Sole Proprietorship in Washington
In Washington, the owner can operate their sole proprietorship under their full first and last name. However, if you want to operate under a specific business name, you’ll need to register. Let’s consider a scenario where a budding designer, Sophia Bennet, wants to start a custom clothing business.
Advantages and Disadvantages of Sole Proprietorships
While Sole Proprietorships have some advantages, there are also disadvantages you should be aware of. Sole Proprietorships don’t protect your personal assets. On the other hand, if you form an LLC, your personal assets are protected in the event of a lawsuit.
Steps to Start a Sole Proprietorship in Washington
- Choose a business name for your sole proprietorship and check for availability.
- Apply for licenses and permits.
- Obtain an EIN.
Washington law requires that most businesses register with the Washington Secretary of State. A sole proprietorship is a business entity that refers to an unincorporated business with a single owner. This is the simplest possible structure to set up a business.
How do you prove you are a sole proprietor? How do I start a small business in Washington State? What is a disadvantage of a sole proprietorship? Should you start a sole proprietorship or an LLC? What are the goals of a sole proprietorship?
In Washington, most businesses, including sole proprietorships, are required to obtain a general business license. This license ensures that you comply with state regulations and is obtained from the Washington State Department of Revenue (DOR). You can apply for a business license online through the DOR website or by mail.
Registering a Sole Proprietorship in Washington
Filing a sole proprietorship in Washington refers to operating an individual entrepreneurship or sole tradership. It is a company or enterprise that is owned as well as operated by a single individual.
Costs of Establishing a Sole Proprietorship in Washington
The filing fee is $20, which is a processing fee of $15, plus $5 to register a trade name.
These steps will guide you to establish your sole proprietorship in Washington smoothly.