Form an limited liability company in Pennsylvania.
A limited liability company is a hybrid of a corporation and a partnership.An owner's assets can't be taken if an entity incurs debt or is sued.Debts are usually secured using the personal assets of one or more of the owners.Personal assets are often at stake when you create an limited liability company.If the loan isn't repaid, the owner's personal assets will be at stake, which is why a bank will not usually loan money to an entity.Each state has its own rules for limited liability companies, which are now available in nearly every state.
Step 1: Pick a name.
A positive and professional image of your business can be achieved with a distinctive name.Pennsylvania law requires a name for a limited liability company to include the words "Company," "Limited," or "limited Liability Company."
Step 2: You can check your availability.
If your chosen name has already been taken, look online.The Pennsylvania Department of State has a business name database.Select "Corporate name availability" in the drop-down menu when you type the name into the space labeled "Business Entity Name/ID".Make sure your business is distinguished from other local businesses by searching similar-sounding names.The state of Pennsylvania will reject applications for businesses that are too similar to existing businesses.Call the Bureau of Corporations for help.
Step 3: You should reserve your name.
You can reserve a name by filling out a Name Reservation form with the Pennsylvania Department of State.You have 120 days to register your business.You have to pay a filing fee with your form.You can either fill out the form online or mail it to the Pennsylvania Department of State Bureau of Corporations.Box 8722, Harrisburg, PA 17105-8722.If you are filling out the form by hand, use black or blue ink.The applications are held for six months.
Step 4: Determine a structure for management.
Decide if your company will be managed by a member or a manager.A manager-managed company has passive investors who don't participate in the running of the business, while a member managed company is run by all of its members.You will need to specify what your management structure is when you file your certificate of organization.
Step 5: Pick an office that's registered.
If a Pennsylvania limited liability company is sued, it must appoint an individual or business entity to accept legal papers.Pennsylvania residents or business entities authorized to do business in Pennsylvania are required to register your office.The person or entity must have a street address in Pennsylvania.The Pennsylvania Department of State has a list of commercial office providers.Regular business hours are required for your office to be registered.Mail forwarding and information shielding can be provided by a registered office.If you are subpoenaed, their address will be listed.
Step 6: Determine a street address.
Send your mail to a Pennsylvania street address.The post office box is not valid.You can use the house of one of your members if you haven't rented office space.Any Pennsylvania street or rural route box address is valid.
Step 7: An operating agreement should be made.
If you are working with more than one person, operating agreements are very useful.Each member's share of profits and losses, their rights and responsibilities, and what will happen to the business if any member leaves are all contained in your operating agreement.If you are the only member of your limited liability company, having an operating agreement will help you maintain your status if you start to look like a sole proprietor.You can search online for operating agreement templates.There are a lot of options to compare.
Step 8: You can get an EIN from the IRS.
If you plan to hire any employees, or if you choose to be taxed as a corporation instead of a sole proprietor, you will need to request an EIN.You can get your EIN through the IRS website.There isn't a filing fee.
Step 9: A certificate of organization is needed.
A certificate of organization domestic limited liability company can be filed with the Department of State.You can fill out the Pennsylvania Articles of Organization online or mail it to the Department of State.Box 8722 Harrisburg, PA 17105-8722.If you fill out your form by hand, use blue or black ink.Send your New Entity Docketing Statement with your certificate.To complete this step, you will need to know your EIN.The filing fee is $125 with your certificate and statement.
Step 10: You have to register with the Department of Revenue.
There is a form on the Department of Revenue website that most Pennsylvania companies must fill out.You need to register with the Pennsylvania Department of Revenue if you want to have employees or sell goods.You can register online or by mail.
Step 11: Obtain licenses that are relevant to your business.
Depending on the type of business you are opening, you may need additional licenses.You will need to obtain additional permits if you deal in food, agriculture or pesticides.You can find federal results on the website of the Small Business Administration.
Step 12: You should file annual reports if you are a professional limited liability company.
Most limited liability companies don't have to file annual reports in Pennsylvania.An annual registration is required by the Department of State.There are forms on the Department of State website.You can get a form by calling or visiting the reception room, by visiting a stationary or form supplier store in Pennsylvania, or by ordering a CD for $52 dollars.The filing fee is $200 and the due date is April 15.