To Start an LLC in Pennsylvania, Follow the Simple Steps Listed Below:

STEP 1: Name your LLC

This is the first and most important step in starting your LLC. Do some research to make sure the name you choose is suited to your business venture and is easily searchable by potential clients.

  1. Follow the naming guidelines: Your entity name must contain the words Limited Liability Company or the abbreviation L.L.C. or LLC. Restricted words require additional paperwork (e.g. Banc, Bank, Banque, etc) and/or licensed individuals (e.g. Doctor, Engineer, etc). to be part of the LLC. Prohibited words are those that would confuse the name of your LLC with a federal or state agency (e.g. FBI, Secret Service, Treasury etc.)
  2. Is the name available in Pennsylvania? Make sure the name isn't already taken by doing a name search on the State of Pennsylvania website.

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STEP 2: Choose a Registered Agent

You are required to nominate a Registered Agent for your Pennsylvania LLC.

What is a Registered Agent? A registered agent is a person or business nominated by your company to officially receive and send papers on your behalf including annual state filings.

Who can be a Registered Agent? The registered agent must be a resident of Pennsylvania or a corporation authorized to transact business in Pennsylvania. You may elect an individual within the company including yourself.

Click here to find out why you may want to use a registered agent service.

Recommended: INCFILE.COM provides free registered agent service for the first year as part of their LLC Packages.

STEP 3: Certificate of Organization

To register your LLC, you will need to file the Certificate of Organization and Docketing Statement with the State of Pennsylvania.

File the Certificate of Organization for a Domestic LLC

Download Both PDF's to get started:

Certificate of Organization - Pennsylvania LLC

Docketing Statement - Pennsylvania LLC

Fee: Nonrefundable $125, payable to Commonwealth of Pennsylvania.

Follow the instructions on the PDF.

Important: If you're expanding your existing LLC to the State of Pennsylvania you are forming a Foreign LLC. Learn how.

STEP 4: Create an Operating Agreement

What is an Operating Agreement? An operating agreement is a legal document outlining the ownership and operating procedures of your LLC. This agreement allows you to form financial/working relationships with co-owners into an established system suitable to your business. An Operating Agreement is not required to form an LLC in Pennsylvania, but is good practice to have one.

* Recommended: We provide a free sample operating agreement however we recommend getting one professional drafted by a lawyer, especially if you are starting a multi-member LLC.

STEP 5: Obtain an EIN

What is an EIN? The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to identify a business entity. It is essentially a social security number for the company.

Why do I need an EIN? An EIN is required for the following:

  • To open a business bank account for the company
  • For Federal and State tax purposes
  • To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done by one of two ways:

* Important: An EIN is obtained after the LLC is formed. Obtaining an EIN registers the company for federal taxes.

Considering using a Formation Service?

We have detailed reviews on IncFile and LegalZoom LLC formation Services.
Find out exactly what to expect when using their services.

Six Key Steps
After Forming A Business

1. Separate Personal Assets from the LLC

Opening a business bank account is an important first step, as it:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Getting a business credit card allows you to:

  • Separate personal and business expenses.
  • Build your company's credit history, which can be useful to raise money for your company later.

2. Register Your LLC for Pennsylvania State Tax

Do I need to register for State taxes

Register for Pennsylvania State Tax through the Revenue e-Services Center (PA-100).

*Recommended: Learn more about sales tax by reading our informative guide: Sales Tax for Small Businesses.

3. Accounting

Even if you haven’t officially opened for business – it’s critical to get your books in order. A well managed accounting system will help you:

  • Track your business finances, including bills, expenses and income.
  • Simplify your annual tax filings.

The right software makes accounting easy. Look for software that:

  • Syncs with your bank automatically.
  • Matches transactions to invoices, bills and purchase orders.
  • Can be accessed from your phone.

*Recommended: Xero has the features that all small businesses need.
Try Xero FREE for 30 days and get 30% off your first 6-months.

4. Obtain Business Licenses & Permits

Do I need business licenses and permits?

To operate your LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

Find out how to obtain necessary licenses and permits for your business:

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

5. Get Insurance

What is Workers Compensation Insurance? This form of insurance is required for most businesses with employees, but varies by state. Click here to learn more.

What is General Liability Insurance? This is an important service, but is not required in most states. Click here to learn why.

How much will the right insurance cost you? Click here to find out.

6. Employee Hiring Compliance

Once a business decides to hire employees, certain legal obligations are required, such as:

  • Ensuring that potential employees are eligible to work in the US
  • Reporting employees as "new hires" to the State
  • Providing workers compensation insurance for employees
  • Withholding income taxes
  • Printing compliance posters and place in a conspicuous location
  • Ensuring payment of employees in specific increments as required by the state

Discover the necessary employer services and information at the Pennsylvania Department of Labor & Industry

A great resource for posting jobs and finding qualified employees is Indeed.com

How to Start a Business in Pennsylvania

5 easy steps to starting a business in Pennsylvania.
We have a far more detailed guide - How to Start a Business
which will go over the points in more details.

  1. Identify a suitable business idea that works for you - Check out our Business Ideas Tool.
  2. Critically analyze your idea with our Lean Business Model Canvas Tool. You can then go on to create a full business plan with our Free Online Business Plan Tool.
  3. Formally organize your Business into a company. An LLC is the most popular way to structure your business. Learn how to Form your LLC in Pennsylvania.
  4. Complete important key steps after formation such as acquiring business licences & permits, registering for state taxes, and opening a business bank account.
  5. Build your website and develop your brand. Learn more about marketing and brand establishment.

How to Maintain Your LLC

Many states require LLCs to file an annual or biennial report. These reports typically include basic information about your business and involve a filing fee.

Do I need to file an annual report for my Pennsylvania LLC?

Decennial Report - Maintaining LLC

Decennial Report - FAQ

Fee: Nonrefundable $70

Other Requirements

LLCs are considered “pass-through” entities and do not ordinarily pay income tax directly. Nevertheless, some states require LLCs to report annual income for informational purposes. Pennsylvania requires multi-member LLCs to report income and withhold income from members residing out of state.

Instructions and Filing Form: Pennsylvania Department of Revenue

Recommended: INCFILE.COM offers a reliable registered agent service.

Obtain a Certificate of Good Standing

A Certificate of Good Standing verifies that your LLC was legally formed and has been properly maintained. In Pennsylvania, a Certificate of Good standing is known as a Certificate of Subsistence. Several instances where you might need to get one include:

  • Seeking funding from banks or other lenders
  • Forming your business as a foreign LLC in another state
  • Obtaining or renewing specific business licenses or permits

To order a Certificate of Subsistence in Pennsylvania, simply place your order online through the Pennsylvania Department of State Business Entity Search tool.

Order Online

How to dissolve a Pennsylvania LLC

If you no longer wish to conduct business with your LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your LLC, there are two broad steps:

  • Close your business tax accounts
  • File the Articles of Dissolution

Learn More Here

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Foreign LLC in Pennsylvania

If you have an existing LLC and want to register to do business in Pennsylvania, you will need to form a foreign LLC.

File a Foreign LLC in the State of Pennsylvania

Download Both PDF's to get started:

Foreign Registration - Pennsylvania LLC

Docketing Statement - Pennsylvania LLC

Department of State

Fee: $250 — Follow the instructions on the PDF.

Benefits of Forming a Foreign LLC
The major benefit of becoming a foreign corporation is that it allows your company to operate as one entity in many jurisdictions. For example, if you originally incorporate your LLC in the State of Delaware, you can file your existing domestic LLC as a foreign corporation in other states.