Registration Process and Fees
The registration process takes about 1-4 weeks in most states. Paying an additional fee can shorten this to 1-3 days. You must file documents with the Secretary of State and wait for Corporation or LLC approval.
Incorporating in Pennsylvania
If already incorporated outside Pennsylvania, you still must register to do business there. File an Application for Certificate of Authority and a New Entity Docketing Statement. If your name is already used in Pennsylvania, choose a different business name.
Benefits of Incorporation
Instead of a salary when the business has income, being incorporated allows you to take income when paying less tax.
Workers’ Compensation and Insurance
If operating a business in Pennsylvania with employees, you must have workers’ compensation insurance, providing medical and salary benefits if employees get sick or injured at work.
Licensing and Permits Application
You can apply for licenses and permits by filing PA-100.
Formation Process in Pennsylvania
Filing articles of incorporation in Pennsylvania takes ~2 weeks. Filing by mail is best.
Corporate Protection and Liabilities
It may be better to incorporate for the same or a little higher fee because you also get corporate protection for the business name and personal vs business liabilities.
State Tax Accounts
All businesses in Pennsylvania must register applicable state tax accounts.
Expedited Processing in Pennsylvania
Most of the cost is Pennsylvania fees. For $175 more, Pennsylvania will process a new Foreign Corporation application by the next day.
Setting Up a Delaware C Corporation
It takes two to three days to set up a Delaware C Corporation. The filing fee is less than $300.
Forming an LLC in Delaware
It takes 9-11 weeks online or 10-12 weeks by mail to form an LLC in Delaware. Paying more gets expedited processing.