Washington State Business Formation: A Step-by-Step Guide

Are you thinking of starting a business in Washington State? Congratulations You're about to embark on an exciting journey. But before you can start operating your business, you need to form a corporation or limited liability company (LLC) with the Washington Secretary of State's office.

In this article, we'll walk you through the step-by-step process of forming a business in Washington State. We'll cover the necessary documents, fees, and procedures to help you get started.

Step 1: Choose a Business Structure

Before you can form a business in Washington State, you need to decide on a business structure. The two most common structures are:

• Corporation (Inc.)
• Limited Liability Company (LLC)

Each structure has its own advantages and disadvantages, so it's essential to research and understand the differences before making a decision.

Step 2: File Articles of Incorporation or Articles of Organization

Once you've chosen a business structure, you need to file articles of incorporation or articles of organization with the Washington Secretary of State's office. These documents are the legal documents that create your business.

You can file online or by mail. Online filing is usually faster and more convenient, but you'll need to pay a small fee. Mail filing is free, but it may take longer to process.

Step 3: Pay the Filing Fee

When you file your articles of incorporation or articles of organization, you'll need to pay a filing fee. The fee varies depending on the type of business and the location.

You can pay the fee online or by mail. Online payment is usually faster and more convenient, but you'll need to pay a small fee. Mail payment is free, but it may take longer to process.

Step 4: Obtain a Federal Tax ID Number

As a business owner, you'll need to obtain a federal tax ID number, also known as an Employer Identification Number (EIN). This number is used to identify your business for tax purposes.

You can apply for an EIN online or by mail. Online application is usually faster and more convenient, but you'll need to pay a small fee. Mail application is free, but it may take longer to process.

Step 5: Register for State and Local Taxes

As a business owner, you'll need to register for state and local taxes. This includes registering for sales tax, use tax, and other taxes that may apply to your business.

You can register online or by mail. Online registration is usually faster and more convenient, but you'll need to pay a small fee. Mail registration is free, but it may take longer to process.

Step 6: Obtain Any Necessary Licenses and Permits

Depending on your business, you may need to obtain licenses and permits from local authorities. This includes licenses for occupations, such as cosmetology or real estate, and permits for activities, such as food handling or construction.

You can obtain licenses and permits online or by mail. Online application is usually faster and more convenient, but you'll need to pay a small fee. Mail application is free, but it may take longer to process.

Conclusion

Forming a business in Washington State can be a complex and time-consuming process. But by following these steps, you can ensure that your business is properly formed and compliant with state and federal laws.

Remember to research and understand the differences between business structures, file the necessary documents, pay the filing fee, obtain a federal tax ID number, register for state and local taxes, and obtain any necessary licenses and permits.

By following these steps, you can ensure that your business is properly formed and ready to operate in Washington State.