Do I Need To Register My Business In Washington State

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TLDR

As in other states, when you're gear up to register your startup, Washington requires you to choose a unique business name, meaning no other Washington-registered businesses take a name like to your chosen 1.
Before yous register your startup in Washington, in addition to creating a business organisation plan and choosing your business organisation name, you must also make up one's mind your startup'south legal ownership structure.
After you complete the to a higher place steps, it'due south fourth dimension to submit your formation forms to Washington'due south Secretary of State'southward function.
Depending upon your called entity for your startup, you will have filing fees due when registering your startup. For example, if you register every bit an LLC, corporation, or a express partnership, you'll pay a fee of $180.
If yous want to exercise business in Washington, but your startup was registered in another state, your fee is also $180 unless you maintain a nonprofit entity, in which case the filing fee is $xxx.
When you register your startup in Washington, you'll be required to obtain a Unified Business Identifier (UBI) number.
Depending upon your entity, you may exist liable for Washington's business and operations (B&O) taxes, a gross receipts tax.

In a country known for Mt. St. Helens, Mt. Rainier, and the Infinite Needle, Washington is too a popular land for startups — non just in the United States merely globally. Co-ordinate to a 2020 study, Seattle broke into the top x list for global cities boasting a vibrant startup ecosystem .

Washington is home to big and startup companies alike, with 630,819 pocket-sized businesses , making up 99.five pct of all the state's companies and numerous Fortune 100 companies , including Amazon, Microsoft, Costco, and Starbucks.

If you consider registering your startup in Washington, this commodity will walk you through the in's and out'due south of what y'all demand to know.

How to Register a Business organisation Name in Washington State

When you lot're set up to register your startup, Washington, similar other states, requires you to choose a unique business concern name, meaning no other Washington registered business has a name similar to your chosen one. To confirm if your startup's proper noun is distinguishable from whatever other registered Washington businesses, yous tin use the corporation registration information search database .

For some entities, such as an LLC or corporation, in one case y'all register your startup, your business name is also registered with the land. For other entities, such equally a sole proprietorship or a partnership, if your startup name differs from the founders' proper name, you'll demand to annals that name with the state .

Additionally, if your startup is a corporation, express liability, or limited partnership, and you'd similar to utilise a dissimilar name than your startup'south legal name, you may do so by registering your trade name with the state. This is often called your "doing business as" (DBA) name. You may choose to use a DBA name, for case, if you offer unlike product lines that yous would like to differentiate in marketing and sales.

How to Annals a Business in Washington

When you annals your startup in Washington , you'll demand to satisfy several compliance requirements. However, earlier registering your startup, it'southward a proficient idea to research the market and potential competitors, plan for operations and personnel, map out your financing, and create a business programme. The State of Washington provides diverse resource to assist yous when launching your startup.

In drafting your business program, you lot'll want to consider marketing, advertising, sales, location, and buying, to proper name a few categories. To help guide you, y'all can check in with the U.S. Small Business Administration or the s tate of Washington . Both agencies can provide founders with additional guidance for creating a concern plan.

Once y'all've identified some of the basics most your business concern's operation, it is then time to register your startup. Below, we'll address explore the ins and outs of registering your business in Washington.

Make up one's mind Your Business'south Entity Structure

Earlier you register your startup in Washington, in add-on to creating a business programme and choosing your concern name, yous must also determine your organization'due south legal ownership construction . For example, in Washington, you lot may choose to register equally a:

Corporation
Limited Liability Company (LLC)
General Partnership (GP)
Limited Partnership (LP)
Limited Liability Partnership (LLP)
Sole Proprietorship

To learn more than about the country's permissible entity types, please visit Washington's Department of Revenue website , which provides a nautical chart comparing each entity blazon as to operational requirements, management, revenue enhancement, and potential liability. Your chosen business entity likewise determines the side by side steps in registering your startup.

For example, suppose you choose an LLC structure. In that case, ane or more individuals may engage in any lawful, for-profit business organization in Washington after registering with the Washington Secretary of Country'southward role . Additionally, you'll need to enter into a written agreement with any other founders of your startup, specifying sure activities such every bit the direction of your startup and the distribution of profits and losses among the founders.

On the other hand, if you choose a sole proprietorship, which is the most mutual business structure for startups and minor businesses, y'all will not have to annals with the Secretary of Land. Notwithstanding, you will still have to file your startup's proper name with the state of Washington, in add-on to filing whatsoever other state or local licenses or permits.

Identify Your Registered Agent

Adjacent, you demand to identify and obtain a registered agent designated to receive court and other legal documents on behalf of your startup. In Washington, "[a]ll Corporations, LLC's, and Express Partnerships doing business concern in Washington must have a Registered Amanuensis with a physical Washington Land address [called the registered office]. The Registered Agent may be an individual or business."

Submit Your Formation Forms

After you complete the higher up steps, it's time to submit your formation forms to Washington's Secretary of State's office. When you annals in Washington, y'all must commencement make up one's mind if your startup is domestic or strange . A domestic entity is a "business that has registered nether the laws of the State of Washington." A foreign entity is a "business that was created outside of Washington Land."

For example, suppose you choose a domestic for-profit corporation structure for your startup, meaning the initial registration of your business is in Washington. In that case, you tin can use the land's official forms to complete your manufactures of incorporation with Washington's Secretary of State to create your startup. Yous may file online , through the U.S. postal service, or in person. The filing fee is $180.

If you need your filing expedited, then the Corporations Sectionalization of Washington's Secretarial assistant of Land office offers expeditious filing for those forms submitted online, through the U.South. mail, or in person. For online filings, the fee is an boosted $20 per entity. For filings through the U.S. mail or in person, the fee is an boosted $50 per entity. If you demand your filing washed in the shortest corporeality of time, information technology's best to visit the Secretarial assistant of Country'due south part in person , which can often be procedure forms inside an 60 minutes.

When y'all register your startup in Washington, you lot'll be required to obtain a Unified Business Identifier (UBI) number . A UBI may also be called a tax number, business concern license number, or business organisation registration number. However, a UBI is not the same as a federal employer identification number . A UBI is unique to the state of Washington and needed to conduct business within its borders.

When you register your startup, and you're a domestic entity registering in Washington, yous'll select "NO" as your response as to the UBI number and continue with your filing. Your UBI number will be issued later on your consummate your registration.

If you are a foreign entity registering in Washington, you may already have a UBI number that tin be entered. If this is the case, and then you lot'll enter your previously assigned UBI number on your registration form. However, do not enter a UBI number for sole proprietorships or full general partnerships, even if you already have one.

Lastly, unless you registered as a limited liability partnership or a nonprofit corporation, you must as well file an initial report with the Secretary of Country'southward office within one hundred twenty (120) days afterward the date your registration is effective. This applies to both domestic and foreign entities. The regular filing fee for this is $x, and the expedited fee is $50.

How Much Does It Price to Annals a Small Business in Washington?

Depending upon the called entity for your startup, you will have filing fees due when registering it. For example, if y'all annals every bit an LLC, corporation, or a limited partnership, you'll pay a fee of $180. If you lot desire to do business organisation in Washington, but your startup was registered in some other state, your fee is likewise $180, unless yous maintain a nonprofit entity, in which instance the filing fee is $30.

Also, depending upon your entity, you may be liable for Washington's business and operations (B&O) revenue enhancement, which is a gross receipts tax. This tax is "measured on the value of products, gross proceeds of sale, or gross income of the business concern ." To determine if you owe B&O taxes and the amount due, it's all-time to engage an accountant familiar with Washington tax laws to advise you.

Afterward submitting your registration forms, you lot need to learn about any required state or local licenses, such as a business license. Additionally, you must understand what annual registrations and fees are required of your startup, such every bit annual reports , requiring a $threescore fee for for-profit corporations, LLCs, and LPs. An expedited filing is available for an additional $l.

Benefits of Registering a Business organisation in Washington

Here are some benefits of registering your startup in Washington Land:

Washington is pro-business. For example, for startups in loftier-growth sectors, Washington offers tax incentives to those founders, encouraging them to grow their businesses through innovation.
Overall, Washington supports favorable tax policies for businesses. In the Revenue enhancement Foundation's 2021 State Business Tax Climate Alphabetize , Washington ranked number 16, right backside Oregon.
Washington does not take a corporate or personal income revenue enhancement .
More than 17 percent of Washington's economical action is continued to the tech industry .
Washington is home to many startup and entrepreneurial incubators and accelerators , spurring significant uppercase investment.

Limitations of Registering a Business in Washington

Here are some limitations of registering your startup in Washington Country:

The business formation and registration processes in Washington are more complex than in other states.
Although Washington has no personal or corporate income revenue enhancement, startups must pay B&O revenue enhancement, which can be complicated to determine amounts owed, every bit well as a public utility tax. As to the B&O tax, founders are not allowed to deduct labor or whatsoever costs of doing business organisation.
Salaries and benefits are as well higher in Washington than in other states. For instance, Seattle has instituted a mandatory $15 per hour minimum wage .

Learn more with the states

How to annals a business concern in New York
How to annals a business in Oregon
How to register a concern in Texas
How to register a business in Lousiana
Learn more almost state registration for your business

Access more than guides in our Cognition Base of operations for Startups

We can help!

At AbstractOps , nosotros help early on-stage founders streamline and automate regulatory and legal ops, HR, and finance and so you tin focus on what matters near — your business concern.

If you're looking for assist registering your Washington startup, nosotros tin go your documentation prepare, overall shepherding this procedure to ensure it's done right, go far touch with us.

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