One of the initial steps in starting a business in Pennsylvania is submitting your articles of incorporation to the state. This legal document describes the goals, organizational structure, and ownership of your company and establishes it as a formal entity. What you need to know about filing your articles of incorporation in Pennsylvania is given below.
You must first select a name for your company that is not already taken by another state-registered firm. To see if your preferred name is available, utilize the Business Entity Search tool provided by the Pennsylvania Department of State. By submitting a Name Reservation Request after confirming its uniqueness, you can reserve the name for up to 120 days.
Creating your articles of incorporation is the next step. This document normally contains the name and objectives of your company, the titles and residences of its officers and directors, the number and kind of stock it will issue, and any other pertinent details on the governance and organizational structure of the company. To make sure that all necessary components are present, you can write your own articles of incorporation, use a template, or hire a service provider.
You must submit your articles of incorporation to the Pennsylvania Department of State after you’ve finished writing them. This can be done in person at one of the department’s physical offices, by mail, or online. For most firms, the filing price is $125, though it may change depending on your company’s size and organizational structure.
When your articles of incorporation are submitted, the state will provide you a certificate of incorporation, thus establishing your company as a legal entity. Your company’s authorization to do business in Pennsylvania and compliance with all relevant legal criteria are both attested to by this certificate status.
When beginning a business in Pennsylvania, it’s crucial to be aware of a few other vital factors in addition to the ones listed above. For instance, while creating an LLC can have some benefits like limited liability protection and pass-through taxation, there are also drawbacks to this structure including higher taxes and fewer ownership and management freedom. Before deciding on an LLC as your business entity, it’s crucial to thoroughly consider these issues.
Additionally, Pennsylvania accepts single member LLCs, which might be a viable choice for business owners who want to launch a company on their own without bringing in partners or stockholders. Be mindful, nevertheless, that single-member LLCs could not have the same liability protections as bigger LLCs and are still subject to state laws and taxes.
Last but not least, bear in mind that Pennsylvania charges an annual cost to establish an LLC. The current annual charge is $70, and it must be paid by April 15 of each year. If you don’t pay this charge, you risk fines and potentially the dissolution of your business.
In conclusion, filing your articles of incorporation in Pennsylvania is a crucial step in establishing your company there. You can position your business for success and confidently negotiate the legal and financial landscape by following these procedures and taking into account other important variables before and after incorporation.