Summit Law Blog

You can easily form your own LLC with Washington State, without the need to pay a third-party service. To do so, go to the Secretary of State’s website, and choose the ‘file online’ option for quickest service (current link here). You’ll need to declare the governor, the physical address (not a PO Box), and the registered agent (the person or entity who is available to receive official government communications and legal notices on behalf of your company). You can serve as your own registered agent, or you can hire a third-party service to do so for an annual fee. Once the required information is entered, you can complete the filing, pay the necessary filing fees, and your LLC formation is complete.

Once your LLC is formed, you’ll want to complete the following steps:

1. Obtain Your EIN (Employer Identification Number): An EIN is essential for your LLC and is used for tax purposes, opening a business bank account, and hiring employees (if applicable). You can apply for an EIN at no cost through the IRS website here.
2. Open a Business Bank Account: Keep business finances separate from personal finances to maintain the limited liability protection of your LLC. To open a bank account, you’ll need your LLC formation documents, EIN, and personal identification.
3. Register for State and Local Licenses and Permits: Depending on your location and business activities, there may be additional licenses, permits, or registrations required for your LLC to operate. You can sign up for a Washington business license here.
4. Annual Reports and Tax Filings: LLCs have ongoing obligations such as filing annual reports and paying state and federal taxes. To start, you are required to file an initial report with the Washington Secretary of State within 120 days from the date your LLC is formed. Stay current with these requirements to maintain your LLC’s good standing.
5. FinCen Filings: As of today, FinCen/BOIR filings are not required, but that may change. More information on the beneficial owner report can be found here and the filing can be completed here.
6. Maintain Records and Minutes: Keep thorough records of all business transactions, financial statements, expenses, and meeting minutes of member meetings. Good record-keeping assists with compliance and provides documentation in case of an audit or legal dispute.
7. Review and Update as Necessary: As your business grows and evolves, periodically review your LLC's structure, operating procedures and filing requirements. Update your Operating Agreement and state and federal filings as needed to reflect changes in ownership or contact information.
8. Liability Insurance: Not currently required in Washington, but highly recommended.
9. Tax Structure: Consider consulting with a tax advisor to optimize your tax strategy, including a potential S Corporation election.
10. Piercing the Veil: Observe corporate formalities to avoid a successful piercing the veil claim. More information on piercing the veil here.