Form Your Pennsylvania LLC for Free With Inc Authority

The first step towards creating a Pennsylvania LLC is making sure your business name isn’t already taken. You can do this for free on the Pennsylvania Department of State Business Search website. Inc Authority also does this for you for free.

Ensure your LLC name contains the word Limited Liability Company, company, or limited or the initials to each. Also, make sure the name doesn’t contain any words relating to a Corporation, such as corp, or any other restricted words

For your business’s legal correspondence, you’ll need to provide a physical mailing address of an office located in Pennsylvania. This could be a registered agent, although that’s not a requirement in this state, unlike most other states.

Alternatively, you can have a Commercial Registered Office Provider (CROP) receive your LLC documents on your behalf. The state provides a long list of CROPs you can choose from. You’ll need to get into a written agreement with them first.

Next, you’ll need to file your LLC Certificate of Organization (or what other states would call Articles of Organization) with Pensylvannia’s Department of State Bureau of Corporations and Charitable Organizations. This will cost you $125. 

If you’re registering a foreign LLC, you can file a Foreign Registration Statement for $250. Pennsylvania allows for the domestication of foreign LLCs for $125 to make your LLC a domesticLLC in Pennsylvania, and foreign in your home state.

While the state of Pennsylvania does not require LLCs to have an operating agreement, it’s advisable to have one. It’s a legally binding document that outlines how your LLC will be operated and what roles they will play in the LLC.

An LLC operating agreement contains details about the business, such as each member’s rights and responsibilities and their initial investments, voting rules, and procedures for dissolution, addition and departure of members, and more.

An Employer Identification Number is like your business’s social security number. It’s how the Internal Revenue Service identifies your business for federal tax obligations. So If you plan on having any employees, your LLC will need an EIN.

You can apply for an EIN on the IRS’s official website. However, this process can get difficult and tedious so most people prefer to outsource it. Inc Authority provides the service as part of its paid Starter plan, making it quicker and easier.

LLCs enjoy pass-through taxation, which means that the business income passes through to the LLC members. Members then report it on their personal income tax returns as well as their self-employment tax, which happens at the federal level.

Some LLCs are eligible for S-corp status, which helps them save on self-employment taxes. At the state level, Pennsylvania imposes state-level payroll taxes at the rate of 3.07% on taxable income, and sales taxes of 6%.

You’ll need to open a business bank account to separate your personal and business assets. Mixing business and personal finances can put your personal assets at risk in case your business faces a lawsuit or if it gets into debt.

This way, you’ll be able to enjoy limited liability without question. Having a business bank account also helps make the most of your LLC income. You can open a savings account, a capital reserve, or an investment account for your business.

Pennsylvania provides licenses to businesses to ensure the safety and health of its citizens. Professions that require business licenses from the state include barbers, medicine board, pharmacy, real estate, engineers, cosmetology, nursing, etc.

Besides business licensing, your business may need permits depending on your city or county of operation. You’d need to check with your local authorities for zoning and permit regulations for your city or county, to find out the permits you need.

You’ll need insurance if you plan to hire employees for your LLC. You’ll need worker’s compensation insurance to provide them with medical benefits in case of an injury or sickness and health insurance if you have over 50 full-time employees.

Another form of insurance you may consider getting if you’re offering professional services is professional liability insurance. This type of insurance covers your costs if a customer sues your business for negligence or providing subpar services.

Next, you’ll need to establish an official website to solidify your online presence. It’s not difficult to create a website, as there are numerous website-building tools out there that can help you. Inc Authority has this service as part of its paid packages.

You’ll need an official domain name for your business and a good website hosting platform. An official website comes with official email addresses as well, that you and your team can use for your business. This all helps add to your credibility.

Once you’ve got the right documents, have your finances set up, and your LLC is up and running, you can now get the word out. Building a strong marketing strategy to reach your target audience and introduce them to your products and services.

Promote your business using different marketing tactics. Some marketing tactics you could try out include creating a social media presence, partnering with influencer marketers, offering loyalty programs, product giveaways, and more.

The state of Pennsylvania only requires restricted and benefit LLCs to file annual reports, unlike most other states. Restricted LLCs need to file an Annual Registration Report while Benefit LLCs need to file an Annual Benefit Report.

This, however, is set to change in 2025 as all states will be required to file an annual report. This will cost $7. Initially, all LLCs only filed a Decennial report every 10 years and the report needed to be filed on a year ending with ‘1’, like 2021.

If you’re looking to file your documents with the state and nothing more, this is the plan for you. Here are the services you’ll get.

• Business name check: Inc Authority will check your business name to make sure no other LLC or Corporation has it in the state. Once you’re certain your name is available, you can register your LLC with the state.
• Preparation and filing: Inc Authority does not charge to file your formation documents with the state. You’ll only pay the state filing fee which is constant regardless of the formation platform you choose.
• Registered agent services: Inc Authority provides free registered agent service for a year. They’ll receive your formal notices and legal documents from the state and federal government on your behalf.
• Digital storage and delivery: Inc Authority delivers a physical copy of your start-up documents to your official address. Alternatively, these documents are stored online and you can easily access them anytime.
• Tax planning consultation: New entrepreneurs don’t often know what their tax obligations are at the state or federal level. Inc Authority offers a free tax consultation to help businesses plan and save tax income.
• S-election form: Some businesses choose the S-corp pass-through taxation option to save on self-employment taxes. Inc Authority prepares the S-election form (form 2553) and files it for you.
• INC CARE support: As part of their free package, Inc Authority offers customers 24/7 support. You can reach out with your queries to customer service representatives via phone or email.
• Business credit and funding analysis: An Inc authority business funding and credit expert will analyze your credit situation and assess your funding needs. They’ll then suggest solutions on how to improve each.

Price: Free

Most businesses find that they need extra services besides those provided in the free package. Here’s what to expect on the Starter paid plan.

• Operating Agreement or bylaws: While it’s not a requirement, each Pennsylvania LLC should have a set of rules that outline its operations. Inc Authority provides a customizable template you can use for this purpose.
• Employer Identification Number (EIN): As mentioned earlier, you’ll need to obtain a federal EIN for your business as it’s essential to your Pennsylvania LLC formation process. The Starter plan has this as part of its offerings. 
• Ownership/stock certificates: If your LLC issues certificates to your members as proof of ownership, then this plan is for you. Inc Authority provides certificate templates you can use to draft these documents. 
• Corporate forms and documents package: This package helps you draft your business documents. Usually, to get your new business running, you need numerous documents, and it can be hard to keep tabs on each one.
• Annual compliance notifications: New businesses need to keep tabs on compliance requirements such as filing taxes and annual reports on time. Inc Authority sends notifications to keep you up to date.
• Professional tax consultation: Inc Authority provides expert tax consultation for businesses to help them figure out the best tax-saving options. Unlike free tax analysis, this one’s more comprehensive and specific to your business. 
• Web domain + 5 business email addresses: Having a web domain and an official email address helps your business’s credibility. And Inc Authority offers 5 email addresses and a domain name on the Starter plan.

Price: Custom

For their top-tier plan, Inc Authority offers expedited filing, comprehensive tax advisory, and more. Here’s everything in detail.

• Expedited preparation & filing: Rush LLC registration is part of Inc Authority’s premium plan. If you’re in a hurry to get your paperwork filed for whatever reason, this is the plan for you. The Inc Authority team will prioritize your filing and submit your application in 24hrs. 
• Customer success advisor: Inc Authority’s Fasttrack plan comes with a customer success manager. They’re a business expert who will guide you through every step of your Pennsylvania LLC formation, help with any doubts, and make sure you’re set up for success.
• Private banking specialist: To ensure your business’s financial continuity, you’ll need to open a separate bank account. With a private banking specialist from Inc Authority guiding you, you’ll know which bank accounts to open, where, when, and how each will be useful for your new LLC. 
• Personalized business advice: Another one of the major perks of choosing the premium plan is that you get personalized business advice. Inc Authority has business experts in different industries who will give you tailored advice to help you scale your business.

Price: Custom

Inc Authority offers trademark registration services for businesses. This includes a federal trademark availability search and expedited filing of your paperwork with the United States Patent and Trademark Office (USPTO).

A trademark expert will be allocated to you to complete and monitor your application while you wait for a response. You’ll be notified of any renewal dates for your trademark registration and you’ll get 3 years of trademark monitoring.

This is related to LLC formation but is important for your business or personal assets long term. If you’re worried about probate and would like to start planning for your finances early, Inc Authority prepares a revocable living trust for you.

This is better than a Last Will and Testament if most of your assets are in real estate. A revocable living trust avoids the hassle of requiring an executor to sell property at discounted prices, or insurance money being used to pay for probate expenses.

New businesses often struggle to build their credit rates which becomes a disadvantage when they’re seeking funding. Inc Authority uses a multi-tiered credit building system to build your business’s credit efficiently and faster.

You’ll get 90 days of hands-on coaching from a business credit expert. Resultantly, you’ll maximize your credit score and improve your profile with major credit bureaus.  Your coach will set up your business profile with Dun, Bradstreet, and Experian.

This is meant to help new and existing businesses find capital and high credit limits. Inc Authority links eligible businesses with low-interest lenders who offer personal loans and credit cards. You can get between $30,000 to $100,000.

They’ll walk you through the pre-application requirements t. Then, they’ll connect you with FICO underwriters for a consultation. They’ll then submit your funding application and issue support to raise your approval chances.

With this paid package, Inc authority writes and edits your business plan for you. This includes details like your business mission statement, marketing analysis, financial projections, executive summary, revenue model, and more. 

The business plan will be tailor-made to your needs to help you acquire funding and grow. You’ll get a dedicated business plan advisor to walk you through the creation process and handle all your queries. This includes any revisions you may need.

This package comes with a few crucial benefits. First, if you want to create a website, Inc Authority connects you with a website designer who’ll customize your website based on your business needs to boost your online visibility.

You’ll get a specialized SEO marketing assistant to help you optimize your meta titles, product descriptions, headings, and keywords. You’ll also get a professionally designed logo, 500 personalized business cards, location listings, etc.