Washington compliance for agency collectives

Research steps, analysis, and summary of Washington compliance requirements for agency collectives (LLC founders / US business owners) Steps taken - Performed targeted web research (official Washington state agencies and authoritative legal/practice guidance) focused on entity formation, state business registration/licensing, taxes, employment/contractor rules, and other state-specific compliance obligations relevant to agency collectives operating in Washington.

Searches prioritized sos.wa.gov, dor.wa.gov, business.wa.gov, fincen.gov, lni.wa.gov, and reputable law-firm guidance. Key searches included: "LLC Washington Secretary of State," "Apply for a business license WA Department of Revenue," "B&O tax Washington," "independent contractor Washington L&I," "Beneficial Ownership Information FinCEN Washington guidance," and "Washington mini-WARN Act." Analysis performed - Extracted and synthesized state-specific rules and practical steps across the primary compliance domains for agency collectives (formed as LLCs or similar structures): entity formation and ongoing corporate compliance (Secretary of State), state business registration and UBI/business license (Department of Revenue / Business Licensing Service), Washington B&O and sales tax rules, employment-related obligations (workers' compensation, unemployment insurance, payroll withholding, and independent-contractor rules administered by L&I and ESD), local/city endorsements and licenses, recent statutory developments affecting employers (e.g., Washington mini-WARN), federal reporting changes affecting ownership reporting (FinCEN BOI/Corporate Transparency Act updates), and governance/tax planning considerations for multi-member collectives (operating agreements, joint-employer risk, contracts, insurance).

Summary of key, actionable Washington-specific compliance requirements and guidance (what agency collectives / LLC founders need to do)

Research steps, analysis, and summary of Washington compliance requirements for agency collectives (LLC founders / US business owners) Steps taken

- Extracted and synthesized state-specific rules and practical steps across the primary compliance domains for agency collectives (formed as LLCs or similar structures): entity formation and ongoing corporate compliance (Secretary of State), state business registration and UBI/business license (Department of Revenue / Business Licensing Service), Washington B&O and sales tax rules, employment-related obligations (workers' compensation, unemployment insurance, payroll withholding, and independent-contractor rules administered by L&I and ESD), local/city endorsements and licenses, recent statutory developments affecting employers (e.g., Washington mini-WARN), federal reporting changes affecting ownership reporting (FinCEN BOI/Corporate Transparency Act updates), and governance/tax planning considerations for multi-member collectives (operating agreements, joint-employer risk, contracts, insurance).

Summary of key, actionable Washington-specific compliance requirements and guidance (what agency collectives / LLC founders need to do)

• Performed targeted web research (official Washington state agencies and authoritative legal/practice guidance) focused on entity formation, state business registration/licensing, taxes, employment/contractor rules, and other state-specific compliance obligations relevant to agency collectives operating in Washington. Searches prioritized sos.wa.gov, dor.wa.gov, business.wa.gov, fincen.gov, lni.wa.gov, and reputable law-firm guidance. Key searches included: "LLC Washington Secretary of State," "Apply for a business license WA Department of Revenue," "B&O tax Washington," "independent contractor Washington L&I," "Beneficial Ownership Information FinCEN Washington guidance," and "Washington mini-WARN Act." Analysis performed

Choose and register the entity with Washington Secretary of State - File formation documents with the WA Secretary of State for Domestic LLCs or register as a Foreign LLC before transacting business in Washington. Maintain required filings and annual reports as required by the SOS. (See SOS LLC resource)

Register with Department of Revenue / get a business license and UBI - Use Washington’s Business Licensing Wizard and Business License Application (Business Licensing Service) to register and obtain a Unified Business Identifier (UBI). A business license/UBI is required when you plan to hire employees, collect sales tax, do business under a trade name, or have $12,000+ gross income in WA. (See DOR Business License pages and BLS application form)

Taxes — B&O (gross receipts) tax and sales tax - Washington’s Business & Occupation (B&O) tax is a gross-receipts tax measured on gross income from activities; classification-dependent rates apply. In addition, sales tax applies to retail sales where applicable. Understand your B&O classification, rates, filing frequency, and registration for sales tax collection. (See DOR B&O pages)

Employment and contractors — L&I, ESD, payroll registration, and workers' compensation - If hiring employees, register for workers' compensation (L&I), unemployment insurance (Employment Security Department), and payroll tax withholding. The Business License application integrates registration with these agencies. If using independent contractors, review L&I’s independent-contractor rules and tests (and maintain contractor agreements and documentation) — misclassification risks may create liability for premiums, penalties, and payroll taxes. Consider optional coverage for owners. (See Business License Application references to L&I)

Local/city endorsements and business licenses - Some cities/counties require local business licenses or endorsements; the Business Licensing Wizard will surface required city/county endorsements. Obtain local licenses where the collective has physical locations or performs regulated activities.

Federal Beneficial Ownership (BOI) / Corporate Transparency Act (CTA) - As of March 2025, FinCEN’s interim rule removed BOI reporting requirements for U.S. domestic companies and U.S. persons; foreign reporting companies remain subject to new deadlines. Check FinCEN guidance and Business WA updates for the latest obligations before filing. (See Business WA and FinCEN BOI pages) 7) Recent employer obligations — mini‑WARN / layoff notice requirements - Washington enacted employer notification requirements (commonly called a mini‑WARN) requiring advance notice for some mass layoffs/closures (e.g., 60 days’ notice in many cases). Verify applicability to your business’s workforce size and layoff thresholds. (See legal updates such as Littler’s analysis)

Governance and contracts for collectives - For agency collectives (multiple agencies or firms collaborating under an LLC or similar structure), adopt a written operating agreement that sets membership rules, revenue sharing, decision-making, IP ownership, liability allocation, and exit mechanisms. Washington’s LLC Act recognizes oral/implied agreements but best practice is a clear written agreement. Consider insurance (general liability, professional liability/errors & omissions) and carefully drafted client/vendor contracts to allocate risk. (See Foster LLP LLC Act analysis)

Other practical compliance items - Obtain an EIN from the IRS for tax withholding and banking; display registration certificates as required; file timely excise tax returns and annual reports; maintain books and records; keep registered agent information current; evaluate joint‑employer exposures when multiple agencies collaborate or share staff. Recommended practical next steps (checklist) -

Decide entity form and file with WA Secretary of State (or foreign-register). -

Use the DOR Business Licensing Wizard to apply for a Business License and obtain your UBI and register for B&O/sales tax and payroll accounts. -

Get an EIN from the IRS and set up payroll and accounting systems. -

Consult L&I and ESD to set up workers’ compensation and unemployment accounts; review independent contractor rules and documentary proof if contractors are used. -

Draft a written operating agreement among collective members; address IP, revenue splits, management, decision rights, and liability. -

Buy appropriate insurance policies and confirm local city/county licenses or endorsements. -

Monitor FinCEN guidance on BOI and any changes to employer notification laws (like mini‑WARN). -

Consult a Washington business attorney and CPA for entity governance, tax elections, and employment‑law risk management.