Opening a limited liability company (LLC) in Philadelphia can be a rewarding venture, but it requires careful planning and strict adherence to legal requirements. Whether you’re an aspiring entrepreneur or an established business owner looking to expand, understanding the stages of starting an LLC is crucial. Careful planning can prevent you from unfortunate surprises and give you many strategic advantages along the way.
If you are confused about how to start LLC in Philadelphia, Premiere Legal Solutions can guide you through this process step by step with high-quality legal support to help you prepare a clear plan of action. Our dedicated attorneys are well-versed in the business laws of Pennsylvania and can effectively guide you through all stages of registering for LLC.
Feel free to give us a call at 267 245 0649 or shoot us a quick message to see how our legal advice can help you in your business endeavors.
Step 1: Name your LLC
The first step in forming an LLC is selecting a name that is unique and complies with your state’s regulations. Your chosen name must include the abbreviation “LLC” or the words “Limited Liability Company.” Before opening an LLC, conduct a thorough search on the Pennsylvania Department of State’s website to ensure your desired name is available and not already in use. Once you find an available name, reserve it by filing a Name Reservation form with the Department of State.
Step 2: Decide Who’s Who: Member v. Manager
LLCs are typically managed by their members or designated managers. Members are the owners of the LLC, while managers may be either members or hired professionals. Before you open an LLC, Choose the management structure that best suits your business needs. Document the roles and responsibilities of members and managers in the LLC operating agreement, which serves as a roadmap for how your business will be managed and operated.
Step 3: Choose a Registered Agent
A registered agent is an individual or entity responsible for receiving legal documents on behalf of the LLC. An LLC in Philadelphia must maintain a registered agent within the state. The registered agent’s address is where official correspondence, such as legal notices and tax documents, will be sent. You can choose to be your own registered agent or hire a professional registered agent service to fulfill this requirement.
Step 4: Now You Are Ready to Start LLC
To officially establish your LLC, you need to file the necessary formation documents with the Pennsylvania Department of State. Prepare the Certificate of Organization, which includes essential information about your LLC, such as its name, registered agent details, and management structure. Then, submit the completed form along with the filing fee to the Department of State. Once approved, you will receive a Certificate of Organization, confirming the formation of your LLC.
Step 5: Decennial Reports
If you are starting an LLC in Philadelphia, be aware that you are required to file a Decennial Report every ten years. This report is intended to confirm that the LLC is still actively operating. The report is due in the years ending with “1” or “6” and must be filed with the Department of State. Failure to file the report may result in the dissolution of your LLC. Stay informed about the filing deadlines and ensure compliance to maintain your LLC’s active status.
When forming an LLC in Philadelphia, you will need to prepare several documents. Here is a quick checklist of what you will need.
Certificate of Organization
This document outlines the basic information about your LLC, including its name, registered agent details, and management structure.
When registering LLC, you will need the Docketing Statement to provide information about your LLC’s tax status and to obtain a Tax Identification Number (TIN) from the Pennsylvania Department of Revenue.
While it is not legally required in Pennsylvania, having an LLC operating agreement is highly recommended. This agreement establishes the ownership, management, and operating procedures of your LLC.
Employer Identification Number (EIN)
If your LLC has employees or multiple members, you will need to obtain an EIN from the Internal Revenue Service (IRS) if you want to register as an LLC. This number is used for tax purposes and is essential for hiring employees and opening business bank accounts.
Fictitious Name Statement
A Fictitious Name Statement, also known as a “Doing Business As” (DBA) or a Trade Name Statement, is a legal document used when a business wants to operate under a name other than its legal or registered name. If you want to open an LLC and plan to conduct operations using a name that is different from yours or the entity that owns the business, you will need a Fictitious Name Statement.
Navigating the legal requirements and complexities of opening an LLC in Philadelphia can be confusing, time-consuming, and, sometimes, frustrating. Consulting with an experienced LLC lawyer can give you assurance and save you time and energy at all stages of LLC formation.
An attorney can offer guidance on choosing the appropriate management structure, drafting the operating agreement, and ensuring compliance with local and state laws.
From the Certificate of Organization to the operating agreement, an LLC lawyer can help you prepare and file the necessary documents needed for registering LLC accurately and efficiently.
An attorney can help you stay on top of reporting requirements, tax obligations, and other legal obligations to ensure your LLC remains in good standing.
For a smooth LLC creation process and expert guidance on how to open LLC, consult Philadelphia LLC attorneys at Premiere Legal Solutions. We have the knowledge and skills to effectively register your LLC and provide you with the legal tools necessary to form a productive business in Philadelphia. Don’t hesitate to give us a call at 267-245-0649 or fill out the contact form and one of our lawyers will get in touch with you shortly.