LLC and business formation

Why form an LLC or corporation?

A limited liability company (LLC) is one of the most popular structures for small businesses because it combines legal protection with simplicity. An LLC or a corporation can help you:

• Separate your personal and business assets. In general, business debts and lawsuits are aimed at the company, not your home or savings. (It does not protect you from your own negligence or from loans you personally guarantee.)
• Be taken seriously by banks, landlords, vendors and customers.
• Keep tax options open. An LLC can be taxed as a sole proprietorship, a partnership or, later, an S corporation.

Most small businesses choose an LLC. We can explain how each structure is taxed, and we tell you when a question belongs with an attorney.

Three formation packages

Every package includes the state forms and your EIN. Government and state fees are added to your order and we pay them to the state for you, at cost. See all prices on the pricing page.

Basic: $199 plus state fees

• LLC or corporation formation: state forms completed from your information and filed for you
• EIN (federal tax ID) for the new business
• State filing fee paid for you at cost

Standard: $499 plus state fees

• Everything in Basic
• State tax registration for the business
• Operating agreement or bylaws template
• Help with license and permit applications
• Bookkeeping set-up

Advanced: $1,500 plus state fees

• LLC or corporation formation and EIN
• NAICS code and DUNS number
• Business email address
• Toll-free 1-800 number
• Website
• 3 business credit line applications
• Guidance on building your business credit
• First month of Essential bookkeeping

The first month of the website, business email and 1-800 service is included. After that, those services are charged to your business bank account.

Businesses we help open

We help daycares, salons and barbershops, cleaning and landscaping companies, contractors, stores, food businesses, online businesses and more. Some regulated businesses need extra licenses or a licensed professional. We tell you that before we start.

How Pennsylvania LLC formation works

1. Choose and check your name. It must include “Limited Liability Company,” “LLC” or “L.L.C.” and be different from other registered businesses.
2. Set your registered office. Every Pennsylvania LLC needs one: a physical Pennsylvania address or a commercial registered office provider.
3. File the Certificate of Organization. This is the document that creates your LLC. The Department of State filing fee is currently $125.
4. Put an operating agreement in place. It is not filed with the state, but it spells out ownership and decisions. It matters most with more than one owner.
5. Get your EIN. Your federal tax ID, which the IRS issues for free. See how we help, or read the EIN guide.
6. Register for taxes and licenses. Depending on your business, that can include Pennsylvania Department of Revenue registration for sales tax or employees, and local licenses.
7. Calendar your annual report. Pennsylvania requires one every year. We can file it for you.

What it costs in Pennsylvania

After that, the annual report costs $7 a year. State fees can change, so we confirm the current amount before we file. Fees in other states are different, and we quote them before you pay. Want the books and taxes handled after you open? See bookkeeping and payroll and tax preparation.

Questions

General information, not legal or tax advice. Government fees and rules change; we confirm current requirements before filing.