How to Start an LLC in Pennsylvania

#1: Pick an LLC Name

The first and foremost part of building an LLC in PA is to pick up the right company name. Try to select a name that corresponds to Pennsylvania standards and is conveniently accessed by prospective customers.

What Instructions Should Be Followed While Naming an LLC?

• Every business owner should include “Limited Liability Company” to his new company or the abbreviation of it, LLC.
• Avoid using words that can mystify your LLC name with the government agencies, such as State Organizations, Treasury, FBI, etc.
• Make sure to choose a unique name from other corporations, Pennsylvania LLCs, or limited liability parties.
• If you want to fit in a few confined words like an attorney, bank, university, etc., it might demand hiring a licensed lawyer or doctor for additional documentation.

The next step is to verify access to your chosen name in Pennsylvania. Make sure if the name is still available or utilized by another entity.

You can visit Pennsylvania’s official state website to check on Business Registry Search. Furthermore, one can also generate a name through an LLC Name Generator online.

#2: Find a Registered Agent

Another vital step is to find a reliable Registered Agent to form an LLC in PA.

There are some limitations when choosing a registered agent in Pennsylvania. The person should be a Pennsylvania inhabitant who would be able to perform your business tasks from within the state.

You may also nominate yourself for the official documentation, but we personally recommend going for ZenBusiness. Besides offering a free first year of their registered agent services, the company will form your Pennsylvania LLC only for $39 plus the state filing fees.

#3 File an Articles of Organization

During the formation of an LLC in PA, it’s crucial to submit your articles of organization linked with the Secretary of State. A general article should cover the following:

1. Name and web address of your LLC’s planner
2. The official name and address of Pennsylvania LLC
3. Details of your LLCs registered entity
4. Details of your company members
5. The official LLC emails
6. Entrepreneur’s signature

#4: Establish an LLC Operating Agreement

An LLC operating agreement is constitutional paperwork that sketches the rules and regulations for a new company and also outlines the entrepreneur’s operating procedures to form a new LLC in PA.

Although not necessary, creating an operating agreement will benefit a company for sure.

This legal agreement guarantees all entrepreneurs to remain on the same boat, which ultimately lessens further business clashes.

#5: Follow the Similar Tax and Other Administrative Requirements

A few extra taxes and other administrative requirements might implement in your new LLC that includes:

Employer Identification Number (EIN) – It is just like a Social Security Number, so if your company has more than one employee, you can get this EIN by paying extra. This nine-digit code will check into your tax issues and assist you in creating a new bank account, hiring new staff, etc. One can submit an online form at the IRS website to get an EIN for his company.

Official Licenses – Sometimes, your new LLC in Pennsylvania might demand official state licenses or other approvals, depending on the business type and its location. So, there are Economic Resource Units in Pennsylvania leading you to authorities to guarantee proper licensing, registration, or permissions within the state.

#6: Fulfill Your State Tax Commitments

After getting a Pennsylvania LLC, there are several responsibilities of a business entity that should be fulfilled. For instance, in a few cases, one has to check with the Pennsylvania Department of Revenue (PADOR) for selling products or assembling sales tax, etc.

For your convenience, PADOR has an online platform, so you can register yourself from there through Business Taxes Registration Application. For more information, you can review detailed LLC articles on our website.

#7: Responsibly Submit Annual Reports

Many websites have misleading information regarding the LLC annual fillings in Pennsylvania. You may find this typical statement “All LLCs in Pennsylvania need to file a Decennial Report every 10 years.” Well, this is not completely true.

Your LLC may or may not need to file a Decennial Report depending upon the amended filings made within that 10-year period. So there will be two scenarios:

• If your LLC hasn’t filed any amendment in the last decade, your LLC must file a Decennial Report within the 10th calendar year with $70 fee.
• If your LLC has filed some amendment in the last 10 years (including the LLC formation itself), your LLC doesn’t need to file Decennial Report within the 10th calendar year.

Moreover, domestic limited liability companies, professional limited liability companies, and foreign limited liability companies in Pennsylvania are treated differently in terms of annual filings. For more details on how to file this report or state-specific fee, read our article on LLC annual (or biennial) report.

Late Filings: In case you are unable to submit the required decennial report, it will cause your LLC to lose good standing status with the state. Moreover, your LLC’s name will become available for use by any other entity in Pennsylvania. Further failure to file a decennial report may result in the dissolution of your LLC.