Legal Expertise at Your Fingertips Using a Seattle and Tacoma LLC Attorney
When starting a business, choosing the right legal structure is crucial. For many entrepreneurs, forming a limited liability company (LLC) offers an attractive blend of personal asset protection and operational flexibility. However, navigating the legal landscape of creating an LLC can be complex and daunting, especially for first-time business owners. This is where the experience of a skilled LLC attorney comes into play.
By working with a lawyer who focuses on business formation, you can ensure that your limited liability companies are set up correctly, minimizing potential risks and laying a solid foundation for future success. In this blog post, we’ll explore how an attorney can guide you through the process of forming an LLC, providing invaluable insights and support every step of the way.
Why Work with a Lawyer to Establish Limited Liability Companies?
Forming an LLC can be complex and requires knowledge, experience, and careful attention to detail. A Seattle and Tacoma LLC lawyer can make everything easier. We will help you to navigate the process with confidence and ease. Here are some of the benefits of working with an LLC attorney:
- Experience: A skilled LLC lawyer understands what is involved with forming an LLC in your state. We ensure that all the paperwork is accurately completed and submitted by critical deadlines. We have set up hundreds of LLCs and know how to establish one that works for you.
- Knowledge: Your LLC attorney will give you custom advice regarding your situation, including the circumstances and goals of the business. We help you to understand the benefits and drawbacks of each legal structure. Our team works with you to make an informed decision on what entity works well for you.
- Support: After your LLC is running, you will need continuing legal advice and guidance. Our LLC lawyers work with you to navigate various legal issues and ensure your business follows all relevant regulations and laws. We ensure you are fully compliant to help you focus on running your business.
- Reduce Risks: Risk is one of the biggest challenges facing new businesses. You have to worry about contracts, employment issues, and working with your customers. Our LLC attorneys will help you identify and mitigate risks during your business formation. Our strategies make things easier, so you don’t worry about something jeopardizing your hard work.
These are some of the benefits of working with an LLC attorney. You will work with an attorney who gives professional legal advice and uses their experience to help you avoid making critical mistakes.
Dickson, Frohlich, Phillips, and Burgess have decades of experience working with LLCs. We know what is involved in its formation and can help you to set up an entity that works for you. You will work with a skilled Seattle and Tacoma LLC attorney who listens and creates an LLC to match your needs. You can focus on running your business by knowing you did everything possible to reduce the risks.
Contact us now at 206-621-1110 (Seattle), 253-572-1000 (Tacoma), 360-742-3500 (Olympia), 971-416-0881 (Portland) to schedule your appointment with an LLC lawyer. We give you practical and objective legal advice you can use to benefit your business.
What are the Benefits of Choosing an LLC Structure for My Business?
Setting up a limited liability company (LLC) in Washington State offers several key benefits for business owners. One of the most significant advantages is personal liability protection. When you form an LLC, you create a separate legal entity that shields your personal assets from the liabilities and debts of your business. This means that if your LLC faces legal action or financial difficulties, creditors generally cannot go after your personal property, such as your home, car, or personal bank accounts. This protection provides peace of mind and reduces the risk associated with running a business.
Income Tax Purposes
In addition to personal liability protection, LLCs in Washington State offer tax advantages. By default, an LLC is treated as a pass-through entity for tax purposes, meaning that the business itself does not pay taxes to the Internal Revenue Service (IRS) for federal tax purposes. Instead, the profits and losses of the LLC are passed through to the individual members, who report their share of the business income on their personal tax returns.
Moreover, Washington State does not impose a state income tax on individuals or LLCs. This means that LLC members are only responsible for paying federal income taxes on their share of the business profits. However, it’s important to note that Washington State does have a Business and Occupation (B&O) tax, which is a gross receipts tax on the income generated by your LLC. The B&O tax rate varies depending on the type of business activities your LLC engages in.
To ensure compliance with Washington State laws and regulations, it’s highly recommended to work with an experienced attorney when setting up your LLC. A knowledgeable lawyer can help you navigate the formation process, draft a custom operating agreement that outlines the management structure and member responsibilities, and advise you on the best tax election for your specific situation. By seeking professional legal guidance, you can minimize potential pitfalls and set your LLC up for success in Washington State.
Flexible Management Structure
One of the key benefits of forming LLC in Washington State is its flexible management structure. This flexibility allows business owners to customize the management of their company to best suit their needs and preferences.
When setting up an LLC, members can choose between two main management structures: member-managed or manager-managed. In a member-managed LLC, all members (owners) participate in the day-to-day operations and decision-making of the company. This structure works well for small businesses where all owners are actively involved and wish to have an equal say in the management of the LLC.
On the other hand, a manager-managed LLC allows members to appoint one or more managers to handle the daily operations and decision-making. The managers can be members of the LLC or outside individuals. This structure is beneficial for larger LLCs or those with passive investors who prefer not to be involved in the day-to-day management of the company. By appointing managers, members can focus on other aspects of their lives while still maintaining ownership in the business.
The flexibility in management structure also extends to the allocation of roles and responsibilities among members or managers. The LLC’s operating agreement, a crucial document drafted during the formation process, can outline each member’s or manager’s specific duties, voting rights, and decision-making authority. This allows for a clear division of responsibilities and helps prevent potential conflicts down the road.
Moreover, the flexible management structure of an LLC enables business owners to adapt to changing circumstances. As the company grows or the roles of members change, the operating agreement can be amended to reflect these changes. This adaptability is particularly valuable for startups and small businesses that may experience significant growth or changes in ownership over time.
Why Choose Us
Forming a business is the American dream and is something many people want to do. Last year 5.04 million businesses were created, a 33% increase in one year.
Most people make the mistake of assuming they don’t need an attorney to set up their business. These views are the deciding factor that determines if their business will be a success or a failure. Those uninformed business owners who don’t understand the risks or challenges are at a disadvantage. They see other businesses opening and don’t realize how complicated things can get.
A skilled LLC attorney works with you to set up your business from the beginning. We understand the risks and advise you on the best avenues to avoid them. Your attorney will recommend an LLC that matches your needs and gives you the desired features.
You can start your business knowing that you have done everything possible to reduce the risks. It increases your chances of success by ensuring that you are protecting your business and looking at all contingencies.
Our LLC attorneys are here for you after your business is up and running. You work with a dedicated professional who ensures you are fully compliant and will continually address regulatory challenges. Our approach will keep you legal and deals with evolving risks as your business grows. We are here for you throughout the growth and development of your business. Our attorneys build long-term relationships with our clients and offer trusted legal advice they count on.
How We Can Help
Our attorneys listen to you and work with you to create a business entity matching your needs. Your attorney returns phone calls, emails, and text messages, and we are available to give your business the legal advice it needs.
An LLC attorney can guide you through the pros and cons of various business structures to determine the right fit for you. For example, an LLC and an S corporation are both popular business structures that offer personal liability protection and pass-through taxation, but there are several key differences between the two. One difference is that S corporations are required to follow more strict corporate formalities, such as holding regular board meetings, maintaining meeting minutes, and adopting bylaws. On the other hand, LLCs have fewer formal requirements, providing more flexibility in operations. Your attorney can explain whether one of these or another entity is best for you for federal income tax purposes and your operational needs.
Our experience in forming numerous LLCs is beneficial to you. These are complex entities and require a skilled attorney who understands the benefits and drawbacks. We will help you to find the proper corporate structure for your business. You are reducing your risks by visiting with a skilled attorney to ensure you are getting everything right.
We will continue to work with you after your business is open. You will face evolving legal issues and need an attorney who makes sure you are fully compliant. Our approach addresses any problems, and we create avenues to mitigate them. We help you focus on running your business by knowing you are working with skilled, dedicated, and experienced professionals.
The business world is continually changing, and not getting the proper legal advice is risky. You face many threats that a skilled attorney can help you avoid. We start this process when you are setting up your business and continue to work with you as it grows. Our team is about building long-term relationships and is the trusted legal advisor you can count on. We are here to make everything simple for forming a business and complying with all regulations and laws.
FAQs about Forming LLCs in Washington
Our Seattle and Tacoma LLC attorneys answer common questions from our clients.
When you are creating an LLC, you might have a lot of questions. Here are some of the most common questions new clients tend to ask when seeking the services of our LLC attorneys in Seattle or Tacoma.
A limited liability company (LLC) is a type of business entity that provides many of the advantages of a corporation, combined with the tax advantages and flexibility of a partnership.
LLCs can engage in any lawful, for-profit business or activity other than banking or insurance.
An LLC can choose a member to be the manager or hire an employee. A benefit of an LLC in Washington State is that it doesn’t need a board of directors like a corporation.
An LLC can be one or more members, including individuals, trusts, estates, partnerships, limited partnerships, corporations, other LLCs, or other business entities.
Yes, but the person must have a U.S. taxpayer identification number if the business is engaged in a U.S. trade or business. If the person is working in the U.S. for the LLC, they will need the proper visa or be a permanent resident (have a “green card”) to do so legally.
There needs to be at least one member, but otherwise, the number isn’t restricted.
That’s up to the members to decide. It need not be linked to how much ownership the member has.
After the LLC structure is created, it’s easy to add new members or sell interests to someone else. LLC paperwork requirements are more relaxed than the C-corp business structure, a benefit of an LLC in Washington State. Generally, LLCs have fewer restrictions on many administrative issues compared to other business entities.
LLCs may be a good option for medium- or higher-risk businesses, owners with significant personal assets to protect, and owners who want to pay a lower tax rate than they would with a corporation.
It’s not a long process. Most of the time is spent discussing with the client whether an LLC is the best fit for the business. It’s a matter of creating legal documents. Filing an LLC with the Secretary of State can be done online.
Under an LLC structure, personal assets (a home, personal vehicle, etc.) are not subject to the debts and liabilities of the company. This liability shield is not foolproof, however. As with corporations, under limited circumstances, a person can “pierce the corporate veil” and can reach an individual’s personal assets. An LLC may be the right choice for short-term projects or joint ventures. Multiple businesses or individuals can work together, and there would be a specific dissolution date or term — the number of years the LLC is expected to exist.
Double taxation usually occurs with a corporate business structure. The corporation and the owners are taxed separately. An LLC prevents this because the LLC isn’t taxed (unless you want it to be taxed like an S corporation), but members’ income is taxed as if they’re partners.
LLC profits are subject to self-employment taxes, including Medicare and Social Security. LLCs must retain more than one member or be subject to federal taxes as a sole proprietorship or corporation. LLC filing papers and regulatory requirements differ from state to state.
LLCs in Washington State must file an annual report with the Secretary of State, and if they have more than one member, they must obtain an IRS employee identification number. Washington State LLCs must also appoint a registered agent with a physical address in the state of Washington to receive service of process. Out-of-state LLCs doing business in the state of Washington must also appoint a Washington-based registered agent and register with the Secretary of State.
Although Washington State does not require LLCs to have operating agreements, a solid operating agreement can address a variety of issues that may arise in the course of the business. An experienced Washington State LLC attorney can help draw up an operating agreement that will grow with your new company.
LLCs have specific requirements that must be met to obtain tax advantages. Setting up your business properly in the startup phase can save you significant money in the long run. An experienced LLC lawyer can help you understand whether it’s the best choice of business entity for you, as well as help you navigate complicated regulatory requirements and keep up with mandatory filings.
Seattle and Tacoma LLC attorneys
Choose an experienced corporate law firm for your business. LLC attorneys at Dickson Frohlich Phillips Burgess have provided legal services to small and large companies in the Seattle and Tacoma area for decades. We can discuss the benefits of an LLC in Washington State and whether it’s the right choice for your business. Our knowledge of the local courts and judiciary will potentially save your business valuable time and money.
