How to Start an LLC in PA Using This Guide

You may be wondering how to start an LLC in Pennsylvania. While there are several details involved including filing the articles of organization, determining the date that the new company will be registered and paying the appropriate taxes, it is not very complex. The most important details are the location of your business and your name.

• To get started, you need to select a name for the newly-formed LLC in PA. The requirements for incorporating in PA are very similar to those for incorporating anywhere else. PA state law requires that any business that wishes to incorporate in the state must first register its corporation and all of its memberships, pay the appropriate annual fees, file all applicable taxes and obtain liability protection. Basically, all of these activities must be completed and filed before the effective date of the law. As you can see, it is a lot of work for just establishing a business.
• Because of the nature of owning a business, it is often recommended that entrepreneurs incorporate their business in the District of Columbia rather than in their own state. Although this might sound like an easy option, it is not. Because of differences in taxation and regulation between the District of Columbia and neighboring states, incorporating in the District of Columbia does not offer the same benefits as incorporating in one’s own state. For example, in order to enjoy the benefits of exemption from income tax and liability company taxes, an entrepreneur would have to incorporate his business in his state.
• Another consideration for incorporating in the District of Columbia is that, just like in the case of incorporating in the state, there are several reporting requirements. For instance, an individual will need to determine whether his business is operated exclusively for business or for profit, whether he is personally liable for the company’s debts, and if he meets other state filing requirements. All of these things are considered in determining whether or not an individual will be treated as a sole proprietor for federal income tax purposes. Additionally, there are several rules and regulations that must be followed in order to incorporate in the District of Columbia.
• The first step in how to start an LLC in Pennsylvania is to choose a business name. The name that you choose is often an essential part of the process, because it will help potential customers remember you and what you do. It is important that your business name accurately reflects the type of entity you are forming – an LLC, for example.

The next step is to select an Agent or Secretary. An Agent is responsible for completing the paperwork necessary to register the LLC, and acting on behalf of the LLC when any legal issues arise. A Secretary is responsible for keeping the books, filing any reports, and performing basic administrative duties. In order to be sure that your Limited Liability Company has a direct agent or representative, you will need to attach a copy of a signed contract to the bottom of a business sheet that features a signature and the address of the registered agent. If you cannot locate a direct agent or secretary to serve as your Limited Liability Company’s agent, you will need to hire an accountant to act in his stead.