Select a Name for Your LLC in Step 1 Choosing a name for your LLC is the first step in converting your single proprietorship in Pennsylvania to an LLC. Before moving on, you must confirm that the desired name is available. Check the online database of the Pennsylvania Department of State to see what names are still available. You can reserve a name for 120 days after discovering it is available by submitting a Name Reservation Application to the Pennsylvania Department of State.
Step 2: Submit Articles of Incorporation The Articles of Organization must then be submitted to the Pennsylvania Department of State. Your LLC is formally created using this form. You must include details such the name of your business, the name and address of your registered agent, and the names and addresses of the people who formed the LLC. This form has a $125 filing charge.
Step 3: Obtain an EIN
For taxation purposes, your LLC needs an EIN, also known as an employment identification number. Applying for an EIN with the IRS is possible online or by mail. You can open a business bank account in the name of your LLC once you have your EIN.
Update Your Licenses and Permits in Step 4 Your licenses and permits will need to be updated to reflect your new LLC status. Your company’s license, sales tax permit, and any other necessary licenses and permissions fall under this category.
If My LLC didn’t make any money, do I still have to file taxes? You can still have to file taxes even if your LLC didn’t generate any revenue. LLCs are frequently taxed as pass-through entities, which means that the business’s gains and losses are transferred to the owners’ individual tax returns. You could still need to file a tax return to report the losses if your LLC has no earnings. To ascertain your precise tax responsibilities, speak with a tax expert.
Therefore, How Do I Update My EIN Information? You must fill out Form SS-4 and specify the modifications you wish to make in order to update your EIN information. This form can be delivered via phone, fax, or mail. Remember that updating your EIN information may result in the issuance of a new EIN. If I change the name of my company, do I need a new EIN? You must update your EIN information if the name of your LLC changes. However, unless your LLC experiences a significant change, like a change in ownership or corporate structure, you might not need to seek a new EIN. Is it Possible to Change the LLC’s Purpose? You can alter the goals of your LLC, yes. To reflect the change in purpose, you might need to file an amendment to your articles of organization. When changing the purpose of your LLC, speak with a lawyer to make sure you adhere to all legal requirements.
In conclusion, there are a number of processes involved in converting your sole proprietorship in Pennsylvania into an LLC. These include picking a name, submitting Articles of Organization, acquiring an EIN, and amending your licenses and permits. Furthermore, even if your LLC lost money, you may still need to submit taxes and, if necessary, update your EIN information. Keep in mind that further legal procedures could be necessary to change the name or purpose of your LLC. Always get legal advice to make sure you are in compliance with all legal requirements.