Entity Formation Attorney in Auburn, Washington

Starting a business is exciting, but it can feel overwhelming. Forming the right entity lays the foundation for legal protection and long-term growth.

At Boswell Law Offices, PLLC, we help clients in Auburn, Tacoma, Kent, and throughout Southern King County and Pierce County take the right first steps. We provide guidance at every stage of entity formation to make the process as smooth as possible.

Michael A. Boswell has over 27 years of experience as an entity formation attorney, advisor, and litigator. Licensed in Washington and California, he grew up in Bonney Lake, Washington, and graduated from Sumner High School. After earning a B.A. from Whittier College and a law degree cum laude, Mike brings knowledge from both business and legal perspectives.

Reach out to us to start your business with confidence.

Choosing a Business Entity

Working with an experienced entity formation attorney to choose the right business entity is one of the most important decisions for a new business. Each structure has legal and tax implications that can impact liability, management, and ownership responsibilities. Understanding these differences helps business owners make informed choices.

Limited Liability Companies (LLCs) are a popular choice for small businesses because they provide liability protection while offering flexibility in management and taxation. Corporations are another option for owners seeking strong liability protection and the ability to issue stock, which can help attract investors. 

For some, S Corporations offer the advantage of pass-through taxation while still protecting personal assets. Partnerships allow multiple owners to share responsibility, and sole proprietorships offer simplicity, though they don’t protect personal assets beyond the owner.

Selecting the right structure sets the stage for growth and stability. Taking time to weigh the benefits and requirements of each option with professional guidance can prevent costly mistakes down the road.

Filing and Registration Support

After choosing an entity, working with an entity formation attorney to file the correct documents is essential. Mistakes or delays can create operational setbacks. We help clients in Auburn and nearby areas prepare and submit all necessary filings. Key steps include:

• Articles of Organization or Incorporation: This officially registers the business with the state and establishes its legal existence. This document includes key details like the business name, address, and ownership structure. Filing it correctly is essential for operating legally.

• Registered Agent Designation: This provides a legal contact for receiving official notices, such as state correspondence or lawsuits. The registered agent assures important documents are delivered promptly and securely. This role is required for maintaining compliance.

• Operating Agreement or Bylaws: This outlines management rules, decision-making processes, and responsibilities of owners or shareholders. It helps prevent conflicts by clearly defining authority and procedures. Having these in place sets expectations from the start.

• Business Licenses: This is required for specific industries and local regulations. Obtaining the correct licenses assures the business can operate legally in its location and avoid fines. Licenses may need to be renewed periodically, depending on the jurisdiction.

• Federal Tax ID (EIN): This is needed to hire employees, open bank accounts, and file taxes. It acts as a unique identifier for the business in federal systems. Applying for an EIN early streamlines operations and financial management.

We help clients prepare and submit all necessary filings, making sure every step is completed accurately. We also guide clients on ongoing compliance and amendments, keeping the business in good standing.

Liability and Legal Protections

Business ownership involves risk, and protecting personal assets is a major consideration when forming an entity. Certain structures, like LLCs and corporations, create a separation between personal and business liabilities. Beyond entity choice, contracts, agreements, and compliance with local laws add additional layers of protection.

Personal Asset Protection

LLCs and corporations help shield owners’ personal property from business debts and legal claims. This separation provides peace of mind, allowing business owners to focus on growth without exposing personal assets. Planning for protection early can prevent costly problems later.

Contracts and Agreements

Well-drafted operating agreements, shareholder agreements, and NDAs define responsibilities and protect intellectual property. Clear agreements help avoid disputes among owners, employees, and partners. These legal tools are essential for maintaining stability as the business grows.

Regulatory Compliance

Following state and local regulations is critical for staying in good legal standing. This includes business licenses, filings, and other ongoing requirements. Maintaining compliance reduces risk and helps the business operate smoothly.

Tax Considerations and Planning

Taxes can significantly impact a business’s financial health, and an entity formation attorney can provide guidance on tax planning for different entity types. Careful planning assures compliance while maximizing financial efficiency. Business owners who address taxes early can focus on operations without surprises.

Entity-Specific Tax Treatment

Some entities, like S Corporations and LLCs, allow profits and losses to pass directly through to owners’ personal returns. Others, such as C Corporations, face separate corporate taxation. Choosing the right structure affects overall tax liability and long-term financial planning. Our office works closely with your tax professional to determine what is right for you.

State and Local Taxes

Washington businesses may also encounter business and occupation (B&O) taxes and other local requirements. Understanding these obligations helps clients plan cash flow and maintain compliance. Proper attention to these taxes reduces risk and supports sustainable growth.

Deductions and Planning Opportunities

Proper tax planning allows businesses to take advantage of deductions, credits, and other financial strategies. These measures can reduce the overall tax burden and increase profitability. Planning makes sure the business remains financially healthy as it grows.

Startup Agreements and Contracts

Well-drafted agreements are essential for preventing disputes and clarifying responsibilities, and an entity formation attorney can help put them in place. They define ownership rights, management roles, and operational procedures from the beginning. Key agreements we help clients with include:

• Operating Agreements: These outline management and ownership responsibilities for LLCs. They define how decisions are made, how profits and losses are shared, and what happens if an owner leaves. This agreement helps prevent disputes and assures smooth day-to-day operations.

• Shareholder Agreements: These agreements clarify rights and obligations for corporation owners. They set rules for voting, transferring shares, and resolving disagreements among shareholders. Having a clear agreement protects both the business and individual owners.

• Employment Contracts: These contracts establish expectations for employees while protecting the business. These contracts define job responsibilities, compensation, and termination procedures. They also include provisions to safeguard confidential information and company assets.

• Non-Disclosure Agreements (NDAs): These safeguard confidential information and intellectual property. NDAs prevent employees, contractors, or partners from sharing sensitive data with outsiders. They’re essential for protecting ideas, trade secrets, and business strategies.

We help clients put agreements in place that clearly define roles, responsibilities, and ownership. Having these agreements in place early creates a strong foundation and protects the business as it grows.