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Starting a Business in Washington? Legal Steps You Can’t Miss

Launching a business in Washington is exciting—but it’s also a legal minefield if you’re not properly prepared. From choosing the right business structure to securing necessary licenses and drafting airtight contracts, your early decisions can have lasting consequences.

At the Law Office of Daniel J. Neilsen, we specialize in helping entrepreneurs across King County and beyond start their ventures with confidence. Below is a comprehensive legal checklist to guide you through the process.

✅ 1. Choose the Right Business Structure

Your business structure affects everything from liability to taxes to how you bring on investors. Common options include:

  • Sole Proprietorship – Simple and inexpensive, but leaves you personally liable.

  • Limited Liability Company (LLC) – Popular for small businesses; combines liability protection with tax flexibility.

  • Corporation (C-Corp or S-Corp) – Suitable for businesses planning to grow significantly or seek outside funding.

  • Partnership – Ideal for two or more people going into business together; requires careful agreement structuring.

Legal Tip: Our office can help you select and register the optimal entity type with the Washington Secretary of State, ensuring you understand its pros and cons.

📋 2. Register Your Business and Name

You’ll need to:

  • Register your business entity with the Washington Secretary of State.

  • Obtain a UBI (Unified Business Identifier) number via the Washington Business Licensing Service.

  • File a “Doing Business As” (DBA) if you’re operating under a different trade name.

🧾 3. Apply for the Necessary Licenses & Permits

Depending on your industry and location, you may need:

  • A Washington State Business License

  • A City Business License

  • Special permits for regulated businesses (food service, childcare, construction, etc.)

Pro Tip: Failing to obtain the right permits can lead to hefty fines or even business closure. We can audit your business plan to identify every license you’ll need.

✍️ 4. Draft Contracts That Protect You

Verbal agreements can land you in legal trouble. Get everything in writing with help from a qualified attorney:

  • Operating Agreement or Partnership Agreement
    Defines roles, responsibilities, and ownership rights.

  • Client Contracts & Service Agreements
    Protect your deliverables, timelines, and payment terms.

  • Employment or Independent Contractor Agreements
    Clarify worker status and avoid employment misclassification penalties.

  • Non-Disclosure Agreements (NDAs)
    Essential when sharing proprietary ideas or technology.

Local Focus: Our firm customizes all contracts with Washington law in mind, helping Washington businesses stay enforceable and compliant.

💼 5. Understand Your Ongoing Compliance Requirements

Once your business is up and running, you’ll need to maintain:

  • Annual state filings and business license renewals

  • Proper tax reporting (local, state, and federal)

  • Updated insurance coverage and liability protections

  • Accurate corporate records and meeting minutes (for corporations)

👩‍⚖️ Partner with a Washington Business Attorney You Can Trust

Starting a business should be exciting—not overwhelming. At Law Office of Daniel J. Neilsen, PLLC, we’ve helped startups and small business owners throughout Washington build legally sound foundations for long-term success.

📞 Contact us today for a personalized legal consultation, or explore more about our Business Law services.