If you live in Washington state and have long dreamed of starting a business, you are not alone. Washington holds about 600,000 small businesses with 1.4 million employees and is the 12th largest economy in the U.S., with its economy worth $563.2 billion. If this sounds fascinating to you, here are some pointers on how you can start, run and grow your very own dream business.
Planning the Business
Armed with sufficient knowledge regarding the market demand for your business, a well-thought-out plan is one of the crucial things you need to accomplish. Your business plan should cover value proposition, market opportunity, your target market, competitor analysis, business funding, sales and marketing, business projections, business milestones, and your team information.
Structuring and Registering the Business
After completing your business plan, the next step will be to focus on the structure and registration of your business. It is crucial for you to determine if your business will be a sole proprietorship, partnerships, C-Corporation, S-Corporation, Limited Liability Company (LLC), or nonprofit before you can register it.
For startups, opting for a Limited Liability Company (LLC) may be the smartest way to go since setting it up is not that complicated. Here is the 5-step plan to get you started:
1. Naming your Washington LLC
When it comes to naming your LLC business, you should start by completing a business entity search with the Secretary of State. Once you’ve picked a business name and confirmed its availability, you’ll need to meet Washington Secretary of State naming rules.
2. Appointing a Registered Agent
Every LLC needs to have a registered agent, and she or he must have a Washington residency in the form of a permanent address.
3. File the Certificate of Formation
After deciding on a business name and appointing a registered agent, you need to make your Washington LLC official. To do this, you need to accomplish the Certificate of Formation and file it with the Washington Secretary of State. The LLC cost Washington state for filing of Certificate Of Formation varies depending on how you will file it, if you’re going to submit via mail, you have to pay $180, and $200 if you’re going to file it online.
Additionally, you need to provide an Initial Report within 120 days, which will cost $10 to file by mail or $30 to file online. Once your LLC is operational, filing the Annual Report is also required, which is $60.
4. Creating an Operating Agreement
To ensure everyone involved in the LLC is aligned with one another, an operating agreement should be completed. This document outlines how your LLC should be managed and the roles of each of its members.
5. Apply for an EIN
Finally, you need to apply for an EIN or the Employer Identification Number, which is a unique nine-digit code used for identification purposes regarding your business tax filings and other financial paperwork.
When starting a business in any location, it’s crucial to have a clear understanding of its startup ecosystem. By following this simple guide, it will significantly help you to kickstart your dream business. It may be an arduous process, but it is also a worthwhile and rewarding achievement.
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