Start a Business in Kent, WA: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Kent, WA, is a plus for any entrepreneur. In general, setting up any form of business in Washington, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Kent, WA. With an urban population of 130038 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Washington. Like most places in the US, Kent, WA also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Kent, WA has a proper business environment for all.
In this article, you will read about how to start a business in Kent and why you should choose Kent to start and run your business. We recommend you check below the important facts about Kent, WA; these might help you.
On this page, you’ll learn about the following:
Kent, WA Household Income Statistics
| Kent Median household income | 73891 USD |
| Kent households with dual income earners | 59.9 % |
| Kent households $150K+ Income | 16.1 % |
| Kent households $100K+ Income | 35.2 % |
| Kent households $100-150K Income | 19.1 % |
| Kent households $75-100K+ Income | 14 % |
| Kent households $50-75K+ Income | 19.5 % |
| Kent households $35-50K+ Income | 11.4 % |
| Kent households $25-35K+ Income | 6.7 % |
Kent, WA Education & Labor force Facts
| Kent residents with a bachelor’s degree (or equivalent) | 19.7 % |
| Kent residents with at least a 4-year degree | 27.1 % |
| Kent residents with a graduate degree | 7.4 % |
| Kent residents with a high school diploma but no more | 25.9 % |
| Kent residents with less than high school education | 13.6 % |
| Kent residents with some college but no more | 33.4 % |
| Kent residents with a Bachelor’s degree or higher (STEM fields) | 45.3 % |
| Kent households that own (rather than rent) their residence | 55.2 % |
| Kent residents 16 and older in the labor force | 68.9 % |
| Kent residents unemployed | 6.8 % |
Kent, WA Demographics
| Kent residents aged 0-9 | 14.6 % |
| Kent residents aged 10-19 | 12.3 % |
| Kent residents aged 20-29 | 15.2 % |
| Kent residents aged 30-39 | 15.7 % |
| Kent residents aged 40-49 | 12.7 % |
| Kent residents aged 50-59 | 13.1 % |
| Kent residents aged 60-69 | 9.3 % |
| Kent residents aged 70-79 | 4.2 % |
| Kent residents aged over 80 | 2.9 % |
| The average size of resident families in Kent, WA | 3.41 |
| Estimated population per square kilometer in Kent, WA | 1487 |
| Kent, WA urban population (estimate) | 130038 |
| Kent, WA municipal population (estimate) | 130038 |
Now that you know what makes Kent of Washington good for business, let’s get started with the exact steps on how to start a business in Kent.
How to Start a Business in Kent, WA
Starting a business in Kent, WA, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Washington, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Kent.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Kent. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Washington LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Washington to do the Washington LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Washington, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Kent, WA by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Washington LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Kent can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Washington
- Must have a physical street address in the Washington
- Must have legal rights to conduct business in the Washington
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Washington. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Washington SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Kent, WA. Your Washington LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
- Dissolution
In future, if any member wants to leave the company or you want to dissolve the business, then the Washington operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Kent, WA. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Kent, Washington, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Kent Stats for Starting a Business
Before you start a business in Kent, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Kent has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
Demography
As we talk about the urban population density, the young population percentage in the city is approximately 15.2 (people in their 20s) and 15.7 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 34.6. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Kent has approximately 2.9 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Real Estate
Another important factor to mention about Kent is the home value of owned properties. The average value of owned houses is 378642. Also, the percentage of people living in their own houses is 55.2. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
Health
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Kent who still do not have health insurance. The rate of people not having health insurance is 8.3. This depicts the lifestyle and overall health demography of Kent. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Kent, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Kent
Kent offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Kent. Here are some of the reasons,
Stable Economic Growth
Kent or any other city in Washington has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Washington shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Kent, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Kent is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Washington LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Washington or any other state. That means if you are operating any business in Kent, then Washington State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Washington. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Kent, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 68.9 is the percentage of labour participation. Hence, it is clear that having a business in Kent will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Kent, Washington, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Kent.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 31.9. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Other Benefits
Kent (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Kent. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Kent is 15.7. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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How Fast Can You Start Business In Kent Washington
Whether you’re starting a business in Washington or you’re expanding an existing one, you’ll need to get your hands on some licenses and registrations to start your venture off on the right foot. Fortunately, the state of Washington is a great place to do business. In fact, small businesses in the state can earn up to $43,000 tax-free.
When it comes to licensing, it’s best to check out your local city’s or county’s website to get an idea of what is required. Some localities let you file online, while others allow you to mail in your application. The state’s business licensing website provides links to the various licenses and registrations you’ll need to get started.
You’ll need to get an EIN, or a federal tax ID number, if you’re hiring employees. You may also need to obtain a Washington Sellers Permit, or state ID, to sell products in the state.
Another thing you’ll need is a registered agent, which is someone who will receive official service of process for your business. You can have an attorney, or another person in Washington, serve as your registered agent. This can free up your time, while also making sure that you’re never missing any process servers. You may also need to have an office in Washington, depending on your business.
The state of Washington has a Regulatory Roadmap for different industries. This includes everything from restaurants to manufacturing. Each county in the state establishes its own licensing procedures and requirements. However, most counties will require you to get a business license, which can cost $25 to a few hundred dollars. The fees are determined by your specific business type, the amount of gross revenue you expect to generate, and other factors. You’ll also need to renew your licenses regularly, and may be required to pay additional fees.
The State of Washington has a Business License Application, which can help you get all of the licensing and registration information you need. The application establishes accounts with various state agencies, such as Departments of Labor & Industries, Departments of Revenue, and Departments of Employment Security. You can also use the application to obtain specialty licenses, such as a CPA license or a plumber license. You may also be required to post your business license at your location.
The state also has a UBI, or Unified Business Identifier, which is a nine-digit number that helps you identify your business. This number will also be required when you apply for your state business license. This nine-digit number is used by several state agencies, such as the Secretary of State, in order to identify your business.
The state of Washington has many other useful tools for new businesses. For example, it has a Regulatory Roadmap for different kinds of industries, such as health care, contracting, manufacturing, and restaurants. It’s also home to the ShoWare Center, a technology and business expo center that hosts skating events and Business Expos.
FAQ About Kent, WA
When deciding where to reside in Kent, WA, consider the location’s suitability for your career or company. You may choose the neighborhood in Kent, WA where you want to reside based on the customers you have in mind for your company.
As long as the firm is in business, an LLC in Kent, WA has a life. The LLC will end if the firm does, which would also end the company. You must renew the LLC in Kent, WA, on schedule in order to keep it active.
A wonderful spot to start a company is Kent, WA. In Kent, a company may be registered in roughly a day. You must include your company name, address, and contact details. Additionally, you’ll have to list the company’s executives, directors, and members.
Many low-cost companies may be found in Kent, WA. If you want to create a company in Kent, WA, you may do it online. Furthermore, you may establish a low-cost home baking or teaching company in Kent, WA.
To apply for an LLC in Kent, WA, you must fill out an application form and submit it for approval. You’ll need to include the name of your LLC, the registered agent’s name, the address of the registered agent, and the name of the registered agent’s mailing address.
Kent, WA company income taxes are not a concern if you have an LLC. On your LLC revenue, you only have to pay federal income tax and, if applicable, state income tax.
Getting a business plan is the first thing you should do when starting a company in Kent, WA. You may simply go forward with starting a company if you have a business plan. The first step in starting a company is to complete that.
A few things are necessary if you wish to sell your goods in Kent, WA. First, decide which item you wish to sell. Second, be aware of your intended market. Finally, advertise your goods to boost sales in Kent, WA.
When forming an LLC in Kent, WA, there are several factors to take into account. You must first choose the kind of LLC you wish to establish. Single-member and multiple-member LLCs are the two different kinds of LLCs. The next step is to submit the required documents to the Secretary of State.
When considering whether to rent or purchase a house in Kent, WA, there are several aspects to take into account. The cost of both is the most crucial factor to take into account. Before making a choice when starting a company, it is essential to do market research and consult with an agent.
An LLC in Kent, WA is a structure of business that is similar to a sole proprietorship. A limited liability company also has some characteristics of a partnership business. LLCs have pass-through taxation that means LLCs in Kent, WA do not have to pay business income tax.
There are already more than a thousand unicorn businesses operating worldwide. Unicorns may also be seen in Kent, WA. In contrast to other cities, the number is only mediocre.
In Kent, WA, you may launch a company that provides a service to those who want to know what’s going on in the city for only $1000. You may create a service that sends out a daily email listing the top five events taking place in the city at the moment.
If you’re wondering why LLCs are so common in Kent, WA, the reason is very obvious. LLCs are affordable, simple to set up, and provide several tax benefits. In Kent, WA, startups and small enterprises like forming an LLC.
In Kent, WA, the real estate market is a dynamic one, and shock may cause house values to drop. On the other hand, Kent, WA, real estate is a flourishing industry. It is thus difficult to predict whether the price of homes will decrease or not.
The cost of business insurance in Kent, WA varies depending on the type of business, the number of employees, the type of coverage, and the size of the business. To get the cost of insurance, you must get an agent to compare the prices.
Having an LLC in Kent, WA requires you to pay self-employment tax in addition to income tax. Additionally, filing costs for LLCs are higher than those for single proprietorships. Running an LLC is more difficult than a single proprietorship.
Your company concept may be funded in Kent, WA in a variety of methods. Applying for a loan from a bank, receiving a grant from the government, or using a crowdfunding website are all options. You may look into the grants that are available.
If you’re looking to start a business in the great state of FL, you may be wondering how much it will cost to license a business in Kent. The price to license a company in Kent, WA varies according on the kind of enterprise you intend to launch.
The city’s IT and service industries are the primary drivers of Kent, WA’s rapid growth. The business climate in Kent is fantastic, and there are several advantages for new company owners. It follows that the city’s economy is expanding.
Houston is more expensive than Kent, WA. Kent is a more cheap city to reside in due to its reduced cost of living. However, from a business standpoint, some people may find Houston to be more cheap. It varies greatly from person to person and is quite relative.
You can find a seller’s permit in Kent, WA at a very low cost. A permit allows you to sell items in the city of Kent legally. There are many other permits and licenses that you may need to acquire before you can legally sell items.
Having an LLC is advantageous in Kent, WA. The state provides a variety of advantages for enterprises, which is why. It provides startups with tax advantages, quick company funding, employment perks, and other benefits.
Depending on the kind of company you’re beginning in Kent, WA, there are different startup costs. Restaurants, coffee shops, and bars are a few of Kent’s more well-liked small business concepts. In Kent, WA, the price to form an LLC is $200.
If you’re self-employed and reside in Kent, WA, you must get a business license. By filling out the necessary paperwork and delivering it to the Kent, WA authorities, you may apply for a business license. You must provide your company name, address, and the nature of your firm.
Startups may thrive in Kent, WA. A hotbed for fresh ideas, the city is teeming with youth. For entrepreneurs, it’s ideal because of its cheap cost of living and good standard of living.
Unfortunately, there is no way to know for sure whether or not Kent, WA requires small business insurance. This is because every city has its own set of laws and regulations. If you are unsure whether or not Kent requires small business insurance, you should contact your local government.
In Kent, WA, setting up an LLC is a fast and simple procedure. All you have to do to complete the process is submit a document to the Secretary of State and pay the filing fee. The procedure may be finished in only one day, which is fantastic.
Obtaining a tax ID number in Kent, WA, is surprisingly simple. Visit the IRS website and complete the application are all that are required. In Kent, WA, you may get your tax identification number in a short amount of time without having to spend anything.
Kent, WA has been the starting point for many large corporations. For instance, a business that offers ice cream in FL form or items like waffles or cookie cutters with FL shapes.
Some of the unusual company concepts in Kent, WA include pet sitting, online pet grooming consultations, and virtual interior design. You may start with these original ideas if you wish to open a company in Kent, WA. You can also think about selling handcrafted home décor.
Small companies in Kent, WA, must pay a certain amount in taxes. The company structure will determine this. Businesses are required to pay a variety of taxes, including corporate income tax, franchise tax, and sales tax.
Every LLC in Kent, WA must choose a registered agent. A professional, a member of the LLC, or a family member might be involved. For the LLC, this individual is in charge of picking up all the paperwork at their Kent office.
A excellent option to start your own company is via an LLC. However, you are required to renew your LLC annually. Make careful to do it by the deadline if you’re in Kent, WA. Before the deadline, you must renew your LLC in order to prevent any inconsistencies.
You should relocate to Kent, WA, unless there is a very good reason not to. In essence, you should consider if Kent is a good fit for your firm before relocating there. You shouldn’t relocate if your line of work is unfavorable to Kent’s chances.
In Conclusion
Starting a business in Kent is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Washington has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Kent, WA.