Washington Registered Agent

There are several details to consider when starting a new business in any state in the USA. One of the main points to take into consideration is choosing a registered agent. The laws related to hiring and maintaining a registered agent may vary from one state to another. Most states have made it mandatory for entities to provide information regarding their agent like their physical address. This information is a requisite for a new business formation or incorporation process. Hiring a registered agent in Washington is governed by the 2021 Revised Code of Washington.

What is a Washington registered agent?

A registered agent in Washington is also known as a resident agent, an agent for service of process, or even just an agent. A registered agent (RA) can be a business or an individual who has been designated in compliance with state laws for receiving service of process (SOP) on behalf of an LLC, a corporation, or any other form of business. A Washington LLC registered agent is capable of providing a wide variety of business-related services apart from SOP.

Why do Washington businesses need a registered agent?

A Washington registered agent is considered to be the legally designated point of contact between an entity and the state or the office of the Secretary of state. Although every business-for-profit or non-profit being formed in Washington needs to have a resident agent, it is important to understand the need for an agent. A Washington Corporation registered agent will meet the following business requirements:

• Service of Process – The most important reason why a business requires a registered agent is to fulfill the service of process. A Washington agent for service of process refers to your agent being the person who will receive any legal notices, writs, or summons that have been forwarded by any member representing the office of the Secretary of State like a constable or a sheriff.
• Business-Related Documents – When you form a new business, you will receive important documents from the state irrespective of whether your company is a domestic or foreign entity. The role of a registered agent in Washington is to make certain that you receive all business-related mail from the office of the Secretary of State, Corporations & Charities Division, and the Washington Department of Revenue among others. When an owner can’t respond to such mail, the chosen registered agent receives and responds to the mail on behalf of the entity or owner.
• Formation and Annual Maintenance – Different types of domestic and foreign business entities have different formation or incorporation processes, as well as different annual requirements. A Washington LLC registered agent or an agent for a corporation will be able to provide meaningful assistance for the new business formation. The chosen registered agent in Washington can also help an entity file annual reports for maintaining compliance and good standing with the state.

Why use a registered agent service rather than being your own registered agent?

The state of Washington allows both individual and commercial registered agents. If you are wondering whether or not it is possible to be your own registered agent, then the answer is yes it is possible. Being your own agent can be beneficial as it cuts down the cost of hiring and maintaining a state-approved agent. However, it is especially important to remember that as a Washington agent for service of process, you need to be available every day and your personal information will no longer be private.

• A Washington Corporation registered agent service must maintain regular business hours and be available every business day to receive notices and official documents. A resident agent will not only receive notices but also forward them to the relevant company.
• A professional registered agent in Washington will also have a physical address, which is an important state requirement.
• They will also handle and help organize your business documents. Some agencies even provide offsite storage capabilities for sensitive documents.
• One of the most essential services offered is sending timely reminders for services like filing your Washington annual reports.
• When you hire a registered agent service, your private information will remain protected.

Are you looking for the best Registered Agent Services in Washington?

How to choose a registered agent in Washington

The Revised Code of Washington states that it is mandatory to maintain a Washington agent for service of process before or after you form or incorporate your startup. There are hundreds and thousands of services out there and you might find it difficult to choose the right registered agent services. Because of that, you will need to conduct a proper Washington registered agent search while comparing the services provided and the rates of multiple agents. Each resident agent service has its own advantages and disadvantages. It is important to choose an agent that completely suits your needs and requirements. Here are some tips to consider:

• Look for a professional service in terms of keeping business hours
• It is recommended to choose an agent that specializes in handling and forwarding sensitive documents.
• When performing a Washington registered agent search, consider an agent that offers a customized electronic notification service.
• You should also look for agents offering additional state or business compliance tools like the Entity Management Software by IncParadise.
• Try to select a registered agent service that is available nationwide. This works well when planning to expand to other states.

Submit consent to appointment

Once you have searched for a Washington registered agent search and chosen an individual or a firm, the next step is to submit consent to appointment. According to RCW 23.95.415, any business in the state cannot appoint a registered agent without providing prior consent in record to the said appointment. This consent has to be delivered to the office of the secretary of state in a format that has been authorized by the Washington SOS. The consent format is submitted with the Certificate of Formation or the Articles of Incorporation.

Elect registered agent for LLC in Washington

If you aim to form a limited liability company, then you will need to hire and maintain a Washington LLC registered agent according to WA Rev Code § 25.15.021 (2016). Once you have chosen RA services, you will need to provide detailed information regarding the chosen individual or firm. There is a section in the Certificate of Formation application where you need to provide specific information such as the name of the commercial RA, their street and mailing addresses, and consent to serve as a Registered Agent in the State of Washington.

Elect registered agent for Corporation in Washington

A business corporation is one of the most popular entity types in Washington. Whether you plan to form a domestic entity or a foreign corporation, you will need to continuously maintain a registered agent in Washington. To elect an RA, consent to serve as a Registered Agent must be submitted. According to the 2021 Revised Code of Washington, Title 23B – WASHINGTON BUSINESS CORPORATION ACT, 23B.05 Office and agent – the consent to serve is one of the sections in the Articles of incorporation. All you have to do is provide all details regarding the chosen Washington Corporation registered agent and submit it to the office of the Secretary of state.

Elect a registered agent for a Non-profit in Washington

If you want to form a non-profit entity in Washington, you will need to maintain a Washington Registered agent. Hiring a registered agent is governed by the 2021 Revised Code of Washington, Title 24 – CORPORATIONS AND ASSOCIATIONS (NONPROFIT). Once you choose an agent, you will need to submit their information to the office of the Secretary of State. This is possible by filing the formation or incorporation documents, which have a section on consent to serve as a Registered Agent in the State of Washington.

How to change a registered agent in Washington

Whether you have the desire to form a new business in Washington or have already incorporated, you may find yourself wanting to change your current Washington Corporation registered agent. The reasons for this type of change may vary from one business to another. Performing a thorough Washington registered agent search is highly recommended in order to compare your requirements with the services offered. Once you have chosen a registered agent service, it is important to know the change of agent process. The process to change agents can vary from one state to another, although some details remain the same like notifying your former agent and filing documentation for a change of agent. Let’s look at the process to change your resident agent in Washington with ease.

File and submit Statement of Change/Designation of Registered Agent to the Washington Secretary of State

If you are considering changing your registered agent in Washington then one of the first steps in this process is filling out and submitting the Statement of Change/Designation of Registered Agent form, pursuant to RCW 23.95.415. You can submit this form online or file the paper form with the Office of the Secretary of State, Corporations & Charities Division. You can even expedite the processing for the change of Washington LLC registered agent by filing an additional fee. You will need to provide specific information like the Unified Business Identifier (UBI) number and the street and mailing address of the Registered Agent. You will also need to specify whether the chosen agent is a commercial registered agent or a non-commercial registered agent.

Submit the consent statement of new registered agent to the SOS

As part of the process for changing a registered agent in Washington, you will also be required to provide consent to serve as Registered Agent. This is an express statement, which highlights the fact that the chosen person or business has consented to serve as your company registered agent. There is no separate form for this option. There is a small section in the Statement of Change/Designation of Registered Agent form dedicated to consent to serve.

Why choose IncParadise as your Washington Registered Agent?

If you have plans to form a new business or are considering moving your existing business to Washington, then it is mandatory to maintain a Washington agent for service of process. The state laws require a registered agent to be available every workday and should have a physical presence in the state. IncParadise is one of the top registered agents services in Washington. We adhere to the regulations established by the office of the Secretary of State. We have helped many LLCs and Corporations in Washington as well as other states.

Washington Business Entity Search

Washington is home to over 600 thousand small businesses and several Fortune 500 & 1000 companies. Forming a new business in this state has its advantages including a wide variety of high-growth industries, deep talent pools, small business resources and grants, business incentive programs, and foreign trade zones. You can choose any type of business structure from a sole proprietorship to an LLC.

What is a Washington business entity search?

Every state has its own laws, rules, and regulations for choosing a business name and reserving it. This is also true when it comes to conducting a name or entity search. It is important to note that there is no centralized database or national registry of companies in the USA where you can view all companies registered in the nation. The entity database exists within each state separately. This means that if you want to conduct a Washington business entity search then you will have to refer to the state database.

Example: If you aspire to form an LLC or register a corporation then you need to select a name. You have chosen the name “SoftwareOne”. Now, if you conduct a Washington business name search then the database will show that this name has already been taken. In this case, you can change the name to “SoftwareOne Systems” and conduct the search again using the Washington business name database. Once you confirm that this name is available; you can reserve it.

Why is it important to do a business entity search in Washington?

If your company has the desire to create a strong first impression with investors and customers, then it is important to choose the right business name. The name of your company will be the first component that connects your brand to the industry as well as the business activity. You may think of a name and try to reserve it with the state, only to find that it has been rejected. A situation like this will only occur if you have forgotten to conduct a thorough Washington business name search. Let’s look at some of the reasons why conducting an entity search is important.

• There is a particular process for the business entity name search in Washington. This search will ensure your chosen name is available for reservation or registration. There are times when the exact name may not be available as a Corp, or LLC. In such a scenario, you can make small changes and conduct the search till it is available thus making it easier to secure a name.
• The importance of a Washington business entity search lies in the fact that you will not be able to register or incorporate your company without a business name. Hence, it is important to search, identify, and reserve it first.
• The Washington business name database will allow you to search for names with words or abbreviations and also for a variety of entity structures from foreign entities to domestic partnerships.
• The process of Washington business name search will also guarantee that your chosen name is in accordance with the naming guidelines as provided in the Revised Code of Washington.

How to do a business entity search in Washington?

Setting up a new business is never an easy task as it involves following several steps and laws that you must comply with. The first step is to secure your company name, this is mandatory for every type of structure. The Washington business name search will help you to reserve your company name, which will be required for other processes like filing annual reports, applying for an Employer Identification Number (EIN), processing small business grants, and opening a business bank account. Therefore, it is important to conduct a Washington LLC search or corporate name search properly.

Follow Washington LLC and Corporation naming guidelines

Business names along with reservation or registration are governed by the 2020 Revised Code of Washington. There are separate naming guidelines for different entity structures like the name of a Washington LLC should contain the words “limited liability Company”, “limited company” or abbreviations like L.L.C or LLC. It is important to follow these guidelines as they will also aid in your Washington business entity search.

Visit The Washington Secretary of State Business Search

Ideally, you should begin the process of a Washington business name search on the website of the Secretary of State. You will have access to an exhaustive business name database of all the companies that have been registered or incorporated in this state. You will find information concerning their status (active or inactive) and even the UBI number. Searching through the Washington business name database makes it easier for you to find out if your desired business name is available or not. The database contains the business information of domestic and foreign entities.

Know the search options

The naming guidelines vary depending on the type of entity. The name of a limited liability company will have an LLC in the end, while a corporation will have Inc. There are primarily three different ways you can conduct a company name search. It is important to conduct your Washington business entity search with following naming guidelines:

• Search by business name – The first option for business entity name search in Washington is to search the name you have chosen. This option is the simplest and you have the opportunity to search for any name. Let’s look at an example to understand this method.
  

  For Example: If you have the desire to start an advertising agency in Washington and you come up with the name – “Acacia Advertising”. There are 3 parameters available to conduct your search with and they include:

  • Name contains
  • Begins with
  • Exact match

  If you select “name contains” and search the Washington business name database for “Acacia Advertising”, it brings up the name “Acacia Advertising Inc”, and the status of the company is ‘Active’; this means that the name is unavailable. Now, if you simply add an extra letter and search as Acacia Advertising then it shows the name is available.

• Search by UBI (Unified Business Identifier) – The second option for a Washington business name search is to use a UBI number. This is a nine-digit number that is also known as a business registration number, tax registration number, or a business license number. This number is obtained once you submit a Business License Application. The UBI search is normally used to check the status of any entity and can also help with a Washington LLC search. Let’s look at an example to understand this process.
  

  For example: You have two UBI numbers: 602 050 382 and 604 850 751. When you search the Washington business name database using 602050382, it brings up the name of a profit corporation called A & D COMPUTERS INC. The status of this company is administratively dissolved. This means that you could use this business name. Now, if you search using the second number 604850751, and it brings up an active company called 3VALVES COMPUTER SERVICES, LLC; you will not be able to use the same name as this company.

• Advanced Search Steps – The Washington Corporations and Charities Filing System provides a third option known as the advanced business search. This is a highly detailed option for a Washington business entity search. This search option is useful if you are searching for a specific business that is already registered with the state. Some of the parameters used in this search include:
  • Search Type: “name contains”, “begins with” or “exact match”
  • Business Type: foreign corporation, Profit Corporation, or Limited Liability Company
  • Expiration Date
  • Business Status: active, consolidated, delinquent, etc.
  • Date of: Incorporation/Formation/Registration
  • Registered Agent/Governor Search

Submit and view entity details (Active/Inactive)

Once you submit your chosen name in the Corporations and Charities Filing System, it will bring up a host of information. The Washington business name database will reveal information related to domestic and foreign companies, as well as active and inactive businesses. The entity details available include:

• Business Name
• Business Type
• UBI Number
• Business Status
• Principal Office Street Address
• Principal Office Mailing Address
• State of Formation
• Expiration Date
• Formation/ Registration Date
• Inactive Date
• Nature of Business
• Jurisdiction
• Period of Duration
• Registered Agent Name
• Physical & Mailing Addresses of RA

Looking to Conduct a Washington Business Entity Search?

The Washington business name search is an important step toward a new business formation. Without it, you will not be able to reserve or register your name. As a result, incorporation or a new business formation will not be possible. If conducting a business entity name search in Washington looks complex, then IncParadise can provide meaningful assistance.

Washington LLC Annual Report

An annual report is a key business document that various forms of business entities such as public corporations and LLCs need to provide to the office of the Secretary of State and shareholders annually. The requirement and the contents of an annual report vary depending on the type of entity and the state of formation (jurisdiction). Normally, corporations have to provide information concerning their business operations and existing financial status but this is not required for a Washington LLC annual report.

What is the Washington LLC annual report?

Most types of businesses are required to file a Washington annual report as it contains important business information regarding the entity. If you registered a limited liability company in the state then you will need to file initial reports and annual reports according to Revised Code of Washington, WA Rev Code § 25.15.106 (2020). The Washington LLC annual report filing is necessary for both domestic and foreign LLCs in the state.

• Business name
• UBI number
• Principal Office street address
• Registered agent information
• Nature of Business
• Controlling Interests like real property in Washington

Why is filing Washington LLC annual reports important?

Once you have formed a new business in the state, it is mandatory according to state laws to file Washington LLC annual reports. The annual report is also known as the Annual Statement, Statement of Information, Periodic Report, and Biennial Statement, among others. This report not only helps a company to comply with state regulations but also ensures the said entity can maintain a good standing with the state. When you file a Washington annual report, it provides the state with valuable information, including the names and addresses of members or owners as well as that of their registered agent.

Filing Washington LLC Annual Report

A Washington LLC annual report is one of the most important business requirements concerning the maintenance of a limited liability company in the state. The annual report is normally filed after you have registered your company with the state. You will be required to file this report as long as your business is active. Once you dissolve your company; it will not be necessary to file this report will not be necessary. There are several points that you need to be mindful of like the Washington LLC annual report fee and the due date as this will help you to file the report on time. Let’s take a detailed look at the several processes involved.

How do I file LLC annual reports in Washington?

If you’ve recently formed a new business in Washington then you are required to be compliant with the annual requirements of the state. According to the 2020 Revised Code of Washington, Title 25 – Partnerships, Chapter 25.15 – Limited Liability Companies; you are required to submit an initial report followed by a Washington LLC annual report.

Do you want to submit a Washington Annual Report?

Washington LLC Annual Report Fees

If you are getting ready to form a new business in Washington then you will need to file an initial report. This Washington LLC annual report filing can be done online or by mail. The fee to file is $10. You can expedite the process by making an additional payment of $50.

When is the due date to file your Washington LLC annual report?

If you are filing a Washington LLC annual report for the first time or as a newly formed business then it is important to remember that you have to file an initial report. The initial report is the first annual report that you have to submit to the state. It is due within 120 days from the day of LLC approval.

For Example: If you registered or formed your limited liability company on October 18, 2022, then the Washington annual report due date will be October 18, 2023.

Consequences of Filing the Washington LLC Annual Report Late

The Washington annual report due date as well as the due date for filing an initial report is especially important and should not be overlooked. If you are unable to file the initial report within 120 days then the office of the Secretary of State has been given the power to administratively dissolve your limited-liability company. The state will not send you any reminder notice to file the initial report.

Why is using a Washington Registered Agent Service a Better Option?

If you intend to form a limited liability company in the state of Washington then one of the mandatory requirements is hiring and maintaining a registered agent in the state. This requirement for a registered agent is governed by the 2020 Revised Code of Washington, WA Rev Code § 25.15.021 (2020). A reputable registered agent service like IncParadise can offer you several advantages or benefits in the state including filing your Washington LLC annual reports. Some of the other benefits are:

• When you hire IncParadise as your Washington registered agent; you will be notified of the Washington annual report due date as well as the annual report fee. This will ensure that you can submit the annual report on time and avoid any penalty or dissolution.
• We can also assist you in making certain that your business is in compliance with all LLC annual maintenance requirements in Washington.
• We also offer a variety of business-related services from filing LLC registration documents, (Certificate of Formation) to obtaining an Employee Identification Number (EIN).
• If by any accident or due to late payment, your LLC gets administratively dissolved by the Secretary of State, then we can assist with the process for LLC reinstatement or renewal.

Need Any Assistance in Filing Your Washington LLC Annual Report?

Annual compliances can vary from one state to another. The annual requirements in Washington might not be similar to requirements in California or Texas. Annual compliances mostly comprise of business taxes and the Washington LLC annual report filing. If you choose us as your registered agent in Washington then we can assist you with any information you may require related to the annual report and also help you file it before the due date.

Doing Business in Washington

Every state in the nation has its advantages and strives towards offering the best possible environment for new businesses. Washington has a strong economy and pro-business climate. The state is home to some of the greatest companies in the world like Costco, Boeing, Amazon, Starbucks, and Microsoft. If you start a new business in this state then you can take advantage of the Washington small business grants and incentive programs. The grants and incentives have been designed around high-growth industries like food manufacturing, aerospace, information and communication technology, and e-commerce, among others.

Why do businesses prefer doing business in Washington?

Entrepreneurs and first-time business owners prefer to establish their businesses in Washington because of the many advantages and opportunities the state has to offer. When you form a business in this state, you can utilize the valuable small business resources that will help companies to achieve their short-term and long-term objectives and goals. The accessibility of resources helps with doing business in Washington and constitutes the pro-business environment in the state. The resources can vary from Washington small business grants to tax credits and exemptions, mentoring programs, programs for emerging leaders, and many more.

• Robust Economy – Washington has a strong economy as it witnessed a Gross Domestic Product of $575 billion. At the backbone of its economy are several industries, startup accelerator programs, advancement of information and communication technology, and availability of skilled labor. It is home to more than 600 thousand businesses including several Fortune 500 and Fortune 1000 companies. Washington has a strong trade infrastructure and is considered the fourth largest in the nation where exports are concerned.
• Pro-Business Climate – One of the reasons why Washington is a good idea for small businesses is the pro-business environment the state has to offer all forms of entities. This environment is driven by several elements like the no personal income or franchise taxes, high quality of life, importing and exporting opportunities through Foreign Trade Zones (FTZ), and the availability of Washington small business grants.
• STEM Pools – One of the advantages of doing business in Washington is that it is a leading state for STEM (science, technology, engineering, and math) workers. The state has the necessary infrastructure to impart STEM education, which prepares students for high-growth industries. This type of education enhances the collective potential and opens the doors for creation and advancing solutions for businesses and industries. As a result, the state does not have any scarcity of talent and therefore is considered a decisive feature for doing business in Washington.

Small Business Assistance and Grants in Washington

When you start a business in Washington, there are several resources that you can utilize to establish the company. One such resource is the Washington small business grants as well as other types of financial and economic assistance. A business grant consists of a small amount of seed money, which is awarded by the government and private institutions and does not need to be repaid. If you are wondering why Washington is a good opportunity for small businesses, then the answer lies in these grants along with several other funding and incentive programs.

Associate Development Organizations

Associate Development Organizations (ADOs) in Washington serve as partners for local economic development. This is a local organization that exists in each county and can provide valuable resources to new businesses. They also offer export assistance and support. Although the organization itself doesn’t offer Washington small business incentives, its economic partners have implemented several business assistance programs. Partners like the Export Finance Assistance Center of Washington (EFACW) provide free export finance advice and consultation on payment risk mitigation.

Innovation Partnership Zones

Washington is home to Innovation Partnership Zones (IPZ) and each zone focuses on a specific area of business. Vancouver focuses on applied digital technology accelerators, while Snohomish is considered the Aerospace Convergence Zone. The objective of each of these zones is to create new opportunities for small businesses through innovation and partnership. As a new business, you will be able to build relationships with private and public entities. Your business can benefit from Washington tax incentives that are applicable in these particular zones.

For example: If your business is located in the Tri-Cities Research District and focuses on advanced technology, manufacturing, or clean energy, then you can apply for Washington small business grants and funding programs like the Fuse Fund.

Small Business Flex Fund

If you are planning to start a small business in Washington then one of the important points of business operation is availability of proper funds. There are different types of Washington small business grants and funding options that you can choose from. One of the more popular funding options is the Small Business Flex Fund as it provides access to growth capital for startups, home-based businesses, and other small businesses quickly. It is a simple loan wherein you can borrow up to a maximum of $150,000.

Startup Washington 365

If you plan on doing business in Washington then Startup Washington 365 can be quite beneficial for you. It is a program dedicated to providing business owners and entrepreneurs with a competitive advantage. Starting a business requires a lot of paperwork, but making it operational is another story altogether. Startup Washington 365 provides information and resources concerning the operational details of a business including Washington small business incentives, entrepreneurial education, training, tools on data and analytics, co-working and maker spaces, and other funding sources.

Form Your Startup in Washington Today!

Public Participation Grants

Another popular Washington small business grant is the Public Participation Grant (PPG). This grant, unlike Washington tax incentives, is administered by the Washington Department of Ecology and is aimed at providing funds to small businesses, individuals (sole proprietorship or home-based business), and not-for-profit organizations. The PPG Grant award limit can be up to a maximum of $120,000, and eligibility is based on contaminated site projects.

Export Voucher Program

The export voucher program is one of the reasons why Washington, for a small business, is a growth-oriented option. The program has been implemented by the Washington State Department of Commerce and you can receive only one export voucher in a fiscal year. The export vouchers provided as a part of this program can help with offsetting the exporting expenses of small businesses. The export vouchers are considered one of the key elements of Washington’s small business incentive programs and they cover a wide range of export expenses from digital advertising, to e-commerce platform fees, international shipment of product samples, sales trips to foreign markets, and trade show fees among others. You will be eligible after registering your business in Washington and once your company is considered to be in accordance with the small business size standards.

State Trade Expansion Program (STEP)

The primary goal of the State Trade Expansion Program (STEP), is to provide a variety of financial awards to state governments so that they can assist small businesses that are involved in exports. The financial support as a part of the STEP program can help entrepreneurs to participate in various foreign trade missions, develop e-commerce capabilities, and learn more about exporting their products globally. This Washington small business incentives program provides an award ranging from $2,000-$5,000 depending on the business activity, with a maximum amount that does not exceed more than $10,000 for each eligible small business.

Community Economic Revitalization Board (CERB)

The Community Economic Revitalization Board (CERB) is responsible for providing funding to the Washington state government so that they can support small business growth and expansion. The Washington small business incentives and funding support are primarily for projects that revolve around wastewater, industrial and domestic water, stormwater, telecommunications, public buildings, and port facilities. They provide grants of up to 80% of the total cost of a project with a limit that does not exceed $50,000.

Small Business Retirement Marketplace

The Small Business Retirement Marketplace is a virtual marketplace operated by the Washington Department of Commerce. The objective of this marketplace is to provide low-cost retirement savings plans to small businesses, especially those with less than a hundred employees including self-employed individuals and sole proprietorships. The Department of Financial Institutions has verified each of these retirement plans. The virtual hub allows business owners to compare various retirement plan options. If you plan on doing business in Washington then you can choose from plans like traditional individual retirement account (IRA), traditional 401(k), and Solo 401(k) among others.

Small Business Grants for Women

The number of women and minority-owned businesses (WMBE) has grown steadily over the years in Washington. Today there are 114% more women entrepreneurs, which is approximately 12.3 million women-owned businesses in the nation. This is why one of the popular Washington small business grants is those that are focused on women entrepreneurs. The Amber Grant is one such grant and the grant money awarded can vary from $10,000 to $25,000 annually.

Ready to Start a Business in Washington?

Every new business or startup, whether owned by men or women, requires a certain degree of financial assistance. You may require funds to make the company operational and also to handle the logistics aspects of it. Washington tax incentives and small business grants play a key role in providing much-needed financial support. If you are thinking of starting a new business in this state then the first step will be to register your company. This will help you to apply for these grants, awards, and incentives.

Washington Business Tax

Every type of business is required to file tax returns at the federal level and also in the state that it is based in. Some businesses like foreign entities have to file taxes in their formation state (home state) as well as any other state where they are conducting their business. If you start a business in Washington then you will not be required to file any income tax but your company may be required to file a small business tax in Washington. It is important to note that each state including Washington has its own set of tax requirements. The Washington business tax rate and filing processes would be different from other states.

What taxes do businesses pay in Washington?

Washington is a popular state amongst entrepreneurs as it is ranked 11th in the list of states with the best business tax climate. The state does not have any personal or corporate income tax. You can form different types of domestic and foreign entities in Washington including a sole proprietorship, a limited-liability Company, a C corporation, and even an S Corporation. Each type of entity will have a different tax status in the state and will be required to file some sort of Washington business tax. Your company may be required to file a single form of business tax or multiple taxes, which will require you to use a Washington business tax calculator for determining the rate or amount of taxes. Let’s try to understand the different types of taxes applicable to small businesses in the state of Washington.

Business and Occupation tax

A primary Washington business tax is known as the Business and Occupation tax (B&O tax). The B&O tax is a type of gross receipts tax. It is calculated based on the value of products, gross income of the company, or gross proceeds from sales. This tax rate varies depending on tax classifications for common business activities like accounting, actuarial, amusement services, and advertising among others. If your company conducts multiple activities then you will be required to report under multiple tax classifications. You will need a Washington business tax calculator to determine the total B&O tax under such circumstances.

• Retailing B&O tax
• Wholesaling B&O tax
• Manufacturing B&O tax
• Service and other activities B&O tax

Example: If you have a company that provides computer services then it will be classified under retailing B&O tax or wholesaling B&O tax. If you provide data processing services then the classification category will be Service & Other Activities B&O.

Washington Retail sales tax

One of the types of small business tax in Washington is the retail sales taxes and it is an important source of revenue for the state government. Normally, if your company is providing retail services or selling retail products to a customer then you will be required to collect retail sales tax. Retail sales in the state are also defined as the sale of any tangible personal property. A business will also be required to pay retail sales tax on the purchase of any items that are meant for business use like equipment and supplies. The retail Washington business tax rate is currently 6.5 percent and is governed by chapter 82.08 RCW.

Washington Use Tax

Use tax is a type of small business tax in Washington, which is levied on the use of specific products and certain services in the state, especially where sales tax is not applicable or not paid. Goods that are used in this state will be subject to either use tax or sales tax but both taxes cannot be levied simultaneously. The use tax may be applicable in the following scenario:

• If a company purchases goods in another state that does not have any sales tax or its sales tax rate is lower than that of Washington
• If goods have been purchased from a company or individual who cannot collect sales tax
• The Washington business tax rate for use tax will be levied on goods that have been purchased out of state through the Internet, by subscription, or using a mail order catalog.

Are you thinking of forming a new company in Washington?

How are Washington Businesses Taxed?

If you are planning to form a startup in Washington, then one of the important annual requirements will be filing business taxes. The state does not have any corporate or personal income tax but there are several other types of small business taxes in Washington. The taxes and the business tax rate may vary depending on the type of business structure as well as the location of the company. You may need to file more than one type of business tax and therefore, it is important to use a Washington business tax calculator to determine the taxes. Let us look at the different types of entities and their tax obligations in this state.

Taxes for an LLC

If you are thinking of starting an LLC in Washington, then for taxation purposes, it will be considered a pass-through entity. This means that your LLC will not be required to file federal or Washington business tax. Instead, the income will pass through to you, the owners, and other members. Normally, in such a situation, members have to file personal income taxes, but the state doesn’t have any. Consequently, other forms of business taxes will be applicable for a limited liability company in Washington.

Taxes for a C Corporation

If you are planning to form a Washington C corporation then the good news is that there are no corporate taxes in this state. Alternatively, your company will be subjected to business and occupation (B&O) tax. The other types of Washington Corporation taxes applicable include:

• Retail sales tax – Applicable on sales of any tangible personal property to consumers like office & stationery supplies, prepaid wireless cards, T-shirts, etc
• Use tax – It is applicable on goods purchased outside Washington and sold in the state like showroom and office supplies, equipment, mechanical and electrical parts, accessories, etc.
• Other industry-specific taxes – This is a type of excise tax administered by the Department of Revenue in specific industries or business activities like aircraft, spirits sales, and petroleum products, among others.
• Personal property tax – This small business tax in Washington will be applicable if the personal property owned by individuals is used for business including land, structures, and equipment.

Taxes for S Corporation

If you choose S Corporation tax treatment then one of the Washington benefits is that you will be exempt from self-employment taxes. An S corporation will be required to file the business and occupation (B&O) tax. Washington Corporation tax applicable for an S Corporation would include retail sales tax, use tax, excise taxes, and other industry-specific taxes.

Taxes for a Sole Proprietorship

If you form a sole proprietorship in Washington then you will need to report your profits by filing the income as individual tax returns. These taxes have to be filed with the IRS every quarter and you will need to use Form 1040-ES (estimated tax form). Apart from this, you may be required to file other small business taxes in Washington like retail sales and use tax depending on the business activity and jurisdiction of your business.

Taxes for Partnerships

If you form a partnership company in Washington then the applicable taxes would be similar to the Washington LLC tax or taxes for sole proprietorships. Partners will be required to file individual tax returns based on the income they have earned through the business. If you use a personal property for business then you will have to file personal property tax. You may also need to file sales and use tax depending on your business activity.

Ready to Incorporate Your Company in Washington?

You can choose to form a variety of entities in Washington from a Sole Proprietorship, to a C Corporation, an LLC, and S Corporation. The process for a new business formation and the annual requirements including taxes would be different, exhaustive, and time-consuming. This is where IncParadise can provide meaningful assistance. We are one of the top incorporation service providers in the state. We can help to register your LLC or corporation in Washington.

Introduction – Why Washington?

The state of Washington has been consistently ranked as one of the top destinations for entrepreneurs and small enterprises. It boasts of a pro-business climate, and the State Department of Commerce has several programs as well as resources that will help entrepreneurs to relocate a business to Washington. The state is home to several top companies like Microsoft, Amazon.com, Costco Wholesale, Deloitte Digital, Danaher Corporation, Starbucks, MSN, and Nordstrom Inc., among others. If you plan on moving a corporation to Washington or if you would like to move your LLC, then it is important to identify the benefits this state offers.

Pro-business climate

Business climate plays a decisive role especially if you plan on moving your business to Washington. There are several elements that empower this business climate and ensure that new, existing, and relocated companies can maximize their growth and stability. Some of the features driving this pro-business environment include:

• Strong industrial and manufacturing hub
• Wide variety of tax incentive programs
• Good regulatory environment
• Centralized export hub and foreign trade zones (FTZ)
• Robust infrastructure and supply chain
• Several business grants & loan programs

Taxation benefits

One of the top business benefits in Washington is its overall business-friendly tax climate. The state does not have any personal income tax or corporate income tax. This helps small businesses lessen their tax burden. The state has implemented several tax incentive programs targeted at different industries as well as Community Empowerment Zones (CEZ).

Excellent workforce

The state of Washington has been consistent in providing long-term postsecondary education and meeting the demands of a strong and able workforce. If you plan on moving your business to Washington then you will benefit from the steady stream of highly qualified and educated workers in all essential industries. A study has revealed that compared to the national average of 83%, 91% of Washington residents are high school graduates. The state is home to more than 20 colleges, universities, and other technical institutions. There are several integrated workforce training programs available to you like Talent and Prosperity for All (TAP), which are focused on increasing employer productivity and profitability.

Culture of Creativity

Washington is ranked among the top states for businesses. The state’s creative culture is the compelling trait that led to this ranking. The state has a legacy and tradition of innovation and bold inventions from personal computers to rocket engines for NASA and backpacks. Whatever the idea, if you plan on moving an LLC to Washington then you will find opportunities and a platform for all your new and existing ideas.

Business Incentives

One of the salient business benefits in Washington is the wide variety of business incentives. You can apply or participate in any of these programs that include everything from grants and loan programs to deferrals and exemptions. Once you relocate a business to Washington, you can take advantage of some of their top incentive programs like:

• Multiple Activities Tax Credit (MATC)
• Business and Occupation (B&O) Tax Credits
• Sales and Use Tax Exemptions
• Governor’s Strategic Reserve Fund (GSRF)
• Rural County/CEZ Business and Occupation (B&O) Tax Credits
• Job Skills Program (JSP)
• Brownfields Revolving Loan Fund
• B&O tax exemption for manufacturers and sellers of dairy and seafood products
• Remittance of state sales tax for warehouses

Low-Cost Energy

If you are moving a corporation to Washington or an LLC that requires higher energy consumption then You’ll be happy to learn that energy costs are low in this state. The state is home to the largest coordinated hydroelectric system globally. It is also home to several wind and solar energy systems. Therefore, energy costs in Washington can be as low as 2.88 cents per kWh. The industrial energy rates in the state are 38.1% lower while the commercial rates are 17% lower than the national average.

Centralized Export Hub

One of the leading business benefits in Washington is the centralized export hub. The state is one of the foremost export hubs in the nation that exports $60 billion in goods each year. It has also been ranked as the 4th largest shipping center of containers in North America. The primary goal of the centralized export hub is to help small businesses to expand their business globally. The hub also provides a wide variety of support services like consulting, advocacy, trade missions, risk mitigation, custom programs, and trade show support.

Steps to Move a Corporation to Washington

Seattle and Redmond are considered the finest cities for establishing and expanding businesses. They provide support, resources, and infrastructure. When moving your business to Washington, you may have questions concerning the options available to you for expanding your business in the state. There are three major options for moving a corporation to Washington, so let us look at each of the options in detail.

Register as a Foreign Corporation

Registering your business as a foreign company is one of your first options to relocate a business to Washington. This option is recommended for owners who don’t want to close their existing business in other states and also want to operate in Washington. The Washington domestication of a foreign corporation is governed by the 2020 Revised Code of Washington – WA Rev Code § 23B.15.070 (2020). The process for foreign qualification is as follows:

• Designate a registered agent in Washington for handling service of process pursuant to WA Rev Code § 23B.15.070 (2012)
• Identify and reserve a corporation name pursuant to WA Rev Code § 23B.15.060 (2012)
• Apply for a certificate of authority also known as Profit Foreign Registration Statement, pursuant to WA Rev Code § 23B.15.030 (2012)
• Submit a Certificate of Existence or Certificate of Good Standing from the home state

Do you want to form a foreign corporation in Washington?

Convert a Foreign Corporation to a Washington entity

If you want to relocate a business to Washington then your second available option is an entity conversion. The process of conversion varies from one state to another and refers to changing the type of entity. For example, moving from a limited liability company to a corporation or vice versa. This process is similar to a Washington domestication of foreign corporations in which case, out-of-state company is converted into a domestic entity. The process of conversion involves:

• select and reserve the name of the said corporation
• Hire a Washington registered agent
• File a Cover Sheet for a Conversion of Business Entity specifying “Converting from” and “Converting to” along with current and new domicile.
• File Articles of Conversion pursuant to WA Rev Code § 24.03A.840 (2021)
• Filing new entity formation documents like Articles of Incorporation
• The conversion documents have to be submitted to the Washington Secretary of State – Corporations & Charities Division

Dissolve a home Corporation and establish a new Corporation in Washington

The third and final option for moving your business to Washington is the process of dissolution. This process involves dissolving your home corporation by initial directors, incorporators, or board of directors and establishing a new Corporation in Washington. The dissolution will be governed by the laws of the home state and vary from one state to another. The laws and process also vary depending on the type of dissolution such as: voluntary, judicial, and administrative. The process of dissolution will involve:

• The approval of dissolution of a corporation
• Filing the Articles of dissolution in the home state
• Filing any outstanding federal, state, and local taxes
• The publication of notice of dissolution
• Wind up all affairs in the said state like canceling business licenses and permits

• Appoint a Washington registered agent for service of process
• Identify and reserve a business name pursuant to WA Rev Code § 23B.04.020 (2012)
• File Articles of Incorporation pursuant to WA Rev Code § 23B.02.020 (2012) along with the appropriate fee
• Prepare bylaws for your Washington Corporation
• Apply for business licenses and permits

Steps to Move an LLC to Washington

The state of Washington offers a wide variety of opportunities, support, resources, and infrastructure to small businesses. If you plan on moving your business to Washington, then it would benefit you to know that certain cities provide unique advantages like Bellingham, Tacoma, and Bellevue. When moving an LLC to Washington, you may have questions concerning the processes involved and options available. Let us look at each of the options in detail.

Register as a foreign LLC

There are three options available for moving your business to Washington. The first option is to go through a foreign qualification. This option works best for those entrepreneurs who want to expand their business in Washington while keeping their home state business operational. The Washington domestication of a foreign LLC is governed by the 2020 Revised Code of Washington – WA Rev Code § 25.15.310 (2012). The process for registering a foreign LLC is as follows:

• Hire and maintain a registered agent in Washington for handling service of process pursuant to WA Rev Code § 25.15.325 (2012)
• Choose and register the name of the said LLC while being compliant with RCW 23B.04.010 and 25.10.061
• File the Foreign Limited Liability Company Registration application or Certificate of Registration, pursuant to WA Rev Code § 25.15.315 (2012)
• Submit a Certificate of Existence or Certificate of Good Standing from the home state

Do you want to move your LLC to Washington?

Convert a foreign LLC to a Washington entity

If you plan on moving your business to Washington but are not interested in registering as a foreign entity then you have the option to convert the said entity. Conversion of an entity simply refers to a foreign entity being converted into a domestic entity. To transfer LLC to Washington through conversion, the necessary steps are as follows:

• Identify and then reserve the name of the limited liability company
• Hire a Washington registered agent
• File a Cover Sheet for the Conversion of the Business Entity specifying “Converting from” and “Converting to” along with the current and new domicile.
• File the Articles of conversion pursuant to RCW 25.15.436
• File the new entity formation documents

Dissolve your home LLC and form a new LLC in Washington

Your third option for moving an LLC to Washington involves dissolving the home state entity and registering a domestic LLC in the chosen state. The rules for dissolution will be governed by the LLC Act., of the state where it was initially formed. The rules and processes for dissolution can vary from one state to another, although some aspects remain the same like the approval of dissolution and filing of the articles or certificate of dissolution. The process to form a new LLC in Washington will involve the following:

• Hire a Washington registered agent to initiate service of process
• Reserve a business name in accordance with the state guidelines
• File Certificate of Formation pursuant to WA Rev Code § 25.15.071 (2016)
• Apply for appropriate business licenses or permits

Move Your Business to Washington with IncParadise

Washington is a leading state when it comes to a pro-business climate and robust infrastructure. It is quickly becoming an IT hub with startups enjoying steady growth and expansion. If you want to relocate a business to Washington then great opportunities await you. IncParadise can help you with the process of moving your LLC or corporation to Washington with ease.