Adding an Owner to an LLC in Washington State: A Step-by-Step Guide

There are a number of procedures you must follow to guarantee that the limited liability company (LLC) formation process is carried out properly if you are a business owner in the state of Washington and wish to add a new member. We will walk you through the essential processes and address any questions you may have in this article.

Step 1: Obtain Existing Members’ Approval

In the state of Washington, you must have the consent of the LLC’s current members before adding an owner. Either a vote or written consent can be used to accomplish this. When requesting approval, it is crucial to adhere to the rules set forth in the LLC’s operating agreement or bylaws.

Step 2: Submit the Required Documentation Once the current members have given their consent, you must file the necessary papers with the Washington Secretary of State. To modify the LLC’s Articles of Organization to reflect the new ownership structure, you must submit a Certificate of Amendment.

Pay the filing fee in Step 3 A Certificate of Amendment must be filed with a fee in the state of Washington. The cost will be $180 as of 2021. To find out the most recent information, check the Washington Secretary of State’s website as costs are liable to change.

The fourth step is to amend the LLC’s records to reflect the new ownership structure when you have received approval and submitted the required documents. This includes revising the Operating Agreement of the LLC, which describes the obligations of each member.

What happens if you don’t submit your annual report in this regard?

LLCs must submit an annual report to the Secretary of State in the state of Washington. If this report is not submitted, the LLC risk being administratively disbanded. As a result, the LLC will no longer be regarded as a legal person, and its members will be responsible for all of the LLC’s assets and liabilities. The yearly report is created by who?

The annual report must be prepared and submitted to the Washington Secretary of State by the LLC’s registered agent. In order to prevent administrative dissolution of the LLC, the registered agent must make sure the report is submitted by the deadline.

Is EIN the same as UBI in this context?

No, a UBI (Unified Business Identifier) and an EIN (Employer Identification Number) are not the same. The Internal Revenue Service (IRS) issues an EIN as a federal tax identification number for filing tax returns. A UBI is a state tax identification number given out for tax reasons by the Washington Department of Revenue.

What is the cost of registering a business in the state of Washington? The location and type of business are two variables that affect how much it costs to register a business in Washington state. For instance, as of 2021, a domestic LLC must pay $200 in registration fees whereas a foreign LLC must pay $180. Again, costs are subject to modification; for the most recent information, see the Washington Secretary of State’s website.

Finally, in order to add an owner to an LLC in the state of Washington, the necessary papers must be filed, the filing fee must be paid, and the LLC’s records must be updated. If an annual report is not submitted, the LLC may be administratively dissolved. The annual report shall be prepared and shall be filed by the registered agent of the LLC. The cost of registering a business in Washington State varies depending on a number of factors, and an EIN and a UBI are not the same.