Entrepreneur’s guide to forming a business in Michigan

If you are a first-time entrepreneur or a small business owner then this guide will help you understand how to start a business in Michigan. From creating a business plan to naming your business, and identifying a structure, this guide should provide you with the tips you need to take the next step. Starting a company is never easy, especially if this is your first time. There are several details to consider when you start a business in Michigan, like the initial cost of forming a business. Some of these costs include a name reservation, registration of the company, and other miscellaneous costs.

Why do companies prefer to incorporate in Michigan?

Michigan is home to over nine hundred thousand small businesses as well as large corporations and multinational brands such as General Motors, Ford Motor, Penske Automotive Group, Whirlpool, and Kellogg’s among others. Incorporating in Michigan means you will also become an integral part of the state’s thriving economy as well as benefit from it once you register your business in Michigan. The state offers several advantages to all forms of businesses such as:

• Pro-Business Climate – One of the primary reasons why entrepreneurs choose to form a business in Michigan is the great business environment. The state has just the right infrastructure to support a variety of industries and companies. Michigan is globally connected and provides access to a strong supply chain system that can help startups to grow and expand. There are 33 active deep-water ports, 18 commercial airports, and 26 freight railroads. Michigan is considered to be a leading destination for foreign direct investment (FDI). The Michigan Economic Development Corporation (MEDC) provides the information and support necessary to transform small businesses into profit-making enterprises.
• Strong Workforce – If you start a business in Michigan then one of the primary requirements will be to acquire talent. Industry experts believe that Michigan is home to the workforce of the future. The state has a particularly high concentration of engineers, mostly due to the automotive industry. Some of the top universities in the state include the University of Michigan-Ann Arbor, Michigan State University, Michigan Technological University, Andrews University, and the University of Michigan – Dearborn among others.
• Low Tax Burden – One of the reasons entrepreneurs prefer to incorporate in Michigan is because the state has a low tax burden. It is ranked 12th in the State Business Tax Climate Index by the Tax Foundation, thanks to the state’s good tax system structure. The corporate tax rate in Michigan is 6.0%, which is lower than in several other states like New Hampshire (7.6%), New York (6.5%), Pennsylvania (9.99%), and Washington, D.C. (8.25%). The state doesn’t levy any local sales taxes.

Steps to start a business in Michigan

Michigan is being favored by startups and small business owners due to an environment that is conducive to expanding business operations. There are a variety of industries with strong infrastructure, business incentive programs, innovation, and manufacturing; all of which are considered an integral part of the state’s industrial DNA. If you are wondering how to start a business in Michigan then let’s take a look at some of the fundamental details for establishing your business successfully in this state.

1. Prepare Michigan Business Plan

If you intend to start a business in Michigan then you will need a good business plan. A business plan is a strategic plan that will focus in detail on several of the elements that will have an impact on the short and long-term success and goals of the business. A business plan should be well thought out to prevent mistakes and even help with protecting your investment and that of the shareholders or other investors.

• Executive summary
• Company description
• Market analysis
• Customer demographics and segmentation
• Competitive analysis
• Products and services
• Branding and marketing
• Cash flow projection
• Logistics and operations

2. Attend Entrepreneurial Training or Development Programs in Michigan

Michigan offers several resources that can be useful during the startup phase or before you register your business in Michigan. One such resource is entrepreneurial training or development programs for small businesses. The primary objective of these training or development programs is to enhance your existing skill sets and arm you with the new skills, information, and tools that will assist you with business growth in the long run. These training programs will not only prepare you to successfully form a business in Michigan but also ensure that the overall operations run smoothly. The entrepreneurial training or development programs in Michigan focus on critical details like:

• Technology business accelerators
• Business development mentoring
• Feasibility study
• Business planning
• Market analysis
• Financial Assistance
• Events connecting purchasers & suppliers
• Capital Access programs

3. Choose a Business Structure for your Michigan Business

One of the first steps to take before you register a business in Michigan is to elect the proper business structure. Different states have different laws pertaining to the type of entities you can choose from, although some entity structures are common across states. Determining the structure has many benefits especially when it comes to taxes and limited liability protection. Some structures like LLCs or S Corporations enjoy pass-through taxation. If you are looking for a company where you have the sole power then sole proprietorships are a good option to look into. You can choose to form a domestic or a foreign business in Michigan. The entity structure options available in the state are:

• Corporations
• Limited Liability Companies
• Limited Partnerships
• Limited Liability Partnerships
• Sole Proprietorships

4. Naming Your Michigan Business

It is important to choose the right business name because it will play a major role in how you brand your company. The name of a company is considered to be its identity. You will need to choose a name before you register a business in Michigan. The business name can be based on several elements like an idea or a concept, products, the name of the owners, and services among others. This can be quite a challenging process. Here are some points to consider while naming your company.

• The entity name will vary according to the type of structure e.g., the name of a limited liability company should contain words like “Limited Liability Company” or “limited company” or even abbreviations like “L.L.C.”, “LLC”, or “L.C.”.
• The naming guidelines and process is governed by the 2020 Michigan Compiled Laws. To form a business in Michigan, you will need to adhere to these laws.
• Once you have chosen a name, you will need to conduct a name availability search. This search will let you know if your company name is available or currently being used by another entity.

5. Choose the Location for Your Michigan Business

If you are planning to start a business in Michigan then one of the key elements towards defining success is the location. When choosing your location, it is important to consider critical details such as:

• Accessibility – The office or store should be easily accessible for customers or clients.
• City centers – Some of the most common office spaces are located in city centers or commercialized areas, although the office rental prices may be higher.
• Security – It is always recommended to choose a location that is not affected by crime or where the crime rate is very low.
• Competition – The proximity to competing businesses may play a crucial role in determining your success or failure.
• Skill base – If you want to form a startup or incorporate in Michigan then finding a workforce is important. Choose an area that has a good skill base.
• Zoning/Permit – You will need to check the zoning laws in the cities or counties where you want to operate your business from. Some cities have minimal to zero zoning laws, while others have strict laws.

6. Register Your Michigan Business

If you are wondering how to start a business in Michigan then one of the first and most pivotal steps is registration or incorporation. Each state has its processes, forms, fees, and laws governing the new business formation process. If you want to register a business in Michigan then it is important to note that the process, forms, and fee may also vary according to the business structure. Here is an example for better a understanding:

Example: If you were to incorporate in Michigan or form a C Corporation then you will be required to file Articles of Incorporation pursuant to MI Comp L § 450.1202 – 1205 (2020). The Articles should include the name of the corporation as well as the purpose. The filing fee will vary depending on the number of Authorized Shares like the filing fee for 1-60,000 shares is $50 while that of 5,000,001-10,000,000 will be $500. Similarly, if you were to register a business in Michigan as an LLC then you will be required to file Articles of Organization pursuant to MI Comp L § 450.4203 (2020). The filing fee for an LLC is $50. The new business formation or incorporation documents have to be filed with the Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau, Corporations Division.

Planning to form a Company in Michigan?

7. Get Your EIN

When you start a business in Michigan, you must file the mandatory business taxes. Each state may have different types of taxes, but every company has to file some form of these taxes. To file the taxes properly, you will need to obtain an Employer Identification Number (EIN). This is a unique Tax ID number that is issued by the Internal Revenue Service (IRS). An EIN is also known as a Federal Tax Identification Number (FTIN) and is required by those businesses that have employees or operate as a corporation or a partnership.

8. Open a Business Bank Account for Your Michigan Business

Finances will be an integral part of the company’s day-to-day operations once you form a business in Michigan. Maintaining finance like payments sent or received can be exasperating unless you have a separate business banking account for the company. Here are several other benefits of having such an account:

• It makes bookkeeping easier and helps during tax season
• A business account provides legitimacy status to the IRS
• This makes the process easier to apply for business loans
• A checking account makes the company appear professional
• Different banks provide several additional benefits like business credit cards and merchant services

9. Obtain Michigan Business License and Permits

Michigan is incredibly popular amongst entrepreneurs. It offers a business-friendly environment and boasts a low cost of living. If you want to register a business in Michigan and take advantage of this environment, then you will also need to apply for the necessary business licenses and permits. The importance of a Michigan business license lies in the fact that without it, you will not be allowed to operate your business in the state. However, not all businesses require a license.

• Licenses based on Industry – Unlike many other states, Michigan doesn’t have a provision for a general business license but it can vary according to the type of industry or business activity. Hence, a Michigan business license or permit will be issued by different state authorities depending on the industry. Let’s look at an example to understand this better.

  Example: If you register a business in Michigan as an Appraisal Management Company then you will need to apply for a license with the Michigan Department of Licensing and Regulatory Affairs. The filing fee will be $2,000 for the same and renewals will be triennial. Similarly, if you register a food establishment like a coffee shop or a sandwich shop then you will need to apply for the Food Service License Application with the Michigan Department of Agriculture & Rural Development. The fee would vary according to the type of establishment.

• City/County Business Licenses – The second type of Michigan business license that you may require will be based on the county or city you are operating from. The type of license, the licensing regulation, the fees, and the renewal will vary depending on the city or the county. The example below can help you understand this better.

  Example: If you are planning to start a business in Michigan as a Health Club in Lansing, MI then you will need to file the Health Club License Application pursuant to the City Codified Ordinances – Chapter 822.01 – 822.99. The license fee is $350 and must be submitted to the Lansing City Clerk’s Office.

10. Register for Taxes

Once you start a business in Michigan, there are certain state requirements that your business or the owner has to be compliant with. Filing your annual business taxes is one of the most important state requirements. The type of tax to be filed by your company is dependent upon the entity structure. The taxes filed by a Michigan LLC might be different from that of a C Corporation.

11. Annual and Ongoing Requirements

According to the Michigan Compiled Laws, if you start a business in Michigan then you will need to fulfill certain annual requirements. One of Michigan’s biggest requirements is to file your annual report. Most entity structures are obligated to meet this requirement. This report is known as the Annual Statement in Michigan. Filing this statement will guarantee that your business enjoys an active status and remains in good standing with the state. The information required for the annual statement, the filing date, and the fee will vary from one state to another.

Some Important Quick Resources for Michigan Business

If you want to register a business in Michigan then there are several points to consider including the formation and operations. You will need information on how to start a business in Michigan, on various annual compliances, state ordinances and business laws, and business licensing among others. Hence, we have compiled a list of agencies where you will be able to find the information needed.

Michigan Secretary of State

One of the most pivotal repositories of business information is the office of the Michigan Department of State. Whether you want to incorporate in Michigan or form an LLC, you can find relevant information on starting a new business in the state. The office of the Michigan SOS provides a wide variety of resources and tools for small businesses including conducting a business name search and license or permit searches. They also provide extensive information on business taxes in Michigan as well as tax incentives programs.

• Michigan Secretary of State
  430 W. Allegan St.
  Richard H. Austin Building – 4th Floor
  Lansing, MI 48918
  Phone: 888-767-6424
  Website – https://www.michigan.gov/som

Michigan State Treasury

The Michigan State Treasury handles all tax related submissions or filings. They are responsible for income taxes, property taxes, and employer withholdings among others. If you are planning to register a business in Michigan then you can find information involving business taxes, forms and instructions, and even new business registration.

• Michigan State Treasury
  124 W Michigan Avenue
  Lansing, MI 48933
  Phone: 517-636-6925
  Website – https://www.michigan.gov/treasury

Michigan Department of Licensing and Regulatory Affairs

The Michigan Department of Licensing and Regulatory Affairs (LARA) was previously known as the Department of Commerce. They oversee professional licensing, employment, commerce, and construction. Some of the services and resources offered by LARA include the application and renewal of Michigan business licenses, occupational and commercial licenses, and general information on LLCs and corporations.

• Michigan Department of Licensing and Regulatory Affairs
  2407 N Grand River Ave,
  Lansing, MI 48906
  Phone: 517-241-6470
  Email: BPLHelp@Michigan.gov
  Website – https://www.michigan.gov/lara

Michigan Department of Labor and Economic Opportunity

The Michigan Department of Labor and Economic Opportunity (LEO) is a state department that focuses on labor and economic opportunity. If you are planning to register a business in Michigan then you can find a wide variety of resources for small businesses including long-term workforce solutions, labor market information, financial incentives, start-up support, and virtual job fairs among others.

• Michigan Department of Labor and Economic Opportunity
  105 W. Allegan Street
  Lansing, MI 48933
  Phone: 517-335-5858
  Email: durkeea4@michigan.gov
  Website – https://www.michigan.gov/leo

Small Business Administration (SBA) Michigan State District Office

The SBA Michigan district office provides a wide variety of business-related services like funding programs, federal contracting certifications, counseling, and disaster recovery. They have offices in Detroit and Grand Rapids. They also provide information on how to start a business in Michigan as well as loan and grant programs.

• SBA Michigan District Office
  477 Michigan Ave., Suite 1819
  Detroit, MI 48226
  Phone: 313-226-6075
  Website – https://www.sba.gov/district/michigan

Michigan SBDC

The Michigan Small Business Development Center (SBDC) provides a variety of services to small businesses like business education, consulting, entrepreneurial training, and market research among others. Their objective is to help small businesses to achieve growth and expansion through innovation. They also provide actionable tools as well as opportunities, to help you to start your business in Michigan with ease

• Michigan SBDC
  Seidman College of Business at Grand Valley State University
  50 Front Ave. SW
  Grand Rapids, MI 49504
  Phone: 833-522-0025
  Website – https://michigansbdc.org/

Ready to start a business in Michigan?

Michigan has one of the most favorable business environments for supporting startups as well as medium and large enterprises. You can start a business in Michigan and achieve success and expansion although the new company registration process as well as maintaining compliance with state requirements can be a cumbersome affair. This is where a reputed Michigan registered agent like IncParadise can provide valuable assistance. We have a deep knowledge of state laws, business processes, and possess the experience as well as expertise regarding new business formation.

Washington Registered Agent

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

What is a Washington registered agent?

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

Why do Washington businesses need a registered agent?

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

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

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

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

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

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

How to choose a registered agent in Washington

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

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

Submit consent to appointment

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

Elect registered agent for LLC in Washington

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

Elect registered agent for Corporation in Washington

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

Elect a registered agent for a Non-profit in Washington

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

How to change a registered agent in Washington

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

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

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

Submit the consent statement of new registered agent to the SOS

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

Why choose IncParadise as your Washington Registered Agent?

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

Washington Business Entity Search

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

What is a Washington business entity search?

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

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

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

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

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

How to do a business entity search in Washington?

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

Follow Washington LLC and Corporation naming guidelines

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

Visit The Washington Secretary of State Business Search

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

Know the search options

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

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

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

  • Name contains
  • Begins with
  • Exact match

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

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

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

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

Submit and view entity details (Active/Inactive)

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

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

Looking to Conduct a Washington Business Entity Search?

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

Washington LLC Annual Report

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

What is the Washington LLC annual report?

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

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

Why is filing Washington LLC annual reports important?

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

Filing Washington LLC Annual Report

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

How do I file LLC annual reports in Washington?

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

Do you want to submit a Washington Annual Report?

Washington LLC Annual Report Fees

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

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

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

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

Consequences of Filing the Washington LLC Annual Report Late

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

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

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

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

Need Any Assistance in Filing Your Washington LLC Annual Report?

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

Doing Business in Washington

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

Why do businesses prefer doing business in Washington?

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

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

Small Business Assistance and Grants in Washington

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

Associate Development Organizations

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

Innovation Partnership Zones

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

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

Small Business Flex Fund

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

Startup Washington 365

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

Form Your Startup in Washington Today!

Public Participation Grants

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

Export Voucher Program

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

State Trade Expansion Program (STEP)

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

Community Economic Revitalization Board (CERB)

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

Small Business Retirement Marketplace

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

Small Business Grants for Women

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

Ready to Start a Business in Washington?

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

Washington Business Tax

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

What taxes do businesses pay in Washington?

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

Business and Occupation tax

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

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

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

Washington Retail sales tax

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

Washington Use Tax

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

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

Are you thinking of forming a new company in Washington?

How are Washington Businesses Taxed?

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

Taxes for an LLC

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

Taxes for a C Corporation

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

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

Taxes for S Corporation

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

Taxes for a Sole Proprietorship

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

Taxes for Partnerships

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

Ready to Incorporate Your Company in Washington?

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