General Guide to Company Incorporation in Washington
Updated on Thursday 31st May 2018
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Washington is “The Evergreen State”, named after the first USA president, George Washington. It is the 18th largest state in USA with a solid economy and important business centers like Seattle, for example. There are numerous foreign entrepreneurs who consider Washington State suitable for their operation, and if you would like to know more about the company registration in this American state, we invite you to explore the general guide to company incorporation in Washington and see which are the main steps in this sense. Also, you can rely on the complete support offered by our team of company formation agents in USA who are at your disposal with information about how to start a company in USA, regardless of the chosen state.
Can I open an LLC in Washington as a foreign investor?
Yes, entrepreneurs from abroad can register limited liability companies in Washington with the business division of the Secretary of the State of Washington, as soon as the Articles of Association have been drafted and submitted. These are the company’s important documents which comprise the following:
• the name of the company once a name verification has been made in this matter;
• information about the shareholders of the firm in Washington (name, nationality, residency);
• details about the board managers and about the business address;
• comprehensive information about the company’s future operations in Washington;
• the name of the registered agent that represents your business in Washington.
Entrepreneurs willing to open a company in USA, including in Washington need to appoint a registered agent that acts on behalf of the firm. We mention that our team of advisors in USA can properly represent your company from a legal point of view.
Do I need an operating agreement for my company in Washington?
An operating agreement is not mandatory for a business in Washington but it is recommended if you plan to register a firm in this state. The operating agreement is an internal document in the company that provides information about the stockholders, their responsibilities, their voting rights, the capital contribution as mentioned by the Articles of Association, and about how an LLC can be closed when it is the case.
What is the EIN in Washington?
The Employer Identification Number or simply the EIN represents the company’s federal tax ID and demonstrates that the company is a taxpayer in Washington. It is good to know that all companies in USA, including in Washington, need to apply for EIN with the IRS (Internal Revenue Service) through the local offices in this state.
The sales tax in Washington
The general sales tax in Washington is set at 6.5% rate. It is good to bear in mind that cities in Washington can enforce their own sales tax of up to 3.9%, depending on the type of purchase. Also, one should consider the rental tax and the lodgings tax when starting a business in Washington.
Open a bank account in Washington
As soon as you have received the incorporation certificate for your company in Washington, you can open a bank account which will serve the company’s future financial operations. The procedure of opening a bank account is not a difficult one from a bureaucratic point of view because the necessary documents in this matter are the bank’s forms and the company’s certificate of registration.
Do I need an accounting firm for my business in Washington?
Yes, companies with financial activities in USA need to ask for accounting services in Washington. An accounting firm can take care of the matters like payroll, bookkeeping, and annual financial statements among many other things. We mention that our team of advisors can offer accounting services for companies registered in Washington.
Economy facts about Washington
Washington is home to numerous large and well-known companies and an important state from a GDP (gross domestic product) point of view because the state ranks 14th among the American states for highest GDP. Olympia is capital of Washington and a significant business center where numerous large companies with generous revenues have successful operations. Seattle, Tacoma, Bellevue, Everett or Redmond are also important cities where foreign investors can decide for business.
We invite you to contact our team of company formation agents in USA if you want to know more details about how companies can be registered in USA, including in Washington.