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    BUSINESS FORMATION

    Business Formation Services

    Start Your Business the Right Way.

    The decisions you make when starting a business — entity type, tax structure, state of formation — have financial consequences that follow you for years. Getting them right from day one costs far less than fixing them later.

    We handle everything. You focus on building your business.

    Any State · Virtual across Washington State · Bothell Office

    Call +1 (425) 699-6990

    ENTITY TYPES

    Business Structures We Form

    The entity you choose affects how you are taxed, how you are protected, and how you grow. We help you choose correctly from day one.

    Single Member LLC

    The most popular structure for solo business owners — liability protection with a simple default tax treatment.

    Multi-Member LLC

    Two or more owners sharing ownership and liability protection, taxed as a partnership by default.

    S-Corporation

    A tax election, not a separate entity type — available to eligible LLCs and corporations, with potential self-employment tax savings for profitable businesses.

    C-Corporation

    Separate tax entity often used by businesses planning to raise outside investment.

    Partnership

    Two or more partners sharing profits, losses and management responsibilities.

    Sole Proprietorship

    Simplest structure — no formation filing needed, but no liability protection.

    WHAT'S INCLUDED

    Everything We Handle For You

    We handle the setup so you can focus on building your business.

    Formation

    • Entity type consultation
    • State of formation guidance
    • Certificate of Formation or Articles
    • Operating agreement drafting
    • State filing and registration
    • Registered agent setup
    • Any state formation available
    • Multi-state registration

    Setup & Compliance

    • EIN registration with IRS
    • S-Corp election filing
    • Washington business license
    • Washington B&O tax registration
    • Initial bookkeeping setup
    • QuickBooks or Xero setup
    • First year tax planning session
    • Quarterly estimated tax setup

    Why Entity Choice Matters More Than Most People Realize

    Tax Impact

    The wrong entity can cost you unnecessary self-employment tax every single year.

    Liability Protection

    Operating as a sole proprietor exposes your personal assets to business liabilities.

    Growth Flexibility

    Some entity structures limit your ability to bring on investors or partners later.

    WASHINGTON

    Forming a Business in Washington

    A Washington LLC is formed by filing a Certificate of Formation with the Secretary of State. The state filing fee is $180, and every LLC then files an annual report, which costs $70. An initial report is due within 120 days of formation; filing it with your Certificate of Formation avoids a separate fee.

    Next comes the Department of Revenue. You must register and get a business license if your gross income is $12,000 or more a year, or if you collect sales tax. Registration gives you a Unified Business Identifier (UBI) and sets up your B&O tax account. If you will have employees, you also need accounts with Labor & Industries for workers compensation and with the Employment Security Department.

    The federal side starts with an EIN, which the IRS issues for free. If an S-Corp election makes sense, Form 2553 must be filed no more than 2 months and 15 days after the start of the tax year the election is meant to cover. A late election can sometimes be accepted under IRS relief procedures, but it is far better to file on time.

    We help owners in person through our Bothell tax preparation office and virtually statewide, including Redmond. Industry details shape the setup — see our pages for general contractors and trucking owner-operators. Before you choose, read LLC vs S-Corp tax differences and the Washington State small business tax guide.

    WHAT TO KNOW

    Quick Tips for New Business Owners

    These are the most common mistakes we see when businesses form without proper guidance.

    An LLC Does Not Automatically Mean Tax Savings

    Forming an LLC alone does not change how you are taxed. The tax election you make alongside the LLC determines your tax treatment.

    S-Corp Election Has a Deadline

    To be taxed as an S-Corp for the current year, Form 2553 must be filed no more than 2 months and 15 days after the start of that tax year. Missing this deadline can push your election to the following year unless you qualify for IRS late election relief.

    Washington Has No Income Tax But Has B&O

    Washington's Business and Occupation tax applies to gross receipts, not profit. (A new 9.9% tax on household income above $1 million takes effect in 2028 and faces legal challenges, but it won't affect most households.) Register with the Department of Revenue once your gross income reaches $12,000 a year, or earlier if you collect sales tax.

    Separate Business and Personal From Day One

    Open a dedicated business bank account before your first transaction. Commingled finances create bookkeeping and legal problems that are expensive to untangle later.

    How Business Formation Works With PBX

    1. 01

      Free consultation — we understand your business goals, revenue, and plans

    2. 02

      Entity selection — we recommend the right entity and tax structure for your specific situation

    3. 03

      We file everything — we handle all state filings and registration on your behalf

    4. 04

      Setup and register — EIN, business license, B&O tax registration, bookkeeping software, and bank account guidance

    5. 05

      First year tax planning — we set up quarterly estimated payments and review your first year tax strategy

    PRICING

    What It Costs

    Formation work is quoted after a free consultation. State filing fees are paid to the state.

    See business tax pricing →
    Business FormationQuoted after free consultation
    S-Corporation or Partnership ReturnStarting at $1,350
    New Business Client Credit−$250 first year

    Once your business is formed, your annual business return is priced on our business tax pricing page.

    Common Questions

    Most small businesses are best served by forming in their home state of operations. The popular advice to form in Delaware or Wyoming primarily benefits large corporations or businesses seeking outside investment. A Washington State business formed in another state still needs to register as a foreign entity in Washington and pay fees in both states — doubling costs with no real benefit. PBX Tax evaluates each client's specific situation, business model and growth goals before recommending a state of formation to ensure you are not paying unnecessary fees.

    An LLC is a legal structure that provides liability protection and flexibility, while an S-Corp is a tax election that can be made by an LLC or corporation. An LLC taxed as an S-Corp can reduce self-employment tax by splitting income between a reasonable salary and owner distributions. The election makes sense once net profit is consistently high enough that the payroll tax saved outweighs the added payroll and return costs. PBX Tax analyzes each client's specific revenue, expenses and compensation needs before recommending the S-Corp election.

    It depends on the state and how you file. The EIN is free from the IRS and online applications are typically issued immediately. We give you a timeline for your specific filings during the consultation and manage the process so you never have to track multiple deadlines, filings or registrations yourself.

    PBX Tax handles business formation in all 50 states. Multi-state business registration is available for businesses operating across state lines. The consultation process identifies which state or states are appropriate based on where the business actually operates, where its customers are located and where it has physical presence or economic nexus. Formation in multiple states is sometimes necessary for businesses with nexus in multiple jurisdictions and we manage the entire registration process in each state.

    The Secretary of State filing fee for a Certificate of Formation is $180, and each annual report is $70. Our formation work is quoted after a free consultation.

    Form 2553 must be filed no more than 2 months and 15 days after the beginning of the tax year the election is to take effect. For a calendar-year business that is March 15. The IRS has relief procedures for some late elections.

    RELATED SERVICES

    GET STARTED

    Start Your Business Right. Everything Else Follows From Here.

    The right entity. The right tax structure. The right setup from day one.

    Call +1 (425) 699-6990

    Last updated September 2026