How To Start An LLC In Pennsylvania For Free 2024?

Starting a Pennsylvania LLC can be a great move for your business. It helps you keep your business finances separate from your personal and remain in good standing with the Department of State, even if you’re a foreign LLC operating under an assumed fictitious business name.

If you want to learn more about things like Pennsylvania LLC naming rules and what it takes to become a valid LLC with the Department of State, this article is for you. Keep reading to learn everything you need to know about filing an operating agreement and certificate of organization to become an LLC in this state.

What is an LLC?

LLC is an acronym that’s short for limited liability company. It’s a kind of structure that you can use while running a business. Whether you have more than one member or no current business address, it’s still possible to form a valid LLC as long as you complete your annual registration requirements and pay your federal income taxes on time.

There are many different types of companies that can complete an operating agreement and certificate of organization to become valid LLCs.

What is an LLC in Pennsylvania?

When you decide to start an LLC, you have to submit paperwork like your certificate of organization and operating agreement in a specific state. If you conduct business in Pennsylvania already and live here, then it makes the most sense to form your LLC here as well.

Read More: Best LLC Formation Services in Pennsylvania 2024

Requirements to Create an LLC in Pennsylvania

If you decide to apply for business licenses and submit your operating agreement in Pennsylvania to become an LLC, then there are a few requirements you’ll need to satisfy. Here are two of the main ones to keep in mind early on in the process.

Appoint a Registered Agent

Every valid business in this state must have a registered agent service. These people act as a point of official contact for your business, and can also help with things like workers compensation insurance, remit sales tax payments, and pay unemployment taxes.

If you need a physical street address for your fictitious business name and foreign registration statement, they can help with that as well. They may even be able to guide you through choosing a business credit card and selecting a business name if you choose the right provider.

You also have the option of becoming your own agent if you want to save money. Just be prepared to handle all of these tasks, including sales tax payments, on your own.

The LLC’s Name Must Be Different From an Existing Business

It’s also important to note that you can’t have the same name as any existing LLC in the state of Pennsylvania. We’ll tell you how to make sure of that in a few sections. Just make a mental note of it before submitting your filing fee for now and setting up your employer identification number (EIN).

Benefits of Creating an LLC in Pennsylvania

Creating an LLC can be a smart move for a few different reasons.

For starters, you’ll protect your personal assets from seizure in the event that your company has any financial challenges in the future.

Additionally, your LLC will give you a more favorable tax situation and more flexibility with both profit-sharing and company management. There may be other benefits to this structure as well for certain types of companies.

How Much Does an LLC Cost in Pennsylvania?

The filing fee for starting an LLC in the state of Pennsylvania is $125. However, it is free to become an LLC if you’re running charitable organizations or another type of no-benefit company.

That being said, you may encounter other charges while setting up your new LLC. For example, registering a DBA name or reserving a name before filing your official paperwork can carry an extra fee.

6 Basic Steps To Create an LLC in Pennsylvania 2024

Now that we’ve covered what an LLC is and why you might want to form one in Pennsylvania, let’s look at some specific steps you can follow to set up this business structure in the state. Here’s how the process works.

Choose a Name for Your LLC in Pennsylvania

The first thing you need to do is choose a business name. Most names are considered valid, but there are a few requirements to keep in mind while selecting one.

Naming Rules in Pennsylvania

First, take a look at this naming rule information page on the state’s website. This will tell you all of the current naming requirements you need to follow in order to get your name approved and your paperwork processed.

Searching Available Name in Pennsylvania

You also aren’t able to select a name that is already in use by another LLC in the state. You can use this page to conduct an official name search and verify that your desired name is available before submitting any paperwork.

Choose a Registered Agent in Pennsylvania

The next thing you should do is choose a resident agent. As we mentioned earlier, this can either be yourself or a company that you hire. Both options are equally valid, it just comes down to whether you prefer to save money by doing the job yourself or to free up some extra time by having someone else do it for you.

Read more: Best Pennsylvania Registered Agent 2024

File Organizational Paperwork With the State

Now it’s time to file your first organizational paperwork with the state. This will typically be your certificate of organization, which includes basic information about what your LLC will be called and how it will function.

Prepare an LLC Operating Agreement

Your LLC operating agreement provides the state with more detailed information about what your new LLC will be doing. It’s where you’ll provide details about your company’s profit-sharing situation and managerial information.

You need to make sure that you fill your LLC operating agreement out correctly to avoid having to resubmit the form at a later date and wasting time. There are companies that will help you with this to ensure that you don’t make any mistakes. We’ll cover two of them in the next section.

Obtain an EIN for Your LLC in Pennsylvania 

The next step is to make sure that you have a federal employer identification number set up. You can complete this process within about 10 minutes and entirely for free online. But you’ll want to make sure that you don’t skip the step to avoid having any potential issues when it comes time to hire employees or pay taxes.

Annual Tax

Finally, all that’s left to do at this point is to make sure that you pay all of your annual taxes on time to remain in good standing and avoid fines. One good thing about starting an LLC in Pennsylvania is that you don’t have to submit annual reports. This is one less thing you have to worry about on your to-do list when you choose to run your LLC in this state.

The Top 2 LLC Services in Pennsylvania

Professional companies that want to become Pennsylvania LLCs can fill out an operating agreement and articles of organization on their own. Or they can hire a professional limited liability company to do the job for them.

The following are two of the best professional services in the state for those who want the support of a restricted professional company or restricted professional services.

Product
Name	ZenBusiness	Northwest Registered Agent
Full review	Read full review	Read full review
Link	Check Price	Check Price

Zenbusiness

ZenBusiness is another great domestic limited liability company that can help with forming an LLC. They’ll guide you through everything you need to get your Pennsylvania LLC certificate so that you can conduct business through a business structure that helps your income tax and offers personal liability for your personal finances.

In addition to forming an LLC, this domestic LLC can also help out with registered agent services, taxation questions, and business transactions for accounting. This commercial registered office provider also offers after-hours customer support to ensure you always can get help with personal and business assets and Pennsylvania business taxes when you need it.

Northwest Registered Agent

Northwest offers many great kinds of support for business owners. They can be your professional registered agent service and help you fill out all of the paperwork you need to set up a valid Pennsylvania LLC with the Pennsylvania Department of State.

No matter what kind of business entity you have now, if you have a foreign LLC and want a single-member LLC, this company will help you start your LLC in PA. They also provide various ongoing services that can help your LLC in PA remain in good standing with the Department of State, such as registered agent services and help with your business license or business assets.

Read more: Best LLC Formation Services 2024

Final Thoughts

Forming a Pennsylvania LLC can be a smart idea if you want to optimize your business finances and make it easier to comply with the internal revenue service. Your LLC in PA will also protect your personal assets from seizure in the event that your LLC business structure and business bank account fail one day.

You can either fill out your certificate of organization and operating agreement on your own or you can hire restricted professional companies to guide you through the process. Both options are valid, it just depends on whether you value simplicity or cost-savings to benefit your company more.

We hope that this guide has made it easier for you to fill out your operating agreements and form a Pennsylvania LLC. But no matter what you decide on forming an LLC, we wish you all the best moving with your business forward.

Frequently Asked Questions (FAQs)