Advance Legal Services, PLLC believes in providing high quality legal services at an affordable cost. This step-by-step set of instructions is part of the $350 Entrepreneurs Express LLC Formation package that focuses on assisting the do-it- yourself business person. You will do all of the state and federal filings for your new LLC following the instructions in the package. Advance Legal Services, PLLC will prepare your operating agreement, banking resolution, and first annual meeting minutes, along with a 30 minute consultation for any legal issues your new business is facing. A full service LLC formation is also available for $799 plus costs. (These flat fee services may not be sufficient for complicated cases involving multiple LLC members or investors.) Let’s get started!
1. One of the most exciting moments in this process is picking your new business name. The primary legal concern is to pick a name that is unique, not already being used in your market area, and not already subject to trademark/servicemark by another company. Generally speaking it is against the law to use the trade name of another business, even if that name is not officially registered. You can check WA business names at:
http://bls.dor.wa.gov/LicenseSearch/
2. You may also want to have a separate DBA (doing businesses as) name registered for your company. You will see this option when filing your LLC application. If you have a store front or internet site, for example, you may want to conduct business as “Doug’s Pizza” or “dougspizzacoupons.com” even though your actual LLC name is “DNP Investments, LLC”. For example, “Patrick J. Galloway Attorney at Law” is a DBA for Advance Legal Services, PLLC.
Note that your name must include the words Limited Liability Company or Limited Liability Co., or the abbreviation L.L.C. or LLC.
(Some professions are required to form as a Professional Limited Liability Company or PLLC. This application is currently not available online, but Advance Legal Services can help! Please call if you are unsure about your filing requirements.)
3. Now you are ready to file your LLC application online at:
https://corps2.sos.wa.gov/LLC/Pages/StartPage.aspx
The application process is easy to follow. When prompted, you will want to designate that the LLC is “manager” managed and list yourself as the manager. By filing online you will receive your business registration information within 2-3 business days. Your certificate of formation will follow in the mail. You will be issued a WA state UBI number (unified business identifier), which you will need to file for your Master Business License. You will also receive information necessary to file your initial annual report with the Secretary of State – which you should promptly do. For many LLC's the initial annual report can be filed as part of the online application.
4. The next step is to obtain an EIN with the IRS (an Employer Identification Number is akin to getting your new business a Social Security Number). This is also an easy online application, however, it is advisable to speak with your accountant first, because important tax elections are made as part of the EIN application. You will need your EIN to file for your Master Business License and to open a business bank account. The application is found at:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online
(scroll down on the IRS page to find the application link)
5. With your UBI and EIN in hand you can apply for your Master Business License at:
http://bls.dor.wa.gov/file.aspx
You may also need a city license. Some cities have an integrated application with WA State, but many city applications must be obtained from the city clerk or business license officer. The online application will identify this for you. Finally, depending on the type of business you have you may need a specialty license. The online application will also assist you in identifying if a specialty license is necessary.
6. Now you need to get your legal documents from Advance Legal Service, PLLC! Having an operating agreement and banking resolution is necessary for opening a bank account, helping you properly manage the governance of your new LLC, and making sure your new LLC will provide you protection from personal liability for claims against your business. Advance Legal Services, PLLC will provide you a form to gather the necessary information, or will conduct a phone interview prior to your office visit to obtain the information.
7. With your UBI, EIN, Certificate of Formation, Operating Agreement, and Banking Resolution in hand you are ready to open your business’ bank accounts. It is very important to have separate bank accounts for your business in order to properly keep your financial records for State and Federal taxes, and to make sure that your new LLC will provide you protection from personal liability for claims against your business. You do not want to commingle your personal funds with your business funds because this will allow business creditors to hold you personally liable for claims against the business. Using separate banks for your personal and business accounts is advisable.
8. A couple of closing legal tips for your new business: 1) get proper insurance to cover your business premises and business activities, and 2) never (if at all possible) sign a personal guarantee! If you have other legal issues that arise Advance Legal Services, PLLC may be able to assist you. Getting a contract, lease, or HR matter reviewed upfront can save a lot of money down the road.
