Does Pennsylvania Require a Separate S Election?

Does Pa require a separate S election?
The Pennsylvania rule states any federal S corporation is automatically a PA S corporation unless they elect out. Does Act apply to new corporations, existing corporations, or both? The Pennsylvania rule states any federal S corporation is automatically a PA S corporation unless they elect out.

Like the majority of states, Pennsylvania does not mandate a separate S election for businesses. Instead, the federal S company election filed with the IRS is recognized by the state. This means that a corporation will automatically be considered as a S corporation for Pennsylvania state tax purposes if it has already made a S election with the IRS.

It is crucial to remember that Pennsylvania has its own business tax rules and legislation that are distinct from those of the federal government. The filing of a yearly company tax return and payment of the state’s corporate income tax are still mandatory for corporations in Pennsylvania.

Pennsylvania DBA Certificate Obtaining

For companies doing business in Pennsylvania under a name other than their legal name, a DBA (Doing Business As) certificate is necessary. The county courthouse in the county where the business is located must be contacted for the certificate. Typically, the procedure include completing an application and paying a fee.

Is Pennsylvania Protective of DBA Names?

In Pennsylvania, DBA names are not protected, therefore another company might potentially use the same name. However, businesses can register their trademarks to protect their identities. Businesses can stop others from using the same or a similar name by registering their trademarks with the USPTO.

Can an LLC Use Multiple DBA Names?

Yes, an LLC is permitted to use more than one DBA name, commonly referred to as a trade name or fictitious name. For LLCs who provide numerous goods or services under various names or brands, this can be helpful. Each DBA name, however, is required to be registered with the state of Pennsylvania and to abide by all applicable local, state, and federal laws and regulations.

In conclusion, Pennsylvania does not mandate a separate S election for corporations; but, companies are still required to abide with state tax laws. For companies using a different name, obtaining a DBA license and safeguarding business names through trademark registration are crucial tasks. Even though LLCs are permitted to use several DBA names, each one must be registered and adhere to all applicable state and federal rules.