At these unprecedented times, wrought by the pandemic, uncertainty looms in the air, yet one thing that we can luxuriate in is the abundance of time. The sole thing which was eluded in our bustling lives.
With this opulence of time on your hands, you can embark on a remote business; just don’t let the legal jargons intimidate you. Let your exclusive remote business idea bloom within your home in Pennsylvania.
Analyse your Business Idea
This step is not exclusive to Pennsylvania; instead, it is the primary step to be followed when you have decided on establishing a remote business. The paramount rule is this – indulge in an exhaustive homework.
Though you might not be aware of the intricacies, it is pertinent to have a business plan intact. This should focus on your product or service, how it is outstanding in the market, and your local community support.
Choose a Business Structure
There are manifold business structures available in Pennsylvania, and you need to make a prudent choice. Your choice must outline the taxation, the design of your ownership, and your growth.
Not being a legal entity, it lacks the limited liability protection that is required for entrepreneurs. A business with one owner is termed as a sole proprietorship in Pennsylvania. In such a scenario, the name of the company is mandated to be the owner’s legal name. If you want to engage in business under another name, it is required to register a fictitious name and publish it.
Limited Liability Company
The popular choice in Pennsylvania because of the convenience associated with it. Limited liability protection is conferred on single and multiple owners. LLCs are not required to have that annoying advertising in Pennsylvania. They also have the opportunity to be elected taxed as an LLC or a corporation.
The added records-keeping and maintenance requirements offer the corporation a more formal structure than an LLC. Pennsylvania safeguards liability protection and double taxation of company income by electing Subchapter-S. A corporation is a panacea for companies that require raising capital from investors.
The Selection of Business Name
It is crucial that you select an exclusive business name distinct from existing businesses, a pertinent rule to be followed in Pennsylvania. Therefore, it is vital to check the public record before you are fixated on your unique business name because if it is too similar to another existing company, the state will simply reject your documents.
Register Your Business
It is time to file with the Pennsylvania Department of State once you have unfurled the name and registered office. With a swift online filing system, with all the necessary information establishing a company is a cakewalk. Once the registration is completed, apply for an EIN, which is your company’s identification number.
Apply for Tax Accounts
Particular activities are taxed in Pennsylvania. For instance, the sale of products. But before you venture into it, ensure that you conduct comprehensive research. Form PA-100, the form filed to open state-level tax accounts, is the online portal offered by Pennsylvania.