How To Start A Business In Washington State

 

The State of Washington, also known as the “Evergreen State,” is home to some of the world’s leading brands, like Microsoft, Starbucks, Boeing, and Nordstrom. Washington, ranked as one of the top 10 best states to start a business, doesn’t have a personal income tax, a corporate income tax, or a franchise tax. Washington is a great place to start a new business because it has a strong, well-educated working population and state programs to help you get started.

In this article, we will guide you about how to start a business in Washington State, the best business to set up in Washington, the Best business credit cards to do business transactions, and the tools you need to create your business website. Hopefully, this article will work as a beacon for you to select and establish a business in Washington State.

How to Start A Business in Washington: A Step-by-Step Guide

Following is a step-by-step guide to start a business in Washington

1.    Choose a Business Idea

Every business starts with a smart idea. It doesn’t matter what kind of business you want to start in Washington; you need to figure out what makes it beneficial or different from other businesses.

Make sure that the business you decide on fits your interests, skills, and passions. Remember, beginning a business takes a lot of work. A big part of your success will depend on how motivated and excited you keep going.

2.    Design Business Plan

A Business plan of a company is the road map to financial success. A Proper business plan is necessary that specifies your long-term objectives and establishes your company’s sustainability. Following are some important points you should focus on while creating a solid business plan are:

• What will you sell as a service or product in your company?
• How much money will you need to launch your firm, and where will you source it?
• Who exactly are you trying to reach, and how big is that group in the areas where you hope to make sales?
• Who are your main competitors?

3.    Choose a name for your business.

The next step is to find a suitable name for your business. Choose a name that looks attractive, expresses the core of what you’re selling, is simple to say, and is easily recognizable.

Washington state law prohibits registering two businesses with the same or “confusingly similar” names. You should check the availability of your chosen business name using the Washington Secretary of State’s database before submitting any documentation. Write down one or two other names if you decide one is already taken.

4.    Finance your starting costs

You will require initial capital to launch your company. It is important to properly estimate your start-up costs in advance, as this will significantly affect the standard structure you choose for your business. In case you need more funds, you can get them from the following places:

• Outside Capital contribution: Investors and business owners may invest in your firm in exchange for a share or interest. If you want this type of funding, consider integrating.
• Loans for small businesses: Banks and other financial institutions offer small business loans. Interest will be payable, so include that in your plan.
• Friends and family: A loan from a friend or family member can help reduce your business’s interest costs. These loans can replace or supplement bank loans. Get loan repayment terms in writing, and only borrow what you can afford to pay back quickly.
• Credit Cards: Credit cards can be a good way to fund smaller expenses such as inventory, travel or equipment. You can check out my best business credit cards list here.

5.    Choose a management structure.

When you establish your firm in Washington State, it becomes a separate legal entity from you. This separation protects you from personal responsibility in the event of business claims, a feature known as “limited liability protection.” Establishing a legal framework for your firm sends a message of stability and reliability to investors and customers, both of which are important to the company’s success.

When deciding on a business management structure, there are many different options.

Sole-Proprietor

Sole ownership is an unofficial business structure in which one individual is both owner and manager. In sole ownership, the owner is also the tax collector. Sole proprietors assume complete personal responsibility for company debts and lawsuits. If possible, avoid being a sole owner in Washington.

Limited Liability Company (LLC)

Most people who own small businesses choose to be an LLC. It is a “hybrid entity” that gives you the liability protection of a normal corporation and the ease and flexibility of pass-through taxation. LLCs are popular with small business owners because they are easy to maintain and don’t have to follow many corporate rules. This means you can keep fewer records and meet many annual requirements easily. You’ll have more time to work on your business.

Corporation

A “general Profit Corporation,” another name for a “C corporation,” is the best business structure for any company that wants to be more organized. Since corporations can give out stock, entrepreneurs and investment companies who might want to put money into your business are more likely to be interested in them. Because of this, corporations are a very popular way for businesses to get money from outside sources.

Doing Business As

A DBA is a legal way to register the name of your business. In some states, this is sometimes called a “fictitious business name” or an “assumed” name. Even though a DBA is not a business entity, it can be filed against any business so that you can legally do business under a name other than your own. If your business does anything under a name other than your own, like transactions, marketing, advertising, or printing business cards, you must file and register a DBA in Washington.

6.    Register your Business

Once you’ve decided on the best business structure, the next step is to register your business with the Washington Secretary of State. In Washington, the registration process is a little different for each organization. But the information you will need to give about your business is the same. This includes basic information about the business, the business name, and information about the registered agent.

7.    Get the licenses and permits for your business.

All businesses in Washington need a general business license. Every city in Washington has different business license requirements. You must apply for a business license in each city where you want to do business. There may need to be more than a general business license. You may also need to get other permits, which may need to be filed with the county or the state. Check with the city offices where you will be doing business.

8.    Set up a Business Bank Account

To keep the legal protections that come with incorporating your business, you must keep your business funds separate from yours. The best way to do this quickly is to open a business bank account. When a business owner in Washington State mixes business and personal funds, the line between the two gets weird, and the business owner’s assets (house, car, valuables) are at risk if the company is sued. Keeping your business’s money in a separate bank account makes it easier to tell the difference between your assets and those of your business.

4 Best Business ideas in Washington

Here are the four best business ideas you can start in Washington State.

1.    Entrepreneur

If you want to start a business with less capital that will grow quickly, there are many opportunities in the city. You have to think of something unique and look around to discover people’s needs. What is something people need that is either not available to them, or if it is available, what could be improved? You can launch your product with a personal brand name by developing this product locally and improving what others are already making. Chances are, there are many good business opportunities in your city. If your product meets people’s needs, it will become popular very quickly.

The following are some businesses ideas

• Window Cleaning
• Gutter Cleaning
• Pressure Washing
• Car Rental Services
• Bed & Breakfast Business
• Microbrewery
• Wedding Photographer
• Personal Trainer
• Sewing and Alteration Expert
• Clothing Boutique
• Food Truck Business
• Garden Designer
• House Cleaning Service
• Interior Designer
• Tour Guide
• Event Planner

 

People in Washington State are already doing the businesses mentioned above. Choose any business idea according to your interest and research it thoroughly. Try to find out what mistakes other business owners are making that you can avoid repeating in your business and bring some innovation in your services to win clients’ trust and make your place in the market. Check out my top entrepreneur books here.

2.    Amazon Business

Selling products on Amazon is one a popular choice for doing work-from-home business. For this business, you need nothing more than a laptop and a small amount of money. In today’s economy, there are few decent options for low-capital business start-ups, and Amazon FBA is one of them. New sellers’ average first product investment is between $2,000 and $4,000. The amount you invest is small and can go up or down depending on how fast you want your firm to expand.

Following are some important things you need to open your Amazon Account.

• An email address for your business or an Amazon customer account.
• A credit card can be used anywhere in the world.
• Official ID (identity verification protects sellers and customers)
• Tax information
• Phone Number
• A bank account where Amazon can deposit the money you make from sales.

3.    Service/Agency business

A business that does tasks for its customers is called a service business. These jobs include driving, cleaning, traveling, hosting, repairing, and consulting. Businesses can work with their clients face-to-face or online, depending on the service they offer. As I mentioned, Washington State doesn’t charge income tax, and well-educated people live in this state. So it’s a great place for service businesses with many growth opportunities.

4.    Online business

When you have an online business, you can eliminate some of the huge costs of having a business at a physical location. You can skip paying for expensive office or retail space or sign long-term leases. You also can spend your money on something other than moving goods. A drop-shipping agreement or a make-to-order agreement with the manufacturer can greatly reduce your financial risk and help you keep your profits stable with less upfront money.

Washington has many unique products you can sell online and make money from. With an online business, you can create a team of experts who care for the different departments. So, you can start your own business by starting one online.

Useful Resources

The following list contains useful resources for starting your business. Take a few minutes to explore these different options and see how they can help you build and grow your business.

Print Marketing

Print marketing refers to promotional material that is printed onto a physical item such as a yard sign, mailers, flyers, business cards, etc.

UZ Marketing provides hundreds of print options including business cards, postcards, flyers, yard signs, custom t-shirts and more! UZ Marketing works with popular brands such as ADT, State Farm, ReMAX, T Mobile, Allstate, and Hewlett-Packard Company. This is a great one stop shop for all your print marketing, branding and business essentials. If you would like to learn more about how I have used UZ Marketing, click HERE. If you want to go straight to UZ Marketing, click the image above.

Hire a Freelancer

Freelancers can help you do work that you don’t have time to do or don’t have expertise in. Freelancers can be found for tasks such as graphic design, digital marketing, writing, video & animation, music & audio, programming & tech and much more! Here are some of my favorite freelancer websites.

Fiverr provides freelancers for graphics & design, digital marketing, writing & translation, video & animation, music & audio, programming & tech, business and lifestyle. Click on the image above to be taken to fiverr to see their awesome services!

Create Your Own Designs

Canva is a useful resource for creating your own designs and content. You can create social media posts, logos, websites, print products, presentations and more. I have used Canva to create many designs and continue to use Canva for multiple projects such as the cover for “Bath Day For My Puppies” which you can see HERE. To check out Canva, click the image above.

Conclusion

Washington is ranked one of the top 10 states to start a business. It has a strong, well-educated working population and state programs to help you get started. Leave a comment about your experience starting a business in Washington state or go to my contact page to submit questions about starting your business.