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.

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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.

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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.

Entrepreneur’s guide to establishing a business in Washington

If you are a first-time business owner planning to start a business in Washington then you will be able to take advantage of several benefits that the state offers. The state boasts of a strong economic environment with no personal or corporate income tax. It has a highly competitive business environment including an abundance of state and business incentive programs that assist small and medium-sized enterprises to achieve financial objectives and operational excellence.

Why do companies prefer to incorporate and register in Washington?

Washington is a state with plenty of business resources. It has one of the top ten Real Gross Domestic Product (GDP) in the nation. The economy and even the larger industries are primarily driven by numerous small businesses from retail establishments to manufacturing. Washington state is home to numerous companies listed in the Fortune 500 such as; Amazon, Microsoft, Costco Wholesale, Starbucks, Nordstrom, Expeditors International, Weyerhaeuser, Expedia, and Alaska Airlines. Entrepreneurs who register their business in Washington state have several benefits available to take advantage of. Some of the top benefits are:

• Tax-Friendly Environment – One of the benefits of incorporating a business in Washington is the tax-friendly environment. There are 7 states in the United States which have renounced individual income taxes, Washington is one such state. The state also doesn’t have any corporate excise tax and property tax on inventory. There are a wide variety of tax incentive programs according to each industry which can help businesses to offset any applicable taxes.
• Pro-Business Environment – The business climate in the state of Washington is quite the favorite amongst entrepreneurs and startups. Once you register a business in Washington, you will have access to an environment that offers a platform for creativity and innovation, a strong and educated workforce, a powerful emerging startup climate, a robust transportation infrastructure; and supply chain logistics.

Steps to start a business in Washington

The state of Washington is home to several industries including several high-growth industrial sectors. If you are planning to start a business in Washington then steady business growth and economic stability are two professional highlights for you to look forward to. However, forming a new business is never an easy process, and there are several factors you must consider before you take the first steps. Let’s take a look at some of the key factors that can help strengthen your business, and guarantee your ability to achieve your desired objectives.

1. Prepare a Washington Business Plan

Every business has specific objectives, a target market, and products or services that are different from any other business in the same industry. For that reason, the business plans for two businesses are hardly ever identical, even though some of the components or elements of the plan might be similar. This plan is also known as a corporate plan and focuses on key components for operating a successful business. If you are planning to incorporate in Washington, then your plan should take into consideration an efficient marketing launch, pivotal financial details, diverse marketing strategies, and adverse competition.

• Executive summary
• Company description
• Products and services
• Market analysis
• Competitive analysis
• Financial features and requirements
• Management and Organization
• Branding and marketing
• Logistics and operations
• Financial Projection

2. Attend Entrepreneurial Training or Development Programs in Washington

Creating a new business or start-up from scratch can be an arduous task. For this reason, entrepreneurs or small business owners can benefit from entrepreneurial training or development programs. These particular programs help in strengthening the specific skill sets needed for first-time business owners through a variety of business development training. If you intend to start a business in Washington then you would benefit from checking out some of the top programs available such as the “StartUp Washington” program by the Washington State Department of Commerce.

3. Choose an Appropriate Structure for your Washington Business

Bear in mind that there are several decisions you must consider before you register a business in Washington. Choosing the most suitable entity structure for your company to be identified as one of the most pivotal decisions you as an owner can make. It is important to note that each type of structure has its own advantages and limitations including tax treatment.

• Sole Proprietorship
• General Partnership
• Limited Liability Company (LLC)
• Corporation
• Limited Partnership (LP)
• Limited Liability Partnership (LLP)

4. Naming Your Washington Business

The two most fundamental elements of any branding strategy are the business name and the logo. Business names create powerful visualization and have the ability to provide customers with an idea about the brand, product, or services. A company name also imparts significant value especially if you want to start a business in Washington and create a franchise soon after. When finalizing a business name, there are several aspects to consider including state naming requirements and guidelines. Let’s look at the naming guidelines and process according to the Washington Secretary of State:

• The business name in the state of Washington will vary according to the entity structure especially when it comes to the use of words and abbreviations. If you were to incorporate in Washington then the name should contain words like “corporation” or “incorporated” or abbreviations like “Inc.” or “Corp.”.
• The Washington business laws also state that a business name should be unique and distinguishable from any other business name in the state. This is made possible by conducting a name availability search. This process will help you to determine distinctiveness as well as the availability of the said name to be reserved.
• You will need to reserve your company name before you register a business in Washington. The reservation fee and forms are the same for all types of entities and you have the option to expedite the process by paying an additional fee. The name reservation application must be submitted to the office of the Secretary of State, Corporation Division.

5. Choose The Best Location for Your Washington Business

When you start a business in Washington one of the most significant focal points is the location of your company. Location plays an integral role in the success or failure of any business. When envisioning the location of your business, consider several key elements like the availability of an educated workforce, access to the state infrastructure, who your competition will be, your target customer base, and the overall market conditions.

• Seattle
• Olympia
• Lacey
• Richland
• Redmond
• Bellingham
• Pasco
• Burien
• Shoreline
• Lakewood

• Transportation and logistics are vital details as they enable the movement of products or goods. If your company is in the manufacturing or retail industry then emphasis on these features are crucial. You can also choose specific industrial hubs in the state as they offer a robust transportation infrastructure as well as several business incentives and tax credits. Such hubs include opportunity zones that may offer various advantages when incorporating businesses in Washington.
• The availability of educated and professional talent is also vital concerning the success or growth of any business. Sometimes locating your business in a city with a maximum number of universities and other skill-developing institutions can be quite beneficial.
• It is important to check the city or county zoning ordinances where you plan to oversee your business. These regulations provide information and rules concerning commercial spaces, city or county licensing and permits, building codes, and land use.

6. Register Your Business with The Washington Secretary of State

Starting a business in Washington requires particular state-governed processes and requirements which must be met. You will have to complete and submit documentation determined by the type of entity structure you wish to form. The governing laws, processes, forms, and fees may vary according to the entity structure. The new business registration documents have to be filed with the office of the Washington Secretary of State, Corporation and Charities Division. Let’s look at an example to understand this.

Example: If you want to form a C Corporation then you will have to submit the Articles of Incorporation of a Profit Corporation with the Washington Secretary of State pursuant to WA Rev Code § 23B.02.020 (2016). The processing fee for the incorporation documents will be $180 and the process can be expedited by paying an additional fee of $50. Similarly, if you want to register a business in Washington as an LLC then you will be required to file a Certificate of Formation along with a filing fee of $180 pursuant to WA Rev Code § 25.15.071 (2016).

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7. Get Your EIN

Once you register a business in Washington, you will be required to fulfill certain Federal and state requirements. One of the most important requirements is that of business taxes. Consequently, you will need to apply for and obtain an Employer Identification Number (EIN) to file a business tax return. The EIN is a unique tax ID number issued by the Internal Revenue Service (IRS) and not all forms of businesses require it.

8. Open a Business Bank Account for Washington Business

Whether you are planning to incorporate in Washington or start a small sole proprietorship firm, it is extremely important to establish certain business practices in the initial phases itself. Since, managing finances is a crucial aspect of any new business; it is always recommended to open a business bank account. This account unlike your personal account will focus entirely on business-related expenditures and earnings. Although it is a legal requirement for certain forms of entities like a business corporation, there are several benefits of a checking account that any entity structure can enjoy. You can open a business bank account before or after you register a business in Washington. Some of the benefits are:

• Your company bank account will help with tracking business income, thus reflecting overall business growth.
• It will make it easier to track your business expenses and will enable client or vendor payments
• It will help in streamlining company financial records as well as tax information
• Having a business account increases credibility
• Help in providing clear records of audits
• Plays a key role in establishing business credit

9. Obtain Necessary Washington Business License and Permits

There are several state requirements that every new business needs to meet in order to run smoothly. One of the most important requirements is obtaining a Washington business license, which will enable the business to be operational in the state. Even if you register with the state, you will not be able to conduct your business without licenses or permits. You may need single or multiple licenses and it will vary on the type of business activity and the location. Let’s take a look at Washington state business licensing requirements.

• Business License Tax Certificates – This is a form of general license or Washington business license that is issued by the Department of Revenue. You can apply for this by using a Business License Application (BLA) after you register a business in Washington. The Business License Tax Certificates can also be issued by the local authorities or License and Tax Administration agencies in cities and counties.
• County Specific Licenses – A Washington business license or permit can also be issued by a county depending on the business activity, and the county where the said business is located. There are several types of activity or even industry-specific licenses and permits issued by counties.

Example: If you start a business in Washington as a permanent food establishment then the permits required may vary from one county to another. If your establishment is located in King County then you will need to file an application for a permanent food establishment along with a Plan Review Application.

10. Register for Taxes

Once you register a business in Washington, there are several types of state or business annual maintenance requirements that you must also fulfill. These requirements can vary from one state to another, although the most particularly common is taxes. The business structure you choose may determine the type of taxes applicable to your business.

11. Annual and Ongoing Requirements

Once you register a business in Washington, you will be required to fulfill specific annual state requirements. Meeting these requirements will allow the business to enjoy active status. The type and nature of annual requirements can vary from one state to another. For example, if you obtain a Washington business license then you will need to renew it each year. Similarly, you will also be required to file annual tax returns for your businesses such as corporate tax and sales or use tax.

Some Important Quick Resources for Washington Businesses

Once you have put together a business plan, it is time to start a business in Washington. To operate your business successfully, you will need to proceed with various processes involved with the registration and maintenance of a new business. This is where useful knowledge can be helpful, and there are various government and private agencies that can provide the necessary resources. Let us look at some of the important resources.

Washington Secretary of State

The office of the Washington Secretary of State (SOS) is responsible for handling all types of requirements concerning the formation of new businesses. They also provide detailed information on the different types of entities that you can form in the state. They have several programs and business-related services like trademark registration, Apostilles, Service of Process, and other various types of forms and fees.

• Washington Secretary of State
  Legislative Building · PO Box 40220
  Olympia, WA 98504-0220
  Phone: 360- 902-4151
  Email: [email protected]
  Website – https://www.sos.wa.gov/

Washington Taxation Departments

The Washington taxation department is also known as the Department of Revenue (DOR). Their website provides information regarding how to start a business in Washington, managing a business, various applicable business taxes in the state, tax rates, and the procedures for filing taxes. The taxation department also provides information and guidance concerning Washington business licenses. You can even find an extensive list of publications on tax incentives and liabilities in various industries.

• Washington Department of Revenue
  Department of Revenue
  Special Programs Division
  PO Box 47477
  Olympia WA 98504-7477
  Phone: 360-705-6741
  Website – https://dor.wa.gov

Washington Department of Labor & Industries

The Washington Department of Labor & Industries provides information about labor. If you incorporate in Washington, you may need to go through their safety training manuals, health and safety rules, and even request a safety consultation, depending on the industry you choose. You will also find information on the various grants available in the state. The website provides information on business insurance, wages, workplace policies, and several other types of licensing and permits.

• Washington Department of Labor & Industries
  7273 Linderson Way SW
  Tumwater, WA 98501-5414
  Phone: 360-902-5800
  Website – https://www.lni.wa.gov/

Washington Small Business Development Center

If you are planning to start a business in Washington, keep in mind there are several sources which can provide you with valuable business information like the Washington Small Business Development Center (WSBDC). As a new business owner, you can find the right training, tools, and resources, as well as business assisting and advising services. Their Start-up-Guide is also an important resource that provides detailed information on feasibility and financing.

• Washington Small Business Development Center
  901 East 2nd Ave., Suite 210
  Spokane, WA 99202
  Phone: (833) 492-7232
  Email: [email protected]
  Website – https://wsbdc.org/

Washington Chamber of Commerce Executives

The primary objective of the Washington Chamber of Commerce Executives (WCCE) is to provide information and resources required to achieve success in business through education, coordination, and facilitation. There are 200 chambers in the state of Washington available for you to reach out to. They organize leadership events and conferences for first-time business owners and entrepreneurs. You can also benefit from their small business guidance services.

• Washington Chamber of Commerce Executives
  PO Box 1349
  Enumclaw, WA 98022
  Phone: 360-802-4595
  Email: [email protected]
  Website – https://www.wcce.org/

Ready to start a business in Washington?

Washington is quite a popular state for entrepreneurs and business owners due to its favorable business climate. You can start a business in Washington and achieve high growth and expansion, even though the startup registration process may seem quite complex. This is where a reputed Washington registered agent like IncParadise can provide valuable assistance. We have the necessary expertise, experience, and understanding of state laws that can help you with your new business formation.

LLCs in Washington

Entrepreneurs prefer to start an LLC in Washington because it has one of the top pro-business climates in the nation. Today, the state situated in the Pacific Northwest region is home to more than 600 thousand small businesses and this includes several Fortune 500 companies like Amazon, Expedia, Alaska Airlines, clothing merchant Nordstrom, and Microsoft among others . The state not only has a strong industrial base but also small business incentives and grants programs that aid with business growth and expansion.

What is an LLC in Washington?

A limited liability company (LLC) is a type of business structure that provides limited personal liability. An LLC may have a single owner (member) or multiple members. The tax classification of an LLC by the IRS is that of a “pass-through entity”. It is also considered to be a hybrid entity as it has similar characteristics to a C Corporation as well as a partnership. If you want to form an LLC in Washington then you may choose from any of the following structures:

• Single-Member LLC similar to Sole Proprietorship
• Multi-member managed LLC
• Manager-managed LLC
• A series LLC
• Manager-Managed LLC
• Foreign limited liability company

What are the benefits of forming an LLC in Washington?

If you want to establish a limited liability company then a Washington LLC registered agent can help you with the process. There are several facets to this particular type of entity but above all, it offers several benefits. Some of the advantages are:

• Limited Personal Liability – Business debts are an important aspect of any company. Now, if you register a Washington LLC online then unlike certain other forms of entities, an LLC will enjoy limited liability protection. This simply means that as the owner or member of the said LLC, you will be protected from liability due to any debts of such an LLC.
• Tax Flexibility – One of the greatest advantages of an LLC is the ability to elect the type of taxation it will follow. A limited liability company may elect to be taxed as a C Corporation, S Corporation, sole proprietorship, or partnership.
• Membership Flexibility – When you set up a limited liability company, you will be able to enjoy certain flexibilities in terms of management structure. This means that the core members of such a limited liability company may include individuals, partners, trusts, estates, or other business entities.

Forming an LLC in Washington

Washington is quite a popular state among entrepreneurs and you can register a Washington LLC online. The state has a sound business infrastructure that includes the availability of a skilled workforce, a strong culture that promotes creativity, the availability of low-cost energy, and a robust supply chain. There are however several key areas to focus on when starting a limited liability company as these will pave the way for conducting business skillfully and efficiently.

1. Choose your Washington LLC name

One of the most important aspects of any new LLC in the state of Washington is the business name. A business name is essentially the identity of the company and is used for several purposes including registering a business, marketing, and branding activities. There are certain naming guidelines you will be required to follow governed by WA Rev Code § 25.15.011 (2016). The guidelines require the name to contain words like “limited liability Company”, “limited company” or abbreviations like L.L.C or LLC.

2. Choose a Washington LLC registered agent

If you are interested in starting an LLC in Washington, there are necessary steps that must be taken. The new business registration process varies from one state to another and correct information is a crucial detail that cannot be overlooked. You will also have to maintain compliance with all state laws. A limited liability company is required to continuously maintain a registered agent in the state pursuant to WA Rev Code § 25.15.021 (2016). A Washington LLC registered agent like IncParadise can assist you with the process of new business formation.

3. File a Certificate of Formation with Washington SOS

The foremost requirement to start an LLC in Washington is the Certificate of Formation for a Limited Liability Company. You will be required to prepare and submit the Certificate of Formation pursuant to WA Rev Code § 25.15.071 (2016) along with a filing fee of $180. A Washington LLC registered agent like IncParadise can help you with the submission process. The certificate can be hand-delivered or mailed to the Office of the Secretary of State, Corporations & Charities Division. You can expedite the process by filing an additional fee of $50.

Form your new business in Washington Today!

4. Prepare Washington LLC operating agreement

To successfully form and operate an LLC in Washington, you will require an operating agreement. It is a type of legal document, which will allow you to shape the financial as well as the working relationship of the LLC with its members or co-owners in such a way that it benefits the business. This document is an internal document and is not required to be submitted to the state. A Washington LLC operating agreement helps with protecting overall business operations. Some of the key areas of a basic operating agreement are:

• The percentage interests of each member in the LLC
• The rights and responsibilities of the members
• The voting powers
• The allocation of profits and losses
• The capital contribution
• The future changes to the membership structure
• The rules for holding internal meetings
• Dissolution or buyout

5. Obtain a Washington LLC EIN

Once you register a Washington LLC online; you will be required to maintain annual state requirements. One such requirement is that of state or business taxes. To file these taxes, you need to possess a tax ID. If you own a single-member LLC then you will require a Social Security number (SSN) to file taxes but if it is a multi-member LLC then you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).

6. Open a Bank Account

When starting a new LLC, apart from creating a Washington LLC operating agreement; the second most vital step is opening a business bank account. This is also known as a checking account and plays an essential role in protecting business interests, further aiding in the overall growth of the business. One of the greatest advantages of having a business account is that it will help you to maintain a record of all your business expenses thus simplifying tax reporting.

7. Obtain necessary business licenses and permits for Washington LLC

When you form an LLC in Washington, there are several state requirements for each business to meet. Apply for your state business licenses or permits post registration. Different types of licenses that may be applicable depending on business structure, location, and activity. Once you have acquired the necessary license, your business can become operational. It is critical to remember that business licenses are also an annual requirement like a Washington LLC annual report. Licenses and permits for Washington LLC can be categorized under:

• Business License Tax Certificates – This is a general license mandatory for every domestic LLC and that is issued by the Department of Revenue, Business Licensing Service. You will need to provide your Unified Business Identifier (UBI) and EIN while applying. The fee is $90.
• County or City Licenses – This is a type of license that is also known as a local license. Every county in Washington has different rules and regulations for licensing. You may need a single or multiple Washington business licenses or permits to operate in any said county.
  

  Example: If you start a business in Kings County or are planning to install amusement devices then you need a county license. A Pool table license starts at $100 per table and will be a maximum of $500 per establishment.

• Professional and occupational licenses – The requirement of this license depends on which specific area or activity the business focuses on. Certain professions associated with business like Athletic Trainers, Accountants, Security Services, Cosmetologists, and Vehicle manufacturers are areas where licensing is regulated by the Washington state department of licensing.

8. File an LLC annual report

Once you register Washington LLC online and obtain the necessary permits and licenses, the next step is to meet all required annual state compliances. One of the most pivotal requirements for several businesses, including a limited liability company is filing an annual report. This report has to be submitted to the office of the Washington Secretary of State – Corporations Division according to WA Rev Code § 25.15.106 (2016). You are required to file the Washington LLC annual report each year by the end of the LLC registration anniversary month.

Example: If you have filed the Certificate of Formation on August 10, 2022 then your Washington LLC annual report will be due on August 31, 2023. The fee for filing this report is $60 and there can be penalties involved for late or no filing.

9. Comply with Washington LLC taxes and other regulations

Once you register your Washington LLC online, you will be required to comply with annual maintenance requirements. State taxes are equally as important as the Washington LLC annual report. The type of state or business taxes will depend primarily on the entity structure, and for an LLC, the most integral is the Business & Occupation Tax. This is a gross receipts tax that is measured on the value of any products, gross income, or gross proceeds from sales.

Know more about starting an LLC in Washington!

The process to register a Washington LLC online may include several questions concerning different aspects of your new business formation. We have created a special section of Frequently Asked Questions for addressing some of these queries.

Is Washington a good place to start an LLC?

The state of Washington has been consistently ranked as one of the top states for starting a new business. The state is home to large corporations, single-owner, startups and work-from-home businesses. Some of the salient highlights of the state are:

• A rapidly growing economy with a 5.7 percent increase annually
• Energy costs for businesses are quite low as compared to other states in the country
• A variety of landscape that promotes tourism including a 3,000-mile coastline
• Washington is currently ranked 7th in the country for higher education resulting in the availability of a talented workforce
• Wasahington is home to a strong creative community and a diversity of industries

How much does it cost to register an LLC in Washington?

If you want to form an LLC in Washington then you will be required to submit a Certificate of Formation. The initial cost to register an LLC is $180. If you want to expedite the process then the total fee along with the registration fee would be $230. Apart from the initial cost, additional costs include the Annual Registration, Business Licenses, Name Reservation, and hiring a Washington LLC registered agent among others.

What are the annual fees for a Washington LLC?

The annual fee will vary depending on the type of documents being submitted. Once you start an LLC in Washington, you will need to file annual reports ($60 filing fee), name reservation ($30) and business license ($90 non-refundable fee) issued by DOR. It is important to note that the fee for county licenses will vary according to license type and county.

What are the disadvantages of forming an LLC in Washington?

Choosing to form an LLC in Washington is one of the best structures that you can choose to form. Since a limited liability company is governed by Washington state law, this may affect the way an LLC can behave in certain scenarios, especially in cases of dissolutions. The biggest disadvantage is a transfer of ownership, which is a much harder process for an LLC, than for a corporation.

Do I need a registered agent for my Washington LLC?

Yes. If you are planning to conduct your business in the state of Washington then you will need to operate your company according to the state laws. The Revised Code of Washington requires every LLC to hire and maintain a Washington LLC registered agent according to WA Rev Code § 25.15.021 (2016). You can also change your registered agent by filing a statement of change with the secretary of state in accordance with RCW 23.95.430.

Does an LLC need a business license in Washington?

Yes. A business license is required for any company to be operational. You may incur a penalty if you conduct business without proper licenses or permits.

Can I register a foreign LLC in Washington?

Yes. You can register and operate a foreign LLC in the state. You will need to file a Profit Foreign Registration Statement pursuant to WA Rev Code § 25.15.321 (2016), with the office of the Secretary of State, Corporation & Charities Division. This process is known as the “Qualification of Foreign LLC” and without it; you will not be allowed to conduct business in Washington.

Can I cancel my LLC in Washington?

If you want to cancel it or close your company then the LLC has to undergo the process of dissolution. According to state laws, WA Rev Code § 25.15.265 (2016), you will be required to file a Certificate of Dissolution with the Secretary of State, Corporations & Charities Division. There is no fee for dissolution.

Ready to form a Washington LLC?

A Limited Liability Company is one of the most popular structures that you can form in Washington. There are several advantages to forming this structure over other business structures including tax benefits. If you want to start an LLC in Washington then IncParadise can assist you with the process of registration for your new business.

Introduction – Why New York?

There are several reasons why entrepreneurs prefer to transfer their businesses to NYC or relocate to this state. New York is a high-growth state with a vibrant economy and the GDP is $1.7 trillion. There are several high-growth industries including manufacturing, IT, financial services, professional services, healthcare, retail trade, business services, and education among others. There are 114 Fortune 1000 Companies headquartered in the state and some of them started out as small businesses. The business benefits in New York including small business resources and incentive programs provide just the right environment for all forms of entities to quickly adapt and grow.

Buzzing startup environment

One of the benefits of moving your business to New York is the availability of a strong startup ecosystem. A good environment for startups and small businesses is necessary as it promotes ideas, inventions, and research. The startup ecosystem in New York comprises several aspects that are crucial for entrepreneurs and business owners like entrepreneurship education programs, startup accelerators, business incubators, seed funding, angel investors, startup mentors, and startup events among others. Whether you are moving a corporation to New York or an LLC, you can connect quickly to this existing ecosystem and maximize your revenue and growth.

Tax based incentives

Taxes can sometimes be overwhelming especially in the initial stages of growth for a small business. When you transfer a business to NYC, there is a wide variety of tax-based incentives that you or your startup can leverage. The tax incentive programs are targeted at businesses in various industries and provide a certain degree of tax relief. The business benefits in New York where taxes are concerned include the following:

• Excelsior Jobs Program provides fully refundable tax credits
• The START-UP NY program provides an opportunity to operate tax-free for 10 years
• The Commercial Tax Credit Program offers credits of $7 million per year
• Economic transformation and facility redevelopment program tax credit
• Investment tax credit (ITC)
• Manufacturer’s real property tax credit program
• Sales tax exemption on equipment, machinery, and materials, used in Production
• QETC capital tax credit program
• Restaurant Return-to-Work Tax Credit Program
• Employee Training Incentive Program (E-TIP) tax credit

Government support

If you are thinking of moving your business to New York then there are several advantages the state offers. You will be able to qualify for different forms of government support programs that vary from providing financial assistance in the form of grants to high accessibility to valuable state resources that will assist you with business planning, operations as well as growth. Government support programs and resources are one of the top business benefits in New York and include:

• Innovation and Technology Support programs
• Capital Assistance initiatives
• Entrepreneurial Development programs
• Procurement Assistance
• Global & Export Assistance
• Contracting opportunities to enable minority and women business development
• Employee training and apprentice programs
• Comprehensive technical assistance through small business liaison offices
• Entrepreneurship Assistance Centers (EAC)
• Small Business Development Centers (SBDC)
• Small Business loans, grants, and micro-enterprise programs

Talented workforce

One of the key motivations for moving your business to New York is the availability of a skilled workforce. The state of New York is home to one of the most comprehensive systems for higher education in the nation. It is home to some of the best colleges and universities including those in the Ivy League. Some of the top educational institutions include Columbia University, Cornell University, New York University, University of Rochester, Rensselaer Polytechnic Institute, University at Buffalo-SUNY, and Syracuse University among others. These institutions play a key role in shaping future entrepreneurs and provide the skill sets necessary and in demand. The skilled workforce is one of the unique business benefits in New York and is responsible for driving growth in startups, medium-sized enterprises, and large organizations.

Domesticating Your Company in New York

If you already own a business in another state and plan on moving your business to New York then it is possible. One of the processes to move your business is through domestication but does New York allow domestication? Unfortunately, as of now, there are no provisions to allow the domestication of businesses formed outside the state but there are other ways to transfer your business to NYC.

Steps to Move Corporation to New York

If you already own a corporation in any other state and are thinking of moving your business to New York then there are different options available. Although entity domestication in New York is not possible, you can choose two other processes for transferring your business to this state. Let us look at the processes in detail.

Register as a Foreign Corporation

One of the ways you can transfer a business to NYC is through the process of foreign qualification. This process is beneficial for those who don’t want to start a new business but simply want to expand their existing business to New York. Moving a corporation to New York through foreign qualification will be governed by 2020 New York Laws, BSC – Business Corporation, Article 13 – Foreign Corporations.

• You will need to choose a name for the foreign corporation that is distinguishable from any other names on the Corporation and Business Entity Database
• You need to conduct a name availability search to ensure your chosen name is unique and available
• You can also conduct a business in NYC under an assumed name or DBA (Doing Business As)
• You will need to file an Application for Authority to transact business in the state pursuant to NY Bus Corp L § 1304 (2020)
• You will also need to submit a certificate of existence, certificate of good standing, or certificate of status issued by the home state or state of incorporation

Do you want to know how to move a corporation to New York?

Dissolve the home Corporation and establish a new Corporation in New York

As you may already know, entity domestication in New York is not available and if you don’t want to undergo the process of foreign qualification then is there another option available? Yes, there is another way through which you can transfer a business to NYC. This option will involve dissolving your existing entity in the state of incorporation and applying for formation of a new entity in New York.

• Hire a registered agent in the state
• Prepare the corporation bylaws
• Reserve a corporate name
• File Certificate of Incorporation
• Get an Employer Identification Number (EIN)
• Obtain necessary licenses and permits

Steps to Move an LLC to New York

If you are operating a limited liability company and want to expand its presence in the state of New York then there are some options available. Entrepreneurs prefer moving an LLC to New York only because the state offers very good infrastructure, several tax relief programs, and a skilled workforce. Let us look at the processes that will make moving your business to New York possible.

Register as a foreign LLC

Entity domestication in New York is not yet possible and hence if you are planning to transfer a business to NYC then foreign qualification is one of the options. The benefit of registering as a foreign entity in New York is that your business will be operational in both the states, i.e., the home state (where you formed your LLC) and the new state (New York).

• You will need to choose a name for the foreign LLC and it should be distinguishable from names existing in the New York business entity database
• Your chosen name should be compliant with state laws and you need to conduct a name availability search
• You can also use an assumed name or DBA (Doing Business As) to conduct business in the state
• You will need to file an Application for Authority to transact business in the state pursuant to NY LLC L § 802 (2020)
• You will also need to submit a certificate of good standing or certificate of status issued by the home state along with the Application for authority
• You will need to fulfill the mandatory publication requirement in the state pursuant to NY LLC L § 802 (2020) i.e., a foreign LLC has to publish a copy of their application for authority in two different local newspapers

Are you thinking about how to move an LLC to New York?

Dissolve home LLC and form a new LLC in New York

If you don’t want to register your LLC as a foreign entity and yet want to transfer a business to NYC then there is one option available. You will be required to dissolve the LLC in your home state and form a new domestic entity in New York. This process of moving an LLC to New York is different from that of foreign qualification.

• Hire a registered agent in the state
• Reserve a business name
• File Articles of Organization
• Comply with New York LLC publishing requirements
• Apply for and obtain an EIN
• Apply for the appropriate New York business licenses and permits

Move Your Business to New York with IncParadise

The state of New York is one of the best destinations for relocating a business. This is more so because of the excellent infrastructure, availability of funding for startups, access to business incentive programs, and much more. If you plan on moving your business to New York then we at IncParadise will assist you with the process of relocating your business with ease.

Introduction – Why Florida?

Florida is home to 2.8 million small businesses and this includes domestic entities, foreign businesses, and those that filed for a Florida Certificate of Domestication. The state is also home to 18 companies on the Fortune 500 list like Publix Super Markets, International Assets Holding, Tech Data, FPL Group, and Fidelity National Financial among others. The state offers new businesses a pro-business climate that helps small and medium-sized enterprises to achieve growth and meet their expansion goals. If you plan on moving your business to Florida then it is important to understand the benefits of doing business in this state.

Pro-business environment

One of the most decisive factors that drive entrepreneurs to transfer a business to Florida is the business climate. Several elements that work harmoniously towards ensuring Florida has one of the best pro-business environments in the nation. Today, small business owners are moving an LLC to Florida or their corporation because they want to be an integral part of the $1 trillion economy. The current economy can be considered as an outcome of several factors including the pro-business environment that offers growth opportunities and startup resources for all forms of businesses.

Business-friendly tax structure

Some states in the US are considered good for starting a small business as they have tax benefits, low taxation, higher resources, financial incentives and funding sources, and talent among others. These are some of the business benefits in Florida but one of the most important amongst them is the business-friendly tax structure. Here are three important facts to consider:

• Florida is considered a tax-friendly state as it does not impose an income tax on individuals
• Moving a corporation to Florida means that it will be subject to a 4.458% corporate tax, which used to be 5.5%
• If you own an LLC, sole proprietorship, or S corporation and are moving your business to Florida then you will be exempt from paying any state income tax

Skilled workforce

Whether you are moving your business to Florida or any other state for that matter, one of the key drivers for business growth is the right employees. The type of skills required by your company will depend purely on the business. For example an IT company may require programmers, coders, web developers, software developers, and graphic designers among others. The availability of a skilled workforce is one of the top business benefits in Florida.

Business incentives

One of the salient business benefits in Florida is the state incentives program. There is a wide variety of business incentives that include everything from tax credits to grants and loan programs. The objective of these incentives is to increase the bottom-line advantages for a new business thus ensuring its long-term profitability. If you plan on moving your business to Florida then some of the top incentive programs to watch out for are:

• Capital Investment Tax Credit (CITC)
• High Impact Performance Incentive (HIPI)
• Rural Community Development Revolving Loan Fund
• Machinery and Equipment Sales Tax Exemption
• Research & Development Equipment Sales Tax Exemption
• Clean Energy Incentives
• Brownfield Redevelopment Bonus Tax Refund
• Urban Job Tax Credit Program
• General Program Support (GPS) funding program
• Fast Track Project Grant Program

Steps to Move a Corporation to Florida

Since Miami and Tampa Bay started to emerge as new hubs for the tech industry; many entrepreneurs are opting to transfer a business to Florida. If you already own a corporation or have incorporated a business, you can expand your existing business in Florida too. There are three options for moving a corporation to Florida, so let us look at each of the options in detail.

Register as a Foreign Corporation

If you plan on moving your business to Florida then going through the process of foreign qualification is the first option. This option is recommended for those who plan to expand to this state and don’t want to close their business in the home state. Florida domestication of a foreign corporation is governed by 2020 Florida Statutes, FL Stat § 607.1501 – 1520 (2020). The process for a foreign qualification in Florida will include the following steps:

• You will need to designate a Florida registered agent for handling the service of process pursuant to FL Stat § 607.1507 (2020)
• You will need to identify a foreign corporation name, search for name availability, and register the name pursuant to FL Stat § 607.1506 (2020)
• You will have to file the Application by Foreign Corporation for Authorization to Transact Business in Florida pursuant to FL Stat § 607.1503 (2020)
• You will also need to submit a certificate of existence or certificate of good standing issued by your home state

Convert a Foreign Corporation to a Florida entity

The second option for moving your business to Florida is conversion. It is a process where you change the type of entity or you change both entity types as well as the home state. This process is also known as Florida domestication of foreign corporations, which means converting an eligible business entity into a Florida profit corporation. The process involves:

• In case of domestication, you will be required to file Articles of Domestication also known as Florida statement of domestication pursuant to FL Stat § 607.11922 (2020).
• You will also have to file Articles of Incorporation pursuant to FL Stat § 607.0202 (2020) along with a cover letter to the Department of State, Division of Corporations.
• If you are planning to transfer a business to Florida using conversion then you will have to file Articles of Conversion pursuant to FL Stat § 607.11933 (2020) along with Articles of Incorporation and a cover letter.

Dissolve home Corporation and establish new Corporation in Florida

If you don’t want to register a foreign entity, or apply for conversion or Florida domestication of a foreign corporation then the only way to proceed is by dissolving the home corporation and incorporating a new entity in Florida. Dissolving a home corporation can be a time-consuming process as you will need to file paperwork for dissolution or termination according to the home state laws. Once you have dissolved a corporation, you will not be able to transfer a business to Florida but will have to form an entirely new domestic entity. The process for the same is:

• Appoint a Florida registered agent for service of process
• Reserve a business name
• File Articles of Incorporation for a Profit Corporation along with a cover letter and the appropriate fee
• Apply for appropriate business licenses

Do you want to move your corporation to Florida?

Steps to Move an LLC to Florida

Florida is a state with a pro-business climate and offers several opportunities for any form of business to experience growth and expansion. If you plan on moving an LLC to Florida then not only can you take advantage of the state resources but also enjoy tax credits and other incentives. You can transfer a business to Florida and as a limited liability company, there are three options available. Let us check out what these options are.

Register as a foreign LLC

If you have already formed an LLC in another state and want to expand your business to Florida then registering a foreign LLC is the right option. There are times when business owners want to operate their business in multiple states apart from the home state. When moving an LLC to Florida as a foreign entity, the formation will be governed by the 2020 Florida Statutes. The process for moving your business to Florida through foreign qualification will include the following steps:

• Before moving your LLC to Florida, you will need to designate a Florida registered agent for initiating the service of process on behalf of the said LLC pursuant to FL Stat § 605.0113 (2019).
• You will need to choose a name for your foreign LLC, conduct a name availability search, and finally register the name with the Division of Corporations
• To transfer a business to Florida as a foreign LLC, you will have to submit a certificate of existence also known as a certificate of good standing. It has to be issued by the state of formation (home state)
• To register the foreign LLC, you will have to file the Application by Foreign Limited Liability Company for Authorization to Transact Business in Florida pursuant to FL Stat § 605.0902 (2019)

Convert a foreign LLC to a Florida entity

If you plan on moving your business to Florida but don’t want to register as a foreign entity then the best option is to go with the conversion of the entity. It is important to note that if your limited liability company is a non-US entity then it will undergo the process of Florida domestication of foreign LLC and you will have to submit Articles of Domestication pursuant to FL Stat § 605.1055 for the same. If your entity is based in any other state within the US then you will need to follow the process of conversion of “Other Business Entity” into a Florida LLC. The important steps are:

• You will need to file the Articles of Conversion pursuant to Florida statutes, section 605.1045. The information in the Articles is quite similar to that of the Florida statement of domestication and should include the name of the LLC, original jurisdiction of formation, and type of entity it is being converted to.
• You will then be required to file Articles of Organization with the Florida Division of Corporations pursuant to FL Stat § 605.0201.

Dissolve home LLC and form a new LLC in Florida

The process of Florida domestication of foreign LLCs and conversion can be quite complex vis-à-vis simply starting a new limited liability company in Florida. If you don’t want to register as a foreign entity then you don’t have to transfer your business to Florida. You can simply dissolve your existing LLC in its home state or state of formation and then apply for formation of a new LLC in Florida. The process for forming a new LLC will involve the following:

• Hire a Florida registered agent to initiate service of the process
• Reserve a business name
• File Articles of Organization along with a cover letter
• Submit the filing fee
• Apply for appropriate business license or permits

Wondering how to move an LLC to Florida?

Move Your Business to Florida with IncParadise

Florida provides everything that a business needs to sustain, grow, and expand. If you plan on moving your business to Florida then you can take advantage of the numerous resources the state has to offer including a vibrant startup environment. We at IncParadise can help you with the process of moving your corporation or LLC to Florida with ease.