A Washington LLC operating agreement describes a company’s daily activities and ownership status. This document can help you secure your LLC and clarify its functions and operations.
When you and your other company members agree on the conditions of an operating agreement, you can all sign it for it to go into effect. Then, you can keep copies of it for your records instead of filing it with a government body.
No, an LLC operating agreement is not required in Washington. Even so, this document is helpful because it outlines the business’s essential operating procedures and intent.
Lets a sole business owner establish their LLC's operational framework.
Allows multiple members to define how their business will operate.
Chapter 25.15 of the Revised Code of Washington includes laws as they relate to LLCs’ operations. This chapter contains four statutes that relate to operating agreements, which are:
Here are some of the costs and fees to expect when forming and maintaining 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:
Decide on the name of your LLC. Usually, the name of the LLC 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 company’s purpose.
Remember to follow the state naming conventions. The name must contain the words “Limited Liability Company” or an abbreviation like “L.C.” or “L.L.C.”
Before you register your LLC, you must select a registered agent. This person or business will receive any legal documents intended for your company.
Whether you choose an individual or business as your registered agent, ensure they have a physical address in Washington. If you choose a company, ensure it can conduct operations legally in the state.
If you don’t want to search for a registered agent alone, you can easily find one through a reputable registered agent service.
The Washington Secretary of State lets aspiring LLC owners fill out their certificate of formation online or via mail. When you file online, you can expect a two business days turnaround time. If you file via mail, the Secretary of State will process your certificate of formation in the order they receive it.
In your certificate of formation, you must include the LLC’s name and address, the LLC’s effective date, the LLC’s duration, the members’ names, and the registered agent’s contact information.
Although an operating agreement isn’t a requirement in Washington, you can consider writing one. It can reduce potential issues and serve as a guideline for operations.
You may create one regardless if you’re creating a single-member or multi-member LLC. You can specify ownership percentages, dissolution procedures, meeting policies, and profit distribution in your operating agreement.
Obtaining an Employer Identification Number (EIN) from the IRS can help you file business taxes, compensate employees, and expedite the business loan application process.
Once you receive approval for your certificate of formation, you can file an initial report within 120 days of your LLC’s creation.
Then, each year, you can ensure you file an annual report on the last day of the month you created the business.
Start building your Washington LLC operating agreement today!
