Why form a Washington Corporation?
Many factors go into why anybody should form a Washington Corporation. Many look into forming a corporation for the main reason of liability protection. Many businesses who want to have that extra added security for their personal assets will decide to form a corporation. In fact many businesses that do incorporate, they will form their business in the same state they do business in. What is most beneficial to you may be best answered by a professional such as a lawyer or a CPA.
Liability protection with a corporation
Many small business owners, like you, are anxious about protecting their personal assets and often times will want to file a corporation for that business. In essence, filing a corporation separates you as an individual from that of the corporation. This separation is what protects your assets from the obligations and debts incurred by the corporation. So if a lawsuit were to be filed, then your personal assets will be protected.
Naming your Washington Corporation
A Corporation formed in the state of Washington must contain, in their name, the word Corporation, Incorporated, or limited or an abbreviation. A corporation may not assume the same name as an existing LLC or Corporation. The company name is not distinguishable by differences in punctuation, conjunctions, or prepositions. Also, the name is not distinguishable by using different legal descriptions such as Inc vs. Corp vs. Incorporated etc. There may be cases where the name is rejected for the company name being too similar to that of another entity. There also may be words such as “bank”, “insurance”, and other words that are regulated by the state of Washington and require prior approval for its use as a business name from the governing agency.
Do I need a registered agent?
The answer is yes. All corporations formed in the state of Washington must have a registered agent. The registered agent must be an individual or a third party authorized to provide registered agent services in Washington The purpose of the registered agent is to receive license renewals and other notices sent by the Secretary of State They also receive legal papers served on the corporation. The registered agent must provide a physical address and be available for service of legal process.
Do you need an attorney?
In most cases, you do not need to have an attorney to form a corporation. However it may be wise to seek consultation from a lawyer or CPA when deciding on what type of entity to file. We provide all the necessary documents that you will need to set up a corporation. All you need to do is to sign the paperwork.
How do I set up a company as a subchapter S corporation?
Most corporations formed in Washington are by default C corporations. However, the IRS does provide a filing to change the tax structure of the corporation to mimic that of a LLC. This is what is known as an S corporation filing. Form 2553. This filing allows for pass through taxation with some restrictions on the corporation.
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