The cost to start a Pennsylvania limited liability company (LLC) is $125. To legally do business in Pennsylvania, the state requires businesses be fully licensed and registered. The $125 fee is paid to the Pennsylvania Department of State when filing the LLC’s Certificate of Organization. The Small Business Administration (SBA) provides free tools and resources for entrepreneurs in Pennsylvania. SCORE offers local mentors and workshops in your area. To register your business for state tax and employer accounts in Pennsylvania, you will need to complete the PA Enterprise Registration Form (PA-100) online.
When starting a business in Pennsylvania, having a solid business plan is key. This plan outlines your company and includes financial projections. Pennsylvania has resources to help businesses grow, including free or low-cost technical and consulting services from experts.
Tax Requirements and Business Structure
Generally, if your net income from your business is $400 or more, you are required to file a tax return. Most small business owners find starting a business difficult, whether an LLC, sole proprietorship or corporation. While doing it yourself seems cost-effective, hiring professionals ensures necessary paperwork and legal requirements are properly completed, preventing costly mistakes.
Advantages of Choosing Pennsylvania
With an extensive education system, Pennsylvania continually introduces talented people into the workforce. Living in Pennsylvania means easily driving to big cities like New York and Boston. You can reach customers far and wide. The cost of living is low, and median housing rates start at $46,000 less than the national average.
Naming Your Business and Additional Licenses
When forming an LLC in Pennsylvania, it is essential to choose an appropriate name for your venture. If you plan to use a "Doing Business As" (DBA) name, it’s important to note that your formal business name must be used on all legal documents.
In addition to determining how to start an LLC in Pennsylvania, you may also need to obtain various licenses or permits from the state or municipality in which you plan to operate. These could include professional licenses, zoning permits, environmental permits, regulatory licenses, and more. If you have employees, you must report them to the state and pay applicable taxes.