Step-by-step guide to starting a business in Washington
- File your formation document with the Secretary of State.
- Wait for processing and your UBI number.
- Submit your master Business License Application.
- Apply for other licenses and permits.
- File your Initial Report.
- Obtain a Federal Tax ID Number (EIN).
How much does it cost to start a business in Washington State?
The standard filing fee for forming a limited partnership, profit corporation, or LLC is $180 and $30 for a nonprofit corporation. Additional fees may apply if expedited filing is desired (we generally recommend expediting the filing for quick confirmation but it is usually an additional $50).
What is considered a small business in Washington State?
(3) “Small business” means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, and that has fifty or fewer employees.
Do I need an LLC to start a small business?
You don’t need an LLC to start a business, but, for many businesses the benefits of an LLC far outweigh the cost and hassle of setting one up. You can also get those things by forming a corporation or other type of business entity. It’s also perfectly legal to open a business without setting up any formal structure.
How do I start a sole proprietorship in Washington state?
Becoming a Sole Proprietor in Washington
- Choose a business name for your sole proprietorship and check for availability.
- File a Business License Application with the Washington Department of Licensing.
- Get an Employer Identification Number from the IRS.
- Report Any New Hires.
- Open a bank account for your business.
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.
Can I get a LLC for free?
Can You Form an LLC for Free? Any person can create an LLC without a professional help, but forming a company will still take some investment because of the required filing fees.
Can I hire my own company?
If you have a particular skill set that is beneficial for your business, you may hire yourself as an independent contractor. Keep in mind, though, that as an independent contractor, you will have to pay self-employment taxes on your wages. You will have to file a W-9 with the LLC.
When should I set up an LLC?
When a business owner has personal liability protection, they can’t be held personally responsible if the business suffers a loss. This means personal assets (car, house, and bank account) are protected. If your business already earns a profit or if it carries any risk of liability, you should start an LLC immediately.
How much does an LLC cost yearly?
As of 2021, the average LLC annual fee in the US is $91. Most states call this the Annual Report, however, it has many other names: Annual Certificate.
Can I start a business without registering it?
You are allowed to operate a sole proprietorship without registering, but you are required to register with your local government to collect and file state taxes. There is nothing wrong with running an unregistered business as long as your business is legal and meets all licensing and tax requirements.
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 better LLC or sole proprietorship?
Most LLC owners stick with pass-through taxation, which is how sole proprietors are taxed. However, you can elect corporate tax status for your LLC if doing so will save you more money. However, due to the combination of liability protection and tax flexibility, an LLC is often a great fit for a small business owner.
What taxes does a sole proprietor pay in Washington State?
Washington State does not have a personal or business income tax. Instead, its tax structure includes the Business & Occupation Tax, sales and use taxes, property taxes, and a variety of industry-specific taxes. The Washington Department of Revenue (DOR) administers over 60 different taxes.
How much does a business license cost in Washington?
How much does a Washington business license cost? A Washington business license costs $90, plus $10 to renew it each year. The cost of other licenses and permits varies.