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.
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
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).
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.
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
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.