Small businesses are the backbone of the economy. If you are thinking about opening a small business in Washington, you’ll need to know a few things.
There are many steps to set up shop in the state of Washington, but one of the most exciting ones is coming up with a name for your business.
Businesses in this state cannot have the same name, which is why it is important to do a little research to make sure the name you want is available. We’ll explain how to conduct a business name search in Washington and provide some small business facts that will help you register your new business.
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How to check business name availability in Washington
As mentioned, you can’t just pick any name for a Washington business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the Washington Secretary of State website
When you visit the Washington Secretary of State Website you will find a business name search tool that allows you to search their database for all registered business names. If you had a name in mind, all you need to do is type the exact phrase on the search bar and click on “Search”.
It is also helpful if you sign up for an account on the Secretary of State website, so you can start the registration process, including filing the Articles of Organization, reserving a name, and more. Setting up a profile will allow you to leave and come back to finish your progress if you have other things to do.
2. Run the search
Next, just click “Search.” The site will return any results that have an exact match. If there’s an exact match, the name is not available. If there’s no match, the name is available for you to use.
Washington law says no two businesses in the state can have the same name, so you should keep searching for names until you find one that’s available. And keep in mind that adding “LLC” or “Company” to a business name that is already in use will not result in a new version unique enough to count as its own separate name.
3. Consider reserving a name
After running a Washington business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Washington allows business owners to reserve a name for up to 180 days for $30.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Washington, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
4. Check domain name availability
We created a tool that makes it easy.
How to name your Washington business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Washington company?
As you research available business names in Washington, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Washington business
Ready to set up your business in WA? Here’s what you do:
1. File your Certificate of Formation
Visit the Washington Secretary of State website and fill out the Certificate of Formation. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Washington, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Washington, the cost is $180.
4. Wait for approval
Washington will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Washington small business facts
Before you start considering business name availability in Washington, take a look at these small business statistics from the U.S. Business Administration:
- Washington small businesses employed 1.4 million people, or 50.7% of the private workforce, in 2017.
- The number of proprietors increased in 2018 by 3.4% relative to the previous year.
- Small businesses created 36,957 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 31,035 net jobs. The smallest gains were in firms employing 100 to 499 employees, which added 2,379 net jobs.
- In the fourth quarter of 2019, Washington grew at an annual rate of 3.4%, which was faster than the overall US growth rate of 2.1%. Washington’s 2019 overall growth rate of 3.8% was down from the 2018 rate of 5.8%.
- Private-sector employment decreased 16.3% during the 12-month period ending in April 2020. This was below the increase of 2.7% during the prior 12-month period.
- In April 2020, the unemployment rate was 15.4%, up from 4.4% in April 2019. This was above the April 2020 national unemployment rate of 14.7%.
- Firms with fewer than 20 employees have the largest share of small business employment. Figure 1 provides further details on firms with employees.
- The median income for self–employed individuals at their own incorporated businesses was $56,640 in 2018. For self– employed individuals at their own unincorporated firms, median income was $27,114.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Washington:
Why is it so important to check on business name availability?
Washington will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Does Washington have an annual LLC tax?
Yes. LLCs are required to file an annual report in Washington state and pay a filing fee or tax of $60. You can find further details and instructions in the Annual Report Form.
Are Washington Businesses required to get an Employer Identification Number (EIN)?
All business types besides sole proprietors must apply for this registration whether they have employees or not. For more information about who needs an EIN or how to apply, visit the Internal Revenue Service.
Does Washington require an operating agreement?
No. Washington does not require you to submit an operating agreement to set up a company in the state. However, it’s a good idea to create one. An operating agreement explains who’s in charge, how the business will operate, and how profits and losses are managed.
Do you need a lawyer to create an operating agreement?
A lawyer can help you draw an agreement, but it’s not the only option. If you’re tech-savvy, you can use an online template to get started.
Are there financial assistance programs for startups in Washington?
Yes. Washington has funding options to help new entrepreneurs. Check out these resources.
Federal loans or grants are also an option. You can search for opportunities on USA.gov. Be aware though that the application process can be lengthy and the competition is fierce.
How do you dissolve a business in Washington?
To dissolve a business in Washington you must pay all past tax debts, file a final tax return with the state, and notify certain agencies of the closure. A Certificate of Dissolution must be filed as well.
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