Start a Pennsylvania LLC

1. Name your Pennsylvania LLC

The first step in forming a Pennsylvania LLC is to name your business. Your business name provides the public with a first impression of your company, so it’s important to choose one that conveys your desired brand image.

Pennsylvania LLC Naming Rules

You also need to adhere to Pennsylvania LLC and business naming rules. For example, Pennsylvania requires all LLC names to include the phrase “limited liability company” or an abbreviation of the term, such as:

• LLC
• L.L.C.
• Limited
• Ltd.

LLCs are also prohibited from using names that contain any variations of the word “corporation” or make it seem as if the business is a government agency. Finally, a Pennsylvania LLC cannot use a name that is too similar to any name already being used by another business in the state.

Registering and Reserving Business Names

Before you can reserve or register a business name for your Pennsylvania LLC, you need to make sure it isn’t already taken. Our Pennsylvania business search page can help you with that part.

Once you’ve decided on your business name, registering it is as simple as filing your business formation documents (which we’ll cover in a later step).

Fictitious Name

If you’re starting an LLC in PA, you may also want to consider applying for a “fictitious business name” or FBN. Also referred to as “doing business as” or DBA names, fictitious business names are used when a business wants to conduct business under a different moniker than its official company name.

A few examples of when an FBN would be used include:

• A company with the official name of “ABC Toys, LLC” wants to sell board games online as “ABC Games”
• A company with the official name of “ABC Toys, LLC” wants to sell online as simply “ABC Toys”
• A company with the official name of “XYZ Computers, LLC” wants to sell MacBooks on Amazon as “XYZ Macs”

Fictitious Business Name Form

If you want to conduct business under an assumed or fictitious name, you will need to file a Registration of Fictitious Business Name form (DSCB:54-311) with the Pennsylvania Department of State.

On this form, you will need to provide information such as:

• The fictitious name you desire
• A brief statement regarding the nature of business you will perform under the FBN
• Your business’s physical address
• The name and address of each individual or entity interested in the business

Note: You may or may not also be required to “officially publish” an announcement of your fictitious business name. If there is anyone listed in Box 4 of the form (interested individual), then you will need to run an advertisement in two newspapers of general circulation in the county where your business is registered. If there is no interested party, you are not required to advertise.

Trademark

If you want to further protect your Pennsylvania LLC name and/or logo from being used by other entities, you may want to apply for a trademark. Placing a trademark on your company name or logo helps keep it from being copied, and also gives you standing ground in case of copyright infringement.

Trademarks are meant to protect intellectual property from being copied. Intellectual property includes things like:

• Company names
• Logos
• Graphic designs
• Artwork
• Song lyrics
• Content (such as articles, books, and other written works)
• Inventions

To register a trademark in Pennsylvania, you will first need to make sure your desired name or design hasn’t already been trademarked in the state. You can do this by checking with the Pennsylvania Department of State. Then, you will need to complete the appropriate form (DSCB: 54-1112), and submit it to the Department of State.

If you want to register your trademark at the national level, you can check its availability with the United States Patent and Trademark Office (USPTO). If your desired intellectual property hasn’t already been federally trademarked, you can apply through the USPTO to trademark it yourself. This provides you with broader protection even outside the state of Pennsylvania.

Get a domain name for your LLC

A big part of doing business today is being available online. That’s why you’ll also probably want to secure a domain name for your Pennsylvania LLC.

You can do a quick domain name search to make sure your desired domain name is available. Then, we can register your domain name for you.

Is your Pennsylvania LLC name available as a web domain?

When you’re naming your LLC in Pennsylvania, a major factor to consider is whether your desired name is also available as a web domain. This step ensures that your business name will match up with your domain name for branding and recognition purposes.

To see if your desired name is also available as a URL, use our web domain name search tool.

Social media marketing is especially beneficial and important in today’s market. Many brands use Facebook, Twitter, Instagram, and other platforms to get the word out about their brand and to interact with potential and current customers. For that reason, you may also want to check to see if your desired social media handles are available for use (and snag them if they are).

Our domain name service can help you find and purchase a domain name for your business. We can also help you create a business website and even obtain domain name privacy.

2. Designate a Pennsylvania registered office

The next step for starting your LLC is to designate a Pennsylvania registered office. In most states, this is known as a registered agent. Your registered agent is an individual or business entity that receives legal notices on behalf of your business.

Registered Agent Requirements

Every Pennsylvania LLC is required to appoint a registered agent. Your Pennsylvania registered agent must:

• Be a resident of Pennsylvania
• Have a physical mailing address in the state of Pennsylvania (P.O. boxes will not suffice)

Registered Agent Responsibilities

A registered agent’s responsibilities include:

• Being available during regular business hours to receive notices (service of process)
• Accepting legal notices and important government mail

Can I serve as my own registered agent?

Legally, you are allowed to serve as your own registered agent. However, there are a few reasons why this isn’t the best idea.

For starters, you are busy running your business. Having to be available during all regular hours to receive legal notices would be quite inconvenient for a business owner.

Secondly, you could be embarrassed in front of clients, investors, or colleagues when being served with subpoenas or notifications of a lawsuit in front of them. For these reasons and others, many LLC owners opt to hire professional services instead.

Registered Agent Services

By using a registered agent service like ours, you can free yourself up to focus on running your business. The benefits of using professional services for your registered agent service include:

• Staying compliant with Pennsylvania’s registered agent requirement
• Knowing all service of process or legal notices will be received and passed along in a timely manner
• Avoidance of embarrassment when served with notice of a lawsuit or legal action against your LLC
• The ability to move your office location without having to update your registered agent’s address

A professional registered agent service can go a long way toward giving you peace of mind. Use our affordable registered agent services to keep your Pennsylvania LLC organized and compliant with the state’s registered agent requirement.

What if the state can’t find my Pennsylvania registered office?

It’s extremely important that the Pennsylvania Department of State is able to contact your registered agent office when sending legal notices. If they can’t, you risk not receiving important notifications of things like lawsuits and legal actions against your business.

If your registered office can’t be reached, your business could also fall out of compliance with the state of Pennsylvania. This could result in your LLC being dissolved by the state, which means you would lose your liability protection.

ZenBusiness can provide your registered agent

By using a registered agent service such as ours, you can gain peace of mind that you will receive notices from the state in a timely manner.

That means you can go out of town, take vacations, etc., without worrying that your registered office can’t be reached. You can also change office locations without having to update your registered agent address.

With professional registered agent services, you can rest assured that someone will always be available during business hours to receive legal notices on behalf of your business. Finally, a registered agent service will spare you the embarrassment of being served with legal papers (such as lawsuit subpoenas) in front of clients or colleagues.

4. Create an operating agreement

Next, you will need to create a Pennsylvania operating agreement. While an operating agreement is not required by Pennsylvania law, it is crucial in determining how your LLC will be managed and run.

Your operating agreement also helps you to avoid disputes among members by outlining things like allocation of responsibilities and assets.

Operating Agreement Benefits

The benefits of an operating agreement are vast. By laying out all the details about how your company will be run, you can:

• Avoid disputes among members about who is responsible for what
• Customize your business’s rules, policies, and procedures to serve your LLC’s needs and interests
• Further separation of your personal and business assets in the eyes of the court
• Create a plan of succession in case a member dies or leaves the company
• Create a procedure for the event in which you ask another member to leave the LLC
• Define your business’s management structure (member-managed or manager-managed)

What should an operating agreement include? 

Your operating agreement should include all the pertinent details regarding management of your LLC, such as:

• Your LLC’s management structure (member-managed or manager-managed)
• Ownership and responsibility allocation
• Information regarding who has the authority to act on behalf of your LLC
• Policies for owner departure and admitting new owners
• How dissolution will be handled

Make things easier with an operating agreement template

Figuring out what all you need to include in an operating agreement can be overwhelming. That’s why we created a comprehensive, easy-to-use operating agreement template. You can use our template to fill out all the information you need to provide, and rest assured nothing falls through the cracks.

Do I need an operating agreement if I’m the only owner?

If you are the only owner of your LLC, your business is called a single-member LLC. In this case, you may wonder if you even need an operating agreement.

The short answer is that it’s still a good idea. That’s because this internal document does more than lay out allocation of responsibilities and assets among owners. Your operating agreement also dictates what will happen in the event the owner passes away, and rules for adding new members.

Furthermore, your operating agreement can give you a leg to stand on in legal disputes. By showing the courts that you’ve taken the time to draw up a legal document as an LLC, your company will look more like an official business than a sole proprietorship.

5. Apply for an EIN

In order to pay taxes for your LLC, you will need a Employer Identification Number, or EIN. Much like a Social Security Number (SSN) does for individuals, your FEIN identifies your LLC in with the Internal Revenue Service (IRS). This is sometimes also referred to as a Federal Employer Identification Number, or FEIN.

An EIN isn’t just needed for paying business taxes, either. You will also likely need one to conduct other types of business, such as opening a business bank account. Use our EIN services to obtain an EIN for your business today.

Register for Pennsylvania business taxes

Depending on your specific business activities, your LLC may need to report things like sales and use tax or employer withholding. In order to register your LLC for state tax and employer accounts, you’ll need to complete the Pennsylvania Enterprise Registration Form (PA-100).

This form enables Pennsylvania LLCs to establish multiple accounts, including:

• Employer Withholding Tax (1099)
• Promoter License
• Public Transportation Assistance Tax License
• Sales, Use, Hotel Occupancy Tax License
• Tobacco Product’s License
• Transient Vendor Certificate
• Unemployment Compensation
• Use, Tax, Wholesaler Certificate
• Vehicle Rental Tax

Electronic Tax Information and Data Exchange Service

Employers can file and pay state taxes online by using Pennsylvania’s Electronic Tax Information and Data Exchange Service (eTIDES).

Can filing as an S corp lower my taxes?

One of the main benefits of the LLC business structure is its flexibility. That flexibility also shows up in the fact that LLC owners can choose how they want their business to be taxed.

By default, LLCs are taxed as either a partnership or a sole proprietorship, depending on whether they have one or multiple members. However, LLCs may opt to be taxed a C corporation or S corporation if it benefits them financially.

It’s true that a C corporation is taxed twice (once on the company tax return and once on the individual’s tax return). However, filing as a C corporation can also result in tax deductions that still save an LLC owner money in certain cases for certain LLCs. For example, insurance premiums can be written off as a business expense.

S corporation is short for “Subchapter S Corporation.” This structure is geared toward small businesses. Like a standard LLC, S corps have pass-through taxation. But there’s another bonus, they can also save you money on self-employment taxes.

This is because S corps allow you to be an “employer-owner,” and split your income into your salary and company profits. That means you pay self-employment taxes on your salary, but not your company profits. (Those profits will still be subject to income and other taxes, of course.)

The drawback is that the IRS scrutinizes S corps more closely. That means you are more likely to get audited as an S corp.

While you may save money filing as an S corp, we must stress that taxes are extremely complicated. To understand what would best benefit you and your LLC, it’s best to consult with an accountant or tax professional before making decisions regarding how to file.

Open a business bank account

Opening a business bank account is another important task when starting an LLC in PA. By opening a business bank account, you can avoid commingling funds and keep your personal finances and business finances separate. You may also want to obtain a business credit card for this purpose.

To further help you get your company off the ground, we offer a discounted bank account. This account allows unlimited transactions, online banking, a debit card, and more. We even offer a banking resolution template so you can authorize others to use the account.

Manage your Pennsylvania LLC’s finances

When it comes to managing your business’s finances, you have a lot to juggle. You can use ZenBusiness Money to manage everything from invoices to tracking tax-deductible expenses all in one place.

Obtain any necessary business licenses or permits

Depending on your industry, you may also need to obtain any necessary business licenses or permits. This step isn’t necessary for all Pennsylvania LLCs, but is instead industry-dependent.

For example, insurance agents will need the proper licensure to bind insurance policies in Pennsylvania. Anyone selling alcohol will need the appropriate license for their business, etc.

If you want to check and see if you’ll need a business license in your industry, use our business license report service. You can also check with the Pennsylvania Department of State.