A business plan articulates what a business is, where it is going, and how an entrepreneur wants to take it there. A business plan will likely include a summary, a company description, a marketing plan, an operations plan, and management and organization information. A business plan is critical — without a business plan, a business may fail. Most banks require a business plan prior to lending.

The SBA provides a business plan outline at: http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.html

Two critical elements to a business plan should include:

1. Determining the Legal Structure of the Business

• Determining the form for your business will impact the organization’s tax status, the number of tax returns to file, owners’ liability protection, and earnings distribution. In Washington, entrepreneurs have seven general options, and should consider the advantages and disadvantages of each in connection with the venture:

• Sole Proprietorship

• Partnership (General or Limited)

—Partnerships are governed by Title 25 of the RCW

• Corporations (Type S or Type C)

—For-profit corporations are governed by Titles 23 and 23b of the RCW

• Limited Liability Corporations (LLCs)

—LLCs are governed by Title 25 of the RCW

• Limited Liability Partnerships (LLPs)

—LLPs are governed by Title 25 of the RCW

• Information about each form is available through the Washington Secretary of State at http://www.secstate.wa.gov/corps/registration_structures.aspx

or through the SBA’s Washington-focused resource guide at: http://www.sba.gov/starting_business/startup/guide.html

• Entrepreneurs may wish to obtain legal advice prior to making a decision.

The SBA maintains an online resource guide providing small business owners around the country with general information about choosing a business structure and hiring an attorney: www.business.gov

2. Determining the Business Name

• A business’ legal name is filed with the Washington Secretary of State’s office. The Secretary of State’s office ensures each registered business in Washington exists with an exclusive legal name. The Secretary of State provides a webpage chronicling registered business entities at:
http://www.secstate.wa.gov/corps/search.aspx

—The Washington state Department of Licensing’s Master License Service provides the most extensive state listing of business names. For a fee, name searches may be performed by the Master License Service. Contact information is available at: http://www.dol.wa.gov/mls/searchwa.htm or by calling the Master License Service at (360) 664-1400.