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How to choose a Registered Agent in Pennsylvania

Date: 12/06/2023 | Category: | Author: developers

How to choose a Registered Agent in Pennsylvania?

Whether you’ve already created a company or are planning to expand your business to Pennsylvania, most state statutes would require you to designate and maintain a registered agent in each state of registration. Registered agents in Pennsylvania play several key roles including helping you with your business formation and providing service of process. This guide was created to provide you with insight into the Pennsylvania agent for service of process, how to choose an agent for your corporation or LLC, the various services offered by RAs, and the steps for changing your registered agent.

Pennsylvania Registered Agent

A Pennsylvania LLC registered agent can be an individual or a company, and you can even be your own registered agent in certain states. This type of agent is also known as a resident agent, statutory agent, or simply an agent for service of process. A resident agent is also considered to be the primary official point of contact for a corporation, a limited liability company, or any other legal entity operating in this state. To identify a reliable or reputable agent, you may be required to conduct a Pennsylvania registered agent search because the services offered can vary from one agent to another.

What is a Registered Agent in Pennsylvania?

A designated registered agent in Pennsylvania must remain in compliance with the 2020 Pennsylvania Consolidated & Unconsolidated Statutes for receiving service of process (SOP) on behalf of an individual, firm, or multiple businesses. Similarly, each state in the USA has business laws and statutes relevant to maintaining a resident agent in the state. A Pennsylvania agent for service of process not only handles SOP but also provides a wide variety of services that could be categorized as general business services such as filing an EIN or customized services like filing an S-Corporation.

Why do Pennsylvania Businesses Need a Registered Agent?

When you form a new LLC or incorporate in the state of Pennsylvania, you will need to designate and maintain a registered agent in the state. It’s important to understand that the state has defined laws that identify and segregate the roles and responsibilities of RA services in the state. These laws apply to both new and existing entities that are currently active and operational in the state. Each business also has a different reason and requirement for hiring a Pennsylvania Corporation registered agent. Some of the reasons why a company may need such services include:

  • Ensure service of process – This is normally the primary objective for all registered agents in Pennsylvania, as well as a basic business requirement. Service of process is usually required when a company is sued. If an entity is sued, then the court will obtain jurisdiction over the entity by delivering service of process to the designated registered agent. Generally speaking, service of process is considered to be the shorthand for any legal documents initiating a lawsuit like a complaint or summons.
  • Avoiding the risk of non-compliance – Once you register a new company in the state, your business needs to be compliant with state requirements as specified in the 2020 Pennsylvania Consolidated & Unconsolidated Statutes. A Pennsylvania LLC registered agent who is well-versed in the state laws and requirements can ensure that your company is always compliant with the state and business requirements.
  • Receiving business-related documents – If you incorporate in Pennsylvania then the state will send you legal and business documents concerning the formation and operation of your company. If you have to travel a lot or are unable to maintain business hours then a resident agent can ensure that you will receive all your important documents. You’ll need to conduct a Pennsylvania registered agent search to find services that fulfill this requirement.

Looking for a Professional Registered Agent Service?

Can I Be My Own Registered Agent in Pennsylvania?

Yes, you can be your own registered agent in Pennsylvania. Although, it’s important to ensure that you meet all state requirements as directed by the law. As an individual, there are certain criteria that you must to meet including:

  • To be a Pennsylvania agent for service of process, you should have a physical street address in the state. A P.O. box will not be accepted.
  • You should be over 18 years of age.
  • You need to be available during working hours throughout the week.

Why Do Businesses Choose a Registered Agent Service in PA?

The 2020 Pennsylvania Consolidated & Unconsolidated Statutes have made it mandatory for specific business entities like corporations, S Corps, and limited liability companies (LLCs), to maintain a registered agent to receive legal communication and other documents on behalf of the business. Hence, you need to hire a highly professional and reputable service. For this reason, you will need to conduct a Pennsylvania registered agent search. It’s important to identify an RA service that will be available during the working hours of every business day. Although this may be a difficult proposition for business owners, IncParadise provides all this and more. Some of the top reasons for choosing a Pennsylvania Corporation Registered Agent service include:

  • A Pennsylvania Agent for Service of Process will not only receive official and legal documents, but will also forward them to the business owners, members, or directors of the company.
  • A PA resident agent service will maintain regular business hours to guarantee that you don’t miss any important and legal documents.
  • A reputable PA registered agent will handle business related requirements and help you organize and maintain these documents properly.
  • Some services provide offsite storage facilities for sensitive and legal documents.
  • Top PA services include automated reminders that are sent promptly to help prevent you from missing any filing deadlines like filing the PA Annual Reports.
  • When you conduct a Pennsylvania Registered Agent Search, try to look for a service provider who promises to protect your private information.

IncParadise can be your Registered Agent in Pennsylvania. We offer a highly professional service, recognized by our many happy clients. We are also well-versed with the state laws and requirements for all entity types. IncParadise also fulfills the requirement of maintaining consistent business hours.

Want to hire us as your Pennsylvania Registered Agent?

How to Elect a Registered Agent in Pennsylvania?

If you’ve registered your startup in Pennsylvania, or are planning to incorporate, then appointing a registered agent is important and mandatory. This is because the 2020 Pennsylvania Consolidated & Unconsolidated Statutes, 15 PA Cons Stat § 8825 (2020) states that each domestic, foreign, and nonprofit entity will need to appoint and continuously maintain a registered agent in the state. You may need to conduct a Pennsylvania Registered Agent Search to find the right resident agent as the state has hundreds of qualified RAs offering their services. The type of services offered by a statutory agent can vary from one agent to another and so will their pros and cons. However, here are some tips that will help you to choose the right Pennsylvania LLC Registered Agent:

  • You need to look for a professional service focused on ensuring that all filings and services are taken care of promptly.
  • You should consider the overall value of the service rather than the price point because choosing a cheap service can involve risks or lead to expensive mistakes.
  • When searching for a Pennsylvania Corporation Registered Agent, consider the option for customizable electronic notification services.
  • Top resident agents in the state will provide you with additional compliance tools to help you meet annual state requirements.
  • It’s important to choose an agent that specializes in handling sensitive documents and also provides a forwarding service.
  • A nationwide registered agent service like IncParadise can offer long-term benefits, especially when it comes to helping to move your business to other states or with foreign qualification.
  • RA services should provide you with a reliable software system that helps you manage renewal dates and keep up with your company’s operations like the Entity Management Software by IncParadise.

How to Change a Registered Agent in Pennsylvania?

If you’ve registered a C or S Corp, an LLC, or any other entity type and designated a registered agent initially, but need to change the agent now, what would be the process? It’s important to first understand that each business has its own requirements and reasons for wanting to change their existing Registered Agent in Pennsylvania. Some of the most common reasons include:

  • If you’re looking for a professional service.
  • Moving your business from another state to Pennsylvania.
  • Your existing RA doesn’t provide services in Pennsylvania.
  • Your designated resident agent has moved away from this state.
  • The current registered agent is unable to meet the Pennsylvania RA state requirements.

There could be several official and personal reasons that may require you to change your Pennsylvania LLC Registered Agent. The process to change a resident agent may vary from one state to another although some laws and requirements remain the same like notifying your existing agent of certain changes and filing the relevant documentation. Let’s take a look at the process for changing your Registered Agent in Pennsylvania with ease.

Fill out a Change of Registered Office Form and Submit it to the Pennsylvania Department of State Along with the Necessary Filing Fee

If you’re thinking of changing your Pennsylvania Agent For Service of Process then the first step is to submit the Statement of Change of Registered Office by Agent (form DSCB:15-108). The form has to be submitted to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations. There is a filing fee of $5.00 for domestic entities and a fee of $250.00 for foreign businesses. You can submit the change of agent form online or send it through the mail.

The application for changing a Registered Agent in Pennsylvania should be submitted pursuant to 15 Pa.C.S. § 108. You will need to provide specific information like:

  • The name of the association
  • The current name of the previous authorized person or agent
  • The name of the new agent
  • The address of the present registered office
  • The new registered agent’s office address
  • The termination of status
  • The new registered agent’s name and signature

It’s important to note that you will need to notify your former Pennsylvania Corporation Registered Agent regarding the decision to change services before filing the Statement of Change.

Hire us and we will complete the change of agent form for you

If you’re thinking of changing Registered Agents in Pennsylvania then IncParadise is one of the most reputable agents in the state. We offer a plethora of general business and customized services in addition to service of process (SOP). If you hire us, we’ll help you complete the change of agent form. We will also provide information concerning the entire process for changing your RA, from informing your previous resident agent, to submitting the change of agent form.

Want to change your Pennsylvania registered agent?

Why Choose IncParadise as Your Pennsylvania Registered Agent?

If you register or incorporate a new business in Pennsylvania then it is mandatory to maintain a registered agent in the state. It’s important to conduct a proper Pennsylvania Registered Agent Search to help you find a reputable and professional service. IncParadise is one of the most reputed and top registered agents in this state who adheres to the Pennsylvania RA requirements as established by PA statutes.

As a top Pennsylvania Agent for Service of Process, we have the necessary experience and expertise in all aspects of new business formation. We will not only accept the service of process but also other important legal, state, and business communications on your behalf. We also provide Entity Management Software to all our clients, providing access to email notifications and reminders for the renewal of agents and other business services in Pennsylvania.

Choose Our Pennsylvania Registered Agent Services for your company today!

Moving your business to Pennsylvania

Date: | Category: | Author: developers

Moving your business to Pennsylvania

Every business is created with the sole objective of achieving growth and stability. Expansion is an integral part of business strategy because it enables growth. Expansion can take place in the state where the business was formed or can be moved to another state for better opportunities. If you plan on moving your business to Pennsylvania then this guide will help you understand the various options available for relocating a business. This guide will also convey information concerning the steps and requirements of relocation and confirm whether Pennsylvania allows domestication.

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.

Example: If you have formed a business in Florida by filing articles of incorporation then the home state will be Florida. Now, if you are thinking of moving a corporation to Pennsylvania then you will need to file Articles of Dissolution in Florida. This will also involve filing any outstanding claims, and state and local taxes. You will then need to wind up all affairs in Florida like canceling business licenses and permits. Once these processes are complete in the home state, you will be ready to incorporate in Pennsylvania.

The process of moving a corporation to Pennsylvania through the dissolution of a corporation in the home state and incorporation of the new entity in Pennsylvania involves:

Dissolution in the Home State:

  • 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.

IncParadise, one of the most reputable registered agents in the USA offers dissolution services in all 50 states.

New Incorporation in Pennsylvania:

  • 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.

Example: If you have formed a limited liability company in Maryland by filing articles of organization then Maryland will be considered as the home state. Now, if you plan on moving your business to Pennsylvania then you will need to file Articles of Cancellation in Maryland. This will also involve filing any outstanding local taxes, claims, and state taxes. You will need to wind up all affairs in this state including canceling all business licenses and permits. Once these processes are complete in Maryland, you will be able to transfer your LLC to Pennsylvania.

The process of relocating a business to Pennsylvania through the dissolution of a limited liability company in the home state and registration of a new entity in Pennsylvania involves:

Dissolution in Home State:

  • 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.

IncParadise is one of the nation’s leading registered agent service providers, recognized for their professionalism and expertise; offering LLC dissolution services in all 50 states.

New LLC Formation in Pennsylvania:

  • 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.

IncParadise also provides a variety of services to fulfill various business requirements like helping to maintain compliance with state laws and annual maintenance. Our additional services include obtaining an EIN and filing the Pennsylvania annual report among others. The purpose of these services is to provide your business with all the necessary support required to help expand your business to Pennsylvania.

IncParadise can help you to move your business to Pennsylvania!

Foreign qualification in Pennsylvania

Date: | Category: | Author: developers

Foreign qualification in Pennsylvania

There are many times when entrepreneurs operating their startups in a specific state will feel the need to expand their business to other states. Does this mean that they have to register their company all over again in the new state? Current business laws make this expansion possible without the need to re-register businesses in each state. This process is known as a foreign qualification in Pennsylvania. We’ve created this guide to provide relevant information concerning the various processes for a Pennsylvania foreign business registration, including state laws, foreign qualification requirements, processes, fees, and an understanding of how doing business in the state of Pennsylvania is defined.

Pennsylvania Foreign Qualification

Whether you’re planning a Pennsylvania LLC foreign registration or a foreign incorporation, it’s always essential to identify the various advantages offered by the state. The state of Pennsylvania has always attracted small and medium-sized enterprises primarily due to its excellent geographic location and strong transportation infrastructure. The state is also home to a growing STEM workforce that includes engineers, software specialists, statisticians, mathematicians, physical scientists, and life and social scientists. This not only helps to improve the overall business climate but also plays a key role in industry innovation. The process for a Pennsylvania foreign business registration also ensures that you or your company has access to state business incentives and tax credit programs that offer several long-term benefits.

What is a Pennsylvania foreign qualification?

The terminology, foreign qualification in Pennsylvania can sound overwhelming and you may think that this refers to the registration of international companies; however that is not the case. When it comes to Pennsylvania state laws like the Pennsylvania Consolidated & Unconsolidated Statutes and the governing authorities, foreign qualification simply refers to the operations of a company in a state or jurisdiction that is different from the entity’s state of formation. This applies to different entity structures such as limited liability companies (LLCs), corporations, limited liability partnerships (LLPs), and limited partnerships (LPs). The process and requirements may vary from one state to another and you’ll also need to conduct a Pennsylvania foreign entity search before registering in the foreign state. Let’s look at an example to understand this:

Example: You have formed a domestic corporation in Massachusetts by filing the Articles of Organization. Here, Massachusetts is considered to be your home state or state of incorporation. Now, if you want to expand your business to Pennsylvania, there are two options. One is to close your existing business and incorporate a new company in Pennsylvania. The second option is a Pennsylvania foreign corporation registration or foreign qualification.” This process will provide you with the authority to transact business in Pennsylvania without the need to close your company in Massachusetts.

Doing business in Pennsylvania?

Generally speaking, corporations, limited liability companies, and any other business entities can’t just transact business in any state that they want to, other than their initial state of registration. All business entities require permission from the state that they want to transact business in that is outside of their home state. Hence, Pennsylvania foreign business registration becomes necessary. Permission to do business in Pennsylvania is governed by the process of a foreign qualification. Each state in the USA has separate laws for defining business transactions, making it important to understand the concept of doing business in this particular state.

The Pennsylvania Consolidated & Unconsolidated Statutes provide an insight into the various activities of a foreign entity that do not constitute doing business in Pennsylvania. According to 15 PA Cons Stat § 403 (2020), not doing business includes:

  • Mediating, maintaining, arbitrating, defending, or settling a proceeding or an action
  • Carrying out any activity related to the entity’s internal affairs like holding meetings
  • Maintaining business bank accounts in financial institutions in Pennsylvania
  • Selling products or services through independent contractors in this state
  • Maintaining an office or agency for the exchange, transfer, and registration of securities
  • Acquiring or creating indebtedness or security interests in Pennsylvania property
  • Transacting business in foreign or interstate commerce
  • Conducting an isolated transaction

Pennsylvania Foreign Qualification Process

If you have an existing business like a corporation or an LLC in any other state and want to expand to the state of Pennsylvania, then it will be considered a foreign entity in this state. In this case, you’ll be required to apply for a foreign qualification in Pennsylvania and the process is governed by the Pennsylvania Consolidated & Unconsolidated Statutes. According to Chapter 4 – Foreign Associations, each entity based in any other state but wanting to conduct business in Pennsylvania will need to apply for proper authority to do business. There can be serious consequences for transacting business without the state-mandated authority which may include severe penalties. Let’s look at the process of a Pennsylvania foreign business registration for LLCs and corporations.

Pennsylvania Foreign Corporation Registration

If you’re already operating a corporation in another state and want to expand your operations to Pennsylvania then you’ll need to apply for a foreign qualification. This involves applying for a Pennsylvania foreign corporation registration to get the necessary authority to transact business in this state. Let’s understand in detail what this process requires.

What is a Pennsylvania Foreign Corporation?

A Pennsylvania foreign corporation is an entity that’s registered in any state other than Pennsylvania and is interested in transacting business in this state.

Example: If you have incorporated in South Dakota and operate your business in the said state but after a few years want to expand your business to Pennsylvania, then it will be considered a foreign corporation in the latter state.

There are certain steps that you would need to follow including the Pennsylvania foreign entity search and registration. Let’s look at the steps involved in applying for a Pennsylvania foreign qualification.

How to register a foreign Corporation in Pennsylvania?

The process of a foreign qualification involves registering a corporation in the state of Pennsylvania, although the process and fees will be different from the registration of a domestic company. The process of a Pennsylvania foreign corporation registration involves various steps including:

  • Corporation Name – The first step towards a Pennsylvania foreign corporation registration is identifying and registering a business name. The corporate name should comply with state laws and should contain words like “corporation,” “incorporated,” or abbreviations like “Inc.,” “corp.,” and “co.” Once you’ve identified a name, it’s important to conduct a Pennsylvania foreign entity search also known as a name availability search. If the chosen name is unavailable or doesn’t comply with Pennsylvania laws then you will need to file a DBA.
  • Registered Agent – Whether you’re forming a domestic entity or applying for a Pennsylvania foreign corporation registration, there are certain state guidelines you’re required to follow. One mandatory law is to continuously maintain a registered agent in the state. IncParadise is one of the top Pennsylvania registered agents that has helped several domestic and foreign entities incorporate in this state.
  • Foreign Registration Statement – The most important step to apply for a Pennsylvania foreign business registration is to get the necessary authorization to transact business in the state. You’ll need to file the Foreign Registration Statement pursuant to the provisions of 15 Pa.C.S. § 412. This application must be submitted to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations along with a fee of $250. You’ll also be required to submit a Docketing Statement along with the Foreign Registration Statement. The docketing statement includes information concerning the foreign entity like the Employer Identification Number, the Description of Business Activity, and the name of the entity. You also have the option to apply for expedited service by paying an additional fee that depends on the service selected. In some cases, the fee for same-day delivery is $100
  • Advertisement – Once you apply for a Pennsylvania foreign corporation registration it’s important to officially publish a notice or advertisement stating your intention to register or conduct business in this state, pursuant to 15 PA Cons Stat § 4124 (2020).

Do you want to register a foreign Corporation in Pennsylvania?

Pennsylvania Foreign LLC Registration

If you’re already operating a limited liability company in another state and want to expand your business to the state of Pennsylvania, then you have to undergo the process of a foreign qualification. This process is also known as Pennsylvania LLC foreign registration and will help you transact business in the state without the need to register a new or domestic LLC. 2020 Pennsylvania Consolidated & Unconsolidated Statutes, Title 15 – Corporations and Unincorporated Associations, Chapter 4 – Foreign Associations.

What is a Pennsylvania Foreign LLC?

A Pennsylvania foreign limited liability company is an LLC that’s registered in any state other than Pennsylvania, that also wants to conduct business in this state, while remaining operational in their home state. The home state is the state of the LLC formation and initial registration.

Example: You have registered your LLC in Louisiana and are operating there. Now, you want to expand your business in other states like Pennsylvania. In such a scenario, your Louisiana limited-liability company will be considered a foreign LLC and Pennsylvania foreign business registration will become necessary.

There are certain steps involved for the process of a Pennsylvania LLC foreign registration. Let’s take a closer look at these important steps.

How to register a Foreign LLC in Pennsylvania?

If you’re already operating a limited liability company in another state and you want to expand your business to the state of Pennsylvania, then you’ll need to obtain authority from the state to conduct your business. This process is known as a Pennsylvania LLC foreign registration and there are several other aspects to this process that you need to consider. The various aspects involved in a Pennsylvania foreign qualification include:

  • LLC Name – One of the foremost requirements of a foreign qualification is identifying a business name. You have to select a name in compliance with the state’s naming guidelines. You’ll also need to conduct a Pennsylvania foreign entity search to verify the LLC name availability. Ideally, an LLC name should contain words like “limited liability Company” and “limited company” or abbreviations like L.L.C or LLC. If the chosen LLC name is not available or doesn’t comply with Pennsylvania naming guidelines then you may be required to file a DBA.
  • Registered Agent – One of the important aspects of any new business formation including Pennsylvania foreign business registration, is the service of process executed by a registered agent. A foreign limited liability company in Pennsylvania will need to continuously maintain a registered agent in the state. Pennsylvania registered agent services offered by IncParadise will not only help fulfill state requirements like service of process, but can also assist with other annual compliances like filing annual reports.
  • Foreign Registration Statement – A foreign limited liability company that wishes to transact business in this state will need to go through the process of a foreign qualification. A Pennsylvania LLC foreign registration requires you to file the Foreign Registration Statement pursuant to the provisions of 15 Pa.C.S. § 412. This form has to be submitted to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations along with a filing fee of $250. It’s important to note that every foreign LLC registered in this state also has to submit a Docketing Statement along with the Registration Statement.

Want to form a foreign LLC in Pennsylvania?

Need Any Assistance in Applying for Pennsylvania Foreign Qualification?

Pennsylvania is a favorable state for entrepreneurs because it offers a good business climate, a skilled workforce, a strong transportation infrastructure, and a wide variety of business incentives. If you’re planning to expand or move your existing business to the state through the process of a foreign qualification in Pennsylvania, then you can take advantage of the numerous state benefits. As one of the leading registered agents in Pennsylvania, IncParadise can assist you with the process of a foreign LLC registration or incorporation.

We provide several other business-related additional services in Pennsylvania that will help fulfill the annual compliances required for your company like filing annual reports or getting an EIN tax ID. We also provide foreign qualification services in all 50 states.

Are you ready to apply for a Pennsylvania Foreign Qualification?

Pennsylvania small business grants

Date: | Category: | Author: developers

Pennsylvania small business grants

When you consider starting a new business, you must be mindful of the several stages that require your maximum focus. The three most important stages for any small business are the formation or registration stage, the finances or budget, and the operations. Depending on the primary business activity, a startup may have higher or lower expenses in the initial formation and operational stages. Sometimes, the budgetary expenses may exceed your expectations, in which case the Pennsylvania small business grants can provide necessary relief. Hence, we’ve created this article to provide first-time entrepreneurs with insight into the various types of Pennsylvania grants for small business, loans, and business incentives to leverage.

Doing Business in Pennsylvania

Doing business in Pennsylvania can be quite favorable for startups and first-time entrepreneurs because the state provides the right platform for achieving stable growth and business expansion. The state of Pennsylvania boasts a strong economy with the Real Gross Domestic Product (GDP) of over $700 billion. The state has a pro-business climate driven by a wide variety of Pennsylvania state small business incentives and grants programs. The state is also home to several Fortune 500 and 1000 companies like Amerisource Bergen, PNC Financial Services Group, Lincoln National, Universal Health Services, Dick’s Sporting Goods, Hershey’s, and Comcast among others. Some of the cities in Pennsylvania have just the right infrastructure to enable startup growth and promote small businesses including Philadelphia, Allentown, Pittsburgh, Lancaster, and Scranton.

Why is Pennsylvania a good place to do business?

If you plan on doing business in Pennsylvania, you’ll find it to be a good decision because the state provides a strong business support infrastructure and robust supply chain management. As a new business, you can utilize the availability of Pennsylvania small business grants, which can help you fund your business during the initial formation and operational stages. Let’s take a look at some of the advantages of conducting business in this state.

  • Strategic location – Location is the first and foremost advantage when it comes to establishing your business in this state. As the 5th most popular state in the nation, it shares borders with Delaware, Maryland, West Virginia, New Jersey, Ohio, New York, Lake Erie, and the Canadian province of Ontario. This means that a business can have immediate access to resources from the neighboring states and reach these markets with ease. The state also has six international airports and port access to the Atlantic Ocean, the Great Lakes, and the Gulf of Mexico, thus ensuring that doing business in Pennsylvania is simplified when it comes to transportation and logistics.
  • Business Climate – The state of Pennsylvania has a pro-business climate. Several factors play a key role in keeping the business climate-friendly for budding entrepreneurs. Some of the key factors include:
    • Pennsylvania state small business incentives and grants
    • A skilled and committed workforce of 6.3 million that includes STEM
    • It’s known as one of America’s top 15 states for innovation and technology
    • Quick access to funds including the availability of venture capital
    • The state is home to eight foreign trade zones
    • The state has 120,000 miles of highway and well-connected transit systems
  • Diverse Industries – Entrepreneurs prefer to start their businesses in Pennsylvania because the state offers a diverse spectrum of industries that they want to be part of. Not only does each industry attract venture capital, but some specific industries offer Pennsylvania grants for small businesses as well. Technology and innovation drive most industries including the distinctly promising Robotics and AI sector. World-class R&D institutions like Carnegie Mellon University provide the essential knowledge and support that help to cultivate the development of the future of technology. Some of the other top industries include the semiconductor sector, the aerospace ecosystem, space exploration, defense research, medical device manufacturing, the pharmaceutical sector, medical research and laboratory testing, advanced manufacturing, and food and beverages among others. The state also has a diverse and abundant energy portfolio and is ranked second in the country in terms of natural gas reserves.

Enjoy Pennsylvania advantages by registering your company today!

Small Business Incentive Programs and Grants in Pennsylvania

Choosing to form your start-up in Pennsylvania will enable you to utilize the many benefits that the state has to offer including a wide variety of Pennsylvania small business grants and incentives programs. These programs were specifically created to help small and medium-sized enterprises (SMEs) by allowing them to direct more focus toward business operations. Here’s a list of some of the most popular incentive programs in the state.

Small Business Advantage Grant

The Small Business Advantage Grant Program (SBAG) is available to small businesses that fulfill certain grant criteria such as upgrading their lighting, investing in equipment that helps to eliminate pollution or waste caused by business operations, and installing efficient HVAC systems. The program offers a grant maximum amount of $9,500 for purchasing pollution prevention equipment or energy-efficient systems. This grant is offered once each year and you will need to submit a Pennsylvania grant application for SBAG to apply. Information concerning this grant is available through the Small Business Ombudsman Office.

State Small Business Credit Initiative (SSBCI) in Pennsylvania

The Pennsylvania State Small Business Credit Initiative (PA-SSBCI) is a Pennsylvania state small business incentives This program facilitates funding to economic development partners and allows them to implement and administer capital programs for supporting small entities through loans and equity investments. This initiative is overseen by the PA Department of Community & Economic Development (DCED) and consists of three different programs, which include:

  • Loans for small businesses in the state
  • Equity investments in emerging and existing technology companies
  • Loans for venture capital and general partners

Small Diverse Business Capital Access Program (SDBCA)

If you’re planning to start a small business (SB) or a small diverse business (SDB), then the Small Diverse Business Capital Access Program (SDBCA) can be quite helpful for you. The primary objective of this program is to provide low-interest loans and lines of credit to small businesses (SB) or small diverse businesses (SDB) that commit to the creation and retention of full-time jobs within this state.

If your company is eligible for this program then you’ll need to submit the appropriate Pennsylvania grant application. The most commonly eligible projects include land and building acquisitions, construction and renovation costs, and machinery and equipment purchases among others. The maximum loan amount available through the SDBCA is $200,000 or 50% of the total cost of the eligible project while the maximum amount available through the line of credit option is $100,000.

Pennsylvania Minority Business Development Authority (PMBDA)

Pennsylvania has several small business grants and loan programs that they offer to provide critical financial support to small businesses. One program worth mentioning is the Pennsylvania Minority Business Development Authority (PMBDA) Program. The primary objective of this funding program is to provide incentives for the creation, retention, and expansion of minority-owned businesses, thus enabling the creation of jobs in Pennsylvania.

The PMBDA program provides small businesses with low-interest loans, allowing them to finance a portion of the expenses associated with building, land, machinery, equipment, and working capital. The maximum funding available through this Pennsylvania Grants for Small Businesses program cannot exceed 90% of the cost of an eligible project or $250,000. If you’re interested in information concerning the PMBDA, your queries should be directed to the Pennsylvania Department of Community and Economic Development (PDCED).

Business Opportunities Fund (BOF)

The Business Opportunities Fund (BOF) is a Pennsylvania small business grants and loans program that provides financial assistance to woman-owned small businesses, minority-owned contractors, and other small business owners. You can take advantage of this program if you lack access to small business loans or lines of credit from traditional financial institutions like banks. The funds from this program can be used for:

  • Cash flow (working capital)
  • New and used Equipment
  • Leasehold improvements
  • Acquisition of owner-occupied commercial real estate

Currently, there are no maximum or minimum loan amounts.

Neighborhood Assistance Program, Enterprise Zone Tax Credit (NAP/EZP)

The Neighborhood Assistance Program, Enterprise Zone Tax Credit (NAP/EZP) is a Pennsylvania state small business incentives program that provides tax credits to private companies or businesses in the state. This program is administered by the Pennsylvania Department of Community and Economic Development (DCED). The EZP program’s main target is private for-profit companies that are operational or doing business in distressed areas, within a designated zone like an Enterprise Zone, or Keystone Communities Enterprise Zone. Once you submit the Pennsylvania grant application for this program, you can be eligible for a maximum of 25 percent tax credit with a maximum of $500,000 in tax credits for your EZP project.

Tax Incentives

Apart from the Pennsylvania grants for small businesses, there are several tax incentive programs that you can apply for. The objective of these programs is to reduce the overall tax burden for small companies through exemptions and tax credits. Some of the top programs that you can apply for include:

Ready to Start a Business in Pennsylvania?

All new small or medium-sized businesses require some form of financial assistance during their formation and operational stages. Financial assistance in the form of Pennsylvania small business grants or tax credit programs can help businesses to execute their professional objectives efficiently. The state offers several types of assistance through the Pennsylvania grants for small businesses and tax incentive programs across diverse industries. If you’re considering starting a new business, then you can take advantage of these incentive and financial assistance programs after you’ve registered or incorporated in this state.

IncParadise is an expert incorporation provider offering one of the most reputed Pennsylvania registered agent services. We can help you to start a business in this state. We also provide additional services that can help your company to maintain compliance with all state requirements like filing of the annual report.

Form a new business in Pennsylvania today!

Pennsylvania Business Tax – Complete Guide

Date: | Category: | Author: developers

Pennsylvania Business Tax – Complete Guide

Pennsylvania’s growing success as a highly sought-after destination for startups and new businesses can be credited to its strategic location, combined with a smart workforce and a pro-business climate. Whether you’re planning to set up a business for the first time, or you’ve already registered your company, an important detail to remember is filing your Pennsylvania business tax. Various taxes are applicable in this state, and it can seem quite confusing for new entrepreneurs. Hence, we’ve created a guide that will help you understand and identify the tax liabilities specific to your business. You can also use a PA business tax calculator to file the correct taxes for this state.

Pennsylvania Business Tax

When you start a new business in Pennsylvania, you may be required to file taxes at the state, local, and federal level. The type of taxes you file will predominantly depend on the type of entity structure you’ve chosen to form, as well as the business activity and the location of the company. The Pennsylvania business tax rate, especially the state tax rate will be different from the rate in other states. Therefore, you will need to check the Pennsylvania rates before filing your taxes. A PA business tax calculator can also be quite useful in determining the exact tax amount that needs to be filed. It’s also important to note that a foreign company will be required to file state business taxes in their state of formation or incorporation (home state), as well as in Pennsylvania or any other state where it’s registered.

What taxes do businesses pay in Pennsylvania?

The state of Pennsylvania is considered to be one of the best states for starting a new business and expanding existing businesses. The state is home to some of the biggest companies in the world including T-Mobile, Comcast, and Aramark. It’s the sixth largest economy in the US at more than $800 billion. The Keystone State has several key and evolving industries that vary from modern advanced manufacturing to distribution and logistics. The Pennsylvania business tax climate is also considered to be fairly good and pro-business.

The state offers several tax incentives or credit programs that help minimize the overall tax burden. However, it’s important to remember that if you form a limited liability company or a corporation to do business in this state, then you will be required to file corporate net income taxes as a part of the Pennsylvania LLC taxes or corporation taxes. The most common forms of taxes applicable in the state are:

  • Corporate Income Tax (CIT) – The Corporate Net Income Tax (CNIT) is applicable for domestic and foreign entities. This tax applies to companies that have the privilege of doing business in the state of Pennsylvania. You can levy this form of Pennsylvania corporate income tax if you have capital or property employed or used in connection to your company in this state. The tax is levied on federal taxable income, and the tax rate from January 1, 2023 through December 31, 2023 is 8.99 percent. Certain business structures like business trusts and not-for-profit organizations are exempt from this tax. It’s also important to note that if your company is subject to these types of Pennsylvania corporation taxes, then your company may also be subject to other taxes such as the corporate loans tax, gross receipts tax, gross premiums tax, and surplus lines agent tax.
  • Sales, Use and Hotel Occupancy Tax – The sales and use tax is an important Pennsylvania business tax. The sales and use tax is imposed on various business activities, products, and services. The most common areas for this tax application are retail sales, rentals, consumption, and the use of tangible personal property. The tax is also levied on digital products in the state of Pennsylvania. The list of items and activities where the sale and use tax is applied includes medical and surgical supplies and mushroom farming. Some of the items that are exempt from these types of Pennsylvania LLC taxes are candy and gum, most types of clothing, food (not ready-to-eat), textbooks, computer services, sales for resale, pharmaceutical drugs, and fuels for residential heating like electricity, oil, gas, firewood, and coal. The Pennsylvania state sales tax rate is 6 percent with a maximum local sales tax rate of 2 percent, while the average combined state and local sales tax rate is 6.34 percent. The use tax in Pennsylvania is also an important Pennsylvania business tax and the rate is the same as sales tax at 6 percent. Last but not least; this state also has a hotel occupancy tax that’s similar to the state sales tax. When calculating these taxes, it’s recommended to use a PA business tax calculator.

    Note: If you’re filing a sales tax then you will need to apply for and obtain the necessary sales tax licenses and certificates.

  • Employer Withholding Taxes – The employer withholding tax is mandatory by law. This tax is for any entity employing individuals in the state where the entity could be an individual, corporation, association, limited liability Company, partnership, or any other entity as specified by the Internal Revenue Code. This is considered to be a component of the Pennsylvania corporate income tax or business tax and requires the withholding of personal income tax from the remuneration paid to resident employees for services performed within or outside the state. Currently, you can withhold and remit employees’ taxes on salary or wages quarterly, monthly, semi-monthly, and semi-weekly. The due date for the taxes will vary depending on the taxable amount and filing schedule. You will need to register for an Employer Withholding online using the Official Pennsylvania Government Website.

    Example: If the PA business tax calculator shows the total withholding per quarter as $300 then this tax will be due on the last day of January, April, July, and October. Similarly, if the total withholding is between $300 and $999 per quarter then the taxes will be due on the 15th day of the following month. If the total withholding is $750 in July-September quarter then your file date would be October 15.

  • City Business Taxes – The city business tax is another important Pennsylvania business tax. This tax is applicable in specific cities like Philadelphia. The applicable taxes in Philadelphia are the Business Income & Receipts Tax (BIRT) and the Net Profits Tax (NPT). According to the city code, if your Philadelphia taxable gross receipts are equal to or less than $100,000 then you will not be required to file the BIRT return. The Net Profits Tax (NPT) is applicable to anyone residing in the city of Philadelphia and operating a business within the city or outside of it. This is also levied on non-residents engaged in business activities within Philadelphia. The due date for filing these types of Pennsylvania LLC taxes is April 18.

Are you thinking of forming a new company in Pennsylvania?

How are Pennsylvania Businesses taxed?

If you’ve decided to start a new business in Pennsylvania then you’ll want to be aware of the important annual requirements, especially filing your business tax returns. The state has a privilege tax also known as a corporate net income tax along with several other types of small business taxes. The type of Pennsylvania business tax and the tax rates will vary according to the type of entity structure you’ve formed, and the business activity. You may also be required to file more than one type of tax. Let’s look at the various entities and their tax obligations in Pennsylvania.

Taxes for an LLC

If you’ve chosen to form a limited liability company in Pennsylvania then for taxation purposes, it will be considered a pass-through entity. A pass-through entity is not required to file any federal or corporate taxes. Since an LLC is a flow-through entity, the income will pass through to the owners and members. In such a situation, the members will have to file a personal income tax at the rate of 3.07 percent instead of filing a Pennsylvania corporate income tax.

A limited liability company may be required to file a privilege tax also known as the Corporate Net Income Tax (CNIT), at the rate of 8.99 percent. This tax is applicable for both domestic and foreign LLCs. Some of the other Pennsylvania LLC taxes that you may be required to file include the Sales & Use Tax, gross receipts tax from any type of business transactions that occurred within Pennsylvania, the Public Utility Realty Tax (PURTA), the Foreign Franchise Tax, and the employer Withholding tax. The above-mentioned taxes can be filed online using myPATH e-services or by applying via the mail.

Taxes for a C Corporation

If you choose to incorporate a Pennsylvania C corporation, your company will be subjected to the Corporate Net Income Tax (CNIT). This tax rate is a flat 8.99 percent. It’s also one of the most important Pennsylvania corporation taxes that’s applicable for both domestic and foreign corporations. As a CNIT taxpayer, your company may also be subjected to the gross receipts tax, corporate loans taxes, gross premiums taxes, and the surplus lines agent tax.

Another important Pennsylvania corporate income tax is the Capital Stock and Foreign Franchise Tax. The capital stock tax is applicable for corporations holding capital stock, while the foreign franchise tax is levied on foreign corporations or entities organized as corporations and operating within the state. Either form of tax is levied on the capital stock value of the said corporation. Apart from these, a C Corporation may be subjected to Sales & Use Taxes, Public Utility Realty Taxes (PURTA), and Employer Withholding taxes. You can file these taxes online using the myPATH e-services.

Taxes for an S Corporation

Whether you form a limited liability company or a C Corporation, you can always apply for S Corporation tax status in Pennsylvania. When a company has an S Corporation status, the tax liabilities also change. The most important Pennsylvania corporate income tax for an S-Corp is the Corporate Net Income Tax (CNIT). Pennsylvania S corporations are subject to the CNIT rate of 9.99 percent on their built-in gains. Since an S Corp is a flow-through entity, the shareholders will be subjected to a personal income tax at the rate of 3.07 percent.

If your S Corporation is involved in retail sales, rentals, or the use of tangible personal property including digital products, then your entity will be subjected to the sales and use tax. These types of Pennsylvania corporation taxes will also be levied on certain services at a rate of 6 percent. The rate for use tax is the same as it is for sales taxes, although there is an additional 1 or 2 percent local use tax if your company is based in Philadelphia or Allegheny County.

Taxes for a Sole Proprietorship

A sole proprietorship is one of the easiest businesses to form in the state of Pennsylvania. A sole proprietorship entity is owned and operated by a single owner, therefore the most important Pennsylvania business tax is the individual income tax return (Form PA-40). The tax rate for the Pennsylvania Personal Income Tax (PIT) is 3.07 percent against the taxable income of the sole proprietor. You can use a PA business tax calculator to determine the tax amount due. Apart from this, depending on the business activity, sole proprietors may also be required to file sales and use tax returns. If a sole proprietor is operating from Philadelphia or Allegheny County, certain city or local taxes like local use tax and Net Profits Tax (NPT) may also be applicable.

Taxes for Partnerships

Various forms of taxes are applicable in Pennsylvania when you form a partnership company. The foremost Pennsylvania business tax for a partnership firm is the corporate net income tax (CNIT). The tax rate is 3.07 percent and the process to file is the same as the process for an LLC or S Corporation. Each partner will also be required to file a Pennsylvania Personal Income Tax (PIT) at 3.07 percent. Apart from this, some of the taxes applicable would be similar to a sole proprietorship or LLC, like the Sales & Use Tax, Employer Withholding tax, and certain city or local taxes.

Ready to Incorporate Your Pennsylvania Company?

You can choose from a wide variety of entity structures in Pennsylvania like a Sole Proprietorship, Partnership, Corporation, or LLC. You can also apply for S Corporation status to enjoy certain tax privileges. The process for a new business formation and the type of relevant taxes will vary according to the entity structure. IncParadise, one of the top incorporation service providers in the state can provide you with information concerning the Pennsylvania LLC taxes corporate income tax. We can also help register your LLC or corporation in the state of Pennsylvania.

Apart from the Pennsylvania business tax, once you’ve registered your new business in the state, there are several important annual requirements that every business must maintain compliance with, including business licensing and annual reports. Hence, IncParadise offers additional services to fulfill several requirements like EIN filing and filing DBAs among others.

Do you want to form a new business in Pennsylvania?

How to file a DBA in Pennsylvania

Date: | Category: | Author: developers

How to file a DBA in Pennsylvania

If you have a great business idea and want to launch a startup in Pennsylvania, then you will want to be diligent with your research. When starting a new business, there are several aspects that one needs to consider such as the structure of the company and the business name. You can use a traditional business name or opt for filing a DBA in Pennsylvania. We’ve created this guide to provide you with information concerning DBAs, conducting a fictitious name search in Pennsylvania as well as the filing, managing, renewals, and canceling of DBAs. The guide will also answer your queries related to the need for a fictitious name.

Doing Business As or DBA in Pennsylvania

Pennsylvania is home to more than 1 million startups, as well as small and medium enterprises (SMEs). These include sole proprietorships, LLCs, corporations, e-commerce, and even home-based businesses. Whatever type of entity structure you choose; one of the necessary processes would be applying for a Pennsylvania DBA online. Every business needs a name to operate in the state. The DBA (“doing business as”) is known as a fictitious name in the state of Pennsylvania. You can get a DBA in Pennsylvania by filing the relevant applications, but it’s important to identify whether or not your business requires a DBA first.

What is DBA in Pennsylvania?

If you plan to register your company using a name that’s different from your legal name then it will be known as a DBA or a fictitious name. This type of business name is also commonly referred to as a “Trading As” (T/A) name or a “Trade Name”. Normally, when someone starts a new company or establishes a startup, their legal name (full name) is considered to be the name of the entity by default. In such a scenario, filing a DBA in Pennsylvania will provide you with an alternate name.

Example: If Janet Ward wants to start a Financial Consultant business then by default the name of the company will be her own name like “Janet Ward Financials”. If Janet wants to name her business as “Janet’s Financials” then she will need to submit a Pennsylvania DBA online application. When she registers the fictitious name application then her full name will not be legally attached to the business anymore.

There are several benefits when applying for a Pennsylvania DBA online, but it’s important to note that fictitious names have to be registered with the Pennsylvania Department of State’s Bureau of Corporations and Charitable Organizations. A fictitious name or DBA will be governed by the 2020 Pennsylvania Consolidated & Unconsolidated Statutes, Title 54 – NAMES, Chapter 3 – Fictitious Names.

When do you need a DBA in Pennsylvania?

The primary purpose of applying for a Pennsylvania DBA online is to notify the public of the state that you or your company are conducting business under a name that is different from your legal name. You can use any number of fictitious names as there are no prescribed limits in any state in the USA. If you’re wondering whether a trade name is necessary for your company then it’s important to understand that not every company requires a DBA. There are several reasons for adopting a DBA and conducting a fictitious name search in Pennsylvania. Some of the top reasons include:

  • Type of Entity Structure – The need for a DBA depends on the type of company you’re planning to operate. If you start a sole proprietorship or partnership business then filing a DBA in Pennsylvania may be necessary. You may want to apply for a DBA if you want to operate under any name other than your legal name, or if you don’t want to use the full legal name of your business partner.
  • Type of Business/Business Activity – Sometimes, a specific business type or activity may need to get a DBA in Pennsylvania. An example of the same would be franchise businesses.
  • New line of business – If you’re already operating a business and want to diversify into new areas by starting sister organizations, then filing a DBA in Pennsylvania can be quite helpful. You’ll be able to market new products or services without having to register a totally new company.

    Example: If you have an Air Conditioning installation and repair business named PA AC Systems LLC., and have planned to offer winter heating services. You could get a DBA in Pennsylvania as winter heating specialists for that part of your services.

Filing a DBA in Pennsylvania for LLCs and Corporations

A DBA (doing business as) is also known as a fictitious name in Pennsylvania and is governed by the Pennsylvania Business Laws. If you’re planning to form a business corporation or a limited-liability company in the state, then your first step is to choose a strong company name. You can start your business using your legal name or you can apply for a fictitious name. There’s a specific process for filing a DBA in Pennsylvania. The fees and process will be from the fees and process of applying for a traditional business name reservation.

Do a Pennsylvania Fictitious Name Search

If you’re planning to register a DBA name for your LLC or corporation, then the first step you will want to take is to choose a proper name and conduct a fictitious name search in Pennsylvania. If you’re a first-time business owner and want to know how the process of applying for a DBA works, then following these simple steps will help you.

  • You can conduct a “Business Entity Search” using the online system of the Bureau of Corporations and Charitable Organizations. This is a part of the state’s online filing system and database. This search will make applying for a Pennsylvania DBA online easier.
  • You can also search for trademarks or federally registered names using the trademark database also known as a Trademark Electronic Search System (TESS).

Register Your Pennsylvania DBA

Conducting a fictitious name search in Pennsylvania will reveal the availability status of your chosen name. If the LLC DBA name is available, your next step is to register the fictitious name pursuant to 54 PA Cons Stat § 311 (2020). You will need to comply with certain state DBA naming laws. The following steps will help you when applying for a Pennsylvania DBA online:

  • If you form a corporation or LLC then your chosen fictitious name may or may not need the use of corporate or LLC designators like corporation or limited.
  • The use of the word “company” is permissible for corporations, sole proprietorships, and partnerships.
  • The chosen fictitious name should be distinguishable from any other name existing in the records of the state department.
  • The state has issued a list of restricted words and it is important to ensure that your trade name is compliant with these guidelines. When conducting a fictitious name search in Pennsylvania, you need to ensure the name doesn’t use words like “college”, “surveyor”, and “banker” among others.
  • If the chosen trade name is available then you can continue applying for a Pennsylvania DBA online. You’ll need to submit the form for “Registration of Fictitious Name” along with a fee of $70. It must be submitted to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations at:

    P.O. Box 8722
    Harrisburg, PA 17105-8722
    Telephone: (717) 787-1057

Filing a DBA in Pennsylvania is also possible using the state’s online filing system. Alternatively, we can help you register a DBA or an assumed name in the state of Pennsylvania for your business. When you submit a Pennsylvania DBA online application with us, you’ll benefit from our expertise and experience. We’ll also provide the necessary guidance to help you save time and ensure that your application is not rejected.

Register your Pennsylvania DBA with ease!

Pennsylvania Advertising Requirements

The next step after applying for a Pennsylvania DBA online or offline, is to officially publish a notice stating that you’ve filed or intend to apply for the registration of your chosen fictitious name. The information required in the advertisement is governed by 54 Pa.C.S. §311(g). The notice should be officially published in the county where the principal office of the entity is located. It’s also important to note that this advertisement is necessary for any name mentioned in (Box 4) of the registration form. The advertising is not required if the registration form does not list an individual.

Managing your Pennsylvania DBA

Filing a DBA in Pennsylvania is an important process but there are several other follow-up processes that every business owner should be mindful of. Each state has its own laws and regulations concerning fictitious names or DBAs. These laws are also applicable for the renewal, changing, or canceling of a fictitious name in the jurisdiction where you are planning to conduct your business. Let’s look at the various processes applicable after you get a DBA in Pennsylvania.

How to renew Pennsylvania DBA?

Once you’ve filed a Pennsylvania DBA online application, you won’t be required to renew it. There is no provision for DBA renewals in this state.

How to change a Pennsylvania DBA?

After filing a DBA in Pennsylvania, if you want to change the fictitious name or make certain amendments, there’s a separate process that you will need to follow. You’ll be required to file an update with the Pennsylvania Department of State using the form DSCB:54-312/313. This is also known as the “Fictitious Name – Amendment, Withdrawal, Cancellation” form. The amendment or change in DBA is governed by 54 PA Cons Stat § 312 (2020) you’ll be required to submit the form along with a $70 fee.

How to cancel Pennsylvania DBA?

Once you get a DBA in Pennsylvania, if you want to cancel or withdraw the assumed name, it’s possible through a process similar to filing a DBA name change. You’ll be required to submit the “Fictitious Name – Amendment, Withdrawal, Cancellation” form along with a fee of $70 to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations. Cancellation or withdrawal of a fictitious name in Pennsylvania is governed by 54 PA Cons Stat § 313 (2020).

Need Assistance with Filing a Pennsylvania DBA?

The process of applying for a Pennsylvania DBA online or offline requires you to provide information specific to the business. Whether you form an LLC, corporation, partnership, or sole proprietorship, the information provided needs to be compliant with the state’s business name laws and federal trademark laws. The process of conducting a fictitious name search in Pennsylvania can be quite a confusing and daunting task. IncParadise can gladly assist you with this process. We have expertise and knowledge regarding the Pennsylvania DBA Regulations and can help you apply for a fictitious name.

We can also provide additional services that will ensure your other business requirements are fulfilled, such as getting a tax ID, S corporation status, and dissolutions among others.

Do you want to apply for a Pennsylvania fictitious name?