Form an LLC in Pennsylvania

To start an LLC in Pennsylvania, you must follow a specific process to ensure accuracy and compliance. A limited liability company (LLC) is a popular business structure for Pennsylvania entrepreneurs due to its flexibility and protection of personal assets.

This guide provides a step-by-step process for forming an LLC in Pennsylvania, including tips on how to avoid common mistakes.

It's important to choose a unique name for your LLC to avoid rejection of your application. Use Pennsylvania's business entity search engine to determine the availability of your desired name. If the name is available but you're not ready to register, you can reserve it for up to 120 days for a fee of $70.

Follow Naming Rules

When registering your LLC in Pennsylvania, keep in mind the naming rules. The name must contain "company," "limited," "limited liability company," or an abbreviation of any of these terms. Additionally, the name may not include words that relate to a business corporation such as "corporation" or "incorporated."

In Pennsylvania, a registered office, also known as a registered agent, is required for service of process. The registered agent is a person or entity authorized to receive legal documents and notices on behalf of the LLC.

The registered agent can be a person, including yourself or an LLC employee, or an entity that offers registered agent services. The registered agent must meet the following criteria:

• The entity must provide registered agent services
• Have an address in Pennsylvania
• Be on-site and available to accept documents during regular business hours.

A Pennsylvania LLC is formed by filing a Certificate of Organization Domestic Limited Liability Company (Form DSCB:15-8821) with the Department of State.

The certificate must include:

• The LLC's name
• The name and address of the registered agent
• The name of each organizer of the LLC
• The effective date of the certificate (either upon filing or a later date)
• Whether the LLC will provide professional services (applicable to certain restricted professional companies)
• Whether the LLC is a public benefit company
• Signatures of all the LLC's organizers.

The certificate must be accompanied by a completed New Entity Docketing Statement (Form DSCB:15-134A), which must include:

• The LLC's name
• The name and address of the person responsible for initial tax reports
• A description of the LLC's business activity
• Its federal employer identification number (EIN)
• Its fiscal year end.

Both the certificate and docketing statement can be filed online or by mail with a filing fee of $125.

Although not required, creating an operating agreement is a valuable way to establish the structure of your LLC.

The agreement:

• Establishes the LLC's financial and operational framework
• Defines internal operations and assigns responsibilities
• Explains how business owners' needs will be met, including profit distribution and procedures for new and departing members.

To pay taxes for your LLC, you will require an Employer Identification Number (EIN), also referred to as a Federal Employer Identification Number (FEIN), which identifies your LLC with the Internal Revenue Service (IRS).

An EIN is not only necessary for paying business taxes, but also for conducting other business activities such as opening a business bank account.

Register for Pennsylvania Business Taxes

Based on your business activities, your LLC may need to report taxes like sales and use tax or employer withholding.

To register your LLC for state tax and employer accounts, fill out the Pennsylvania Enterprise Registration Form (PA-100).

This form allows Pennsylvania LLCs to set up multiple accounts, including:

• Employer Withholding Tax (1099)
• Promoter License
• Public Transportation Assistance Tax License
• Sales, Use, Hotel Occupancy Tax License
• Tobacco Product's License
• Transient Vendor Certificate
• Unemployment Compensation
• Use, Tax, Wholesaler Certificate
• Vehicle Rental Tax

Electronic Tax Information and Data Exchange Service

Employers can file and pay state taxes online using Pennsylvania's Electronic Tax Information and Data Exchange Service (eTIDES).