Understanding Nexus in Washington: Annual Reports and Registered Agents

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What makes Nexus in Washington?
Physical presence nexus creating activities include, but are not limited to: Having an employee working in the state. Having real or tangible personal property in the state. Having a stock of goods in Washington, including inventory held by a marketplace facilitator or another third party representative.
Read more on dor.wa.gov

Due to its reputation as a business-friendly state, Washington State draws investors, startups, and entrepreneurs from all over the world. However, it’s crucial to comprehend the idea of nexus and how it impacts your organization if you operate a business in Washington or intend to do so.

Nexus is the relationship between a company and a state that makes the company liable for taxes in that state. In other words, you must collect and send sales tax on taxable transactions made in the state of Washington if your company has nexus there. All company structures, including LLCs, corporations, partnerships, and sole proprietorships, are subject to the concept of nexus.

A yearly report must be submitted to the Washington Secretary of State by an LLC in the state. The anniversary of the LLC’s incorporation or state registration is when the annual report is due. Failure to submit the yearly report could result in fines and the LLC losing its good standing with the state. The annual report charge is $60.

You can submit an annual report in the state of Washington online by visiting the website for the Washington Secretary of State. You will need to supply details regarding your LLC, such as the name, commercial activity, registered agent, and members’ or managers’ names and addresses. Speaking of registered agents, an LLC is obliged to have one in the state of Washington. A registered agent is a person or company that has been given permission to accept court documents for the LLC, such as lawsuits and subpoenas. The registered agent must be able to receive legal papers during regular business hours and have a physical address in the state of Washington.

You might be wondering if Washington state allows for independent registered agents. The short answer is yes, provided you have a physical location in the state and are readily available to accept legal paperwork during regular business hours. However, a lot of LLCs find it more practical to assign this duty to a reputable registered agent firm.

In conclusion, it’s critical for any LLC operating in Washington state to comprehend nexus, annual reports, and registered agents. To avoid fines and keep your LLC in good standing, make sure you are adhering to all state laws.