A sole proprietorship and a single member LLC are not the same thing. Even if one individual owns both business structures, there are some significant distinctions. In a sole proprietorship, the business owner is personally liable for all of the company’s debts and liabilities. The owner’s responsibility in a single member LLC is constrained to the company’s assets. A single member LLC is also required to keep its financial records separate from its owner’s personal finances and file separate tax reports.
You must submit articles of incorporation to the Secretary of State’s office in order to create an LLC in the state of Washington. The LLC’s name, registered agent information, intended use, and members’ names and addresses must all be included in the articles of incorporation. The cost to file articles of incorporation in Washington State is $200.
Although it is not necessary in Washington State, an LLC operating agreement is strongly advised. An operating agreement is a legal document that spells out the membership rights and obligations as well as the LLC’s ownership and management structure. Additionally, it may specify how disputes will be settled, how revenues and losses will be allocated, and how the LLC may be dissolved.
The amount of work the Secretary of State’s office is dealing with and the precision of the documents filed are two variables that can affect how long it takes to incorporate an LLC in Washington State. The processing of articles of incorporation and receiving approval from the Secretary of State’s office typically takes 5-7 business days. However, there is an extra charge for expedited processing. It is significant to remember that the LLC cannot start operating unless it has received state approval and registration.