Forming an LLC in Washington State
Starting an LLC in Washington State is a great way to protect your personal assets, while at the same time allowing your business to benefit from the limited liability protection of a corporation. Forming an LLC requires certain steps to be taken, including filing the necessary paperwork and paying the necessary fees. In this article we will go over the process of forming an LLC in Washington State, as well as the cost associated with it.
LLC Basics
Before you can form an LLC in Washington State, it’s important to understand the basics of LLCs. An LLC is a business entity that is separate from its owners, which allows it to benefit from the limited liability protection of a corporation. This means that the liabilities of the LLC are separate from the liabilities of its owners.
In addition to limited liability protection, LLCs also offer flexibility with regards to taxation. Unlike corporations, LLCs are not required to pay taxes on their income; instead, the LLC owners are taxed at the individual level on their respective profits and losses. This is known as “pass-through” taxation, and is a major benefit of forming an LLC.
Forming an LLC in Washington State
In order to form an LLC in Washington State, you must first choose a name for your LLC and file the necessary paperwork. The name of the LLC must be distinguishable from any other existing business names, and must include either the words “Limited Liability Company” or “LLC.”
Once the name has been chosen and the paperwork has been filed, the LLC must also register with the Washington State Department of Revenue. This is done by filing Form BLS-206, which is the Business License Application. This form must be completed and returned to the Department of Revenue, along with the application fee.
Cost of Forming an LLC in Washington State
The cost of forming an LLC in Washington State will depend on the type of LLC you are forming, and the number of members in the LLC. Generally, the cost of filing the necessary paperwork will be between $100 and $200. In addition, the LLC must also pay the Washington State Department of Revenue an annual business license fee, which is based on the number of members in the LLC.
Conclusion
Forming an LLC in Washington State is a great way to protect your personal assets while taking advantage of the limited liability protection of a corporation. The process is relatively simple, and the cost of forming an LLC in Washington State is relatively low. With the right paperwork and filing fees, you can quickly and easily form an LLC in Washington State.
