Making it official without having a panic attack
Welcome to the paperwork party! Don't worry, we brought snacks and a roadmap.
So your idea survived the reality check. You've validated it, tested it with real potential customers in Southwest Washington, and you're ready to make this thing official. Congratulations! This is where your side hustle gets a business license and your daydream gets an LLC.
But first, you need to answer the question that makes every new entrepreneur's eyes glaze over: "What type of business structure do I need?"
Deep breath. We're going to make this so simple you'll wonder why you were ever stressed about it.
The structure situation: How to choose without overthinking it
Here's the truth: choosing your business structure isn't as complicated as everyone makes it sound. Yes, there are legal and tax implications. Yes, you should eventually talk to a CPA or attorney. But for right now? Let's just figure out which option makes sense for where you are.
Washington State's StartUP 365 breaks it down beautifully with attorney Madhu Singh, and spoiler alert: most of you reading this will start with one of three options.
Sole proprietorship: The "it's just me" option
Sole proprietorship is the simplest structure on the planet. You're the business, the business is you. No separate tax returns, no complicated paperwork, just you doing your thing. Great for side hustles, freelancers, consultants, and anyone testing the waters.
Perfect for:
Freelance writers, designers, or consultants in Vancouver or Longview
Home-based service businesses throughout Southwest Washington
Anyone making less than $50,000 in first year revenue
Testing your business idea before committing to structure costs
The catch? If your business gets sued or goes into debt, your personal assets (like your house or car) are on the line. Also, some banks and lenders get nervous about sole proprietorships because everything is so intertwined.
LLC: The "I want some protection" option
Limited Liability Companies are wildly popular for good reason. You get legal protection (your personal stuff is separate from your business stuff), but you don't have to deal with the headache of corporate governance. For tax purposes, the IRS treats you like a sole proprietor unless you choose otherwise.
This is the sweet spot for most small businesses. It's professional, protective, and not overly complicated.
Perfect for:
Product-based businesses selling at Clark County farmers' markets
Service businesses with employees or contractors
Any business with moderate liability risk
Businesses seeking business loans or investor funding
Anyone planning to scale beyond solo operation
Filing an LLC in Washington State costs around $200 and takes about 2 business days online. You'll need a registered agent (that can be you) and annual reports.
Corporation: The "I'm building an empire" option
Corporations (C-corporations and S-corporations) are for when you're serious about scaling, bringing on investors, or planning for major growth. They offer the best legal protection and some tax advantages, but they come with more paperwork, board meetings, and formality.
Most people don't start here. But it's good to know it exists for when you're ready to level up.
Perfect for:
Tech startups seeking venture capital
Businesses planning rapid regional or national expansion
Companies with multiple shareholders or complex ownership
Businesses generating significant revenue (typically $250K+)
Part 3 of a 6-week series on business entrepreneurship
Choosing your business structure isn't as complicated as you may think. Photo by Christina @ wocintechchat.com
About Woman of Wonder: We provide college scholarships to women in Washington State because education opens doors. Need funding for that accounting class or business course? Apply for a scholarship. Want to help fund the next generation of women entrepreneurs? Become a donor and invest in dreams becoming reality.
Support women business owners in southwest Washington
“When you donate to Woman of Wonder, you’re helping women throughout Southwest Washington access the education they need to build legally sound, financially stable businesses. Your tax-deductible contribution removes barriers to business education.
Support women entrepreneurs: Visit womanofwonder.org/donate to invest in the next generation of women business owners.”
The 8 steps Washington State actually requires
Ready for good news? Setting up a business in Washington State follows a clear, step-by-step process. The state literally numbered it for you. Here's what you need to do:
Step 1: Research and Make a Plan
You already did this in weeks 1 and 2, overachiever. ✓
Step 2: Register with the Secretary of State
If you're an LLC, corporation, or partnership, you'll register through the Washington Secretary of State website. Sole proprietors can skip this unless they're using a business name different from their legal name (then you file a "trade name" or DBA - Doing Business As).
Online registration: sos.wa.gov
Processing time: 2 business days online, 14 days by mail
Cost: Varies by structure ($200 for LLC, $180 for corporation)
Step 3: Get your business license from the Department of Revenue
Every business in Washington State needs a business license. Costs $50, takes 15-30 minutes online, and registers you with multiple state agencies at once.
This is where you get your Unified Business Identifier (UBI)—think of it as your business's social security number.
Apply online: dor.wa.gov
Cost: $50 application fee
Processing: Immediate online
Step 4: Report new employees
If you're hiring anyone (including future you as an employee if you choose S-corp status), you'll report them to Washington State Employment Security Department.
Most solo entrepreneurs starting out can skip this step initially.
Step 5: Get a reseller permit
If you're selling physical products and need to collect sales tax, start at the Department of Revenue. If you're a service-based business, skip this.
Step 6: Register as a contractor
Only if you're in construction or contracting, register with Labor & Industries. Most businesses skip this.
Step 7: Contact your health department
Only if you're handling food. Clark County, Cowlitz County, and other local health departments have specific requirements for food businesses.
Step 8: Check with your city/county
Because local requirements vary. Vancouver, Longview, Camas, and other Southwest Washington cities may have additional licensing requirements, zoning regulations, or permits.
See? Not that scary. Steps 5 through 7 only apply to specific industries, so most of you are really looking at just steps 1 through 4.
The Magical nine-digit number (UBI)
When you register your business in Washington State, you'll get something called a Unified Business Identifier, or UBI. This nine-digit number registers you with multiple state agencies at once—Department of Revenue, Employment Security, Labor & Industries, and more.
If you file online through the Secretary of State, you'll get your UBI in two business days. By mail? Fourteen days. This is why God invented the internet, people.
Pro tip: If you're a sole proprietorship, you can use your own social security number instead of getting an EIN (Employer Identification Number) from the IRS. One less form to fill out.
Local requirements for Southwest Washington entrepreneurs
Don't forget to check the requirements specific to your city:
Vancouver, WA:
City of Vancouver business licenses may be required depending on your business type. Check with the city's Business License Office.
Longview, WA:
Cowlitz County and City of Longview have separate licensing requirements for certain businesses.
Camas, Battle Ground, Woodland:
Smaller cities throughout Clark County may have zoning restrictions or home-based business regulations.
Check with your local city hall or county planning department before launching. It's better to know requirements up front than to get a surprise letter later.
The money stuff: Financial management matters
Once you're official, you need to keep your money organized. This is where Woman of Wonder scholarships can seriously save you. If you need to brush up on accounting, bookkeeping, or financial management, taking a course makes a massive difference between "winging it" and actually knowing what you're doing.
StartUP 365 even has an entire Financial Literacy Academy that covers bookkeeping, cash flow, and creditworthiness. It's free, it's online, and it's designed for real business owners, not finance majors.
Tools like QuickBooks or FreshBooks can handle most of your accounting needs, but understanding the fundamentals first? That's the power move.
Education for business structure and financial management
Understanding business structures, tax implications, and financial management separates successful entrepreneurs from those who struggle. Woman of Wonder scholarships help Southwest Washington women access education that makes business ownership less overwhelming and more profitable.
What Woman of Wonder Scholarships Support
We provide partial tuition scholarships for women in Clark, Cowlitz, Skamania, and Wahkiakum counties pursuing:
Accounting and bookkeeping courses at Clark College or Lower Columbia College
Business law and legal structures classes
Financial management and business finance programs
Small business management certificates
Tax preparation and planning courses
Any education that strengthens your business foundation
Apply for scholarships: Visit womanofwonder.org/scholarships to learn about application requirements and deadlines.
Your Homework: Registration Action Steps
Action Step 1: Take the Business Structures Course
Take Madhu Singh's Business Structures course on StartUP 365. She breaks down every option with real examples and zero jargon.
Action Step 2: Decide on Your Structure
Be honest about where you are right now, not where you hope to be in five years. You can always change it later.
Start as a sole proprietorship if:
You're testing your idea
Revenue will be under $50,000 first year
You're the only person involved
Liability risk is minimal
Choose LLC if:
You're committed to building a real business
You have moderate liability exposure
You want to separate personal and business finances
You plan to hire people or bring on partners
Action Step 3: Check Name Availability
Search the Secretary of State's business database to make sure your business name isn't already taken: sos.wa.gov
Action Step 4: Gather Your Registration Information
If you're ready to register, gather:
Physical address in Southwest Washington
Revenue projections for year one
Business description (what you'll actually do)
Owner/member information
Registered agent information (if filing LLC/corporation)
Action Step 5: Consider Financial Education
Check out Woman of Wonder's scholarship opportunities if an accounting or business finance class would help you feel more confident. Understanding financial management from day one prevents expensive mistakes later.
Remember: You're not stuck with your initial choice forever. Many businesses start as sole proprietorships and evolve into LLCs or corporations as they grow. The goal right now is to make a smart decision for where you are today.
Next Week: Show Me the Money
We're diving into funding options, grants specifically for women entrepreneurs, and how to finance your business without selling a kidney or maxing out credit cards. Washington State has programs you've probably never heard of, and we're spilling all the secrets.
You'll want to bookmark this one.
See you next week, officially registered business owners. You're one step closer to empire status.
Resources for business registration in Washington State
Resources for Business Registration in Washington State
Washington Secretary of State - Business Registration
Register LLCs, corporations, and partnerships online
sos.wa.gov
Washington Department of Revenue - Business Licensing
Apply for business license and get your UBI
dor.wa.gov
StartUP 365 - Business Structures Course
Free training with attorney Madhu Singh
mystartup365.com
StartUP 365 - Financial Literacy Academy
Free courses on bookkeeping and financial management
mystartup365.com/resources/financial-literacy
Woman of Wonder Scholarships
Support for women pursuing business education in Southwest Washington
womanofwonder.org/scholarships
Woman of Wonder Donations
Help fund business education for women in SW Washington
womanofwonder.org/donate
