The Initial Steps to Take Before
Starting Your Business in Washington
When starting a business, you don’t just wake up one day, rent a place and start to sell your products or services. All entrepreneurs hope that building a business is as easy as that, but it’s not. Part of being an entrepreneur is the fact that you need to have patience and persistence because starting a business has a systematic process.
If you have plans to start business in Washington, there are a couple of steps you need to adhere to. Follow these initial steps so you can create your business as soon as possible.
Step 1. Submit Your Formation Document
Regardless of whether you want to form an LLC or a corporation, you need to file a formation document. It is called a Certificate of Formation for an LLC, while for a corporation, it is called the Articles of Incorporation. Both of these documents contain the following information about your business that you need to file.
- Unique company name
- Exact physical address and PO Box of your office
- The effective date of formation
- Duration or tenure
- Shares for corporations
- Management type for LLC
- Name, physical address, signature, and other information of your Washington registered agent
- Name, physical address, and signature of the signer
You just need to wait for your Secretary of State to notify you that it has been processed and filed. They will also give you a Unified Business Identifier (UBI) once you are registered.
Step 2. File your Business License Application
Once you have your UBI, you can now apply for a Master Business License. This is a type of general license that alerts various agencies about your company and business. This is also where your taxes and insurance will be based upon, so be careful in putting such information on this 4-page application.
Step 3. Apply for Permits and Licenses
There are also specific permits and licenses you need to file depending on your business type. You should not worry, though, because obtaining specified permits and licenses won’t give you a headache. Sometimes, the state will also require you to apply for zoning permits and a contractor’s license. Whatever your state may require, just make sure to comply so you can start operating.
Step 4. Get a Federal Tax ID Number (EIN)
Business isn’t a business if you won’t pay for taxes such as that of the federal. Paying for taxes will require you an EIN. Likewise, if you plan to add employees soon, you’ll also need EIN for tax purposes. Once you get this unique number, all you need to do is pay taxes on the Department of Revenue if you have received any notice from them.
Step 5. Get Insurance
This might be the last but still, an essential step to jumpstart your new business. But no worries, because if you stated on your Master’s Business Application that you have employees, they would automatically set up an insurance account for you and your business. You’ll also receive notice from the L&I and Employment Securities about your health and safety information, workers’ compensation rate, quarterly reports, and other information.
Once you have followed these steps, all that’s left to do is comply with the state’s guidelines and policies for business. You are now ready to take off and market your products and services, knowing that you are legitimately operating around the state.
