Section A: Forming an LLC
Filing and maintaining an LLC in Washington involves several important steps to ensure compliance and successful operation. This post, Part 3, Section A, is a brief primer on forming and maintaining an LLC. The next and final post in this LLCs 101 series will discuss steps you can take to protect your LLC from creditors.
At Beresford Booth, we form LLCs online. With your input, we select a unique name that complies with state rules and designate a registered agent to receive legal notices. We then submit your LLC Certificate of Formation and your initial report. Next, we contact the IRS to obtain your LLC’s Employer Identification Number, essential for tax purposes and required to open a company bank account. Additionally, we file for a business license and any tradenames with the Washington Department of Revenue (“DOR”).
Although this is discussed in detail elsewhere on wabusinesslawblog.com, to comply with FinCEN’s beneficial ownership information (BOI) reporting requirements, new LLCs must file an initial report detailing the “beneficial owners.” We also file your BOI with FinCEN.
Maintaining your LLC requires ongoing attention to several key areas. Every year, you must file an annual report with the Washington Secretary of State by the last day of the month when your company was originally formed. As your registered agent, we handle this filing on your behalf. Additionally, you need to pay the business and occupation (B&O) tax to the DOR, based on the gross receipts of your business, with rates varying by business classification. Monthly or quarterly returns must also be filed as required by the DOR. While it’s not legally required, it’s good practice to maintain records of your LLC’s activities, such as meetings, decisions, and consents. This documentation helps prove the LLC’s separate entity status, protecting owners from personal liability.
Stay tuned for the final post in this series, where we’ll discuss what you can do to protect your LLC from creditors.
For any questions regarding LLCs 101 Part 3: Creating and Protecting LLCs Section A: Forming an LLC, email me at info@beresfordlaw.com or give me a call at (425) 776-4100.