entity (FBI, Treasury, State Department, etc.).
- Words that are considered restricted, such as “bank,” “attorney,” and “university,” may need extra documentation and the incorporation of a licensed professional as a member of your limited liability company (LLC).
Do a name search for an LLC in the state of Washington using the Washington Corporations and Charities Filing System to be sure the name you choose isn’t already in use.
2. Washington Registered Agent Service
In the state of Washington, limited liability companies are required to choose an agent who may accept legal documents on their behalf. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
The Registered Agent may either be a resident of the state of Washington or a business entity that is permitted to conduct operations in the state. An actual street address in the state of Washington is required of the Registered Agent.
What does it mean to have a Registered Agent?
A Registered Agent is a person or business entity that is responsible for receiving important tax forms, legal documents, notice of lawsuits, and official correspondence from the government on behalf of your company.
This can include tax forms, legal documents, notice of lawsuits, and official correspondence. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who qualifies for the role of Registered Agent?
A Registered Agent must either be an individual who lives in the state of Washington on a permanent basis or a company that is permitted to carry out business in the state of Washington, such as a Registered Agent service.
You also have the option of selecting anybody who works for the organization, including yourself.
3. Submit a copy of your company’s Certificate of Formation.
In order to legally do business in the state of Washington, a limited liability company (LLC) must first submit the formation paperwork required to them. At this time, the charge to create an LLC via electronic filing is $200.
This is the paperwork that officially recognizes your limited liability company (LLC) as a valid legal entity in the state of Washington.
What information should be included on a Certificate of Formation?
When completing the Certificate of Formation for your Washington LLC, you are required to give the following information:
- The name and address of the registered agent: This is the individual or company that will be responsible for receiving legal papers on behalf of the business, being accessible during normal business hours, and other similar responsibilities.
- The contact information and main office address: You will be required to supply a phone number as well as an email address for your company. Both the street address of your company and its postal address, if they are different, must be included.
- You will have the opportunity to choose whether the lifetime of your business is eternal, whether it will terminate after a certain amount of years, or whether it will terminate on a particular day.
- The effective date of business operations: When your company officially starts to exist as a separate entity. You have the option of selecting the date of registration or an alternative date; however, the date you choose cannot be more than ninety days removed from the day you filed. It also cannot occur before the day the claim was filed.
- Executor: The state of Washington mandates that every company must have at least one executor. An individual who organizes the limited liability company (LLC) and signs the Certificate of Formation is referred to as an executor. It is forbidden for a legal entity to serve as its own executor.
- Governor: Additionally, the state of Washington mandates that every company must have at least one governor. A person or entity that is included on an organization’s annual report is called a governor. A governor in an LLC is often either a member or a manager.
- The nature of the company: You are free to be particular, but a remark that is more generic will do the trick.
- A return address for submission: This is the email and physical address where you would want any further communication about your application to be sent.
Online Submission of Your Certificate of Organization
While the online filing of documents is preferred by the Washington Secretary of State, paper forms are still accepted for an additional cost. After acceptance, your limited liability company will be assigned a Unified Business Identifier by the state of Washington (UBI).
You are going to need that number when interacting with other state authorities, so be sure that you maintain a note of it somewhere safe. You are obliged to submit an Initial Report within the first 120 days of founding a limited liability company in the state of Washington. This report serves as the initial annual report that your LLC will file each year.
4. Obtain a Certificate From Washington State
After the formation paperwork of the LLC has been submitted and authorized, the state will send you a certificate that proves the LLC’s official existence in response to a written request for a copy together with the appropriate amount of postage.
With this certificate, the limited liability company will be able to apply for and get an Employer Identification Number (EIN), as well as acquire business permits and open business bank accounts such as Bluevine or Novo bank.
5. Draw out a Contract for Business Operations
Even while establishing a detailed LLC operating agreement is not a legally required step for founding a limited liability company in the state of Washington, it is highly suggested for all new limited liability firms to do so.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific duties and commitments that each member of the limited liability company (LLC) has, and lay out the operational structure of the LLC.
In the absence of an operating agreement that outlines the specific obligations of its members, a limited liability corporation (LLC) may face significant legal and practical issues.
6. Obtain a tax EIN number
A federal employer identification number, commonly known as a tax ID number, will be required of many limited liability companies (LLCs). An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service.