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Registering a company in Washington in 2020

Key benefits of doing business in this state:

  • One of the most developed and popular states;
  • A favorable territorial location;
  • The owners of the company can be both individuals and legal entities;
  • The founder can be a non-resident;
  • Low tax rates;
  • Short registration times.

A business registration costs from 1800 €

A company registration period is from 2 days

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In recent years, the interest of foreign entrepreneurs in this state has increased significantly, thanks to a fairly favorable business climate. Many seek to register a company in Washington or to open an account with a US bank. Read on what benefits this solution promises and how to register a company in Washington remotely.

Washington is the 42nd state, a part of the United States. It is located in the northwestern part of the country off the Pacific coast. It borders Oregon and Idaho, as well as the Canadian province of British Columbia.

The most developed areas of the economy are an automotive, the aviation industry, a trade, an agriculture, a food industry, the electricity, a woodworking industry.

The state capital is Olympia. Largest cities are Seattle, Tacoma, Spokane, Vancouver. Washington's official nickname is “Evergreen State.”

Business pluses

An annual study of the Doing Business financial magazine showed, that in 2019 the United States took the following positions: 37th in terms of simplicity of the tax system, 16th in terms of enforcing contract terms and 3rd in resolving insolvency.

In addition, those, who wish to establish a company in Washington, expect the following advantages:

  • A rapid economic growth;
  • A strong socio-political situation;
  • A convenient geographical location;
  • A well-developed banking infrastructure;
  • A favorable tax system;
  • A high level of need for foreign investment;
  • Ample opportunities for opening any type of business in USA;

If you are interested in registering a firm in the United States, we recommend paying special attention to the following business niches: a biotechnology, IT, a medicine, a trade, a light industry.

Choosing a company form and registration conditions

Among the key legal forms of the United States (corporations, partnerships, a private entrepreneurship) the most attractive for foreign businessmen is a Limited Liability Company.

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If you intend to open a company in Washington, then first familiarize yourself with the following requirements of the Regulator:

  • You need to register of a unique name in the USA with obligatory ending in the form of the abbreviation LLC/L.L.C. or full name. It is forbidden to use the following words: obscene, requiring additional licenses associated with state institutions.
  • The number of participants/directors is at least 1. The founders can be both individuals and legal entities. A residency does not matter.
  • There are no minimum size requirements. The volume of capital issued is 1000 USD.
  • US company registration requires a local registered office and agent;
  • The choice of banks/opening accounts in Washington - without restrictions;
  • A nominee director/shareholder is permissible;
  • Submission of the annual financial report.

Company registration procedure

To set up a company in Washington usually takes from 21 days and proceeds as follows:

  • A selection of a registration agent (an individual or a company responsible for sending documentation on behalf of the enterprise). Any member of the company, including the director himself, can act as an agent. A prerequisite is the presence of US resident status.
  • Filing an application for registration of an enterprise (company charter) with the state secretariat. An application can be submitted both with a personal visit and remotely.
  • Drawing up an operating agreement (Operating Agreement) with a clear statement of the ownership structure and operating procedure of the company.
  • Registering the EIN in USA for opening a US bank account, hiring employees, and paying taxes. You can get the federal tax number at the IRS (a personal visit/remotely).
Features of state taxation

Washington is one of 4 states in which there is no corporate tax, as well as an income tax on individuals. Instead, a company gross income tax is levied at a rate of 6%.

If you intend to open a company in Washington, then pay attention to the fact, that in the case of doing business in America, the company will also be subject to a federal corporate tax at a rate of 21%.

How to start a business in the USA

If you decide to register a company in Washington remotely and want to do it as soon as possible, then IQ Decision specialists are ready to provide you with professional legal support. We will advise you in detail regarding the registration procedure, help you to open a corporate account with US banks quickly, to obtain a business license in Washington, and much more.

The information outlined in the article is actual at the time of its publication. Please refer to our specialists for checking possible solutions for your business.


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