Washington State has a lively community of small businesses, and over 608,000 small businesses are registered. These businesses provide 1.4 million jobs, making up more than half of the state’s private-sector workforce. If you’re considering starting a business in Washington State, you’re in good company, and plenty of resources are available to help you get started.
This guide will assist you in starting a limited liability company (LLC) in Washington. It represents the crucial first step towards achieving your business goals in the state.
Step 1: Name your Washington StateLLC
Step 2: Choose a Registered Agent
Step 3: Create a Certificate of Formation
Step 4. Obtain a Washington Business License
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Washington StateLLC
Before you start an LLC in Washington State, you must choose a name for your certificate that meets specific requirements:
- Required Terms: Your business name must include “Limited Liability Company,” “Limited Liability Co.,” “LLC,”
- Uniqueness: Check the Secretary of State’s website to verify that another business in Washington State still needs to start using your chosen name.
- Government Terms: Avoid using terms that imply a connection to government agencies (e.g., State Department, CIA, FBI, Treasury).
- Restricted Words: Certain words (like a bank, lawyer, attorney, and credit union) may require additional paperwork or licensing to use in your business name.
Refer to Washington State’s official guidelines for a complete list of naming rules to ensure compliance when registering your LLC.
Additional considerations:
Reserve your name: To reserve a business name before starting an LLC in Washington State, complete a name registration form and send it to the Secretary of State with a $30 filing fee (or $50 for expedited service). You can make this reservation up to 180 days in advance.
Website domain: Even if setting up a webpage isn’t your first concern, securing a domain name for future use is essential. Before you decide on your LLC name, check if the matching URL is available.
Step 2: Choose a Registered Agent
In Washington, you need to appoint a registered agent for your LLC.
The registered agent is the LLC’s official contact. They receive legal papers, government letters, tax forms, and notices of lawsuits for the LLC.
Your registered agent can be a person (including yourself or an employee) or a company that offers registered agent services. Here are the requirements:
- The entity providing the service must have an address in Washington.
- The agent must be available at their Washington address during regular business hours to accept documents.
Step 3: Create a Certificate of Formation
This step is where you formalize things and choose whether your LLC will manage itself by its members or appointed managers.
You’ll officially complete the Certificate of Formation to start an LLC in Washington State as a legal entity in Washington. Here’s what you typically need to provide:
- Name and address of your registered agent
- Principal office address and contact information
- Business duration
- Effective start date of your LLC
- Name and signature of the LLC organizer
- Name of the LLC manager
- Nature of your business
- The return address for filing
You can submit your Certificate of Formation through the Washington Corporations Filing System or by mail. The filing fee is $200, payable online when you submit your form.
Step 4. Obtain a Washington Business License
To start an LLC in Washington State, one must obtain a business license registration from the Department of Revenue. In Washington, any company that hires employees or pays state taxes must have this license. After submitting the LLC certificate of formation, apply for the business license registration.
You can apply online or in person. Once approved, you’ll receive a Unified Business Identifier (UBI), a nine-digit number necessary for filing the LLC’s annual report and other required documents.
Step 5: Obtain an Operating Agreement
An operating agreement outlines how your LLC operates. While Washington state doesn’t mandate it, having a written operating agreement is crucial for your business. It helps resolve disputes over financial matters and potential legal issues. Without one, courts decide based on state law, not necessarily in the LLC’s best interest.
Your operating agreement can cover the following:
- LLC’s name and address
- Duration of the LLC
- Registered agent’s name and address
- Details from the certificate of formation
- Business purpose
- Members and their contributions
- Profit and loss distribution
- Process for admitting or removing members
- LLC management
- Indemnification and liability terms
Step 6: Get an Employer Identification Number
The IRS gives the nine-digit Employer Identification Number (EIN) to identify your LLC for taxes. You can get your EIN by mail or online through the IRS.
An EIN is needed to:
- File and manage taxes at the state and federal levels
- Open a business bank account
- Hire employees
Follow these steps to establish a business in Washington State and run your business.
LLC State Guides
FAQs:
What is the cost of starting an LLC in Washington state?
The Washington Secretary of State charges a $180 fee for filing the Certificate of Formation by mail and $200 if filed online. In addition, reserving a name for an LLC costs $30, and you can request expedited processing for an additional $50.
Can I use a P.O. Box for my LLC address in Washington?
Yes. You can use a P.O. Box for your LLC address in Washington State. However, using a physical street address for official mail and legal papers is usually better. Using a P.O. Box might give you some privacy advantages, but it could also affect your LLC’s credibility and accessibility.
Am I allowed to serve as the Registered Agent for my LLC in Washington State?
Yes, In Washington State, while you can act as your LLC’s Registered Agent, many entrepreneurs prefer professional services to ensure compliance and reliability in receiving legal notices and official correspondence.
