How to Start an LLC in Pennsylvania

Here are the 7 steps to start a limited liability company (LLC) in Pennsylvania

For more information on how to form an LLC in any state, see the article How to Form an LLC.

Find out how to form a Pennsylvania LLC for yourself

Learn about Pennsylvania LLC formation, including information on Registered Agents, naming rules, business licenses, and more.

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how to start an llc in pennsylvania

Creating an LLC in Pennsylvania

A limited liability company (LLC) offers many benefits to small businesses, including liability protection and tax advantages.

An Limited Liability Company LLC must be formed in Pennsylvania by filing a Certificate of Organization with the Pennsylvania Secretary of State and paying the $125 filing fee.

However, you’ll first need to choose a name and registered agent for your Pennsylvania LLC. Approval of mail filings for Pennsylvania LLCs takes 5-6 weeks. This includes the 4 week processing time as well as the time it takes for your documents to arrive in the mail. Approval of online filings for Pennsylvania LLCs takes 4 weeks in total.

An LLC can be easily formed in Pennsylvania. Simply follow these seven steps, and you’re done. Find out more about LLCs and their benefits in our What is an LLC guide.

Step 1. Choose a Name for Your LLC Pennsylvania

Creating an LLC in Pennsylvania requires you to choose a business name before you can file a Certificate of Organization. Be sure that your business name complies with the Pennsylvania naming requirements and can be searched by potential customers.

  • Pennsylvania law requires an LLC name to contain the words “Limited Liability Company” or “Limited Company,” or the abbreviations “Ltd.,” “LLC,” or “LC.” “Limited” may be abbreviated as “Ltd.” or “LTD,” and “Company” as “Co.”
  • It is not acceptable for your Pennsylvania LLC to have words associated with a government agency (FBI, Treasury, State Department, etc.).
  • You should avoid using words or abbreviations that may make your LLC Pennsylvania  appear to be a different type of entity, such as “LP” or “corporation”.
  • There may be additional documentation and licensure paperwork required for certain restricted words (bank, lawyer, attorney, credit union, etc.).
  • Check the state’s business name database to ensure the name you want is not already taken(including businesses no longer in operation)

See a complete list of Pennsylvania’ naming rules here.

Check URL availability: You are likely to need a web page even if you don’t think you do. Buying your domain name now will at least give you the option of having one in the future. It’s a good idea to check the URL availability before finalizing your Pennsylvania LLC name.

Recommended: Consider setting up a business phone service after securing a domain name for your LLC to establish credibility and improve customer satisfaction.
 
Wise business plans offer a variety of features for businesses, including Toll-free numbers, Coverage in US and Canada, team messaging and more. Try our business phone services today.
Can an LLC have a DBA in Pennsylvania?

A DBA name is used for a variety of reasons by sole proprietorships, partnerships, LLCs, and corporations. Everyone files the same application for the registration of a fictitious name with the Pennsylvania Department of State, regardless which type of business you operate.

Is it possible to reserve a business name in Pennsylvania?

By filing a Name Reservation (Form DSCB:15-208) with the Pennsylvania Department of State, you can reserve a name for 120 days. The cost of filing is $70. The form can be submitted online or by mail.

What is an LLC?

An LLC stands for a Limited Liability Company. A simple business structure that is more flexible and offers many of the same benefits as a traditional corporation. For more information, see “What is a Limited Liability Company?”.

Does my business need a DBA or trade name?

LLCs do not usually require a DBA. Your LLC’s name can serve as your company’s brand name, and you can accept checks and other payment methods under that name. You may however choose to register a DBA if you wish to conduct business under a different name.

Step 2: Appoint Your Registered Agent in Pennsylvania

Your next step in forming an LLC in Pennsylvania is to appoint a Registered Agent, an individual or company authorized to receive legal and state mail on your behalf.

All Pennsylvania LLCs must have a registered agent. Please include your registered agent’s name and address on your Certificate of Formation.

Registered Agent Requirements in Pennsylvania

To comply with Pennsylvania law, your LLC’s registered agent must be a resident or business entity that maintains a physical address in Pennsylvania. The “registered address” cannot be a P.O. box. It must be a real physical address that can be visited in person.

Further, in Pennsylvania, your registered agent need to be agree to perform this role and sign a form confirming their consent. Consent statements should include the following:

  • Written confirmation that the person designated consents to serve as the LLC’s registered agent
  • The name of your Pennsylvania LLC and the person designated as your registered agent
  • Registered agent’s signature
  • Date of execution

Although you do not have to submit this form to the Secretary of State, your business must record it. Learn more about Pennsylvania Registered Agents by reading our full guide.

Who can be a Registered Agent?

Yes, any owner or employee of a company can serve as its registered agent in Pennsylvania if they are over the age of 18 and have a Pennsylvania street address. You could also elect a member of your LLC, or even a trusted friend, as long as they meet these requirements as well.

Is it possible to change my registered agent after I form an LLC?

Yes, You can change your registered agent in Pennsylvania by submitting a Change of Registered Office Form to the Department of State

Are You looking for a Registered Agent?

Wise Business Plans offers a free year of registered agent service when forming an LLC in Pennsylvania.

Step 3.Prepare and File Certificate of Organization

To create a Pennsylvania LLC, you will need to file Certificate of Organization (Form DSCB:15-8821) with the Department of States. You may apply online, by mail, or in person.

There is a $125 filing fee. You must send the original and a copy of your certificate if you file by mail.

You will receive a duplicate form back from the state once it receives your documents.
It may take up to 5-6 weeks to process a mailed submission.

If you choose one of our business formation services, we can handle this step for you.

The following information is typically required to create a Certificate of Organization:

  • Your LLC name and principal place of business.
  • Name, address, and signature of the LLC’s registered agent
  • Decide whether your Pennsylvania LLC will be member-managed or manager-managed. Indicate the names and addresses of each member and manager.
  • The reason for forming the LLC in Pennsylvania.
  • Name and address of the LLC’s organizer.
  • The effective date of the certificate,
  • The person forming the LLC must sign the Certificate.

Foreign LLCs: You must file a Pennsylvania Application for Registration with the Pennsylvania Department of State, Corporation Bureau, to register a foreign LLC in Pennsylvania. This document can be mailed, delivered in person, or submitted online.

The cost of submitting an Application for Registration is $250.

Two Ways to File the Certificate of Organization

The 1st option is:

Online filing through the Pennsylvania Department of State

The 2nd option is:

Filing the Certificate of Organization by Mail

There is a state filing fee of $125 payable to the Commonwealth of Pennsylvania (Nonrefundable)

Address to Mail:

Pennsylvania Department of State
Bureau of Corporations and Charitable Organizations
P.O. Box 8722
Harrisburg, PA 17105

How does a member-managed LLC differ from a manager-managed LLC?

In a member-managed LLC, the members (owners) take on the business’s daily responsibilities. Manager-managed LLCs are managed by managers who are elected by the members. Those who manage your LLC will have the authority to do a wide range of tasks-from hiring staff to opening bank accounts.

How do Pennsylvania LLCs differ from foreign LLCs?

A domestic LLC is a company that is registered as an LLC in Pennsylvania. A foreign LLC is a type of entity that has a physical presence in another state.

How long does it take to form an LLC in Pennsylvania?

Approval of mail filings for Pennsylvania LLCs takes 5-6 weeks. This includes the 4 week processing time as well as the time it takes for your documents to arrive in the mail. Approval of online filings for Pennsylvania LLCs takes 4 weeks in total.

Step 4. Get a Certificate From the State

Upon filing your Certificate of Organization, the secretary of state will review it. As soon as the Certificate of Organization is approved, the LLC becomes a legal entity.

By obtaining this certificate, LLCs will be able to obtain an Employer Identification Number (EIN), licenses, and business accounts.

Step 5. Write an Pennsylvania LLC Operating Agreement

An operating agreement is a legally-binding document that sets out how your LLC will operate, from the voting process to mergers.

Operating agreements are not required in Pennsylvania, but they are an essential part of your business.

Written operating agreements are helpful for different reasons, including resolving disputes over financial agreements and other potential litigation.

The LLC declaration can prove that your LLC is a separate entity, which can help preserve your limited liability.

An operating agreement ensures that all business owners are on the same page and reduces the possibility of future conflict.

How should an operating agreement be drafted?

The operating agreement should detail the LLC’s overall business purpose and other important matters, such as how the company will be taxed and how new members will be accepted. Legal agreements can clarify several important concerns, such as:

  • Who makes decisions for the company, especially those who decide if partners disagree.
  • Who is responsible for different aspects of the business as well as for strategic decisions.
  • If a partner leaves the company, what will happen to their ownership interests in the corporation.
  • The members and their contributions
  • How profits and losses will be divided
  • Procedures for admitting new members and removing outgoing members

In Pennsylvania, you can include just about anything in your operating agreement, as long as it doesn’t violate the state law or the Certificate of Organization.

Should a single-member LLC have an operating agreement?

An operating agreement is not required in Pennsylvania for an SMLLC. Even if there is only one member in an SMLLC, an operating agreement is highly recommended. The state does not require the filing of an SMLLC operating agreement.

Is my operating agreement required to be filed with the state of Pennsylvania?

Operating agreements are not required in Pennsylvania for LLCs, but they are highly recommended.

Step 6. Get an EIN for Your Pennsylvania LLC

Basically, an employer identification number (EIN) is a social security number for your LLC in Pennsylvania.

To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer Identification Number (EIN). You can apply for your EIN either by mail or online.

An EIN is used for the following purposes:

  • Manage state and federal taxes
  • Create a business bank account
  • Hire employees

Get an EIN Number in Pennsylvania

Getting an EIN number is easy and free, There are two ways to get an EIN number in Pennsylvania.

The 1st option is:

Apply online for an EIN from the IRS

The 2nd option is:

Get an EIN by Mail or Fax

Address to Mail

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

 Is a Pennsylvania LLC required to have an EIN?

If your LLC has more than one member, employees, or is filing as a corporation, you’ll need an employer identification number (EIN) when filing taxes.

 What is the best tax structure for my LLC?

A tax classification will be discussed with you when you obtain an EIN. In most cases, LLCs choose the default status.
Some LLCs can reduce their federal tax obligation by electing S corporation status. Consult with a local accountant to find out which option is best for you.

What if I already have an EIN for my sole-proprietorship business?

When converting a sole proprietorship to an LLC, the IRS requires that a new EIN be obtained.

Where can I get an EIN?

You may obtain an EIN for free from the IRS. Getting an EIN is a simple procedure that may be completed online or by mail.

Step 7. File Annual Registration (Only restricted professional LLCs)

The Department of State requires only foreign LLCs and Pennsylvania LLCs engaged in certain restricted professional services to file a Certificate of Annual Registration (Form DSCB:15-8221/8998).

By April 15th of each year, these must be filed with the Pennsylvania Department of State Corporation Bureau.

The registration may be filed online or by postal mail. The LLC must pay an annual fee of $560 multiplied by the number of members.

Are you Looking for Pennsylvania LLC Formation Service?

Get the easiest and fastest Pennsylvania LLC formation online with Wise business Plans.

What to do After Forming Your Pennsylvania LLC

Keep your personal and business assets separate

Your personal assets (such as your home, car, and other valuables) may be at risk when your Pennsylvania LLC is sued if they are mixed with your business accounts.

Here are some steps you can take to protect your LLC in Pennsylvania:

 

1. Create a Business Plan:

If you have decided that a Pennsylvania LLC will be a good choice for your business in Pennsylvania, your next step is to create a business plan (although it is not required), so that you have a roadmap for what you will do and how you will accomplish it.

Business Plan Template

Free: Business Plans Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

2. Open a Bank Account

As soon as your LLC is officially formed, you should open a business bank account. Why? Keeping separate bank accounts will help you maintain the legal distinction between the LLC and you (the owner).

Because LLCs are limited liability companies, creditors and litigants can’t take your assets.

It is essential for small business owners to partner with the right bank. Find out which banks offer the best business checking accounts, have low or no fees, ATM accessibility, and interest-earning accounts as well as online or mobile banking tools. 

Recommended: Check out our business bank account page to learn which banks offer the best business check accounts, ATM access, interest-bearing accounts, and online and mobile banking options for businesses.

3. Obtaining a business credit card:
  • Allows you to separate personal and business expenses.
  • Develops your company’s credit history, which can be helpful to raise capital (e.g., small business loans) later.
4. Hiring a business accountant:
  • It prevents your business from overpaying taxes while preventing penalties, fines, and other costly tax mistakes.
  • Gives you more time to focus on your growing business by simplifying bookkeeping and payroll.
  • Manage your business’s funding more effectively. Find out where extra profit or loss can be made

Getting Business Insurance for Your LLC

You can manage risks and grow your LLC with business insurance. Here are the most common types:

  • General liability insurance protects your business from lawsuits. Most small businesses purchase general liability coverage.
  • Professional liability insurance protects professionals and businesses from claims of negligence from their clients or customers. Liability insurance typically covers negligence, copyright infringement, personal injury, and more.
  • Workers’ compensation insurance: Covers illnesses, injuries, and deaths resulting from a worker’s work.

Ready to Protect Your Business

Let us help you with your business insurance needs.

 

  • General business liability insurance
  • Medical insurance
  • Term life insurance
  • Workers’ Comp
  • Surety bonds
  • Commercial auto

Create Your Business Website

A website is an important step in legitimizing your business. It is essential for all businesses. You are missing out on a large percentage of potential customers and revenue if you don’t have a website, even if your business is too small or in an offline industry.

More than 90% of consumers begin their search for products and services online. If you don’t have a website that is ready to welcome your customers, then they will simply find your competitors.

Here are the main reasons why you shouldn’t delay building your website:

  • Every respectable firm has a website. When it comes to getting your firm online, size or sector isn’t a concern.
  • Creating a basic website has never been easier, thanks to website builder tools like the GoDaddy Website Builder. To design a website, you don’t need to hire a web designer or developer.

Recommended: If you want to enhance your conversion rates and maximize revenue in order to help expand your business and meet objectives, you should always hire a professional business website design company to build your business website.

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Wise Business Plans is a leading web design company, We have created over 2000 + websites across 20 countries for our clients but we are physically based in 7 major cities in the United States including Alabama web design, Pennsylvania, Las Vegas, Colorado Springs, Iowa, Michigan and San Diego.

Pennsylvania LLC FAQs

How much does it cost to form an LLC in Pennsylvania?

The cost of forming an LLC in Pennsylvania is $125. This is the filing fee for the Pennsylvania Department of State to register your LLC documents.

Is it a good idea to form an LLC in Pennsylvania?

Personal assets are protected because owners are not personally liable for business debts or obligations. LLCs also provide members with greater tax flexibility by allowing them to choose between pass-through and corporation taxation.

How long does it take to form a Pennsylvania LLC?

Approval of mail filings for Pennsylvania LLCs takes 5-6 weeks. This includes the 4 week processing time as well as the time it takes for your documents to arrive in the mail. Approval of online filings for Pennsylvania LLCs takes 4 weeks in total.

What is the procedure for dissolving an LLC in Pennsylvania?

Simply follow these three steps to dissolve an LLC in Pennsylvania: Keep the Operating Agreement in mind. Close all of your company’s tax accounts.

Step 1: Follow Your Pennsylvania LLC Operating Agreement.

Step 2: Close Your Business Tax Accounts.

Step 3: File Articles of Dissolution.

Is it possible to change the name of an LLC in Pennsylvania?

To amend your limited liability company in Pennsylvania, send the Department of State Corporation Bureau the completed Certificate of Amendment-Domestic Limited Liability Company (DSCB: 15-8512/8951) form by mail, in person, or online.

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