The economy of “The Evergreen State” grew 3.7% in 2016, which is almost 2.5 times the national rate and is home to the largest concentration of STEM (science, technology, engineering and math) workers in the country. These are just some of the reasons for an increase in incorporation in Washington. This is a state that has been consistently thriving towards upholding the flexibility of regulations that are integral towards laying the foundation for a positive business climate. In fact, businesses in the state have successfully attracted approximately $1.6 billion in venture capital in 2016 making it the 6th highest total in the country.
Why Choose Washington for Incorporation?
If you are planning to set up company in Washington then here’s some good news: the state has no income or corporate income tax! There has also been a rise in small businesses and medium enterprises in a variety of industries like Aerospace, Clean Technology like bio-fuel and biomass technology, Agriculture & Food Manufacturing, Information & Communication Technology, and Tourism among others.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
Sales and Use Tax Exemption for Manufacturing Machinery & Equipment (M&E)
This exemption can be availed of by manufacturers and processors who set up company in Washington. The sales and use tax exemption is governed by RCW 82.08.02565 and 82.12.02565. This exemption is applicable for machinery and equipment that is related to the following:
- Acting upon or interacting with items related to tangible personal property
- Aids in guidance, controlling, measurement, verification, aligning, or regulation of tangible personal property
- Aids in transportation, handling, or temporarily storage of an item of tangible personal property at the manufacturing facility
- Providing physical support or access to tangible personal property within a manufacturing facility
- Producing another item of tangible personal property that will be used in research and development or manufacturing operation
Community Enterprise Zones (CEZ’s)
Community Enterprise Zones also known as community empowerment zone are special zones spread across the state of Washington and have been created to help businesses as well as communities. You can benefit from the incentives offered in this zone only if there is company incorporation in Washington CEZ or the corporate headquarters is in the CEZ. The community empowerment zone includes Rural Counties and High Unemployment Counties where your business can apply for “Sales and Use Tax Deferral” pursuant to 82.82 RCW.
How do you incorporate in Washington?
What is the process of incorporation in Washington? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to start a new business in the state. The following steps will enable understanding of the entire process:
The first step towards incorporation in Washington is choosing the type of business you want to form. The different types of business structures that you can form in the Evergreen State include Business Corporation (C & S Corporation), Nonprofit Corporation, Limited Liability Company (LLC), Limited Partnership (LP), Limited Liability Partnership (LLP), Limited Liability Limited Partnership (LLLP), Sole Proprietorship, and General Partnership.
The type of business entity you want to form can be domestic or foreign entity. The forms and fee will be different for each type of entity.
The next step is to identify and reserve a name and this can be done as follows:
- Naming Requirements: According to RCW 25.15.011 for LLC and WA Rev Code § 23B.04.010 (2012) for a corporation, a business name should contain the words should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.”, ”Ltd., ” or similar abbreviation.
- Business name search: You need to search for a business name that is not in use currently. You can conduct name availability search here.
- Name Reservation: Once you have identified business entity name, you will have to reserve the name pursuant RCW 25.15.016 for LLC and WA Rev Code § 23B.04.020 (2012) for corporations as a part of the incorporation in Washington process. You can reserve the name for a period of 180 days with the office of the Washington Secretary of State.
- Name Registration: If your business is a foreign entity then name registration is required pursuant to WA Rev Code § 23B.04.030 (2012).
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of Washington, you will have to maintain a registered agent pursuant to RCW 25.15.021 for an LLC and WA Rev Code § 23B.05.010 (2012) for business corporations.
We are one of the respected registered agents in Washington and will be responsible towards initiating incorporation in Washington through processing of your Certificate of Formation and Application for Registration for LLC and Articles of Incorporation and Certificate of Authority for business corporations.
Articles of Incorporation and Certificate of Authority
You will be required to file “Articles of Incorporation” pursuant to WA Rev Code § 23B.02.020 (2012), if your business is a domestic corporation. You will have to file a “Certificate for Authority” pursuant to WA Rev Code § 23B.15.030 (2012), if it is a foreign business entity. In order to streamline the process of incorporation in Washington, we can file documents on your behalf through the online process or through expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Washington, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Washington Incorporation
What would it cost to set up company in Washington? Check Fees here!