More than a million small businesses and entrepreneurs call Pennsylvania home, and many of them begin as single proprietorships. While this business structure is easy to understand and basic, it also makes the owner personally responsible for all debts and legal troubles relating to the company. A limited liability company (LLC) formation may make sense in this situation. We’ll walk you through the process of changing your sole proprietorship in Pennsylvania into an LLC in this article. Has Pennsylvania a Secretary of State?
Yes, the Department of State in Pennsylvania is in charge of registering businesses and other entities. The division that manages LLC formation and registration is the Bureau of Corporations and Charitable Organizations. You may obtain paperwork, guidelines, and other tools for beginning and running your business in PA on their website.
Since LLCs don’t have the same organizational structure as corporations, you might not need to bother about officers if you’re changing your sole proprietorship to an LLC. If you do choose to incorporate in Pennsylvania, you must have a minimum of one director and one officer. There are no residency or citizenship requirements, and the same person may fill both positions. Additionally, you must designate a registered agent to accept legal documents on your corporation’s behalf. How Much Does a Pennsylvania EIN Number Cost?
The Internal Revenue Service (IRS) issues an Employer Identification Number (EIN) as a special identification for your company. If your firm has workers, files taxes, or you want to open a bank account in its name, you’ll need an EIN. Thankfully, obtaining an EIN is free! You can submit your application by phone, mail, fax, or online through the IRS website. How Much Does It Cost in Pennsylvania to Get an EIN Number?
As previously stated, applying for an EIN in Pennsylvania or anyplace else in the US is free of charge. To help you apply or speed up the procedure, some third-party services may charge a fee. To minimize unneeded fees, we advise applying directly through the IRS.
1. Pick a name for your LLC that is readily available and adheres to Pennsylvania’s naming regulations. 2. Submit an organizational certificate to the Bureau of Corporations and Charitable Organizations. 3. Obtain any required licenses or permits for your new LLC. 4. Inform all pertinent parties, including clients, lenders, and suppliers, of the change in the company’s structure. 5. Transfer your sole proprietorship’s assets and liabilities to your new LLC. 6. If required, get a new EIN for your LLC.
7. Update your tax returns and sign up for any new LLC-related taxes or fees.
Even while these processes might seem difficult, given the appropriate direction, they’re actually fairly simple. On the PA Department of State website, you can get more in-depth information and tools, or you can get specialized counsel by speaking with a business lawyer or accountant. Wishing you luck as you establish a protected and prosperous LLC in Pennsylvania!
In Pennsylvania, there is no fee to obtain an EIN (Employer Identification Number). You can apply for an EIN for your company by phone, mail, fax, or online through the IRS website. The procedure is cost-free.