A legal business structure that accords protection to your personal assets is a limited liability company (LLC) in Pennsylvania. It can be employed for both operating a business or holding assets.
With specific exclusive requirements, LLCs in Pennsylvania are economical and convenient. An LLC is a blend of partnership and corporation; it can be defined as a limited partnership that lacks a general partner.
At the same time, it provides a legal structure for a business. The death of formalities and resilience in sole proprietorship merges with the limited liability of a corporation, and this forms the ethos of an LLC.
Select a Name
According to the law in Pennsylvania, an LLC name necessitates the use of words like ‘Company,’ ‘Limited,’ or ‘Limited Liability Company.’ Ensure that your name is exclusive and distinct from other business entities registered with the Department of State in Pennsylvania.
And to check the availability of names, log into the DOS business name database. You can procure a name reservation for a span120 days and the fee involved is $70.
Assign a Registered Agent
It is mandatory to have an agent for service of process, and in Pennsylvania, it is a registered office when juxtaposed to other states, which involves a registered agent. In case of a situation that entails suing your business, these are the individuals or business entity that receives legal papers on behalf of the LLC.
Produce an Operating Agreement
This is not a mandatory requirement in Pennsylvania, but it is rather advisable to have one. The chief document that reflects the rights, duties, liabilities, and obligations of the members within themselves and also to the LLC.
It is not registered with the Secretary of State being an internal document. An operating agreement does not entail being filed with the certificate of Organisation.
Tax and Regulatory Requirements
In case of your LLC having more than a single member, it is a necessity to have an IRS Employer Identification Number (EIN), despite zilch employees. If it is a one-member LLC, only in case of having employees or you establish it as a corporation and not as a sole proprietorship, you are required to obtain an EIN. You can receive an EIN through the IRS website by finishing an online EIN application.
The location and type of business will demand other local and state business licenses. Local licenses can be checked with the LLCs office, while state licenses will involve Pennsylvania Business One Stop Shop.
Department of Revenue
In certain instances, for instance, when you have employees or when selling goods and collecting sales tax, it is essential to register with the Pennsylvania Department of Revenue. Here the process is initiated by registering online via the Revenue e-Services Centre or using Form PA-100.