This form may be used for a variety of purposes, including among others, registering a trade name or changing a trade name. In order to conduct, or transact business in Washington state under any trade name, one must register that trade name with the Washington Department of Licensing.
Master Business License Washington with EIN — A Comprehensive Guide If you're planning to start a business in Washington State, it is crucial to understand the process of obtaining a Master Business License (MBL) along with an Employer Identification Number (EIN). In this guide, we will delve into the details of what exactly a Master Business License is and how it is linked with an EIN. A Master Business License, often referred to as a Washington State Business License, is a document issued by the Washington State Department of Revenue (FOR) that grants you the legal authority to conduct business within the state. It is essentially your business's evidence of existence and compliance with local laws. When applying for a Master Business License, you will also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN, also known as a Federal Tax Identification Number, is a unique nine-digit number that identifies your business entity for tax purposes. This number is necessary for filing federal tax returns, opening business bank accounts, hiring employees, and other business transactions. The MBL and EIN are interrelated as the MBL application process requires you to provide your EIN. Conversely, obtaining an EIN from the IRS typically requires a valid MBL. This dual requirement ensures that businesses operating in Washington are registered both at the state and federal levels. Now, let's briefly address the different types of Master Business Licenses available in Washington: 1. Sole Proprietorship: This type of business is owned and operated by a single individual. To obtain a Master Business License for a sole proprietorship, the individual's Social Security Number (SSN) is typically used as the EIN. 2. Partnership: A partnership involves two or more individuals who share the ownership and management responsibilities of a business. When applying for an MBL with an EIN for a partnership, the EIN will be obtained using the partners' SSNs or a separate EIN can be obtained specifically for the partnership. 3. Corporation: A corporation is a separate legal entity that offers limited liability protection to its owners (shareholders). To obtain an MBL with an EIN for a corporation, a separate EIN will be required. This EIN will be associated with the corporation's name and taxpayer identification. 4. Limited Liability Company (LLC): An LLC is a flexible business structure that combines the limited liability protection of a corporation with the simplicity of a partnership. LCS can choose to be taxed as either a sole proprietorship, partnership, or corporation. If you decide to pursue an MBL with an EIN for an LLC, you will need to obtain a separate EIN. In conclusion, obtaining a Master Business License in Washington State with an Employer Identification Number is a fundamental step for legally operating your business. Understanding the different types of MBS available based on your business structure is important as it determines the specific requirements and EIN application process. It is advisable to consult with legal and tax professionals who can guide you through the complexities of Washington's business licensing and taxation system.
