One of the primary driving forces of American economic prosperity is entrepreneurship–the ability and willingness of individuals to organize and manage new business ventures, in the face of inherent risks, in order to create new opportunities to create wealth and profit.  In beginning the process of starting a new business, there are many legal, financial, and practical considerations to consider.  One of the most important considerations is whether to form a legal corporate entity, and how that legal entity will be structured and managed.

There are many different types of corporate entities to choose from.  Formation of a corporate entity is typically done through filing formation documents with the applicable state agency, such as the State of Washington Secretary of State.  If the owners do not go through that formal process to form an entity, the law recognizes a default entity such as a sole proprietorship or general partnership where the owners can be heldpersonally liable for the debts and obligations of the business.

Conversely, if the owners go through the corporate formation process, the business becomes a legal entity separate and apart from its owners.  In Washington, these include corporations, limited liability companies, limited liability partnerships, and limited partnerships.  There are also corporate entities for professional service businesses, and also non-profit corporations.

There are many corporate forms to choose from in the State of Washington, and choosing the most ideal corporate entity for your business should be done by consulting with legal counsel.