Moving your business to Pennsylvania

Why Pennsylvania?

Pennsylvania shares its borders with some of the top business and industrial states in the nation like West Virginia, Maryland, Delaware, New York, and even the Canadian province of Ontario. A strong transportation system infrastructure ensures a smooth flow of commerce between border states and is one of the key reasons that explains why entrepreneurs prefer to show interest in relocating a business to Pennsylvania. The state also provides necessary support in terms of the business climate, a wide variety of industries, access to different markets nationally and internationally, grants and loan programs, and business incentive programs. These business benefits in Pennsylvania are attractive to both domestic and foreign entities, especially those planning to move their company to this state. Let’s look at some of the top benefits that this state has to offer.

Excellent workforce

A strong and skilled workforce is a key element that drives business growth and expansion. A major reason why Pennsylvania can offer a skilled and dedicated labor force is because it also offers an excellent education system. The state is focused on creating a diverse STEM (science, technology, engineering, and math) workforce by connecting the under-represented high school students with high-demand research and development opportunities. One of the top programs dedicated to creating STEM professionals is Penn State’s EnvironMentors program. Apart from this, the Pennsylvania Department of Labor & Industry also administers several Workforce Development programs thus playing an important role in fulfilling the excellent workforce requirement for entrepreneurs who are interested in relocating a business to Pennsylvania.

Business climate

A favorable business climate is one of the leading business benefits in Pennsylvania. The state has several elements that affect the overall business environment and make it conducive for new and existing businesses. Some of the factors driving the pro-business climate in Pennsylvania are:

• The income tax rate is lower than in some of the other premier states such as North.
• Carolina, Massachusetts, and New York.
• The overall business set-up costs are quite low.
• The state has a robust transportation and logistics infrastructure.
• The legal climate and regulatory environment are quite favorable.
• There are several support programs offered by the state for small businesses.
• Pennsylvania enjoys a geographically strategic location with easy access to national and. international markets.

Infrastructure

If you’re planning on moving your business to Pennsylvania, then you can look forward to salient highlights such as the strong infrastructure that the state has to offer. The state is considered to be one of the leading destinations for new and existing businesses owing this to the transportation infrastructure. It has 65 operational railroads, three major ports in Philadelphia, Pittsburgh, and the Port of Erie, as well as six international airports. The port of Pittsburgh is considered to be the 4th busiest inland port in the nation while the port of Philadelphia is the leading port in the country for handling frozen cargo.

Quality of life

A report by WalletHub reveals that the state of Pennsylvania is ranked among the top 10 places to move to when it comes to lifestyle and living situations. This is one of the principal reasons why entrepreneurs prefer relocating an LLC or moving a corporation to Pennsylvania as the state is affordable, dynamic, and diverse. The median yearly income is more than the national average and a strong public transit system makes travel more inexpensive. Philadelphia is ranked as one of the top cities to live in due to how exceptionally accessible the internet is, and the state also boasts of a good healthcare system.

Steps to Move a Corporation to Pennsylvania

If you’re thinking of relocating a business to Pennsylvania, then you’ll want to take advantage of the several benefits that the state offers from tax incentives to research and development programs. The question: Does Pennsylvania allow domestication? may have already crossed your mind, and you may have wondered about the various processes necessary for moving a corporation. Let’s take a look at the various options available to you in detail.

Domesticate a company in Pennsylvania

There are many states in the USA that don’t allow foreign domestication for businesses, although it is one of the most common methods for moving a business. Entity domestication in Pennsylvania is the first option and it refers to changing a company domicile to Pennsylvania or changing the home state of your corporation. The procedure for domestication of a corporation in Pennsylvania involves the following steps:

• Step 1 – You need to file the Articles of Domestication accompanied by the Docketing Statement pursuant to 15 Pa.C.S. § 375.
• Step 2 – Submit the articles to the Pennsylvania Department of State – Bureau of Corporations and Charitable Organizations along with a fee of $70.
• Step 3 – You may also be required to file a Consent to Appropriation of Name.
• Step 4 – Your entity will then be dissolved in the home state (original state of incorporation).

Register as a Foreign Corporation

The second option for moving your business to Pennsylvania is favorable for entrepreneurs wanting to operate their corporation in their home state (state of incorporation), as well as Pennsylvania. This process for moving a corporation to Pennsylvania is called a foreign qualification. The process is governed by the Pennsylvania Consolidated & Unconsolidated Statutes. According to Chapter 4 – Foreign Associations. The process for foreign qualification is as follows:

• Designate a registered agent in Pennsylvania to handle the service of process.
• If your existing name is not available then you’ll be required to register a fictitious name pursuant to 54 PA Cons Stat § 311 (2020).
• File the Foreign Registration Statement pursuant to the provisions of 15 Pa.C.S. § 412 along with a Docketing Statement and a fee of $250.
• You will also be required to officially publish an advertisement or notice stating your intention to conduct business or to register in this state pursuant to 15 PA Cons Stat § 4124 (2020).

Do you want to start a foreign corporation in Pennsylvania?

Dissolve Your Home Corporation and Establish a New Corporation in Pennsylvania

The third and final option for moving a corporation to Pennsylvania is by dissolving the entity in the home state and starting a completely new one in this state. Once you’ve filed the articles of dissolution in the home state, you will have to apply for domestic incorporation in Pennsylvania. This process for relocating a business to Pennsylvania will require you to follow the laws and processes for dissolution in your original state of incorporation. The process of dissolution will also vary from one state to another and may involve voluntary, judicial, or administrative dissolution.

• You will need to file a Certificate of Dissolution or Articles of Dissolution.
• Depending on the state, you may be required to submit a certificate of cancellation.
• You will need to submit your final tax return or obtain necessary tax clearance.
• Address any or all pending claims.
• Terminate or surrender business licenses.

• Appointing a registered agent in Pennsylvania for service of process pursuant to 15 PA Cons Stat § 1507 (2020).
• Identify and reserve a business name using the Name Reservation/Transfer of Reservation application.
• File Articles of Incorporation along with the appropriate fee pursuant to 15 PA Cons Stat § 1306 (2020).
• Officially publish a notice or advertisement of intention to file articles of incorporation.
• Prepare bylaws for the Pennsylvania Corporation.
• Apply for business licenses and permits.

Incorporate in Pennsylvania with ease!

Steps to Move an LLC to Pennsylvania

Moving an LLC to Pennsylvania is becoming a popular trend amongst entrepreneurs, and small and medium-sized enterprises due to the strategic geographical location that the state enjoys. The state also offers a variety of other advantages to support all types of businesses, including limited liability companies. This state offers several options to assist you with moving your business to Pennsylvania; we’ll examine these processes in detail throughout this article.

Domesticate a company in Pennsylvania

Relocating a business to Pennsylvania can prove to be a good decision because the state has a pro-business climate and infrastructure. But does Pennsylvania allow the domestication of an LLC? Yes. It does. In fact, Pennsylvania is one of the few states offering the opportunity to move your business through the process of domestication. Applying for Pennsylvania business domestication involves the following:

• Step 1 – You’ll be required to file the Articles of Domestication accompanied by a Docketing Statement pursuant to 15 Pa.C.S. § 375.
• Step 2 – The articles for entity domestication in Pennsylvania must be submitted to the Pennsylvania Department of State – Bureau of Corporations and Charitable Organizations along with a fee of $70.
• Step 3 – You may also be required to file a Consent to Appropriation of Name.
• Step 4 – The domestication of your Pennsylvania LLC will lead to the dissolution of your LLC in your home state (original state of formation).

Register as a foreign LLC

The second option for moving your business to Pennsylvania is to register the LLC as a foreign entity. This process is also known as foreign qualification and it works best for business owners who want to operate their company in the home state as well as in the new state (Pennsylvania). This type of entity relocation is governed by the 2020 Pennsylvania Consolidated & Unconsolidated Statutes, Title 15 – Corporations and Unincorporated Associations, Chapter 4 – Foreign Associations. The process to transfer an LLC to Pennsylvania using foreign qualification encompasses:

• You’ll need to hire and maintain a registered agent in Pennsylvania to handle service of process and manage the LLC state annual requirements.
• You’ll need to choose a business name. You can keep the existing name or choose a new name. If the chosen name or existing name is unavailable then filing a DBA (fictitious name) may be necessary for moving an LLC to Pennsylvania.
• You’ll need to file the Foreign Registration Statement pursuant to the provisions of 15 Pa.C.S. § 412. This will provide you with the authority to conduct business in this state.
• You’ll also be required to apply for the relevant business licenses and permits in the state.

Apply for LLC foreign qualification in Pennsylvania

Dissolve the home LLC and form a new LLC in Pennsylvania

Moving an LLC to Pennsylvania is also possible by dissolving your entity in the home state, and then forming a new domestic entity in the new state. This process will require you to follow the laws of dissolution for your home state, and the laws of new business registration for Pennsylvania. Certain aspects of dissolution will remain the same in all states like filing certificates or articles of dissolution; although the fee may vary. A limited liability company can be dissolved voluntarily or through judicial, or administrative dissolution.

• Depending on the state, you will need to file a Certificate of Dissolution or Articles of Dissolution.
• You may also be required to submit a certificate of cancellation.
• You will need to obtain necessary tax clearances by filing pending state or local taxes.
• Clear all your pending claims with customers, vendors, etc.
• Surrender your business licenses and permits.

• Appoint a registered agent in Pennsylvania for service of process pursuant to 15 PA Cons Stat § 8825 (2016).
• Identify and reserve a business name using the Name Reservation/Transfer of Reservation application.
• File the Certificate of Organization pursuant to 15 PA Cons Stat § 8821 (2022) along with a fee of $125.
• Prepare a Pennsylvania LLC operating agreement.
• Open a business bank account.
• Apply for and obtain necessary business licenses and permits in the state.

Register your LLC in Pennsylvania Today!

Move Your Business to Pennsylvania with IncParadise

Relocating a business to Pennsylvania involves different processes by which this type of transfer can be made possible. We at IncParadise, one of the top registered agent service providers in Pennsylvania can provide you with information concerning entity domestication in Pennsylvania and foreign qualification. We can also help you by facilitating the paperwork necessary to dissolve your entity in the home state and start the new business formation in PA.