How to Form a Limited Liability Company (LLC) in Pennsylvania
So. You want to know how to form an LLC in Pennsylvania? If so, you have come to the right place. The Leges Group is here to help.
Forming an LLC (Limited Liability Company) in PennsylvaniaForming an LLC (Limited Liability Company) in Pennsylvania is a relatively straightforward process. That said, you do not need an attorney to do this for you, however, it is recommended that unless you*re confident with the registration process, you should take the time to meet with an attorney to ensure you are choosing the best entity type, location, licensing, and name for your business. The last thing any business owner wants to deal with is learning that they made a mistake that could have otherwise been easily avoided with proper assistance and care.
Step 1. Choosing a Name for your LLCUnder Pennsylvania law, an LLC must contain the words "Company," "Limited," or "Limited Liability Company," or an abbreviation of one of these three choices in order to be considered a legal entity under Title 15 of the Pennsylvania General Assembly - Chapter 88 Limited Liability Company law.
One of the most important factors requiring consideration when choosing the name of your LLC other then its abbreviation, is whether it is distinguishable from the names of other business entities already on file with the Pennsylvania Department of State. The State of Pennsylvania will only permit one active entity to use any given name, at any given point in time, within the State.
When deciding on your LLC*s name, a thorough check of availability should be conducted to ensure the name you want is available. This can be done by visiting the Pennsylvania Department of State*s website and conducting a search through its business name database.
Step 2. Certificate of OrganizationIn the State of Pennsylvania, an LLC is formed by filing a Certificate of Organization with the State*s Department of State.
The certificate must include: the LLC*s name and address; the name and address of the LLC*s registered agent; the name and address of each organizer of the LLC; whether the LLC will be run by a manager; and whether the LLC will provide professional services (applicable to certain restricted professional companies).
n certain situations, a New Entity Docketing Statement may have to accompany your LLC*s filing. This form must include the LLC*s name, the name and address of person responsible for initial tax reports; its purpose; its effective date, if any; its Employer Identification Number (EIN), if any; and its fiscal year end date. It should also be noted that any application filed with the State must be accompanied by its filing fee otherwise your application will be rejected.
Step 3. Appointing a Registered AgentIn Pennsylvania, every LLC must have a registered office and agent for service of process within the state. It is simply an individual, or business entity, that agrees to accept legal papers on the LLC*s behalf if it is sued. If you are the forming member of the LLC, you can function as its agent and use your home address as your LLC's registered office if your business does not have an address of its own. If your business has an attorney, they too can function as your agent if desired.
Step 4. Operating AgreementPennsylvania does not require LLCs to have an operating agreement, however, it is highly advisable to have one, especially if your LLC has multiple members. If you need help creating an operating agreement, The Leges Group can help you do that.
Step 5. Other ConsiderationsAs mentioned in the first paragraph, unless you are confident with the LLC registration process, you should contact an attorney for counsel. Step 5 of this article is a prime example why, and how, an experienced attorney can help you ensure you do not miss a beat while moving your business forward.
If your LLC has more then one member or employee, it must obtain an IRS Employer Identification Number (EIN). Depending on the type of business your LLC will conduct and where it is located, it may need to obtain other local and state business licenses, and in some cases, for example, if you are selling goods and collecting sales tax, you*ll need to register with the Pennsylvania Department of Revenue (DOR). It is considerations like these that The Leges Group can help you better understand and action on for your business.
Step 6. Contact The Leges Group TodayIf you are interested in starting and LLC, have questions about the registration process, or are in need of assistance handling all the unforeseen considerations of starting a business, please give The Leges Group a call today at (610) 228-2828 for a Free Attorney Consultation. We can help you and your business move forward.
The Leges Group LLC is a Business Law Firm located in Reading Pennsylvania servicing central and southeastern Pennsylvania owned and operated by Attorney Nikolas D. Capitano, Esquire. The Leges Group website and its articles are for informational purposes only. Using its website or communicating with The Leges Group or any of its Attorneys through its website does not form an attorney/client relationship, and if an attorney/client relationship is desired you should contact The Leges Group at (610) 228-2828 or by email at [email protected] for more information.