(This is still a work-in-progress, which is why it's living here in my github gists)
After many years of working full-time in the tech industry, I wanted to explore contracting and consulting, with the hopes that I'll be able to distribute my time across software and creative projects of my choosing. I looked into forming a Single Member LLC to keep my business and personal assets separate and for the liability protections. This seems like a fairly common practice amongst tech consultants, and prospective clients I've spoken to so far seem pretty familiar with working with contractors who have a SMLLC.
This isn't meant to be legal or tax guidance - go see a lawyer or accountant for that! I'm writing this out to chronicle my own experience with setting up a Single Member LLC in the state of Washington, and I'm learning as I go along.
I like this name because of:
- the "craft" of programming, the "craft" of writing
- helping teams figure out their deployment cadence (my niche being Infrastructure, DevOps, and automation)
- general enjoyment of the word 'cadence' and related words: tempo, pace, rhythm, etc
- alliteration
I also hope it evokes feelings of DIY and creativity too!
Anyway, I had to make sure this name wasn't already spoken for, so I did some google searches, along with patent, trademark, and State / City searches on the following sites:
- https://www.uspto.gov/trademarks/search
- https://www.uspto.gov/patents/search
- https://ccfs.sos.wa.gov/#/
- https://www.seattle.gov/city-finance/business-taxes-and-licenses/find-a-licensed-business
One of my mentors pointed me in the direction of Northwest Registered Agent, because they could handle the following steps:
- Filing my state's Certificate of Formation (Articles of Organization) for me with the Washington Secretary of State.
- Serving as my Registered Agent, which seems to be a requirement for an LLC
With this in mind, I paid Northwest Registered Agent for the following services (see itemized Costs breakdown at the end of this document):
- Standard Washington Form a Company filing: I could have filed these papers on my own, but I was worried about messing it up and wanted to be able to call Northwest Registered Agent to ask general questions about their guided filing (which I did, and they were easy to get ahold of over the phone).
- Registered Agent Service in Washington
I heard back within three business days that my filing was complete, and I received:
- A Certificate of Formation from the Washington Secretary of State
- with a UBI number
- Templates from Northwest Registered Agent for other paperwork, including:
- an operating agreement (relevant in a bit)
- my SMLLCs initial resolutions
- membership certificates
- banking resolution
I got this next, because it was a field I needed to fill out on the State Business License form. It took just a few minutes of filling out a form on the irs.gov website, and then I had a federal EIN for my LLC.
Once I got my UBI (issued with my Certificate of Formation) and my LLC EIN, I filled out the form to get a Washington State Business license. This was fairly straightforward, and the website said that it would take 5-7 business days. I did have to pay a filing fee, which is included in the Costs breakdown.
https://dor.wa.gov/open-business/apply-business-license
I received my Washington State license within a few days, and went ahead to fill out the City of Seattle license (which needed some info from my WA State license). This was also pretty straightforward.
https://www.seattle.gov/city-finance/business-taxes-and-licenses/business-licenses
Initially, I had wanted to go with Capital One for my business banking, since I had used that back when I was a sole proprietor. However, for some reason, they don't seem to be offering business accounts in my area when I entered my zip code? Ah well. I ended up going with Chase Business Complete Banking. I'm frustrated that there's a $15 service fee involved if I don't keep a min of $2000 in the account. However, I was a little too squeamish to go with some of the newer startup no-fee / no-min banking options that are currently available.
While signing up for the Chase account, I needed to provide my single-member operating agreement. Luckily, I was able to use the free template one provided by Northwest Registered Agent.
I noticed that insurance carriers like Progressive seemed to provide interfaces for getting policies from an insurer called Hiscox. So I went directly to their site to sign up for both General and Professional Liability Insurance. This seemed most relevant to the types of work I'd be doing, with regard to software infrastructure. (I've heard that some companies won't work with contractors unless they have this coverage.)
- https://www.hiscox.com/small-business-insurance/general-liability-insurance
- https://www.hiscox.com/small-business-insurance/professional-liability-insurance
| Payee | Service | Cost | Notes |
|---|---|---|---|
| Northwest Registered Agent | registered agent service | $125 | |
| Northwest Registered Agent | guided LLC filing fee | $100 | Possibly optional, I just wanted the additional guidance |
| Northwest Registered Agent | WA State LLC Filing Fees | $200 | |
| Washington State | License filing fee | $90 | |
| City of Seattle | License filing fee | $33.50 | |
| Hiscox | General and Professional Liability | $125 | Upfront cost |
| Hiscox | General and Professional Liability | $62.48 | First month of business insurance :( I imagine this cost will vary depending on the business |
| Domain registrar | Domain registration | $13.23 | Unsure if I'll actually use a custom domain, but wanted to snag it just in case |
Total: 749.21
Now I'm looking into getting an accountant to help me navigate my initial tax filings and keep me on track with any other business maintenance I need to do. Phew!