If you own a company in Washington state, you might be wondering if you have to renew your LLC on an annual basis. Yes, that is the answer. All LLCs in Washington must submit an annual report to the Secretary of State’s office along with a fee. On the anniversary of the day your LLC was created, the annual report is due.
Depending on the type of LLC you have, different filing fees apply for the annual report. The cost is $60 if you have a domestic LLC. It costs $200 if you have a foreign LLC. It’s vital to remember that the state has the right to dissolve your LLC if you don’t submit the required paperwork or pay the required fee.
You might also need a business license to sell on Etsy in Washington in addition to renewing your LLC. The majority of the time, a business license is required in Washington state if you are selling goods or services. However, you might not need a business license if you’re a casual seller who just sometimes sells and doesn’t turn a profit.
You must disclose your income on your tax return if you are an Etsy seller. If you made more than $20,000 in gross sales and more than 200 transactions within a calendar year, Etsy will issue you a 1099-K form. You must still declare your income on your tax return even if you do not receive a 1099-K form.
There are various exceptions to the need for a business permit in the state of Washington. For instance, you can be excused from the requirement if you are a nonprofit organization. Some counties and localities may have their own rules for exemptions. To find out if you are exempt from needing a business permit, it is crucial to contact your local government.
To sum up, it is crucial for business owners in Washington state to renew their LLC each year and submit an annual report to the Secretary of State’s office. To sell on Etsy, you might also need a business license. Additionally, you’ll need to file a tax return and disclose your income. While a tax ID number is not required to sell items on Etsy, it may be necessary if you have staff or run a partnership or corporation. The requirement for a business permit may not apply to all companies, so it’s important to check with your local government to see if you qualify.