In Washington State, you can form an limited liability company.
A limited liability company provides protection against liability for financial loss and protects you from double taxation.There are features of a corporation and partnership.There are certain rules that must be followed in order to form your own limited liability company.While the general guidelines to forming an limited liability company are the same across the United States, you will want to pay particular attention to the rules for the state which will approve your company.In Washington, there are some quirks in the application process which you need to be aware of.
Step 1: Washington had naming requirements.
Washington law requires that the words "limited liability company" or "Limited Liability Co." be included in the company name.
Step 2: You can choose a unique name.
Your business name has to be unique from the other company's name on file with the Secretary of State.It must be a company name that is not confused with any other name.
Step 3: You can check name availability.
The Washington Secretary of State has a business name database.There is a database of businesses in Washington state.Washington's Secretary of State website can be found at http://www.sos.wa.gov/.You can reserve a business name for 180 days.The Secretary of State in Washington does this as well.A fee of $30 is associated with the reservation of a name.
Step 4: Avoid the word restricted.
These words can't be used in corporate names in Washington.The words that are considered restricted are: bank, lender, cooperative, partnership, trust, corporation, and abbreviation corp.
Step 5: A registered agent can be appointed.
If it is sued, a registered agent will accept legal papers on the behalf of the company.Papers will be received and sent on your behalf by the agent.When choosing a registered agent, you should make sure that he or she is a resident of Washington state.Your agent should have a physical street address in the state of Washington.If you fit the above requirements, you can either be the registered agent or another individual within the company.You can use a registered agent service.There are several benefits to using a registered agent service, including the ability to form an limited liability company in Washington if you do not reside in the state, the reliability of a service that is always open during regular business hours, and the utility of having someone to advise you in finding state-
Step 6: You need to access and complete the certificate of formation.
The certificate can be found on the Secretary of State's website.This is important for any company that wants to form an limited liability company in Washington.The form can be found here: http://www.sos.wa.gov/_assets/corps
Step 7: All necessary data should be included.
The certificate is a fill-in-the-blank form and must include the following: the name of the company, its registered agent, and the effective date of formation.The names and addresses of the people who created the certificate of formation will be decided on the dissolution date.
Step 8: You need to submit your certificate of formation.
The form can be submitted online or by mail.The online filing will be processed in a few days.
Step 9: You have to pay the filing fee.
The filing fee in the state of Washington is $180 for a certificate of formation sent by mail.You can pay by check, credit card, or debit card if you file by mail or online.The Secretary of State's website has on-screen directions for filing online.You should send your certificate of formation to the Secretary of State if you file by mail.
Step 10: Obtain an employer identification number.
An EIN is a number used to identify a business entity; it can be thought of as a social security number for the company.To open a bank account, to file federal and state taxes, and to hire employees, you need an EIN.It's required if there are more than one member.You will get your EIN from the IRS.The online application fee is provided by the IRS.There are no fees for applying for an EIN.If you are the only employee of a single-member limited liability company, you could use your social security number.An EIN can be used to establish a business credit history and separate your personal and business finances.
Step 11: The application for a business license should be filed.
When you first start a business, you must fill out the Business License Application.Your business will be officially registered in Washington if you file the Business License Application.When you file a Business License Agreement, you will receive a unified business identification number.The state of Washington requires a nine-digit UBI number to conduct business.The Department of Revenue, Business Licensing Service, Office of the Secretary of State, and the Departments of Employment Security and Labor and Industries will all be linked to it.A state business license is required for all businesses in Washington and will allow you to register a "trade name" for your business.This trade name will allow you to operate your business under a different name than the one you listed on the certificate of formation.You can create a state employment account with the Business License Application.If you have employees in Washington, you need a state employment account.If you plan to hire someone within 90 days, it should be hired.The fee for applying for a business license is 20 dollars.You can mail the application to the State of Washington.
Step 12: An Initial Annual Report should be filed with the Secretary of State.
It will cost $10 to file this report within 120 days of filing the certificate of formation.If you filed your certificate of formation online, you will be required to enter an online application ID that was given to you as well as your UBI number in order to file this report.You will receive the Initial Annual Report form from the state if you filed your certificate of formation by mail.You will have to pay a fee after you file your Initial Annual Report.The Secretary of State will determine the due dates.
Step 13: You have to register for state tax.
The responsibility for paying taxes is the responsibility of individual members of a limited liability company.Washington does not have a personal income or corporation income tax.Washington has a business and occupation tax which applies to limited liability companies.The Department of Revenue has a website where you can find information on specific rates and classifications of limited liability companies in relation to the B&O tax rate.If your business makes less than $7,000 in a quarter, you won't be required to pay B&O tax, but you will have to complete the excise tax return.
Step 14: Hire employees.
You will need to pay employer taxes if you have employees.Whenever an employee is hired, you must inform the IRS and the state of Washington.Businesses that hire employees are required to register for workers' compensation and unemployment insurance under the "Hiring Employees Section" on the IRS website.This can be done when you apply for a business license.