Ready to start a new business in Pennsylvania? Forming as a limited liability company (LLC) grants you tax flexibility, personal asset protection, and brand credibility. Plus, registering an LLC in Pennsylvania only takes six straightforward steps which we’ve outlined in this guide.
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Pennsylvania LLC Quick Facts
- To register an LLC in Pennsylvania, you need to file a Certificate of Organization.
- With your formation documents, you must include a Docketing Statement.
- The filing fee for forming an LLC in Pennsylvania is $125.
- Pennsylvania LLCs must file an Annual Report.
6 Steps to Registering an LLC in Pennsylvania
Registering an LLC in Pennsylvania requires only six steps.
Follow these six steps to register your LLC in Pennsylvania:
- Name Your Pennsylvania LLC
- Appoint a Registered Agent
- File a Certificate of Organization
- Create an Operating Agreement
- Obtain an EIN and Handle Taxes
- File a Beneficial Ownership Information Report
Step 1: Name Your Pennsylvania LLC
To start, you need to decide on a name for your Pennsylvania LLC.
Pennsylvania LLC names must follow a few basic rules:
- Must include the words “Limited Liability Company,” “LLC,” or “Limited Company”
- Must be unique and distinguishable from any other business entity in the state
- Cannot imply government affiliation or falsify your business’s purpose are not allowed
For a comprehensive list of naming requirements for Pennsylvania LLCs, refer to the Pennsylvania General Assembly guidelines.
To verify the availability of your chosen business name, you can conduct a business name search on the Pennsylvania Department of State’s website.
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Step 2: Appoint a Registered Agent
To register an LLC in Pennsylvania, you are required to appoint a registered agent.
A registered agent plays a crucial role in receiving important information and documents on behalf of your company. In Pennsylvania, the registered agent must:
- Be a business or individual with a physical address within the state
- Not the LLC itself but can be an LLC owner or employee
- Be present at the designated location during regular business hours
Who is Eligible to be a Registered Agent in Pennsylvania?
To register an LLC in Pennsylvania, one of the important components is having a registered agent. The registered agent can be the LLC owner, an employee of the company, a friend, a family member, or a professional registered agent service provider.
Step 3: File a Certificate of Organization
To register your LLC officially, you need to file a Certificate of Organization with the Secretary of State. You can complete this filing online or by submitting this form by mail. You will also need to include a Docketing Statement along with your documents.
The filing fee is $125.
We recommend that you prepare the following information:
- Your LLC name, mailing address, and registered office address
- The name and address of the registered agent
- The names and addresses of all LLC organizers
- Your LLC’s purpose
Quick Note: If you already have an LLC in another state, you may need to register as a Pennsylvania foreign LLC. You can do so online or by submitting a Foreign Registration Statement online along with a $250 filing fee.
Step 4: Create an Operating Agreement
Creating an operating agreement can be a beneficial step for LLCs, however, it is not required in Pennsylvania.
An operating agreement outlines the internal procedures and ownership details of the company, ensuring that all members are in alignment and helping to prevent future conflicts. While this is an internal document that does not need to be filed with the state, it is important for your LLC to keep an updated operating agreement on file.
Step 5: Obtain an EIN and Handle Taxes
Next, you need to secure an Employer Identification Number (EIN) for your business. An EIN is a unique number assigned by the IRS for tax reporting purposes and is necessary for tasks such as hiring employees and opening a business bank account.
You can easily obtain your EIN for free by visiting the IRS website.
It is important to also familiarize yourself with any additional tax requirements specific to Pennsylvania. You can do so by visiting the Pennsylvania Department of Revenue website and reviewing the information related to business taxes in the state.
Step 6: File a Beneficial Ownership Information Report
LLCs are required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).
New LLCs must file this report within 90 days of formation. Existing LLCs must complete the filing between January 1st, 2024, and January 1st, 2025.
Failing to do so will result in a $500 per day fine.
You can file online for free on the FinCEN website.
Next Steps
- Open a business bank account to separate and protect your personal assets. Lili is a great choice for fast, reliable, and comprehensive business banking solutions.
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- Apply for licenses and permits that may be required federally or by the state of Pennsylvania. Visit the Pennsylvania Department of State website for more information on specific licenses and permits needed for your business.
- File an Annual Report with the Department of State every year along with a $7 filing fee to maintain your LLC’s good standing. More information is available on the Department of State website.
- Secure appropriate insurance coverage for your business, including general liability, workers’ compensation, and any other relevant policies. Next Insurance makes securing this coverage quick and affordable.
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Additional Tips for Success
- Create a network of other business owners and mentors to help support you and your business throughout your entrepreneurial journey.
- Familiarize yourself with ongoing compliance requirements such as annual reports and fees to keep your LLC in good standing.
- Seek professional advice from attorneys, accountants, or business advisors to ensure that your LLC registration process is smooth and successful.
Conclusion
Forming an LLC in Pennsylvania requires careful consideration and adherence to specific steps in order to ensure a successful registration process. From filing formation documents to registering for tax requirements in the state, every step is important to ensure your LLC is formed and maintained correctly.