Legal Bueno

    How to Start Your LLC in Pennsylvania

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $125
    • Turnaround time: 5-7 days

    How do I start an LLC in Pennsylvania?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Pennsylvania, visit https://file.dos.pa.gov/search/business.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Pennsylvania?

    Here's the rundown for Pennsylvania:

    • The filing fee is: $125
    • There are ongoing fees of $7 (every year)
    • It usually takes 5-7 days if you're filing online or 5-7 days (plus mail time) if by mail.

    Why Pennsylvania is a great state for your LLC

    Starting a company in Pennsylvania presents several key advantages:

    • Business Incentives and Tax Credits: The state provides a variety of incentives to support business growth. For example, the Educational Improvement Tax Credit (EITC) allows businesses to contribute to educational organizations, promoting community development while benefiting from tax reductions.
    • Favorable Business Structure: The Limited Liability Company (LLC) structure is highly advantageous for startups and small to medium-sized businesses. It combines the liability protection of larger corporations with simpler regulatory requirements.
    • Cost-Effective Filing: Establishing an LLC in Pennsylvania is economical, with a filing fee of just $125. This low-cost entry point makes it accessible for entrepreneurs.
    • No Franchise Tax: Unlike many other states, Pennsylvania does not impose a franchise tax on LLCs, allowing businesses to retain more earnings to reinvest.
    • Simplified Compliance: LLCs in Pennsylvania benefit from lenient decennial report filing rules, facilitating easier management and compliance, enabling business owners to focus on growth.
    • Asset Protection: Incorporating as an LLC protects personal assets from business liabilities and debts, providing peace of mind to entrepreneurs.

    In summary, Pennsylvania offers a supportive environment for new businesses with its financial incentives, user-friendly LLC structure, and protective measures, making it an attractive choice for aspiring entrepreneurs.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Pennsylvania:

    Articles of Organization

    A certificate of organization must include:1. The name of the LLC; and

    1. The address, including street and number, if any, of the company's registered office.

    A certificate of organization may contain other matters that are not inconsistent with the requirements for operating agreements set forth in 15 Pa. Cons. Stat. § 8815(c) and (d).

    15 Pa. Cons. Stat. § 8821

    Filing fee: $125

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Pennsylvania laws require for filing:

    A document will be accepted for filing by the Department of State if it satisfies the following requirements:1. The document purports on its face to relate to matters authorized or required to be filed and contains sufficient information to permit the department to prepare a docket record entry:

    a. Identifying the name of the association or other person to which the document relates;

    b. Identifying the association or associations, if any, the existence of which is to be created, extended, limited or terminated by reason of the filing and the duration of existence of any such association; and

    c. Specifying the date upon which the creation or termination of existence, if any, of the association or associations effected by the filing will take effect;

    1. The document complies with any regulations promulgated by the department and is accompanied by any applicable statement prescribed under 15 Pa. Cons. Stat. § 134;
    2. In the case of a document that creates a new association or effects or reflects a change in name:

    a. The document is accompanied by evidence that the proposed name has been reserved by or on behalf of the applicant; or

    b. The proposed name is available for use under the applicable standard;

    1. In the case of any other document that sets forth a name or mark, the proposed name or mark is available for use under the applicable standard established by law.
    2. All fees, taxes and certificates or statements relating thereto required have been tendered therewith;
    3. All certificates and other instruments required by statute evidencing the consent or approval of any Pennsylvania department, board, commission or other agency as a prerequisite to the filing of the document in the Department of State have been incorporated into, attached to or otherwise tendered with the document.
    4. It is in record form and executed. The department will not examine a document to determine whether the document has been signed by an authorized person or by sufficient authorized persons or otherwise is duly signed.

    15 Pa. Cons. Stat. § 135

    If a document conforms to the filing requirements, the Department of State must file the document, certify that the document has been filed by endorsing upon the document the fact and date of filing, make and retain a copy, and return the document or a copy thereof so endorsed to the person who delivered the document to the department.

    15 Pa. Cons. Stat. § 136

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Pennsylvania:

    Contents of operating agreement

    15 Pa. Cons. Stat. § 8815

    Application of operating agreement

    15 Pa. Cons. Stat. § 8816

    Amendment and effect of operating agreement

    15 Pa. Cons. Stat. § 8817