Many people choose to form an LLC in the state of Washington each year. Having an LLC offers many advantages for those interested in starting a business endeavor. One of the first steps toward successfully creating an LLC is creating an LLC operating agreement.
This process ensures you clearly outline legal intentions and have a written record of intent, and is valuable to those who choose to take this path towards any business venture for added security and clarity. Consider generating an operating agreement for your LLC by using a template that makes the entire process less complex.
Is an LLC Operating Agreement Required in Washington?
An LLC operating agreement is not required in Washington. Even so, smart entrepreneurs and business-minded individuals should realize the importance and advantages of having an LLC operating agreement. This document outlines the essential operating procedures and intent of the business. This agreement covers important elements such as accounting, policies, voting, membership, etc.
Washington Operating Agreement Laws
It’s a good idea to have an operating agreement that outlines how the LLC operates and governs itself. This is especially important for an LLC with multiple members. The Washington specific legislation involving an LLC agreement, RCW 25.15.018, includes the following highlights and operation guidance for LLCs in Washington:
- Relations between members of the LLC and the LLC
- The duties of any managing member of the LLC
- The power and authority of the LLC
- Indemnification of the manager, or member of an LLC
- Limiting or dismissing duties
- Reducing liability of a managing member
- Governance mergers and liability after an acquisition
- Restrictions of the rights of any person involved not a member of the LLC
These laws highlight the outline of how an LLC in the state of Washington may conduct business and related processes. These laws serve to govern future business and operations and to eliminate potential conflicts of power or ability. Please refer to the appropriate listing online for more detailed information about these legislation points and any additional features.
How Much Does it Cost to Form an LLC in Washington?
The Washington Secretary requires a $200 fee from the state if you choose to file your documents online. If you decide to undertake the process by mail, there is a $180 fee. There is an annual $60 for filing and if you want to file your LLC name, there is a $30 fee. Before choosing your method, make sure you know the time frame for each option to avoid waiting longer than you anticipate for the process to finalize. If time is an issue, choose the online filing options to reduce approval times and expedite the process.
How to Form an LLC in Washington?
Creating an LLC is pretty straightforward for the state of Washington. Here are the steps you need to undertake to form your own LLC in Washington state. Make sure you stick to the order and complete each step correctly to avoid hold-ups or the unexpected.
Step 1 – Decide which type of LLC you want to create. In Washington, you can choose from an SMLLC and an MMLLC, a single-member LLC, or a multi-member LLC. If you are the only person operating with the LLC, you will choose the SMLLC, and all the laws that govern the LLC will apply to the individual operating within the entity.
Step 2 – Decide on the name of your LLC. Usually, the name of the Limited Liability Co. is a few words and may even involve the name of the entities covered within or some other relevant reference to the goals of the LLC. You can usually choose whatever seems to suit the purpose. Remember to follow the state naming conventions: it must contain the words ‘Limited Liability Company’ or ‘Limited Liability Co.’, or the abbreviation ‘LLC’ or ‘L.L.C’.
Step 3 – You need to choose a registered agent authorized to create an LLC and a state member. This person should be knowledgeable about the process or certified to operate as a registered agent, specifically in Washington. You can easily find an agent listed online or with the appropriate governing agency.
Step 4 – Fill out the paperwork accurately either online or send the paperwork via mail. Remember that there is an extra charge if you choose to file online, which is more convenient and faster. It’s cheaper to mail in your documents, but it takes longer. Consider this point if you’re in a hurry and don’t want a lengthy delay in the process.
Step 5 – File your certificate once it’s approved. You should confirm that the LLC was created and ensure that the certificate is appropriately filed before conducting any business related to the LLC.
Step 6 – Although an operating agreement isn’t a requirement in Washington, it’s highly recommended. This agreement reduces potential issues and serves as a guideline for operations.
Step 7 – Finally, you need to obtain an EIN from the IRS to identify the LLC.
Once you have completed all the necessary steps and filled out the operating agreement, you can enjoy the benefits of having an LLC in the state of Washington.
Washington LLC Operating Agreement Template
Use the following template to help you get started with the process of creating your own LLC.
LLC Operating Agreeement
