LLC is a type of business entity that combines the benefits of both corporations and partnership firms. You get limited liability and simpler procedures which will allow you to build your business as soon as possible. The pros of these two types of entities as mentioned are pooled in this type of entity. Creating an LLC is a detailed process but is not difficult.
To start an LLC in Washington, here are some basic guidelines:
Decide the name
The first step in registering your LLC is to think of a name for it. Make sure the name is not yet registered by someone else, and does not sound or look like other registered names. Unique and distinguishable names are approved fast so make it as distinctive as possible. For reference, you can check the name availability on their online database.
Even if you are not prepared for registering the business now, you can reserve the name. Another mandatory condition is that it should have the word LLC or limited liability corporation on it. Lastly, it should not sound or express any relation to government organizations.
Get in touch with a registered agent
The role of these agents is to provide you the locations to submit emails and documents to companies. The registration authorities have a list of these agents registered in-state. Many big companies take service from the agents for better support.
Process the documents
Forming an LLC in Washington state is not a hectic job but involves some paperworks and formalities such as filing the Articles of Organization, and Certificate of Formation. You’d have to prepare a budget for this as you’d have to pay fees. The Washington state LLC cost, for example, is $180 if you file it by mail and $200 if you do it online. Also, your LLC will only get incorporated when you get the business identification number. And you get this when you submit the formation certificate to the authorities. It is a document that requires information like the name, address of the business, address of the registered agent. Increasing the number of members will make the form look more informative.
And once the document is verified, you get the number. It will also be used as your registration number from various licensing organizations including revenue departments.
Like how a corporation has bylaws, an LLC has their so-called “operating agreement”. Which prescribes how the organization will operate, rules for members and others are prescribed in it. Although this is not mandatory by law, it is recommended to have it prepared to avoid any uncertainties in the future.
EIN stands for an employer identification number. It will help to give your business a separate legal entity, and ultimately protect it from debts and other obligations. Also, if you plan to hire employees, then it is a must to obtain this number from the authorities. The basic idea of creating an LLC is to keep personal and company assets separate.
Now you have an overall idea of what you need to do to start your business as an LLC, you can now proceed with your application to the state authorities. If you have all the documents and other requirements fulfilled, then you should start the process to get registration to get your business registered early.
Tritan Vincent Chan is an aspiring writer who loves to write about current trends and informational pieces. His interests also include reading books, watching series/movies and traveling.