Forming an LLC? Know What You’re Getting Into
You’re starting a business. That’s great news! After careful consideration, you’ve decided your business will be an LLC. Also, great news!
But do you know what needs to be done?
Forming an LLC is not as simple as signing a piece of paper. In fact, there are several steps involved. But if you follow these five steps carefully, your business formation will go smoothly.
Step 1: What’s Your Name?
Your first step seems pretty straightforward — your business needs a name. Not only does the name need to be original, but it needs to fit the state requirements. According to Pennsylvania law, the name of your company must include the words “Company,” “Limited,” or “Limited Liability Company” or an abbreviation of these words. You can check to see what names are currently available at the Pennsylvania Department of State business name database.
Step 2: Appointing a Registered Agent
Now that you have a unique name for your business, you need to choose the registered agent. This can be either an individual, such as yourself or another business entity.
The agent needs to agree to accept all legal papers on the LLC’s behalf if ever your business gets sued. The agent also needs to be either a resident or allowed to do business in Pennsylvania.
Step 3: Filing a Certificate of Organization
You got your name, and you got your agent. Now is the time to file the papers.
By filing a Certificate of Organization Domestic Limited Liability Company, you are telling the state you are forming an LLC. The certificate will include the following information:
- The name of the LLC
- The name and address of the registered agent
- The name of each organizer of the LLC
- The filing date of the certificate
- If the LLC is providing professional services (this applies to certain companies only)
- If the LLC is a public benefit company
- Signatures of all organizers
You will also need to file a New Entity Docketing Statement, which includes your new business’ tax information, a description of the business’ activity, the federal employer identification number (EIN), and the fiscal year end.
Step 4: Preparing an Operating Agreement
An operating agreement is not required in Pennsylvania; however, it is recommended that you create one. This document will establish the rights, powers, duties, liabilities, and obligations of the company members.
Step 5: Complying With Tax and Regulatory Requirements
In addition to complying with tax requirements, such as establishing an EIN, you also may need to obtain business licenses and, if you have employees or products, you’ll need to register with the Pennsylvania Department of Revenue for tax purposes.
Need Help Forming an LLC? Rinaldi & Poveromo Can Help!
If you’re starting a business in Central and Northeastern Pennsylvania, it best to speak with an experienced business formation attorney to make sure you file all the necessary paperwork. Don’t do it on your own — contact the business lawyers at Rinaldi & Poveromo today for a free consultation. Let us help you create a business!