There are many reasons someone might want to create an LLC. These include personal or family goals, entrepreneurship, or creating a limited-liability corporation (or LLC). Most LLCs are a “pass-through” entity. Companies must first register in Pennsylvania under the applicable Articles of Organization. The company must then file a fictitious business name statement and all other necessary filings. Once the application is approved, a notice is sent to the address provided by the business or individual who filed it.
Before they can start, business owners in Pennsylvania must consult a business accountant. A new LLC will require a state license in most cases. The Secretary of State must also register it. A majority of new LLCs in PA must also obtain their local authority. This is the same office where the Secretary-of-State files the application.
What is a pass through entity? A pass-through entity is one where the primary owner is not the owner or proprietor. Instead, the entity shareholders are called the owners. There are no records of any meetings or actions taken. PA business owners should consult a lawyer to determine if they are able to incorporate an LLC while still meeting all the legal requirements.
What are the differences between an LLC and a sole proprietorship? A sole proprietorship cannot operate without the permission of the state in order to be successful. A sole proprietor is the person who owns the business. If there are only two people owning the business entity, they are each considered to be the owners of the business entity.
What about limited liability? LLCs are popular for many reasons. They are very simple to set up, often take little time to form, and offer many tax advantages. The best part is that LLCs are more tax-efficient than sole proprietorships.
To form an LLC, you will need to fill out an Application for Operating Agreement, also known by an Operating Agreement. This document will cover everything from who should make payments to how the LLC is to be managed. Each owner must sign the document and it must be approved by the Board of Directors. Limited liability companies are the most common type.
How do you register a Limited Liability Company? Once the LLC has been set up, the owners must file their annual income tax returns. If the LLC was formed as a partnership each partner must file its own income tax returns. In either case, the partners must sign a consent form for each year that the Limited Liability Company is in operation. Filing federal and state taxes is a necessary first step for all limited liability entities.
What are the other steps involved in forming an LLC Yes. A registered agent is the fourth step in starting an LLC. A registered agent serves as both a secretary and legal counsel to the LLC. A registered agent can be a close relative or a family member of the individuals who will be forming an LLC.
The fifth step to getting started with an LLC is to file Articles of Organization with the secretary of the State in which you filed your original form of corporation. You can create an LLC quickly and easily using forms online or at your local branch. The Articles of Organization will identify your LLC, describe the purpose of the LLC and list the members. Each member of the LLC will sign the document and provide a signature authority. These are the only steps needed to officially create an LLC.
The next step after the Articles of Organization are filed is to create the Operating Agreement. The Operating Agreement is the legal document that will govern how the LLC will operate. It begins with the statement that the LLC has been set up and goes on to describe the memberships, the officers, and the property and debts of the LLC. All of this information is filed with your county in which the LLC is registered. New business owners will need to apply for a New Business License. This can either be done through the county clerks office or the state Board of Equalization.
Finally, business owners must register a notice in order to Form LLC with the office. They will need to submit a form along with the required fees to the office in order to file the notice. A copy of the filing will also be sent to members of the LLC once the notice of intention to Form LLC has been filed with a county clerk. If a corporation has already been registered, all of the corporation’s operating procedures will be followed. If you want to form a Limited Liability Company, however, small business owners will need the assistance of an attorney.