I'm planning to start a small landscaping business and want to form an LLC in Washington. I've looked at the Secretary of State website but I'm worried about missing something. What are the absolute must-do steps and any common mistakes to avoid? I don't want to pay for a service if I can do it myself, but I also don't want to get fined or have my LLC rejected.
LLC Formation
I want to form an llc in washington state without accidentally missing a requirement
Make sure you file the Certificate of Formation and pay the $200 fee. Also, you need a registered agent in WA. If you don't have a physical address, you can use a service, but that costs extra.
Don't forget the annual report. It's due by the end of The month your LLC was formed, every year. The fee is $60. If you miss it, you get a penalty and eventually your LLC gets dissolved.
I formed my LLC last year and the biggest headache was the business licensing. You need to register with the WA Department of Revenue for a business license. It's separate from the Secretary of State filing. Also check if your city requires a local license.
You should also consider an operating agreement, even though it's not required by the state. It's good to have one if you have partners or want to clarify ownership. But for a single-member LLC, it's optional.
I second the business license thing. The DOR will also tell you about taxes you might need to collect, like sales tax if you're selling goods. For landscaping services, you might not need to collect sales tax, but check with them
What about an EIN? You need one to open a business bank account and hire employees. It's free from the IRS website. Don't pay a service for it.
Yes, EIN is essential. Also, if you're hiring, you need to register with L&I for workers' comp. And unemployment tax if you have employees.
I used a service because I was overwhelmed, but looking back it's not that hard. The SOS website has a checklist. Just read carefully and double-check your addresses.
One common mistake: people put a PO Box as their registered agent address. That's not allowed. It has to be a physical address where someone can receive legal documents during business hours.
Also, after you file, keep proof of filing. Sometimes the state loses things or there's a delay. Save your confirmation.
Another thing: the LLC name has to be unique. Use the SOS name search tool before you file. You might also need to reserve the name if you're not ready to file yet.
Thanks for all the info. I didn't realize about the DOR license and the annual report timing. I'll check the SOS checklist and maybe call the DOR to conffirm tax requirements. I appreciate the pointers.