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Moving your business to Washington

As an entrepreneur or a small business owner, you may want to move your existing business to another state. Everyone has a different reason for relocating, the most common being an expansion of your business. If you are thinking of moving your business to Washington then it is important to start planning early. There are many elements to arrange for from business formation to licenses and taxes. Therefore, we have created this guide to help you understand the many options available for you to move or relocate your company as well as the business benefits in Washington.

Introduction – Why Washington?

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

Pro-business climate

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

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

Taxation benefits

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

Excellent workforce

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

Culture of Creativity

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

Business Incentives

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

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

Low-Cost Energy

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

Centralized Export Hub

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

Steps to Move a Corporation to Washington

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

Register as a Foreign Corporation

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

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

Do you want to form a foreign corporation in Washington?

Convert a Foreign Corporation to a Washington entity

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

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

If you want to relocate a business to Washington, IncParadise offers a wide variety of business services. We have a team of experts who are well-versed in the state laws and have a deep knowledge of the Washington business incorporation or foreign qualification processes. You can acquire our services to gain maximum benefits towards moving your corporation to Washington.

Dissolve a home Corporation and establish a new Corporation in Washington

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

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

The process of moving a corporation to Washington through establishing a new entity involves:

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

IncParadise is one of the top registered agent services in the USA. We provide services to cater to a wide variety of business-related requirements as well as for compliance with state laws. Not only can we help dissolve your corporation in the home state, but also assist with incorporation in Washington. This will help speed up the process of dissolution and incorporation and help you to save time and money.

Steps to Move an LLC to Washington

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

Register as a foreign LLC

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

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

Do you want to move your LLC to Washington?

Convert a foreign LLC to a Washington entity

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

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

Whether you want to form a foreign entity, a domestic entity, or plan on moving an LLC to Washington, IncParadise can assist you with all your inquiries as well as the relocation process. Our team of experienced professionals possess knowledge of state laws related to relocation, business conversion, and LLC formation. You can benefit from our services to assist with moving your business to Washington quickly and efficiently.

Dissolve your home LLC and form a new LLC in Washington

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

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

IncParadise is a reputed registered agent service with a presence in all 50 states. We provide a wide variety of services that cater to the specific requirements of each business. If you want to relocate a business to Washington by dissolving the home entity and forming a new LLC then we can provide valuable assistance in your home state as well as Washington. This will not only help you with submitting the correct paperwork but will also ensure you can start your LLC in Washington without losing precious time.

Move Your Business to Washington with IncParadise

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

We are one of the top registered agents in the state and we value the fact that different businesses have different requirements. We have created a wide variety of business-specific services termed as additional services like obtaining an EIN, and Washington annual report among others.

IncParadise can help you to move your business to Washington!