Wondering how to form a WA state LLC? Look no further than this helpful blog post, which outlines the steps you need to take to get your business up and running.
Checkout this video:
- 1 Why You Would Form an LLC in WA State
- 2 How to Form an LLC in WA State
- 3 Maintaining Your LLC
Why You Would Form an LLC in WA State
An LLC is a state-chartered business entity that offers personal asset protection and flexibility in management and tax treatment.3 min read
Limited personal liability
One of the biggest benefits of forming an LLC in WA State is that it offers limited personal liability protection for its owners. This means that if the LLC is sued or incurs debt, the owners’ personal assets are not at risk. This protection is not automatic, however — it can be lost if the owners fail to follow certain rules or engage in illegal or fraudulent activities.
An LLC is a great choice if you want the liability protection of a corporation but you also want the tax benefits of a sole proprietorship or partnership. This is because an LLC is what’s known as a “pass-through” entity. This means that the LLC itself does not pay taxes on its income. Instead, the taxes “pass through” to the individual LLC members, who report their share of the LLC’s income or loss on their personal tax returns.
Flexible management structures
An LLC can be managed by its members or by managers. LLC members can be natural persons, corporations, or other LLCs. You can even have a combination of managers and members managing the LLC. If you want flexibility in how the LLC is managed, this is the business entity for you.
How to Form an LLC in WA State
An LLC, or limited liability company, is a business structure that offers personal liability protection and flexibility when it comes to taxes and management.3 min read Forming an LLC in WA State is a simple process that can be completed online in a matter of minutes. You will need to submit your LLC articles of organization and pay the filing fee. Once your LLC is approved, you will need to obtain an EIN from the IRS and open a business bank account.
Choose a business name
When choosing a name for your LLC, you’ll want to make sure it’s available and appropriate. The name of your LLC must include “Limited Liability Company,” “L.L.C.” or “LLC.” It can also include the abbreviation “LC” or “Ltd. Liability Co.”
Your LLC name must be distinguishable from the names of other businesses registered with the Washington Secretary of State. You can check business name availability by searching the Business Name Database on the Secretary of State website.
In addition to making sure your LLC name is available and appropriate, you should also:
– Reserve a domain name for your website
– Check if there are any trade mark considerations
File the Articles of Organization
The first step in forming an LLC in Washington State is to file the Articles of Organization with the Secretary of State. The Articles of Organization must include:
1. The LLC’s name and address
2. The LLC’s registered agent and address
3. The LLC’s purpose
4. The names and addresses of the LLC’s organizers
5. The effective date of the Articles of Organization, if different from the date of filing
6. A statement that the LLC will dissolve on a specific date or event, if applicable
7. A statement that the LLC is authorized to issue membership interests, if applicable
8. The signatures of the organizers
You can file online, by mail, or in person at the Business licensing Service in Olympia, WA. The filing fee is $180 for online filings and $200 for paper filings. There is an additional $50 fee for expedited service (same day).
Appoint a registered agent
An LLC needs a registered agent in Washington state.3 min read
An LLC needs a registered agent in Washington state. A registered agent is someone authorized to receive service of process on behalf of the company. The term “service of process” refers to the delivery of legal papers, such as a summons or subpoena, that give notice of a lawsuit or other legal action against the company.
The registered agent can be an individual resident of Washington state or a business entity authorized to do business in Washington state. The registered agent must have a physical address in Washington state and must be available during normal business hours to accept service of process.
You can appoint yourself as the registered agent for your LLC, but you should consider appointing a professional registered agent service instead. Professional registered agents provide their services for a fee and can save you the trouble and expense of having to maintain a physical presence in Washington state just to receive service of process.
Create an operating agreement
An LLC’s operating agreement is a binding contract between the LLC’s members that governs the LLC’s business activities. The operating agreement typically includes:
-the LLC’s name and address
-the LLC’s purpose
-the names of the LLC’s initial members and their ownership percentages
– how the LLC will be managed (by members or managers)
– how decisions will be made
– how new members will be admitted
– how the LLC can be dissolved.
Creating an operating agreement is not required by Washington state law, but it is highly recommended. Without an operating agreement, the state’s default rules for LLCs will apply to your LLC. These default rules may not be what you and your fellow members want for your LLC, so it’s best to have an operating agreement in place that sets out the rules you want to follow.
Maintaining Your LLC
An LLC, or limited liability company, is a type of business entity that can help protect your personal assets from debts and liabilities arising from your business dealings.3 min read Maintaining Your LLC
Hold annual meetings
It’s a good idea to have an annual meeting, even if you’re the only member of your LLC. This can be a simple get-together to review your LLC’s performance over the past year and set goals for the coming year. You don’t need to hold your annual meeting in Washington state; you can hold it anywhere you like. You also don’t need to wait until the end of the year to have your annual meeting; you can schedule it at any time that’s convenient for you.
If you’re the only member of your LLC, you don’t need to take minutes at your annual meeting, but it’s still a good idea to keep a record of what was discussed and decided. This will help you keep track of your LLC’s progress and ensure that you’re on track to meet your goals.
Keep business and personal finances separate
To maintain your limited liability company (LLC), keep good records and separate your LLC’s finances from your personal ones.
It’s important to maintain separate business and personal finances for your LLC. This means keeping separate bank accounts, credit cards, and other financial records for your LLC. Doing so will help you:
-prove that your LLC is a separate entity from you and not just a hobby or side business,
-protect your personal assets in case your LLC is sued, and
-save time and money come tax time.
File an annual report
Each LLC must file an annual report with the Washington Secretary of State. The report includes information on the LLC’s management and ownership, as well as the names and addresses of the LLC’s agents. The report is due every year on the anniversary of the LLC’s formation.
The annual report must be filed online through the Washington Business Licensing Service. The filing fee is $5.
If you do not file your annual report on time, your LLC will be automatically dissolved.
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