HOW TO START A SEATTLE LLC

Step 1: Name Your Seattle LLC

Choosing a company name is the first and most important step in setting up your Seattle LLC. Be sure to choose a name that complies with Washington naming requirements and is easily searchable by potential clients.

1. Follow the Washington naming guidelines for your Seattle LLC:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

2. Is the name available in the state of Washington? Perform a Washington LLC name search on the Washington Corporations and Charities Filing System to ensure that your Seattle LLC’s name is not already in use within the state.

To learn more about searching for a Washington LLC name, read our full guide.

3. Is the URL available? We recommend that you check to see if your business name is available as a web domain. Even if you don't plan to start a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Now that you have verified your name and secured the URL you may select a professional service to complete the LLC formation process for you. We recommend using one of these professional services:

Northwest ($29 + State Fees)

LegalZoom ($79+ State Fees)

Step 2: Choose a Washington Registered Agent

You are required to appoint a registered agent for your Seattle LLC.

What is a registered agent? A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a registered agent for your Seattle LLC? A registered agent must be a resident of Washington or a corporation, such as a registered agent service, authorized to conduct business in the state of Washington. You may elect an individual within the company including yourself.

To learn more about Washington registered agents, read our full guide.

Recommended: Northwest provides the first year of registered agent service free with LLC formation ($29 + State Fees)

Step 3: File the Washington LLC Certificate of Formation

To register your Seattle LLC, you'll need to file the Certificate of Formation with the Washington Secretary of State. You can apply online or by mail.

Now is also a good time to determine whether your LLC will be member-managed vs. manager-managed.

Step 4: Create Your Seattle LLC Operating Agreement

Washington LLCs are not required to have an operating agreement, but we recommend creating an operating agreement for your Seattle LLC.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Washington LLC operating agreement guide.

Step 5: Get an EIN for Your Seattle LLC

What is an EIN? EIN stands for Employer Identification Number. EINs are a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a Social Security number for a business.

An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).

Why do I need an EIN? An EIN is required to:

• Open a business bank account
• File and manage federal and state taxes
• Hire employees

What if I already have an EIN for my sole proprietorship? The IRS requires that sole proprietorships get a new EIN when converting to an LLC.

Where do I get an EIN? You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.

For International EIN Applicants: You do not need an SSN to get an EIN. For more information, read our How to Get an EIN as a Foreign Person guide.

Seattle Business Permits and Licenses

To operate your Seattle LLC, you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well. What’s more, fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain. 

The Seattle License and Tax Administration handles all business license regulations. All businesses who do business in the City of Seattle must obtain a general business license, also known as a business license tax certificate. This license must be renewed each year, and the annual cost depends on the business’s taxable revenue for the year in question. 

Find out how to obtain necessary Seattle business licenses and permits for your LLC or have a professional service do it for you:

• Business License Guide: Use our detailed Washington Business License guide.
• Federal: Use the US Small Business Administration (SBA) guide.
• State: Use the Washington Department of Revenue’s Business License page.
• Local: See the City of Seattle’s License and Tax Administration website for more information.

Seattle LLC Tax Filing Requirements

Depending on the nature of your business, you may be required to register for one or more forms of state tax.

Sales Tax

If you are selling a physical product, you’ll typically need to register for a seller's permit through the Washington Department of Revenue website.

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our Washington sales tax guide to find out more.

Employer Taxes

If you have employees in Washington, you will have to register for Unemployment Insurance Tax through the Washington State Department of Revenue.

Business & Occupation Tax

Most businesses in Washington must pay a Business and Occupation Tax through the Washington State Department of Revenue.

Federal LLC Tax Filing Requirements

Most LLCs will need to report their income to the IRS each year using:

• Form 1065 Partnership Return (most multi-member LLCs use this form)
• Form 1040 Schedule C (most single-member LLCs use this form)

How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

File Your Washington LLC Annual Report

Washington requires Seattle LLCs to file an annual report with the state. This form can be submitted online or by mail. 

Get Help Starting a Seattle LLC

After forming your Seattle LLC, you will likely encounter many challenges. Take a look at our Seattle Small Business Resources page to find more information on resources for Seattle entrepreneurs.

Additionally, learn more about current US business trends so you can make the most informed business decisions.

TRUiC’s Small Business Tools

TRUiC offers a suite of business tools to help business owners solve challenges, find inspiration, create business plans, and even draft templates for legal agreements. All our tools are free to use and created by business owners for business owners. 

Check out TRUiC’s small business tools:

• Free Legal Forms
• Business Name Generator
• Business Idea Generator
• Free Logo Maker
• Operating Agreement Tool
• Business Plan Generator
• Entrepreneur Quiz