If you can answer “yes” to any of the following questions, then you should strongly consider forming a limited liability company (“LLC”) or corporation for your business or real estate investments:
1. I have personal assets that I want to protect.
2. I want to limit the ability of a creditor to sue me personally.
3. My business or real estate holdings create an increase in my liability exposure to creditors or other persons.
We strongly recommend that business owners operate their business through an LLC or corporation, which are the most commonly used business entities in Washington state. LLCs are formed at approximately double the rate that corporations are formed, due to the increased flexibility and lowered costs of entity maintenance.