How to form an LLC in Pennsylvania
Pennsylvania is an excellent place to form a new LLC
boasting the 6th largest economy in the country with a high business survival rate
and great access to venture capital.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own Limited Liability
Company in the state of Pennsylvania.
There are two ways to form an LLC in Pennsylvania:
You can form one yourself
or you can hire a service to do it for you.
Option 1: Do it Yourself
Let’s start by looking at the five basic requirements to
form an LLC in Pennsylvania on your own.
One: Name your LLC.
You’ll need to choose a company name that complies with Pennsylvania naming requirements,
and do a name search on the State of Pennsylvania website to make sure the name isn’t already taken.
You should go ahead and register the URL for your business website and email as well.
Two: Choose a Registered Office.
You are required to submit the address of your registered office for your Pennsylvania LLC.
A registered office is the official mailing address for all legal mail from the state
related to your business.
Your registered office must be a street address, not a P.O. Box,
within the state of Pennsylvania.
Your registered office can also be the address of a commercial registered office provider
more commonly known as a registered agent service.
Three: File the Certificate of Organization.
To register your Pennsylvania LLC, you will need to file the Certificate of Organization
with the State of Pennsylvania.
This can be done online, or by mail.
You should decide whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage the company.
This is good for small organizations, where everyone is involved in day-to-day operations.
The second option is manager-managed, where individuals are appointed to manage the LLC.
This is appropriate for larger organizations, where not everyone is involved
in the day-to-day affairs of the business.
Four: Create an Operating Agreement.
You should also create an operating agreement to establish ownership terms, member roles,
and operating procedures.
This legal document ensures that all business owners are on the same page
and reduces the risk of future conflict.
A comprehensive operating agreement will further establish your LLC as a separate legal entity,
however, it does not need to be filed with the state.
Five: Obtain an EIN.
Lastly, you’ll need to get an Employer Identification Number, or EIN, from the IRS.
Also known as a Federal Tax Identification Number, your EIN is like a social security
number for your LLC and is important for taxes and banking.
EIN’s are free of charge, and can be obtained from the IRS online or through the mail.
And with that, you will have formed a Pennsylvania LLC on your own.
Option 2: Hire a Professional Service
The second way to create a Pennsylvania LLC is to hire a professional service
to create your LLC for you.
Hiring a professional service to file your forms and act as your registered office - more
commonly known as registered agent - will cost you an additional 50 to 150 dollars.
However, there are several benefits to working with a pro:
A hired registered agent helps with getting your reports filed on time,
helps you stay organized by keeping your business mail separate,
and is available at all regular business hours
to accept official mail and legal papers on your LLC’s behalf.
A final and important additional benefit of using a service is privacy.
A professional service will provide a level of privacy by withholding your personal name and home address
from the LLC’s contact information.
There are many reasons you might not want your personal information easily accessible
and associated with your business.
Hiring a professional LLC formation service is an easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in Pennsylvania,
visit our site and take some time to research your options and establish a solid foundation
for your business activities.
Click on the links in the description below to research the top 5 professional formation services
or get more information on how to form a Pennsylvania LLC on your own.
We offer a host of free templates and tools to help accelerate your small business
from operating agreements to business plans- all free of charge.
Visit us at HowtostartanLLC.com