What Is An Llc In Washington State? (Solution found)

A Washington state LLC is a limited liability company formed in or registered to do business in Washington state. This type of business entity provides personal asset protection from business losses and prevents the double taxation of corporations. An LLC combines features of a partnership with those of a corporation.

How does an LLC work in Washington state?

The business has limited legal liability like a corporation, but has fewer governance requirements. LLC owners are called “members.” Creating an LLC requires filing with the Washington Secretary of State. Among other requirements, LLCs are required to create a governance document called an Operating Agreement.

What is an LLC and why do I need it?

If you have business partners or employees, an LLC protects you from personal liability for your co-owners’ or employees’ actions. An LLC gives you a structure for operating your business, including making decisions, dividing profits and losses, and dealing with new or departing owners. An LLC offers taxation options.

What exactly is an LLC for?

A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

What is needed for an LLC in Washington state?

To start an LLC in Washington you will need to file a Certificate of Formation with the Washington Secretary of State, which costs up to $200 to file. You can apply online or by mail. The Certificate of Formation is the legal document that officially creates your Washington Limited Liability Company.

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How much does an LLC cost in WA?

How much does it cost to form an LLC in Washington? The Washington Secretary of State charges a $180 fee to file the Certificate of Formation mail and $200 if filed online. You can file an LLC name reservation for $30. You can pay an additional $50 for expedited processing.

How much does an LLC cost?

The main cost of forming a limited liability company (LLC) is the state filing fee. This fee ranges between $40 and $500, depending on your state. There are two options for forming your LLC: You can hire a professional LLC formation service to set up your LLC (for an additional small fee).

What is the downside to an LLC?

Disadvantages of creating an LLC Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees.

What if my LLC made no money?

Even if your LLC didn’t do any business last year, you may still have to file a federal tax return. But even though an inactive LLC has no income or expenses for a year, it might still be required to file a federal income tax return. LLC tax filing requirements depend on the way the LLC is taxed.

Do I need a business license if I have an LLC?

In most states, forming an LLC doesn’t require a business license, but you’ll need to follow your state’s procedures. An LLC requires registering with the state and filing the appropriate forms. But even though you don’t need a business license to form an LLC, you probably need one to operate the LLC as a business.

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What does an LLC protect you from?

The main reason people form LLCs is to avoid personal liability for the debts of a business they own or are involved in. By forming an LLC, only the LLC is liable for the debts and liabilities incurred by the business—not the owners or managers.

What is an example of a LLC business?

Many well-known companies are structured as LLCs. For example, Anheuser-Busch, Blockbuster and Westinghouse are all organized as limited liability companies.

What is better LLC or sole proprietorship?

One of the key benefits of an LLC versus the sole proprietorship is that a member’s liability is limited to the amount of their investment in the LLC. Therefore, a member is not personally liable for the debts of the LLC. A sole proprietor would be liable for the debts incurred by the business.

How long does it take to get an LLC in Washington?

If you form your Washington LLC by mail, it will take 7-10 business days to be approved. However, during peak filing times, it can take as long as twenty three (23) business days. Online: If you form your Washington LLC online, it will take 2-3 business days to be approved.

How do you get a LLC license?

How to Get an LLC License

  1. Choose a state.
  2. Choose a name for the new LLC.
  3. Appoint a registered agent in the state of formation.
  4. Draft and file formation documents.
  5. Pay the required filing fees.
  6. Draft an operating agreement.
  7. Obtain an employer identification number (EIN).
  8. Open a bank account for the LLC.

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