Limited Liability Company Formation
The benefits of utilizing the limited liability company (LLC) structure include:
- Increased flexibility within corporate governance,
- Liability shields for owners against personal liability from business obligations under normal business circumstances, and
- “Pass-through” taxation by the IRS, which can allow early company losses in the start –up phase to be passed through to owners, and the elimination of “double taxation” at later stages when the company is profitable.
These are only a few of the advantages of LLC’s; to determine if an LLC is right for your business needs, we can help you address the key considerations in determining the best business entity form for your business.
Washington LLCs – What are the Requirements for Establishing an LLC ?
In the State of Washington, the following actions are required to form an LLC:
- Choose a name for your LLC – the name cannot be the same or confusingly similar to another Washington LLC, and must include the words “LLC,” “Limited Liability Company,” “Limited Liability Co.,” “L.L.C.,” or “LLC.”
- Submit a Certificate of Formation to the Washington Secretary of State’s Office.
- Select a registered agent – this must be a person or business entity that agrees, among other matters, to accept service of process for the new business
- Develop an Operating Agreement for the LLC – although this is not required by Washington state statute, we highly recommend this agreement. An Operating Agreement typically sets for the key provisions under which the business will be managed.
- File an initial report no more than 120 days following the Certificate of Formation
- Comply with LLC tax and reporting requirements
Experienced legal guidance at the inception of your business will provide a firm foundation for your company to grow upon. With decades of business law practice, we can provide you with counsel and direction to support your business in the years to come. Business legal risk mitigation and correctly followed procedure can mean the difference between success and failure for your business.
