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.

Washington is among fewer American states that do not impose a corporate income tax, letting entrepreneurs focus on company investments among many other things. However, investors in Washington will have to observe and consider the business and occupation tax or the B&O tax as it is known. In-depth information about this kind of tax plus about many others can be offered by our team of company incorporation specialists in USA. The same team can be at your service if you would like to open a company in USA, including Washington.

What is the business and occupation tax in Washington?

B&O is the business and occupation tax imposed on the gross receipts of most of the companies in Washington. For example, companies activating in the retail sector are subject to a B&O tax of 0.471%. As for the ones operating in the manufacturing and wholesale sectors, a B&O tax of 0.484% is imposed. The Department of Revenue in Washington offers information about the B&O tax rates for varied business types in Washington, plus details about the specific companies like the ones activating in the food sector that are exempt from such taxation. Depending on the business estimated tax liability, the B&O tax returns can be made on a monthly, quarterly or annually basis. Small businesses can be qualified for credits if the company’s B&O tax liability is below a specific amount. Let our team of consultants tell you more about the taxation for your business in Washington.

What is the personal income tax in Washington?

There are five tax brackets imposed on specific taxable incomes as follows:

Taxable Income Taxes

• For the first $10,000: 4%
• Between $10,001 and $40,000: 6%
• Between $40,001 and $60,000: 7%
• Between $60,001 and $350,000: 8.5%
• For more than $350,001: 8.95%

The sales tax in Washington

The standard sales tax in Washington is set at 6.5% and municipalities can impose their own sales tax rates not exceeding 3.9%. This kind of tax is imposed for companies dealing with products and services for sale purposes in this state. As for the registration for such tax, the Washington Department of Revenue is the institution that issues the certificate of registration once the company documents are provided, including the business license. Even if the online registration for sales tax is available, we recommend you address your inquiries to our team of consultants and solicit complete guidance, particularly if you are an investor from overseas looking for a business in Washington. We remind that selling taxable goods and services in Washington can only be made if you registered your company for tax purposes in this state. It is important to know that there are also exemptions from this kind of tax applicable to specific food products, newspapers, magazines and prescription medicine.

Do I have nexus in Washington?

If you decide running companies in other American states, but generate incomes in Washington, your business might be subject to nexus. This means that you have to consider the taxes in the states your business is registered, besides the ones in Washington. If you would like to know more about the company formation in Washington, we recommend you to read the general guide to company incorporation in Washington.

Other tax facts in Washington

The local property taxes should be in your attention if you would like to buy a property in Washington. The average property tax rate is set at 1% calculated on the value of the property and paid annually. As for the estate tax in Washington, this varies from 10% to 20% and it is applicable only to gross estates above USD 2,193,000. You might want to consider the following taxes in Washington:

1. The sales tax of 20.5% for alcohol sales and retail.
2. The sales tax of 13.7% for alcohol sales in bars and restaurants.
3. The spirit liter tax ranging from USD 2.4408 to USD 3.7708/liter for sold alcohol in bars and restaurants.
4. There is no inheritance tax imposed in the state of Washington.

Instead of dealing with harsh formalities as a foreigner looking for business in Washington, it is recommended to get in touch with a team of specialists who can be in charge of tax registration for your company in this state, in respect with the Washington Department of Revenue. Also, if you are a foreign entrepreneur for the first time in Washington, it is recommended to solicit the support of our team of experts who can guide you throughout the entire company registration in USA, including in this state.