Author: Martin Kreshon
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Understanding Washington’s Tax Penalties and How the Voluntary Disclosure Program Can Help
Operating a business in Washington comes with many responsibilities, and staying on top of state tax obligations is one of the most critical. However, many business owners—especially those operating from out of state or just starting out—may unknowingly overlook certain tax requirements. Ignoring these obligations can lead to significant financial penalties. The good news? The…
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Navigating the AI Landscape: Employer Update
AI landscape has shifted from a “wild west” of innovation to a high-stakes arena of regulation and litigation. Organizations are currently navigating a complex patchwork of state-level mandates — particularly regarding employment — while simultaneously adjusting to the Trump Administration’s December 2025 Executive Order on AI. This federal push aims to establish a national framework…
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New reporting classifications for Service and Other Activities B&O
Effective Jan. 1, 2026, the following Service and Other Activities B&O tax classifications have been renamed as follows: Please note: If you previously reported under the combined Service & Other Activities and/or Gambling Contests of Chance (less than $50,000 a year) B&O tax classification and you have gross income from gambling activities less than $50,000 per year, you must begin…
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LLC vs. PLLC in Washington: A Guide for Professionals
If you are an architect, doctor, dentist, lawyer, or accountant looking to hang your shingle in Washington, you might hit a roadblock when you go to register your business. You select “Limited Liability Company” (LLC) on the form, only to find out you might actually be required to form a Professional Limited Liability Company, aka…
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Navigating Contractor Liens in Washington
For contractors, subcontractors, and suppliers in Washington, understanding construction lien laws is crucial for ensuring payment for your hard work and materials. These laws, primarily found in RCW Chapter 60.04, provide a powerful tool to secure your right to payment by placing a claim against the improved property. However, the system comes with strict requirements…
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New Sales Tax Obligations: Key Professions Impacted by Washington SB 5814
Effective October 1, 2025, Washington has implemented a major shift in its tax landscape through Senate Bill 5814. This legislation “modernizes” the tax code by reclassifying several traditionally exempt service sectors as “retail sales.” If you operate in any of the following fields, you are now required to register for a retail tax endorsement, collect…
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ABA Releases 2025 Deal Points Study
The American Bar Association’s (ABA) Business Law Section has released its 2025 Private Target Deal Points Study. Studying deals between $25 Million and $900 million, the study analyzes trends in business deals, including: For more information, check out the alert issued by K&L Gates. To learn more about buying or selling a business, go to https://martinkreshon.com…
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Why You Should Transfer Property to a LLC Before Renting
So, you’ve got a fantastic property in the Evergreen State and you’re ready to jump into the rental game. That’s great! But before you hand over the keys and start cashing those rent checks, there’s one critical step you might be skipping: transferring that property into a limited liability company or LLC. While it may…
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Understanding Washington’s Real Estate Excise Tax Exemptions
Buying or selling real estate in Washington typically triggers the obligation to pay Real Estate Excise Tax (REET) on the sale price. This tax is imposed on the seller and can represent a significant cost in any property transfer. However, not every transfer is a taxable “sale.” Washington law, specifically RCW 82.45 and the corresponding…
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Confessions of Judgment
In Washington, a confession of judgment is a legal tool where a debtor admits to a debt and authorizes a creditor to obtain a court judgment against them without a lawsuit. This can happen before or after a lawsuit is filed. It’s essentially a pre-authorized judgment that can be filed with the court if the…