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Once you have formed a business in Washington, you need to find out if your business requires a license to operate in the state. Business license in Washington is categorized under the following:

• A General License: It is important to know that most Washington businesses are licensed through either a state agency or a local agency like the city clerk or counties. The application for business licensing is reviewed by the Department of Revenue’s Business Licensing Office.
• Specific Licensing for Regulated Industries and Professions: Different types of businesses or business activities have different licensing needs. Apart from a general business license, you may also be required to obtain additional licenses also defined as specialty licenses and permits.

You can apply for licenses or renew them online, through mail or in-person.

How to Get a Business License in Washington

Where and how do you apply for a business license in Washington? Does your business fall under the “specialized licenses” or “general license” category? Does your business entity require multiple permits or licenses? Who is the issuing authority for these licenses or permits? The only way to answer these questions is through an understanding of the process of business licensing.

Here is a step-by-step approach towards acquiring a business license in the state of Washington:

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Washington? The type of industry or the activities of a business entity helps in identifying the type of business license required. It is also important to note that some businesses will require only a permit and not a license.

Let’s take a look at some examples to understand this better:

Industry or Type of Business – Vehicle manufacturer, Vehicle transport and disposal, Architect Firm, Cigarette retailer, Collection agency—in state, Collection agency—out of state, Liquor endorsements, Seed dealer, Seller of travel

• A Washington Company License is required for all these businesses except that these require specialty licenses.
• The license is being issued by the State of Washington – Business Licensing Service.
• Fee: The fee varies with the type of business like the fee for an Architect Firm is $278 plus Architect Surcharge of $6.50 plus $19 non-refundable business license fee.
• Filing: You can file business license application ONLINE or submit the Application through mail or in-person. Architect Firm Application

Industry or Type of Business – Transient Accommodations (Hotels and Motels)

• A Washington company license is required for Transient accommodations pursuant to RCW 70.62 and that includes:
  – Hotels
  – Motels
  – Resorts
  – Bed and breakfasts
  – Inns
  – Hostels
  – Apartments
  – Condominiums
  – Crisis shelters
  – Retreats
  – Rustic resorts
• License issued by: Washington State Department of Health
• Fee: The business license fee varies according to the number of “Lodging Units” e.g: the license fee for an establishment with 3 – 10 lodging units will have a fee of $198 while the fee for 50 or more lodging units is $795.Transient Accommodations License Application

Industry or Type of Business – Liquor License

• A Liquor License in the state of Washington can be categorized under:
  – Retail Licenses: Licenses issued for Grocery stores, restaurants, clubs, taverns, etc.
  – Non-Retail Licenses: Washington company license issued for Breweries, wineries, distilleries, distributors, importers etc.
  Note: A liquor license in Washington is basically an endorsement on your business license that has been issued by the Washington State Department of Revenue (DOR) Business Licensing Service.
• Fee: The licensing fee will vary according to the type of retail or non-retail business. Let’s look at some examples. The fee for the following is:
  – Combination Spirits / Beer / Wine Off-Premises Retail License – Specialty Shop – $316
  – A Grocery Store selling beer or wine – $150
  – Hotels with at least 20 rooms and serving spirits, beer and wine – $2,000
  – Private Club – Spirits, Beer and Wine – $720
  – Spirits Distributor (Non-retail) – $1,320
  – Beer Distributor – $660
  – Domestic Winery – Production of less than 250,000 liters per year – $100
• Filing: You can submit liquor business license ONLINE or submit the Application through mail or in-person. License Application

Step#2: Licenses issued by City/County

It is important to know that a business license in Washington is not always issued by the state agencies; sometimes they are issued by the city or county. At the same time, it is not necessary that your business may require a license at all or may simply require a permit. Let’s look at an example to understand this:

Spokane County

If you start a food establishment that is temporary in nature then you will be required to apply for a “Temporary Food Establishment Permit” in Spokane, WA. It will be issued by Spokane Regional Health District (SRHD).

Fee: The business license fee depends on the level of Temporary Food Service Establishment (TFE). The fee for level 1 – 1 day is $100 while that of 5 to 21 Days is $140. Similarly, the fee for TFE Level 3 / 5 to 21 Days is $420.

Sample Application

In Spokane, permits are also required by Caterers, Mobile Food Service Units, Waste Recycling Plants, and Water Recreation Facilities among others.

Step#3: Issuance of a Business License

A business license in Washington will be issued by different state agencies and all you have to do is complete the following process:

1. Identify the type of business or industry
2. Identify whether you need a license or a permit or both
3. Identify whether it will be issued by the state or the city or county

Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city of clerk office.

It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.

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The Evergreen State has a tradition of fostering as well as helping build some of the largest organizations in the world, including Boeing, Amazon, Microsoft, Costco, and Starbucks. Today, there are approximately 250,000 companies headquartered in Washington or have based their operations here. Although, the state may be famous for its apples, airplanes, and wine, there are several other industries growing and expanding in the state right from mining to manufacturing, maritime trade, and life sciences. The real gross domestic product (GDP) of the state was $439.41 billion in 2017, which is good growth jump from $355.2 billion in 2010. Some of the most recognized brands, Start-up Companies in Washington, and innovative companies choose the evergreen state as their base of operations today.

Drivers of Business Growth for Start-ups

What makes Washington a great state for start-ups? The most important reason is that the state has a positive business climate that is driven by steady stream of highly qualified workforce. The culture of innovation and creativity, robust supply chain, being equidistant from Europe and Asia makes it a Centralized Export Hub, and then there is low-cost energy and a stable-scalable grid. Apart from this, if you register a new company in Washington, you can take advantage of a variety of business incentives offered by state and local agencies. Let’s take a look at some of the advantages of these two business entities:

Advantage#1: The benefits of Incorporation or LLC formation

C or S Corporation

• Miscellaneous Incentive Programs: If you register a new company in Washington then you will be able to benefit from the variety of incentive programs and these include:
  – B&O Tax/Public utility tax credit for electricity, natural gas, or manufactured gas sold to silicon smelters: The credit is for businesses that sell natural gas, electricity, or manufactured gas to silicon smelters in the state.
  – Washington filmworks contributors B&O tax credit: It was earlier known as the motion picture competitiveness program and you can claim credit on contributions made to Washington Filmworks.
  – International services – B&O tax credit for new employment: A start-up company in Washington can claim credits worth $3,000 per year for each qualified employment position created in international services like data processing, computers, legal, information, accounting and tax preparation, business management, and advertising among others. More Information
  – Sales/Use tax exemption on rental of production equipment and purchase of production services for motion picture and video production
• Independent life: When you register a new business in Washington as an S Corporation, it will enjoy an independent life. This means that the incapacitation or death of a stockholder will not have a negative impact on the business operations.

Limited Liability Company

• Sales and Use Tax Exemption: If you register a new business in Washington then it can be eligible for several types of sales and use tax exemption including:
  – Sales & use tax exemption for aerospace businesses focusing on computer software/hardware/peripherals: The exemption is available to certificated FAR repair stations, manufacturers of component parts of commercial airplanes, and aerospace tooling manufacturers among others. More information on Aerospace Manufacturers Tax Incentives.
  – Retail sales and use tax exemption for the construction of new facilities used for manufacturing commercial airplanes, fuselages or wings of commercial airplanes
  – Brokered natural gas use tax exemption: This exemption is applicable for those start-up companies in Washington who manufacture aluminium in the state.
  – Property/Leasehold tax exemption for manufacturers of biodiesel/alcohol fuel, etc.: The exemption is available to manufacturers of biodiesel fuel, alcohol fuel, wood biomass fuel, or biodiesel feedstock.
  – Sales/Use tax exemption for livestock nutrient management equipment & facilities
  – Sales/Use tax exemption for replacement parts for farm machinery & equipment
• Flexible Profit Distribution: A start-up company in Washington which is an LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.

Advantage#2: Washington Business Incentives

Once you register a new company in Washington, there are several business incentives and programs that your business entity can benefit from. Let’s take a look at some of the most popular programs:

• Washington Foreign Trade Zone (FTZ): If your start-up company in Washington focuses on importing components and parts for distribution or manufacturing finished products for exports then the Foreign Trade Zone (FTZ) is where your business needs to be located. Your business will not only benefit from the tremendous competitive advantage but there are other advantages as well. Since, the FTZ is not considered to be inside the U.S. Customs Territory, merchandise and components are exempted from duty payments and can be shipped in or out of the Washington FTZ. There are 12 FTZ’s across Washington including Seattle, Tacoma, Grays Harbor, Spokane, and Vancouver among others. FTZ Manual
• Washington Opportunity Zone (OZ) Program: The salient aspect of the Washington Opportunity Zone (OZ) Program is that investors or businesses will be able to defer paying their taxes on capital gains that have been invested in Qualified Opportunity Funds and these funds are in turn invested in distressed communities that have been designated as Opportunity Zones. The tax deferral can be for a period of up to nine years. There are 139 census tracts in Washington. List of Qualified Opportunity Zones

Are there any Disadvantages of Incorporating in Washington?

What disadvantages could possibly be there for a start-up company in Washington? In reality there is none except a few that are common to different types of businesses. For example, processing of incorporation can be time consuming and corporations would require more paperwork while LLC formation has the disadvantage of limited life. These are small disadvantages compared to the many incentives the Evergreen State has to offer.

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Today, Washington is considered as a state with a stable economy and great prospects for a start-up business entity. The key businesses or industries thriving in the state include tourism, design and manufacturing of jet aircrafts (Boeing), online retailers like Amazon, Expedia, Inc., biotechnology, computer software development (Microsoft, Valve Corporation, Nintendo of America), lumber, aluminium production, electronics, wood products (Weyerhaeuser), and mining. You can also form a Washington business today and become a part of the growing economy!

You are probably wondering what the process for LLC formation or incorporation is. This is where we can be of help! We as one of the top Washington registered agents can assist you with the successful registration of your business entity in the state.

Washington LLC Registration and Formation

LLC company formation in Washington is governed by 2011 Washington Code, Title 47 CORPORATIONS, Chapter 34A of the Uniform Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Washington then you will be required to continuously maintain a registered agent in the state pursuant to RCW 25.15.021. This law is applicable to domestic limited liability companies as well as foreign limited liability companies.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Washington. We can assist you to form a Washington business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Washington is identifying a name for your business entity. The process is as follows:

1. Identify a unique name for your business entity
2. According to RCW 25.15.011 and RCW 23.95.305, the name should contain the phrase or words “limited liability Company” or the abbreviations “L.L.C.”, or “LLC”.
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
4. Apply for reservation of name pursuant to the provisions of RCW 25.15.016 and RCW 23.95.310
5. Submit the form though mail or online with the Office of the Secretary of State, Corporation Division along with the applicable fee. An LLC can reserve its name for a period of 180 days.

Step#3: Certificate of Formation and Application for Registration

If you are planning to form a Washington business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file “Certificate of Formation” governed by RCW 25.15.071.
• If your business entity is a foreign LLC then you will be required to file “Application for Registration” pursuant to RCW 25.15.321 and RCW 23.95.505.
• The Certificate of Formation and Application for Registration of domestic and foreign LLC can be filed with the office of the Secretary of State, Corporation Division through mail or by hand.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Washington business, feel free to call us on 702-871-8678.

Washington Corporation Registration and Formation

If you are planning to form a Corporation in Washington then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Washington then you will be required to continuously maintain a registered agent in the state pursuant to WA Rev Code § 23B.05.010 (2012). This law is applicable to domestic as well as foreign corporations.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Washington. We can assist you to form a Washington business as we are in compliance with all regulations in the State of Washington.

Step#2: Corporate Name Reservation

In order to form a corporation in Washington, one of the key steps is identifying a name for your business entity. The process is as follows:

1. Identify a name for your business entity
2. According to WA Rev Code § 23B.04.010 (2012), a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or any other corporation
4. Apply for reservation of name pursuant to WA Rev Code § 23B.04.020 (2012).
5. Submit the form though mail with the Secretary of State of Washington, Corporation Division along with the applicable fee. A business corporation can reserve its name for a period of 180 days.

Step#3: Articles of Incorporation and Certificate of Authority

If you are planning to form a corporation in Washington, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to WA Rev Code § 23B.02.020 (2012).
• If your business entity is a foreign corporation then you will be required to file an “Certificate of Authority” to transact business in the state pursuant to WA Rev Code § 23B.15.030 (2012).
• The application or documentation for registration of a corporation can be filed with the Office of the Secretary of State, Corporation Division – through mail or by hand.

We can file the form on your behalf being your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Washington incorporation or LLC formation, you can simply visit the Washington Business formation page.

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The economy of “The Evergreen State” grew 3.7% in 2016, which is almost 2.5 times the national rate and is home to the largest concentration of STEM (science, technology, engineering and math) workers in the country. These are just some of the reasons for an increase in incorporation in Washington. This is a state that has been consistently thriving towards upholding the flexibility of regulations that are integral towards laying the foundation for a positive business climate. In fact, businesses in the state have successfully attracted approximately $1.6 billion in venture capital in 2016 making it the 6th highest total in the country.

Why Choose Washington for Incorporation?

If you are planning to set up company in Washington then here’s some good news: the state has no income or corporate income tax! There has also been a rise in small businesses and medium enterprises in a variety of industries like Aerospace, Clean Technology like bio-fuel and biomass technology, Agriculture & Food Manufacturing, Information & Communication Technology, and Tourism among others.

Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:

Sales and Use Tax Exemption for Manufacturing Machinery & Equipment (M&E)

This exemption can be availed of by manufacturers and processors who set up companies in Washington. The sales and use tax exemption is governed by RCW 82.08.02565 and 82.12.02565. This exemption is applicable to machinery and equipment that is related to the following:

• Acting upon or interacting with items related to tangible personal property
• Aids in guidance, controlling, measurement, verification, aligning, or regulation of tangible personal property
• Aids in transportation, handling, or temporarily storage of an item of tangible personal property at the manufacturing facility
• Providing physical support or access to tangible personal property within a manufacturing facility
• Producing another item of tangible personal property that will be used in research and development or manufacturing operation

Exemption Certificate

Community Enterprise Zones (CEZ’s)

Community Enterprise Zones also known as community empowerment zone are special zones spread across the state of Washington and have been created to help businesses as well as communities. You can benefit from the incentives offered in this zone only if there is company incorporation in Washington CEZ or the corporate headquarters is in the CEZ. The community empowerment zone includes Rural Counties and High Unemployment Counties where your business can apply for “Sales and Use Tax Deferral” pursuant to 82.82 RCW.

Sample Application

How do you incorporate in Washington?

What is the process of incorporation in Washington? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable understanding of the entire process:

Business Type

The first step towards incorporation in Washington is choosing the type of business you want to form. The different types of business structures that you can form in the Evergreen State include Business Corporation (C & S Corporation), Non-profit Corporation, Limited Liability Company (LLC), Limited Partnership (LP), Limited Liability Partnership (LLP), Limited Liability Limited Partnership (LLLP), Sole Proprietorship, and General Partnership.

The type of business entity you want to form can either be a domestic or foreign entity. The forms and fee will be different for each type of entity.

The next step is to identify and reserve a name and this can be done as follows:

1. Naming Requirements: According to RCW 25.15.011 for LLC and WA Rev Code § 23B.04.010 (2012) for a corporation, a business name should contain the words “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.”, ”Ltd., ” or similar abbreviations.
2. Business name search: You need to search for a business name that is not in use currently. You can conduct a name availability search here.
3. Name Reservation: Once you have identified a business entity name, you will have to reserve the name pursuant to RCW 25.15.016 for LLC and WA Rev Code § 23B.04.020 (2012) for corporations as a part of the incorporation in Washington process. You can reserve the name for a period of 180 days with the office of the Washington Secretary of State.
4. Name Registration: If your business is a foreign entity then name registration is required pursuant to WA Rev Code § 23B.04.030 (2012).

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of Washington, you will have to maintain a registered agent pursuant to RCW 25.15.021 for an LLC and WA Rev Code § 23B.05.010 (2012) for business corporations.

We are one of the respected registered agents in Washington and will be responsible towards initiating incorporation in Washington through processing of your Certificate of Formation and Application for Registration for LLC and Articles of Incorporation and Certificate of Authority for business corporations.

Articles of Incorporation and Certificate of Authority

You will be required to file “Articles of Incorporation” pursuant to WA Rev Code § 23B.02.020 (2012), if your business is a domestic corporation. You will have to file a “Certificate for Authority” pursuant to WA Rev Code § 23B.15.030 (2012), if it is a foreign business entity. In order to streamline the process of incorporation in Washington, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Washington, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Washington Incorporation

What would it cost to set up a company in Washington? Check Fees here!

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Business Information & Rankings

• Washington ranked as the 13th best state with a business-friendly tax system by The Tax Foundation. (2006)
• Washington ranked 6th on the TechNet State Broadband Index (2005)

Cost of living

Crime Rate

Washington has the 48th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Exempt.

Corporate Income Tax
Washington’s corporate tax structure consists of no corporate income tax. However, the state does impose a gross receipts tax composed of 20 separate rates ranging from 0.011% to 5.029% depending on the type of business activity.

Personal Income Tax
Washington levies no state personal income taxes, joining Alaska, Florida, Nevada, South Dakota, Texas and Wyoming as the only other states to do so.

Personal Property Tax
Property tax is collected on both a state and local level. State law requires assessors to appraise property at 100% of its true and fair market value.

Most personal property owned by individuals is exempt from tax; however, personal property tax applies to personal property used when conducting business or to other personal property not exempt by law. Washington does not impose a tax on intangible assets such as bank accounts, stocks or bonds.

State Sales and Use Tax
Base Rate: 6.50%
Machinery Rate: none
Washington provides exemptions for sales to manufacturers of processors of machinery and equipment used directly in a manufacturing operation or in research and development.

Unemployment Insurance
Washington charges new employers 2.07% until qualifications are met.