Washington Foreign Qualification

The state of Washington offers many advantages and opportunities to small businesses and medium enterprises. It is home to over 600,000 small businesses, this includes both domestic and foreign entities. If you are planning to expand to this state then simply opt for Washington LLC foreign registration or foreign business incorporation to leverage the state’s favorable business environment. You can become an important part of the vibrant industry from aerospace to information technology, life science, clean technology, and food manufacturing among others. A Washington foreign business entity registration ensures that you’re able to apply for state grant and loan programs as well as tax incentive programs.

What is a Washington foreign qualification?

If you’re already conducting business in any other state but want to expand your operations in Washington then one of the best options is to undergo a Washington foreign business entity registration. This process doesn’t require you to incorporate your company all over again. When you opt for a foreign qualification in Washington; you will be able to operate your company in your home state as well as the new state (Washington). The home state refers to the jurisdiction where the business was initially formed or incorporated.

Example: You have formed a domestic LLC in Idaho by filing the Certificate of Organization. Idaho will be considered your home state. You need to now expand to Washington. One of the options is to close your Idaho LLC and start a new LLC in Washington. If you don’t want to close your Idaho LLC then you can apply for a Washington foreign business entity registration. The process of foreign qualification will provide you with the authority to transact business in Washington as well.

Doing business in Washington

When a business corporation, a limited-liability company, or any other form of entity operates within any state other than their home state or the state of incorporation, then they are required to “foreign qualify”. The foreign qualification in Washington provides a company formed in another state, with the authority to conduct business in this state. The foreign qualification is applicable if a company is doing business in Washington.

• If a company is collecting debts
• When a lawsuit is filed against a company in this state
• Internal business activities like board meetings don’t qualify as doing business
• Opening or having a bank account in Washington
• Businesses that have agents, offices, and representatives in Washington
• Selling of services or goods through independent contractors
• Delivery and installation
• Participating in an isolated or one-time business transaction
• A company transacting business in interstate commerce

Washington Foreign Qualification Process

If you have formed a limited liability company or a corporation in another state but want to conduct business in Washington then you will have to apply for foreign qualification in Washington. It is important to note that all out-of-state businesses require an authority to transact business in Washington, and operating without it is considered as breaking the law. There are consequences for transacting business without authority including severe penalties pursuant to WA Rev Code § 23B.15.020 (2012). Let us study in detail the Washington foreign business entity registration process for limited liability companies and corporations.

Washington foreign Corporation registration

If you already own a corporation in another state and want to expand the operations to Washington then you will need to apply for Washington foreign corporation registration. The foreign qualification will be governed by the 2020 Revised Code of Washington, Title 23B – Washington Business Corporation Act, 23B.15 – foreign corporations. You will have to obtain the authority to transact in this state before starting your company. The process for obtaining this authority is as follows:

• Business Name – Washington foreign corporation registration is incomplete without a corporate name. According to WA Rev Code § 23B.15.060 (2012), the business name should contain words like “corporation”, “incorporated”, or abbreviations like “inc.”, “corp.”, and “co.” Once you have chosen a name, it is important to conduct a Washington foreign entity search. The business name search will help you find out if your chosen name is available. If the said name is available then you need to file the “Foreign Name Registration” application along with a fee of $30. The application has to be filed with the Secretary of State, Corporation Division. The name registration has to be renewed annually between October 1st and December 31st.
• Registered Agent – There are several important requirements for the Washington foreign business entity registration and a registered agent is one of the most paramount. According to WA Rev Code § 23B.15.070 (2012), a foreign corporation will not be authorized to transact business in this state without a registered agent. We at IncParadise are one of the top Washington registered agents and have helped several domestic and foreign entities to incorporate in this state.
• Certificate of Authority – Another necessary step towards the Washington foreign corporation registration is to file the Application for a certificate of authority pursuant to WA Rev Code § 23B.15.030 (2012). This application is also known as the Profit Foreign Registration Statement and has to be filed with the Office of the Secretary of State, Corporations & Charities Division along with a filing fee of $180. You can apply online as well as by mail. There is an option for expediting the process of Washington foreign business entity registration by paying an additional fee of $50. It is important to note that you will also be required to submit a Certificate of Existence or Certificate of Good Standing acquired from the state of incorporation or home jurisdiction.

Do you want to register a foreign Corporation in Washington?

Washington foreign LLC registration

If you have already formed an LLC in any other state and want to expand your business in Washington then all you need is a Washington LLC foreign registration. This process will help you to not only conduct business in the state but it will also help you avoid going through the formation process of a new limited-liability company again. You can opt for a single-member or multi-member LLC depending on the requirement. Foreign LLC qualification in Washington will be governed by the Revised Code of Washington, Title 25 – PARTNERSHIPS, 25.15 Limited liability companies, Article IX – Foreign Limited Liability Companies. The process for a Washington foreign business entity registration is as follows:

• Business Name – One of the foremost requirements for Washington LLC foreign registration is a business name. You have to select a name in accordance with the naming regulations of the state. You can verify your name choice availability through a Washington foreign entity search also known as a name database search. If your chosen name is available then you need to use the “Foreign Name Registration” application to register it with the secretary of state pursuant to RCW 23.95.525 and Article 3 of chapter 23.95 RCW. The fee for name registration of a foreign LLC is $30, and by making an additional payment of $50; the process can be expedited.
• Registered Agent – The service of process which is executed by a registered agent, is a major component for any new business formation or foreign qualification in Washington. According to WA Rev Code § 25.15.331 (2016), a foreign limited liability company has to continuously maintain a registered agent in their state. Registered agent services offered by IncParadise, not only fulfill the service of process requirements but also assist with other business compliances like filing annual reports. IncParadise is one of the state’s top registered agents and has helped with several Washington foreign business entity registrations.
• Certificate of Authority – Company Registration is another significant requirement for conducting business in Washington. A Washington LLC foreign registration will help you to get the necessary authorization. You will have to file the Application for a certificate of authority or the Profit Foreign Registration Statement pursuant to WA Rev Code § 25.15.321 (2016). The registration statement can be filed online or by mail with the Office of the Secretary of State, Corporations Division. The filing fee is $180 and you can also choose the expedited service by paying an additional $50. The Washington foreign business entity registration will require you to submit a Certificate of Existence or Certificate of Good Standing acquired from the state of formation or home jurisdiction.

Need Any Assistance in Applying for Washington Foreign Qualification?

Washington is considered one of the top states in terms of business climate, which encompasses opportunities for startups, robust infrastructure, availability of skilled labor, and business incentive programs. You can expand your business to this state using the process of foreign qualification in Washington. As one of the leading registered agents in Washington, IncParadise can assist you with the process of foreign corporation registration or foreign LLC formation.

DBA or Trade Name in Washington

Washington is home to over 600,000 small businesses including partnerships, LLCs, and sole proprietorships. All company structures require a business name to operate. Some of these companies may opt to use the owner’s legal name like Brad Cooper LLC or use a “Doing Business As” (DBA) name like Brad’s Tours & Travels. If you want to register a trade name in Washington or a DBA, then it is important to comply with the requirements of RCW 19.80.010. If you are wondering how to look up a DBA in Washington, there is a process although it is important to first understand the conditions under which a DBA is used.

What is DBA or trade name in Washington?

When starting a small business in Washington, you must first choose a name for your company. You can choose your name (owner’s name), any other business name, or a DBA (Doing Business As). A DBA is also known as a trade name or fictitious business name and it should be distinguishable from any other name. Once you choose a name then filing a DBA in Washington should be your next step.

• Entity Structure – If you want to start a company in any name other than your own name or legal name then you should fill out a Washington DBA online application. More often than not, a trade name or DBA is preferred by sole proprietorships or general partnerships. This is because these particular entity structures are considered unincorporated businesses and don’t require legal formation or registration papers.
• Name Combination – Sometimes, business owners like to use a combination of their name as well as the product or service being provided like James Gordon Catering Services. Such a name would not require filing a DBA in Washington. Alternatively, if the owner decided to use the combination of their first name and product or services like Gordon’s Catering Services then registration of DBA would be necessary.
• Multiple Businesses – If you want to operate multiple businesses, especially LLCs or corporations, then you would be required to form a separate corporation or LLC for each of those entities. If you choose to fill out a Washington DBA online application for each of those businesses then it would cut down on the expenses as well as paperwork.

Filing DBA or Trade Name in Washington for LLC and Corporation

A DBA (doing business as) is known by many names and in Washington, it is known as a trade name. If you are thinking of starting a new LLC or corporation in the state then one of the foremost requirements is a business name. You can start a company in your legal name, opt for a business name, or even choose a trade name. There is a specific process to register a trade name in Washington for a business corporation or an LLC. The process and fee are different from the business name reservation process and fee.

Do a Washington Trade Name Search

If you are planning to register a trade name in Washington then the first step is to conduct a name search. Business owners are often faced with the question – how do I look up a DBA in Washington? These are the three ways to conduct a DBA search:

• Conduct a business lookup on the website of the Washington State Department of Revenue. The business lookup offers the option to search through an extensive database of tax accounts, business licenses, and reseller permits
• You can also conduct a Secretary of State Corporations Registration Data Search for names of LLCs and corporations registered with the state.
• You can also search for federally registered names or trademarks using the trademark database also known as Trademark Electronic Search System (TESS)

Register a DBA Trade Name with the Department of Revenue

Once you have chosen a trade name and have conducted the necessary name search; the next step is filing a DBA in Washington. The registration of a trade name is required and will notify your prospective customers or the general public about the company, which is conducting business under the said DBA. The registration of the Washington trade name is governed by WA Rev Code § 19.80.010 (2013). This law is applicable to both domestic and foreign companies.

• Business Licensing Service
  P.O. Box 9034
  Olympia, WA 98507-9034

Register your Washington DBA with ease!

Managing your Washington DBA

When you register a trade name in Washington or file a DBA then it will mean that you can conduct your business within the state using the DBA or assumed name. Each state has rules and regulations concerning a DBA or trade name. These laws are applicable for the renewal, changing, or canceling of a trade name or DBA in the jurisdiction where you are conducting your business. Let’s look at the various processes for managing a Washington DBA or trade name in the future.

How to renew Washington DBA?

Once you apply for a Washington DBA online with the Department of Revenue, you will not be required to renew it. There is no expiration for a trade name in Washington.

How to change a Washington DBA?

After filing a DBA in Washington, you may want to change the registered name shortly after. There could be many reasons, like a change in products or services being offered. To change the existing trade name, you will need to file a notice of change with the Washington State Department of Revenue pursuant to WA Rev Code § 19.80.025 (2013). The form you will need for this change is the Business License Application, wherein there is an option to Change the trade name. The fee for changing a trade name is $5 and the submission process would be the same as the registration for a DBA.

How to cancel a Washington DBA?

At any given point in time, if you want to cancel or withdraw your Washington DBA or trade name, you will be required to complete and file the business information change form (Form BLS 700 160). The cancellation of a DBA is governed by WA Rev Code § 19.80.080 (2013). There is no fee for cancellation and you can file the request online.

Need Any Assistance in Filing for a Washington Trade Name or DBA?

The process to register a trade name in Washington requires you to provide complete and accurate information while being compliant with state and federal trademark laws. The process of conducting a trade name search and adhering to trademark laws can be perplexing. IncParadise can gladly assist you with this process. We have expertise and knowledge regarding the Washington Business Regulations and can help you to apply for a Washington DBA online.

Business Licenses in Washington

Every business operating in the USA requires some form of a license or permit to operate. The licensing requirements vary from one state to another. A Washington business license is a document issued by different government or state agencies. It is issued to individuals and businesses so that they can transact within the geographical jurisdiction of the state. Washington has specific licensing regulations, laws, fees, and renewal requirements when it comes to permits or licenses. A business or individual organizing a business may require one or more Washington business licenses and permits.

What business license do I need in Washington?

Most states in the USA normally require a general business license or a state business license. Washington also requires most businesses to obtain a state business license. If you are planning to start a new business in this state then you need to apply for state licenses and permits. The Washington State Department of Revenue is responsible for issuing this license. The best way to proceed is by completing the Business Licensing Wizard. The wizard can be used to conduct a Washington business license search.

State (General) Business Licenses

The most common Washington business license is the state or general business license. You will need to register your business with the Department of Revenue (DOR) to obtain this license. Not all businesses may require this license as there are certain criteria to qualify for the need. If your business meets the following conditions then you will need to apply for and obtain a Washington business license. The qualifications are:

• If your business requires state and city endorsements
• Sole proprietorships or other businesses using any name other than the full name of the owner
• Planning to hire employees within 90 days of starting a business
• Selling a product or providing a service, which requires the collection of state sales tax.
• The annual gross income is $12,000 or more.
• The business is required to file any fee or taxes with the Department of Revenue.
• The business activity involves buying or processing specialty wood products.
• The business meets the requirements of reporting thresholds and nexus

Specific Licensing for Regulated Professions and Industries

The requirement for licenses depends on the type of business or business activity. There is a category of Washington business licenses and permits for regulated professions and industries. The Department of Commerce has created a regulatory roadmap so that businesses can fulfill their local, regional, and state licensing requirements. This roadmap is applicable for specific industries or business activities like restaurants and manufacturing including the sale of alcohol, as well as any gambling event occurring within the premises of a business.

For example: If you want to start a business in Washington for landscaping architecture, then there is a process to obtain a Washington business license for that particular industry. You will need to apply by filing the Landscape Architect License Application along with a fee of $450. It has to be renewed once every 2 years. The business license will be issued if you have the Landscape Architectural Accreditation Board (LAAB) accredited degree.

City Business License

Once you start or register your business in Washington, you may also require separate licenses in the city where your business is located. To do this, you will need to conduct a Washington business license search to identify the various permits you require. You may even require multiple licenses or permits depending on the business activity. The licensing requirements and fees vary from one city to another. We have listed 5 top cities for businesses.

Seattle

If your business is located in Seattle, then you will need to apply for a Seattle business license tax certificate (BLTC). This certificate is considered a Washington business license. The distribution of this license is handled by the License and Tax Administration, City Finance Division. You can apply for a new license or renewal using the online portal called FileLocal. It is important to obtain the UBI number first. There are specific business activities that require this license like Manufacturing-Extracting, Tour Operator, and Retail among others. The fee for this Washington business license and permit is $59. In the city of Seattle, a regulatory endorsement is also added to the business license tax certificate. You may need to apply for additional licenses if your business is categorized under Regulatory License.

Spokane

If you are planning to establish your business in Spokane, then you may be required to obtain a Washington business license and permit in addition to the state or general business license. The permits or business licenses will vary according to the type of business and activity. If you want to start a restaurant then it will be considered an Entertainment Facility in the city of Spokane. You can conduct a Washington business license search to identify the right application as there are separate applications for permanent and temporary facilities. You will have to file the Entertainment Facility license application with the Department of Taxes & Licenses, City of Spokane along with a fee of $100.

Tacoma

The business licensing rules in Tacoma are a little different from Seattle because the application process is structure-based. There are two types of Washington business license structures, a general business, and a rental business. If your company falls under the general structure, you will need to apply for a City of Tacoma Business License. If the activity is related to leasing or renting real estate property, then you will have to complete and file the registration and rental business license application. The fee to obtain a Washington business license in Tacoma is based on the gross income and revenue e.g., if the gross income threshold is under $12,000 then the fee would be $25; if it is more than $250,000 then the fee would be $250. It is also important to note that there are Regulatory Business Licenses applicable in Tacoma.

Vancouver

The city of Vancouver has specific licensing regulations and requires all companies conducting their business activities within the city limits to have the necessary permits or licenses. The Washington business license fee is determined through a calculation of the gross annual income as well as the number of employees (full-time equivalent/FTE) working within the city limits. If the reported gross annual income is $12,000 or more then the license fee would be $200 + $90 per FTE. Some businesses may also require a Vancouver special license in addition to obtaining a Washington business license and permit, as well as city business license.

Bellevue

If you are planning to conduct your business in Bellevue then you need to obtain a Washington business license in Bellevue. This is true for the following conditions:

• If a business office, warehouse, or retail outlet is located in the city per Bellevue City Municipal Code 4.09.030 (W)
• If an individual or business is engaged in business activities within the city limits and its gross income or sales is equal to or more than $2,000, then a city license is necessary.

Your business may also require regulatory licenses for specific activities like adult entertainment or pawnbroker activities. Some of these regulatory activities also require additional addendums

Building & Zoning Permits

One of the focal points of conducting a Washington business license search is checking for proper building and zoning permits in the state. These permits are mostly applicable in local jurisdictions like cities and counties. If your business activity is connected to any kind of construction projects, then you will need to obtain a building permit in the respective county or city.

Example: If you are constructing a building in Clark County or are working on the structural components of a building like plumbing; then you need to apply for building permits from the Clark County Permit Center.

Need any Assistance in Obtaining Your Washington Business License?

If you are planning to start a new business in Washington, then it is important to obtain a proper Washington business license. Licenses or permits can vary depending on the type of business activity and location of the business. If you conduct your business without proper licenses and permits then you may risk facing penalties and even punitive action.

Sole Proprietorship in Washington

Washington is home to over 600,000 small businesses spread over a diverse umbrella of industries from Aerospace, to clean technology, manufacturing, information and communication technology, e-commerce, and global health among others. The state provides a strong infrastructure, commercial spaces, startup hubs, and loans and grants that will help you to start a sole proprietorship in Washington with ease. The state also offers small business assistance through many state-governed programs including business incentive programs.

What is a sole proprietorship in Washington?

Filing a sole proprietorship in Washington refers to operating an individual entrepreneurship or sole tradership. It is a company or enterprise that is owned as well as operated by a single individual. This individual is also responsible for all business assets, as well as profits and liabilities. A sole proprietorship also has a different tax structure as compared to other businesses like a corporation. If you want to know how to start a sole proprietorship in Washington then it’s important to identify the various characteristics of this particular entity.

Important features of sole proprietorship in Washington

First time business owners normally prefer to start a sole proprietorship in Washington due to its salient benefits and several features. Some of the key features are:

• It works well for small entities including home-based businesses as well as medium-sized enterprises.
• There is no requirement for registering a sole proprietorship in Washington with the office of the Secretary of State. Therefore, it is not required to file any type of new business formation documents.
• A sole proprietorship business is also known as a sole-owner business, meaning the business and the owner are considered as one.
• Filing a sole proprietorship in Washington means that any, and all financial, management, and operational decisions will be made by the owner. One of the benefits is that no one else can interfere with these decisions.
• The tax structure of a sole proprietorship is different from other structures. It has to be filed through the owner’s income tax return.
• Registering sole proprietorship in Washington also equates to unlimited liability. This simply means that the owner will be liable for any losses or debts.
• The process of dissolution for a sole proprietorship is also simple.

Are you ready to start a sole proprietorship in Washington?

Steps to Start Sole Proprietorship in Washington

If you intend to start a sole proprietorship in Washington then you must start by identifying the various business requirements. You will need to focus on the financial and management aspect of the business. You will also need to consider several of the state-based requirements like tax IDs and business licenses. If you are wondering how to start a sole proprietorship in Washington, these steps will help you get started and continue to run the business smoothly.

1. Prepare a business plan

When thinking of filing a sole proprietorship in Washington, one of the first details to focus on is creating a proper business plan. This plan focuses on several major elements that will aid in the overall growth of the business. It will provide you with a clear visual path regarding finance, budgeting, marketing, prospective markets, customer base, and state requirements among other details. Different types of businesses have different requirements and plan components. Some of the most common facets of a general business plan are:

• Executive Summary
• Company Description and Objectives
• Industry and Market
• Direct and indirect competitors
• Chain of command or Management
• Details of Products or services
• Marketing Plan
• Sales Plan
• Funding Plan
• Financial Projection

2. Choose a Washington business name

When you start a sole proprietorship in Washington, you must choose a business name. Creating a company name is important because it helps to create a professional identity and communicate the nature of the business and its objectives to customers, partners, and vendors among others.

• Keep the business name as simple as possible
• The company name should represent your product or service like “Steven Johnson Sportswear”
• Conduct a copyright or trademark search for the chosen name
• If you plan to create a website, check for domain name availability

3. File for a Trade name

If you are thinking of filing a sole proprietorship in Washington, you will have two options available when it comes to choosing a company name. They are:

• The full legal name of the owner can be used as a company name
• Alternatively, you can register a trade name

For example: IF your name is Susan Wright and you want to start a sole proprietorship in Washington as a Yoga Studio. You can use your own name like ‘Susan Wright Yoga.’ Alternatively, if you use a name like “Susan’s Master Yoga” then it will be considered a DBA or trade name. In this situation, you will need to conduct a sole proprietorship Washington search to determine availability and then register the trade name.

4. Get an EIN

An EIN or Employer Identification Number is required for most businesses, mostly for tax purposes or opening a business bank account. When you start a sole proprietorship in Washington, you will be required to file your income and expenses through an individual tax return using your Social Security number (SSN). You can also apply for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS). As a sole proprietor, you will need an EIN if you meet the following conditions:

• If you hire employees
• When you open a business bank account
• A Keogh plan for an unincorporated business or are self-employed
• For filing excise tax returns
• Filing Chapter 7 (liquidation) or Chapter 11 (reorganization) bankruptcy
• If you change or convert the entity structure from a sole proprietorship to an LLC or partnership

5. Obtain the necessary licenses and permits

If you are interested in filing a sole proprietorship in Washington, then you must fulfill certain state requirements. Filing for a business license and permit is one of the most vital requirements. Obtaining the right license your business will allow your business to become and remain operational. Business licensing in the state can be categorized as:

• A state business license
• Professional or regulated licensing
• City or County licenses and permits
• Zoning permits

6. Open a bank account for your Washington business

Sole traders or proprietors often feel as though they don’t require a separate business account for banking purposes. Having a business bank account has its advantages especially when it comes to managing finances. Opening a business banking account is an ideal professional decision because they have been specifically designed to serve the financial and accounting requirements of a business.

7. Report and pay taxes

Since a sole proprietorship is operated by a single owner, it is considered an unincorporated business for tax purposes. Normally, the owner of this type of entity has to file personal income tax but Washington State doesn’t have any personal or business income tax. Therefore, if you start a sole proprietorship in Washington then you will be required to file sales and use tax in the state depending on your business activity and the location of your company.

Example: If you start your company in Seattle then the combined sales tax rate would be .101, but if you are based in Vancouver then the rate would be .084. The combined tax rate includes local and state sales tax.

Ready to Start a Sole Proprietorship Business in Washington?

A sole proprietorship, one of the simplest business structures, is well favored amongst first-time business owners. If you are wondering how to start a sole proprietorship in Washington then you will be happy to know that you are not required to submit any paperwork with the office of the Secretary of State. Although there is no registration process; paperwork and documentation will be required for making the company operational. This is where IncParadise can provide guidance and expertise to help you start a sole proprietorship in Washington with ease.

Washington LLC or Corporation

There are a variety of types of business structures available to choose from depending on your needs and objectives. A limited liability company and a business corporation are two of the most popular entity structures. Whether you choose to incorporate in Washington or form an LLC; each has its advantages and state-specific maintenance requirements. There are several other items to consider including the cost of forming a corporation in Washington and state business taxes.

Which business entity should I choose for my Washington business?

Washington is considered a global leader in several essential industries including aircraft and unmanned aerial systems (UAS). The state is also home to several unicorn startups with Seattle ranked #9 in the list of top startup ecosystems. The business climate along with a steady infrastructure, availability of a talented workforce, and taxation are determining factors in choosing a business structure. The chosen structure will further define the actual cost of forming an LLC in Washington or a corporation. We have listed several focal points that will help you determine the right structure for your business.

• Ownership Control – The structure of ownership or ownership control in an LLC is different from that of a corporation. There are certain business structures like sole proprietorships that have a single owner. An LLC can have single or multiple owners. Corporations and partnership firms conversely, cannot operate with single ownership. A corporation has to issue shares and each shareholder is considered an owner of the company.
• Funding or investment – The cost to form a corporation in Washington as well as any other business type, and operational costs are considered to be a part of capital investment. A new business always requires funds and the operational costs for certain entities can be more than for others. The state provides grants and funding options to all businesses but getting an investment from VCs and other private sources is easier for corporations in comparison to an LLC.
• Taxes – State taxes or business taxes are one of the central points that will help you choose a business structure. If you form an LLC in Washington, then it will be considered a pass-through entity in terms of taxation, whereas a corporation undergoes double taxation. The entity type selected will also determine the state taxes one is liable to pay.
• Limited Liability Protection – Liability Protection is another paramount basis for identifying the best structure for your business. Liability protection helps business owners avoid any personal liability for company debts
• Complexity – There are a few particular entity structures that have a complex registration process. They call for more documentation and may require written laws concerning the way management functions, duties, and the way operations are conducted.

Washington LLC Costs

A limited liability company is one of the most popular entity structures due to its many benefits. The lower cost to form an LLC in Washington is just one of several other advantages this type of business structure offers. You can choose to form a sole proprietorship and treat it like a single-member LLC (SLLC) or start a Multi-member LLC and elect S Corporation status. If you are interested in forming an LLC in Washington, then let us take a look at the several costs you may encounter.

Costs of forming an LLC in Washington

The cost to form an LLC in Washington should include the initial new business registration fee, as well as annual maintenance costs. Making the business operational may include several other expenses. The principal fees are:

• Reserving a business name is the primary step to forming an LLC in Washington. You will have to file the name reservation form along with a fee of $30.
• According to state laws, you will need to hire and maintain a registered agent for the service of process. The cost or fee would vary depending on the service you select.
• The business registration fee is the single most significant cost to form an LLC in Washington. You will have to file a Certificate of Formation along with a filing fee of $180. If you want to expedite the process, there is an additional fee of $50.

Annual maintenance costs for a Washington LLC

Once you have registered your limited-liability company in Washington; it is critical that you meet all state requirements including the annual business maintenance requirements. This includes the Washington LLC annual fee for keeping the business active and operational. The fees involved are included in the following:

• Annual Report – Filing annual reports is a mandatory annual requirement for all LLCs.
• The Washington LLC maintenance cost for an annual report is $60. The report has to be submitted annually by the end of the LLC’s registration anniversary month. Failure to submit this report can lead to penalties and even dissolution of the company.
• Taxes – Since a limited liability company is considered a “Pass-through Entity”; the company will not file any taxes on the business income. Instead, the owners or members will have to file taxes on their share of profits. There are other taxes that your company may have to file and are considered part of the cost to form an LLC in Washington.
• Business Licenses – Once you have filed the Certificate of Formation, you will need to apply for a business license or permit to operate in the state. This is another form of Washington LLC maintenance costs and will vary according to the type of licenses, the number of permits or licenses, and the county where your business is located. It is important to remember that business licenses have to be renewed annually.

Register your LLC in Washington Today!

Washington Corporation Cost

A modern-day business corporation is also known as the C Corporation and is another well-favored legal structure. A corporation works differently from an LLC and although the cost to form a corporation in Washington or incorporation cost is the same as that of a limited-liability company. If you have an interest in forming a Washington Corporation then let us take a look at some of the expenses you may encounter.

Cost of forming Washington Corporation

The Washington corporation maintenance cost includes the initial registration costs as well as various annual fees. The principal costs related to forming a Washington Corporation are:

• When you start a new business, You will need to decide on a name for your company. To identify a name, conduct a business name availability search, and then reserve the chosen name with the office of the Washington Secretary of State. The name reservation fee is $30 and it is an essential cost to form a corporation in Washington.
• The state laws require you to designate and continuously maintain a registered agent in the state according to WA Rev Code § 23B.05.010 (2012). The role of a registered agent is to facilitate service of process. The fee or cost will vary depending on the service chosen by you.
• The third and most cardinal Washington corporation maintenance cost is the new business registration fee. You will have to file Articles of Incorporation with a filing fee of $180. If you want to expedite the process, there is an additional fee of $50.

Annual maintenance cost for Washington Corporation

Aside from the initial costs to form a Corporation in Washington, there are a variety of expenses concerning the annual maintenance of your business. The annual requirements will help your business to remain in compliance with all state laws. The costs include the following:

• Annual Report – An essential annual cost for a Washington Corporation is filing the annual report. The fee for filing an annual report is $60. The report has to be submitted annually by the end of the incorporation anniversary month. If you fail to submit this report then it can lead to penalties.
• Taxes – A corporation has a different tax structure from any other business entity. A corporation also undergoes double taxation. The state of Washington does not have any corporate income tax but depending on the type of activity, a company may be subjected to business and occupation (B&O) tax.
• Business Licenses – After filing the Articles of Incorporation, applying for and obtaining a business license is important. A business license or county permit will allow you to operate in the state. This is another form of Washington corporation maintenance cost and will vary depending on the county, as well as the type of permits or licenses being issued. These licenses and permits must be renewed annually or on dates as prescribed by the county.

Incorporate Your Washington Business with ease!

Need any Assistance in Forming Your Washington LLC or Corporation

There are certain processes and costs involved when you register an LLC or incorporate in Washington. These include initial new business registration-related processes as well as annual business maintenance. We at IncParadise, can provide valuable assistance by handling your incorporation or new business formation requirements while ensuring your company is compliant with all state laws.

Corporations in Washington

Entrepreneurs prefer to start corporations in Washington due to the superior business climate. The state exhibits a flourishing economy that provides a variety of business incentives and tax credits. Washington is home to several Fortune 500 companies as well as many small businesses. One of the benefits of incorporating a business in Washington is the convenience of their strong transportation and logistics infrastructure including ports, Foreign Trade Zones (FTZ), and Opportunity Zones.

What is a Washington Corporation?

Corporations are commonly referred to as C-Corporations. A C-Corporation is a legal structure where the shareholders and owners are taxed separately. It is a popular business structure in Washington, and across the U.S. C corporations are considered to be publicly traded companies that are owned by shareholders or those who have shares or stakes in the aforementioned company. There are various types of Corporations that you can form, from profit to not-for-profit entities. You can incorporate your business in Washington under the following:

• Domestic Corporations
• Foreign Corporations
• Nonprofit Corporations
• Employee cooperative corporations
• S Corporation
• Corporations sole
• Social Purpose Corporation (SPC)

What are the benefits of incorporating in Washington?

There are several advantages that entrepreneurs and startups find useful when they register a Corporation in Washington. A C Corporation is different from an LLC or any other entity in terms of its legal structure. A C-Corp has distinct advantages. Some of the benefits of incorporating in Washington are:

• Limited liability for owners – One of the major highlights of a corporation that you as an owner will benefit from, is limited liability protection. This particular entity is considered to be a separate legal entity; the liabilities, debts, and other obligations, will remain separate from the owner. The owner will not be personally responsible for any business debts or liabilities.
• Perpetual existence – Perpetual existence is another of many great incentives for incorporating in Washington. The business corporation exists separately from its shareholders or owners.
• Transfer of ownership – Another favorable privilege when you incorporate in Washington, is ownership transferability. You will be able to transfer the ownership of the company by selling a share of the corporate stock.

Starting a Corporation in Washington

Washington is a great destination for startups and small businesses. It has just the right business climate to support your ideas and business. The state does not require you to file personal income tax returns and offers several tax incentive programs to help reduce your overall tax burden. So, how do you register a Corporation in Washington? Let us look at the various processes involved.

1. Name your Washington Corporation

Whether you want to start a corporation in Washington online or offline; the first step involves choosing a name and reserving it. A business name is the key identifier for every company and helps in distinguishing it from other entities. The name of a corporation is used for several purposes from incorporation, to sales, marketing, and branding activities. There are certain naming guidelines you will be required to follow governed by WA Rev Code § 23B.04.010 (2012). The guidelines also require the name to contain identifier words like “corporation”, “incorporated”, “company” or abbreviations like “corp.”, “inc.”, “co.” or “ltd”.

2. Appoint a Washington registered agent

If you want to start a corporation in Washington then it is important to note that there is a specific process that you are required to follow. This process involves filing incorporation documents, name reservation, and maintaining compliance with all state laws. It may seem like a complex process and it will involve extensive documentation. A reputable Washington registered agent like IncParadise can assist you with the process of incorporation.

3. File Articles of Incorporation with Washington SOS

The foremost requirement to incorporate in Washington is to file the Articles of Incorporation for a Profit Corporation. You will be required to prepare and then submit the Articles of Incorporation pursuant to WA Rev Code § 23B.02.020 (2012). The Articles can be hand-delivered or mailed to the Office of the Secretary of State, Corporations & Charities Division. The filing fee is $180 and the expedited fee is an additional $50.

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4. Choose your Washington Corporation’s initial directors

A corporation is managed by a board of directors and officers, wherein the former is the governing body. You have to choose the initial directors before you register your Washington Corporation online. This is a mandatory requirement because they are the first directors and their names are submitted in the articles of incorporation. The initial directors are required to serve until the shareholders of the said company hold the first meeting for electing successors. According to WA Rev Code § 23B.08.030 (2012), a Washington corporation may have one or more directors.

5. Prepare bylaws for Washington Corporation

The initial board of directors or incorporators of a corporation in Washington will be required to adopt initial bylaws pursuant to WA Rev Code § 23B.02.060 (2012). You can adopt the bylaws before or after you start a corporation in Washington. The bylaws are the governing rules based on which a Washington corporation will operate. The bylaws constitute the following:

• Rules and obligations of directors, shareholders, and officers
• Annual meeting rules
• Guidelines for removal of directors and officers
• The purpose of the corporation
• Stock issuance rules
• Duties and responsibilities of owners and managers
• Voting rights
• Maximum and minimum number of directors allowed
• Specific rules for making amendments to existing bylaws

6. Get an EIN for your Washington Corporation

The Employer Identification Number (EIN) is a unique nine-digit number that is assigned to businesses by the Internal Revenue Service (IRS). Certain businesses may not need this number but if you incorporate in Washington then you will need an EIN. It is also known as the Federal Employer Identification Number (FEIN) and is required for the filing of business or corporate taxes in the state. You may also need an EIN for hiring employees, obtaining credit, and opening a business bank account.

7. Hold an organizational meeting

There are many benefits of incorporating in Washington but the most important objective is to operate the company properly. This is made possible by holding a corporate organizational meeting. Such a meeting highlights all the important tasks that need to be executed. The tasks will vary from one company to another but some of the key areas covered in this meeting include:

• Drafting articles of incorporation
• Election of officers
• Distribution of initial shares
• Adopting corporate bylaws
• Election of officers
• Accepting resolutions necessary for the operation of the company
• Voting for adopting the corporate seal

8. Open a bank account

Whether you start a brick and mortar store or an online business, having a business bank account really helps. When you start a corporation in Washington there may be several financial transactions in terms of making payments or expenses and receiving payments or revenue. Having a business bank account will help simplify these finances, ensure clean bookkeeping, and further assist with tax preparation and easy tax filing. A business banking account will also help in building your credit and creating a good credit history, which can be useful when applying for a loan.

9. File your annual report

Once you register your Washington Corporation online, you will be required to maintain annual state compliances. This helps the business to enjoy a good standing in the state. Another of the many vital requirements for your Washington business is filing your annual report. This report has to be submitted to the office of the Washington Secretary of State – Corporations Division according to WA Rev Code § 23B.16.220 (2012). The annual report has to be filed each year by the end of the incorporation anniversary month.

Example: If you filed the Articles of Incorporation on July 23, 2022, then your annual report will be due on July 31, 2023. The fee for filing this report is $60 and there can be penalties for not filing or filing late.

Know more about starting a Washington Corporation

There are several procedures involved in setting up a new business. If you are planning to start a corporation in Washington then you may have queries concerning the steps to incorporation. For that reason, we have created a special section of “Frequently Asked Questions” for addressing such queries.

Why is Washington a great place to start a Corporation?

Washington has a growth-oriented economy that supports several industries driven by small businesses and large corporations. There are several benefits to incorporating in Washington that a first-time business owner can enjoy including its pro-business climate. Some of the salient highlights of the state are:

• It is a high-growth region for advanced manufacturing, clean technology, aerospace cluster, and cloud-based data centers
• The state offers one of the lowest energy costs to businesses
• Access to industry-specific tax incentive that encourage growth and innovation
• A robust transportation and logistics system to facilitate the movement of goods
• There are many opportunities for growth and expansion including opportunity zones, grant programs, and workforce training among others.

How much does it cost to incorporate in Washington?

You can form different types of businesses in Washington. The process, documentation, and fee may be different for each of them. If you plan to incorporate in Washington then you will be required to submit Articles of Incorporation. The initial cost to incorporate is $180. If you want to expedite the process then the total fee along with a business registration fee would be $230. Apart from this initial cost, there will be costs for your business licenses, name reservation, and annual report among others.

What are the annual costs associated with a Washington Corporation?

If you look up a corporation in Washington for annual requirements, the most significant is the annual report. You will also be required to file taxes annually and renew your business licenses and permits. It is important to note that the fee for county licenses will vary according to license type and county.

Are there any disadvantages in forming a Corporation in Washington?

There are many benefits when incorporating your business in Washington. A traditional corporation may have advantages as well as disadvantages. A corporation is one of the most preferred entity structures but it can have potential downsides. The biggest drawback is double taxation, which means that both the business and the shareholder will have to file taxes. Corporations also have rigid structures, formalities, lengthy application processes, and are expensive to operate.

Who can be a registered agent for your Washington Corporation?

If you intend to register Corporation in Washington then you will have to appoint a Washington registered agent pursuant to WA Rev Code § 23B.05.010 (2012). An agent can be an individual or a business that will have the authority to receive any legal or business documents like annual reports on behalf of your corporation. The registered agent representing you like IncParadise will provide a service of process on behalf of your company. You can also change your registered agent by filing a statement of change with the secretary of state.

Do all Corporations need a business license in Washington?

Yes, whether you register your Washington corporation online or by any other form of business entity, you will need to apply for business licenses and permits to make the business operational. It is mandatory to apply for Business License Tax Certificates with the Department of Revenue, Business Licensing Service. You may need to apply for county licenses and professional licenses as well.

How to qualify for a Foreign Corporation in Washington?

If you already own a business in any state other than Washington and want to move or expand your business in this state then you will need to apply for foreign qualification. This is a process through which you will be able to incorporate in Washington as a foreign entity. You will be required to file a Foreign Registration Statement or Certificate of Authority with the Secretary of State pursuant to WA Rev Code § 23B.15.030 (2012).

How do I dissolve my Washington Corporation?

Once you start a corporation in Washington there can be several reasons for dissolving the company in the future. The dissolution can be carried out by the board of directors, shareholders, and incorporators. You will be required to file the Articles of Dissolution for a Washington Profit Corporation pursuant to WA Rev Code § 23B.14.030 (2012). You will also be required to publish a notice of the dissolution within thirty days.

Ready to Start a Corporation in Washington?

There are a variety of business structures that you can form in Washington, though entrepreneurs prefer to incorporate their businesses over other types of entities. If you are thinking of registering a domestic or foreign entity in the state then IncParadise can assist you with the process of incorporation.