How do I create a small business entity?

Creating a small business entity in Washington is an important step to protect your business and its assets. Generally, there are four common types of small business entities that you can choose from: sole proprietorships, limited liability companies (LLCs), corporations, and partnerships. As a sole proprietor, you have full control and responsibility for your business. It is the simplest form of business entity because it requires the least paperwork and is the easiest to establish. However, it offers the least amount of protection to you as a business owner, since you would be personally responsible for all debts and liabilities. An LLC offers more protection to its owners than a sole proprietorship. It creates a legal “separation” between the business and its owners, meaning that their personal assets are protected from legal liabilities and debts of the business. To form an LLC in Washington, you will need to file Articles of Organization with the Secretary of State. Corporations are considered entities separate from their owners. Corporations can have a board of directors, shareholders, and officers. They are typically more complex to set up than LLCs and sole proprietorships, but have the benefit of offering the most legal protection for its owners. To form a corporation in Washington, you must file Articles of Incorporation with the Secretary of State. Finally, a partnership is a business entity that is owned and managed between two or more individuals. There are three types of partnerships: general partnerships, limited partnerships, and limited liability partnerships. To form a partnership in Washington, you will need to file a Certificate of Limited Partnership with the Secretary of State. Creating a small business entity in Washington is an important step to ensure the success of your business. Whichever entity you choose, make sure that you understand all of the legal requirements and paperwork that must be completed in order to form it.

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How do I create a small business entity?

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