Pennsylvania Corporation

If you’re planning to register a Corporation in Pennsylvania then you will find that this could be a good decision as the state has a healthy business climate. A corporation is a type of entity that offers many advantages and to top it, the state also offers several benefits in terms of resources, a supportive infrastructure, and business incentives. Employees are a primary requirement for every new business and the state provides a highly-educated and skilled employee pool. Pennsylvania is also quickly becoming a platform for recruiting STEM (science, technology, engineering, or mathematics) workers. One of the benefits of incorporating in Pennsylvania is its emergence as a startup ecosystem complete with accelerators and incubators.

What is a Pennsylvania Corporation?

A corporation also known as the traditional C Corporation is one of the most popular business structures in Pennsylvania. To form a Corporation in Pennsylvania, the first thing you will need to understand is the type of corporate structures available. It is a type of legal entity where owners and shareholders are taxed separately. This means that the assets and income of owners or shareholders are separate from that of the C Corporation. If you want to know how to form a Corporation in Pennsylvania then it is important to identify the type of corporations you can form in this state. They include:

• Business Corporations (C-Corp)
• Business Corporation (S-Corp)
• Foreign Corporations
• Nonprofit Corporations
• Professional Corporations
• Non-stock Corporations
• Benefit Corporations
• Statutory Close Corporations

What are the benefits of incorporating in Pennsylvania?

Entrepreneurs prefer to register a Corporation in Pennsylvania as this type of business structure has several advantages over other entity structures. Some of the advantages include:

• Limited liability – Limited Liability is one of the major benefits of incorporating in Pennsylvania. This simply means that a corporation limits the liability of the owners or shareholders and thus if such a company is sued, then the owners or shareholders will not be personally liable for any damages or debts. This type of entity protects the personal assets of the owners or shareholders.
• Access to capital – Easy access to capital is one of the important reasons why entrepreneurs prefer to incorporate in Pennsylvania. Incorporation helps raise money for the business through the issuance of stock, which can be sold to investors for raising capital. Apart from this, venture capitalists (VCs) find it easier to invest in C corporations in comparison to other kinds of entities.
• Increased credibility – One of the important benefits of incorporating in Pennsylvania is that it will help the company create a better professional image and establish higher credibility for potential partners, customers, suppliers, employees, and vendors.

Starting a Pennsylvania Corporation

Pennsylvania is famous for its strategic location and is well connected to New York City and Washington, DC. Entrepreneurs and corporations involved in manufacturing and anything related to transportation and logistics find the state’s strategic location and infrastructure critical for overall growth. If you’re also planning to form a Corporation in Pennsylvania then there are several important processes that you will need to focus on.

1. Name a Pennsylvania Corporation

If you’re planning to incorporate, one of the first steps to take is to identify a corporate name. The business name plays a key role when it comes to building a brand image. The corporate name will help to create a noteworthy first impression with your partners and customers. You can finalize a corporate name by following state naming guidelines and conducting a Pennsylvania Corporation search. The Pennsylvania naming guidelines state that a corporation must include words like “corporation”, “incorporated”, or abbreviations like “corp.”, or “inc.” The naming guidelines are governed by 15 PA Cons Stat § 5303 (2020).

2. Appoint a Pennsylvania registered agent

When it comes to the new business formation or incorporation process, there are certain state business requirements that an owner must fulfill. To incorporate in North Carolina, your first step will be to hire and maintain a registered agent in the state pursuant to the 15 PA Cons Stat § 1507 (2020). A registered agent could be an individual or a company that has agreed to accept all legal mail on behalf of your corporation. This is known as Service of Process.

3. Choose the Pennsylvania Corporation’s initial directors

Another important step when learning how to form a Corporation in Pennsylvania is choosing the entity’s initial directors. These are also known as the first directors of the corporation and will also be named in the articles of incorporation. They are normally elected through an organizational meeting or by those individuals who have been appointed by the initial owners or shareholders of the said entity. The initial directors will have to serve until the shareholders of the corporation hold their first meeting for electing their successors. The board of initial directors assists in making important decisions pertaining to several areas of the corporation like the adoption of bylaws and the issuance of shares among others.

4. File Articles of Incorporation with the PA Department of State

Once you’ve conducted a Pennsylvania Corporation search and reserved your business name, the next step is to incorporate. You will be required to prepare and submit the Articles of Incorporation pursuant to the 15 PA Cons Stat § 1306 (2020). You can form a Corporation in Pennsylvania by submitting the articles to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations along with a fee of $125. It is important to note that you will have to officially publish (advertisement) a notice of intention to file articles of incorporation pursuant to the 15 PA Cons Stat § 1307 (2020).

Are you thinking of starting a Pennsylvania Corporation?

5. Get an EIN

If you’re planning to register Corporation in Pennsylvania, you may be obligated to fulfill certain annual requirements. One such requirement is to file corporate and other business taxes. In order to file taxes, you will have to apply to obtain an Employer Identification Number (EIN). This is a 9-digit unique identifier assigned by the Internal Revenue Service (IRS). It is also known as the Federal Employer Identification Number (FEIN) and will allow corporations to open business bank accounts.

6. Prepare bylaws for your Pennsylvania Corporation

Another significant requirement for any new corporation is the corporate bylaws. Whether you register a Pennsylvania Corporation online or offline, this is a mandatory requirement that the entire company’s functions are dependent on. Hence, the bylaws are known as the governing rules and are the first act of the initial board of directors. These guiding principles direct the initial board of directors in their work of overseeing the day-to-day operations of the said corporation.

• Statement of Purpose
• Board of directors
• Titles of the officers of the corporation
• Shareholders owning stock in the company
• Committee and committee members
• Procedure and timeline for annual meetings
• Issuance of stock to shareholders
• Rights and responsibilities
• Conflicts of interest
• Amendment to the Bylaws

7. Hold an organizational meeting

Once you file the Articles of Incorporation to incorporate in Pennsylvania, the entity will be required to hold an organizational meeting. This is an initial meeting that is considered to be a basic organizational formality for a corporation that has been organized under the laws of the US state of Pennsylvania. This meeting is typically not held in person and is instead documented through the unanimous written consent of the initial board of directors of the company. Some of the key areas that the organizational meeting focuses on are:

• Approving corporate bylaws
• Drafting the articles of incorporation
• Distribution of initial shares
• Election of officers
• Voting to accept the stock certificates
• Approving the corporate seal

8. Open a bank account for your Pennsylvania Corporation

There are many benefits of incorporating in Pennsylvania but there are certain points to consider before or after incorporation. One major point of focus is conducting financial transactions with ease. This is only possible if you’ve opened a business bank account. This type of bank account is also known as a checking account and needs to be kept separate from your personal bank account. One of the reasons companies prefer a corporate banking account is because it helps to improve the entity’s overall credit score and keeps track of income and expenditures.

9. Issue stock

If you’ve decided to form a Corporation in Pennsylvania then your company will be required to issue stock as governed by Title 15, 2020 Pennsylvania Consolidated & Unconsolidated Statutes, § 1528 and § 7705. According to Pennsylvania statutes, you can issue capital stock designated as membership shares. The shares of such a corporation will be represented by certificates and in the absence of these; they will be known as un-certificated shares. A corporation issues stock for raising funds that will help the business operate. The holder of such stock will be known as a shareholder and will certainly have a claim to a part of the assets and earnings of the corporation.

10. Obtain necessary licenses and permits

Once you’ve incorporated in Pennsylvania, you will be required to obtain the necessary business licenses and permits. You will not be able to operate your business or conduct transactions in the state without it. You will need to conduct a Pennsylvania Corporation search for licenses applicable specifically to your company, which will be determined by:

• The industry your corporation specializes in
• The city or county your business is operating from

11. Comply with other tax and regulatory requirements

Once you register your Corporation in Pennsylvania, you will be required to comply with state annual maintenance requirements. One of these major requirements is filing Pennsylvania’s annual report currently known as a Decennial report. This is one of the few states where a Decennial Report has to be submitted once every 10 years pursuant to 54 PA Cons Stat § 503 (2020). The Decennial report will be replaced by an annual report from 2025 onwards.

Know more about starting a Pennsylvania Corporation

If you have decided to incorporate in Pennsylvania but are faced with several queries then this section will help you. This section deals with queries specific to various aspects of incorporation such as the corporate name, starting costs, dissolution, S Corporation, and foreign corporation among others.

Why register a Corporation in Pennsylvania?

The many benefits of incorporating in Pennsylvania make it a favored destination for entrepreneurs and startups. Some of the top advantages are:

• The state provides a lot of support and resources for small businesses
• It’s geographic location is of utmost importance and has a strong transportation infrastructure for B2B (business-to-business) and B2C (business-to-consumers)
• It is home to world-class universities and a highly skilled workforce
• Cities like Pittsburgh are home to high-impact industries like cyber-security, robotics, energy, artificial intelligence, health, and life sciences.
• When you form a Corporation in Pennsylvania, you will be able to leverage state grants programs, tax incentives, and other funding programs.

How do I know if my Pennsylvania Corporation name is available?

The incorporation process requires you to provide a company name. First, you will need to identify a name that is in compliance with state naming guidelines. The next step would be to conduct a Pennsylvania Corporation search. This is also known as a name availability search and will indicate if your chosen name is available for reservation or is already in use.

What will be the cost to form a corporation in Pennsylvania?

If you want to register a Corporation in Pennsylvania then you will be required to submit Articles of Incorporation for a domestic entity. The initial cost to register a Pennsylvania C-Corporation is $125. If you want to expedite the process then there will be an additional fee depending on the chosen expedited service, like the fee for same-day service is $100, while a one-hour service is $1,000. Apart from this initial incorporation cost, there will be other expenses such as the name reservation, ​Articles of Amendment, application for business licenses and permits, and filing of annual reports among others.

Can I register an S Corporation in Pennsylvania?

Yes, you can elect for the S-Corporation tax designation in Pennsylvania. S corporation is basically a tax designation and is often beneficial for those business owners who receive large distributions apart from their salary. In order to become an S Corporation, you will be required to submit a completed 2553 form (Election by a Small Business Corporation).

Do I need a business license for my Pennsylvania Corporation?

Yes. You may require single or multiple business licenses depending on the industry, the location of your company, and the business activity.

Can I register a foreign Corporation in Pennsylvania?

Yes. You will need to apply for the foreign qualification process to operate your business in this state. You will need to submit a Foreign Registration Statement to incorporate in Pennsylvania. This document is also known as a certificate of authority and you have to submit it pursuant to 15 PA Cons Stat § 412 (2020). You will also be required to officially publish a notice of intention to conduct business in this state pursuant to 15 PA Cons Stat § 4124 (2020).

How can I dissolve my Pennsylvania Corporation?

If you want to dissolve your corporation at any given point in time, then you will need to submit Articles of Dissolution-Domestic Corporation, along with a fee of $70. You will also be required to submit tax clearance certificates from the Department of Revenue as well as from the Bureau of Employment Security.

Ready to Start a Pennsylvania Corporation?

Pennsylvania offers several types of business structures for you to choose from. Although, there are many benefits of incorporating in Pennsylvania by comparison to other business structures. For domestic or foreign entities, if you want to incorporate in Pennsylvania, IncParadise can assist you with the process of incorporation.

LLC in Pennsylvania

First-time business owners prefer to form an LLC in Pennsylvania because the state provides effortless access to business resources and the infrastructure necessary for steady operations and company growth. Pennsylvania’s good business location indicators include a strong transportation system, a lower startup cost, a higher skill base, and is currently experiencing remarkable growth through a period of technological renaissance. The state provides a variety of incentive programs and access to funds, which is a crucial element for those planning to start an LLC in Pennsylvania.

What is a Pennsylvania LLC?

A Pennsylvania limited liability company (LLC) is a type of private limited company. It has a corporate structure that helps to protect its owners from any liabilities that the company may be responsible for. The process to register a Pennsylvania LLC will depend on whether it’s a domestic company or a foreign entity. The IRS defines a limited liability company as a “pass-through entity” for tax purposes, and its tax status can also be converted to an S Corporation. You can start an LLC in Pennsylvania as a single-member LLC or a multi-member LLC.

What are the benefits of forming an LLC in Pennsylvania?

A limited liability company is one of the most preferred structures to form in the USA and its formation is governed by state statutes. If you want to form an LLC in Pennsylvania then it’s important to identify the benefits that this type of structure has to offer. Let’s look at some of the top advantages:

• Limited Liability – If you’re planning to form a Pennsylvania LLC online, then one of the greatest advantages of this type of structure is the limited liability protection. This simply means that the owners’ and members’ private assets will not be at risk if the LLC fails. Their personal assets cannot be seized as repayment for any debt obligations or any legal claims.
• Pass-through entity – A pass-through entity is also known as a flow-through entity. It refers to a taxation where all the income is passed on to the members or owners of the business. Unlike a corporation, where the company files a corporate tax, an LLC is not required to file any taxes. Instead, the owners or members are required to file personal income taxes. This helps to avoid double taxation.
• Flexible profit distribution – When you form an LLC in Pennsylvania, one of the many benefits you can look forward to enjoying is that this type of structure allows more flexibility in the distribution of profits to their members or owners. This flexibility exists because a limited liability company has a simple and adaptable business structure.

Forming an LLC in Pennsylvania

Thanks to its strategic location and abundance of a highly skilled workforce, this state is easily the right destination for when you’re ready to start a business in Pennsylvania. You’ll need to be mindful of the various steps and processes required to successfully form an LLC. Let’s take a look at some of the important procedures for starting your LLC in this state.

1. Choose a Pennsylvania LLC name

One of the most important details when forming an LLC in Pennsylvania is to choose your business name. It’s an important step because the new business registration documents will require you to provide your company’s legal name. You’ll need to think of a business name in compliance with the 2022 Pennsylvania Consolidated & Unconsolidated Statutes. Once you’ve chosen your name, you’ll need to conduct a Pennsylvania LLC name search.

2. Choose a Pennsylvania LLC registered agent

When you’re ready to register a Pennsylvania LLC, you will be required to follow several state business laws. One of these mandatory laws is to hire and continuously maintain a Pennsylvania LLC registered agent pursuant to 15 PA Cons Stat § 8825 (2016). The primary role of a registered agent in the state is to provide service of process.

3. File a Certificate of Organization with the PA Department of State

When you decide to form an LLC in Pennsylvania it will involve filing specific registration documents that will depend on whether or not it’s a domestic or foreign entity. If you choose to form a domestic limited liability company then you’ll need to file a Certificate of Organization pursuant to 15 PA Cons Stat § 8821 (2022). You can form a Pennsylvania LLC online, submit the form through the mail, or physically submit it to the office of the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations. The fee is $125 and you’ll also need to submit a copy of the Consent to Appropriation of Name with any necessary governmental approvals.

Form a Pennsylvania LLC Today!

4. Prepare the Pennsylvania LLC Operating Agreement

To form a Pennsylvania LLC, you’ll need to prepare internal documents (shared internally) and documents for submission to the state. One such internal document that every limited liability company requires is the LLC operating agreement. The purpose of this agreement is to protect the limited liability clause and to ensure that you’re in control of the company. If you don’t create a Pennsylvania LLC operating agreement then the state laws, also known as the default rules will govern the operations of the limited liability company.

• Statement of intent
• Business purpose
• Time/period of operation
• Member capital contributions
• How it will be taxed
• New member admissions
• Sharing of profits

5. Obtain Pennsylvania LLC EIN

An Employer Identification Number (EIN) is a unique nine-digit number that is assigned to a limited liability company by the Internal Revenue Service (IRS). It’s also known as the Federal Employer Identification Number (FEIN), and it may not be required by single-member LLCs without any employees. Once you register a Pennsylvania LLC, you’ll need to file different business or state taxes and the EIN will be required to complete the process.

Do you want to obtain an EIN in Pennsylvania?

6. Obtain the necessary business licenses and permits

After you’ve taken the steps to form a Pennsylvania LLC online, the next most important obligation to focus on is making sure you acquire the right business licenses. Many American states offer general licenses but Pennsylvania does not. Permits and licenses can vary depending on particular factors like the primary activity and the location of the business. Obtaining the necessary business licenses is a vital step in your business formation because you will not be able to operate your LLC without valid licenses and permits. The business licenses are categorized under:

• According to Industry – Industry-based licenses are issued to businesses or activities that can be classified under a specific industry or trade. These licenses are issued by different government agencies or bodies based on the industry or activity. If you were to form a Pennsylvania LLC focusing on agriculture then it would be classified within the agriculture industry. The business license for this type of entity would be issued by the Pennsylvania Department of Agriculture.
• According to City/County – The second class of business licenses that your company may need to obtain are the local licenses also known as city or county licenses. The types of licenses, fees, and renewals will depend on the location of the business. Let’s look at an example to understand this.

  Example: If you start an LLC in Pennsylvania and the company is based in Philadelphia then you will need licenses or permits issued by the city. Every business in this city is required to obtain a Commercial Activity License. Apart from this, if you are specializing in the entertainment business then you will need to apply for a separate permit or license for the same. These permits or licenses will be issued by the Philadelphia Department of Licenses and Inspections (L&I).

• Professional license – Lastly, certain businesses in Pennsylvania may also require Professional licenses. These licenses are issued by the Bureau of Professional and Occupational Affairs, which includes 29 licensing boards as well as commissions.

7. Open a bank account for PA LLC

Finance is one of the most important aspects of running any business successfully. In order to manage finances properly and segregate personal gains and expenses from business gains and expenses, it’s recommended to open a separate bank account. This is known as a business bank account and you can open it before or after you register a Pennsylvania LLC. The key benefits of a business banking account are that it will help automate bookkeeping and establish a good credit history for the limited liability company. This will eventually make your LLC tax preparation easier.

8. Comply with taxes and other regulations

Once you start an LLC in Pennsylvania, you’ll be required to comply with annual state maintenance requirements. One of the important annual requirements is the Pennsylvania annual report. Pennsylvania is one of the few states that requires you to submit a Decennial Report although this will be replaced by an annual report from 2025 onwards. A Decennial Report has to be filed once every 10 years.

Learn more about starting an LLC in Pennsylvania!

A Pennsylvania LLC registered agent can help you with the process of forming a limited liability company in the state, but you may still have several queries regarding this type of entity. Hence, we’ve created a special section of “Frequently Asked Questions” to address some of these queries.

Is Pennsylvania a good state to form an LLC?

The state of Pennsylvania is home to several top companies like Comcast, PNC Financial Services, Rite Aid, Aramark, and AmerisourceBergen among others. This state provides new and existing LLCs with several benefits and advantages. Some of the reasons for why entrepreneurs prefer to form a Pennsylvania LLC include:

• The state has a low personal income tax rate of 3.07%.
• It is the sixth-largest economy in the nation with a real GDP of $726.04 billion.
• The state is home to a strong workforce of 6.3 million highly skilled individuals.
• It’s proximity to major cities like New York City, Boston, and D.C.
• The state provides access to a strong transportation and logistics infrastructure.
• Pennsylvania has port access to the Great Lakes (Erie), the Gulf of Mexico (Pittsburgh), and the Atlantic Ocean (Philadelphia).
• It’s one of the top U.S. states for graduates who specialize in the STEM (science, technology, engineering, and mathematics) industry.
• The state offers several business incentive programs including the Small Business Advantage Grant, the Enterprise Zone Tax Credit (NAP/EZP), and the Business Opportunities Fund (BOF).

How do I know if my Pennsylvania LLC name is available?

Once you’ve identified or chosen a business name in compliance with the state naming guidelines, you’ll need to conduct a Pennsylvania LLC name search. The name availability search combs the database of the Bureau of Corporations and Charitable Organizations. If the desired name is available then you’ll be allowed to reserve the same.

How much does an LLC cost in Pennsylvania?

When you decide to start a limited liability company in Pennsylvania, you’ll be required to submit a Certificate of Organization for a domestic entity. The initial cost to register a Pennsylvania LLC is $125. The additional fee to expedite the process depends on the expedited service selected. For example, the fee for a same-day service is $100 while the fee for a one-hour service is $1,000. In addition to the initial cost to form a Pennsylvania LLC online, the name reservation, the annual statement, and the application for business licenses and permits will also include fees.

Do I need a business license for my Pennsylvania LLC?

Yes. A business license is required for your LLC to be considered legally operational. You may incur fees or penalties if you conduct business without the proper licenses or permits.

Can I set up a single-member LLC in Pennsylvania?

Yes. You can set up a single-member LLC (SMLLC) in Pennsylvania and most documentation will remain the same. You’ll need to reserve a business name after conducting a Pennsylvania LLC name search. This step will ensure that the chosen name is distinguishable on the records of the Department of State (DOS). You will then be required to file a Certificate of Organization, and apply for the appropriate licenses.

What taxes does an LLC pay in Pennsylvania?

You’ll want to keep in mind that when you start an LLC in Pennsylvania, you’ll be required to file personal income taxes because this type of structure is known as a pass-through entity. Depending on the business activity, you may be required to file other taxes applicable in the state, such as a sales tax for example.

Can I register a foreign LLC in Pennsylvania?

Yes. You can register and operate a foreign LLC in the state of Pennsylvania. The registration of a foreign LLC is governed by the 2022 Pennsylvania Consolidated & Unconsolidated Statutes, Title 15 – Corporations and Unincorporated Associations, Chapter 4 – Foreign Associations. You’ll have to file a Foreign Registration Statement along with a fee of $250.

How do I dissolve my Pennsylvania LLC?

Once you start an LLC in Pennsylvania, you may have reasons for dissolving the said company. According to state laws, 15 PA Cons Stat § 8872 (2022), you’ll be required to file a Certificate of Dissolution along with a non-refundable fee of $70. It needs to be submitted to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations.

Ready to form a Pennsylvania LLC?

A Limited Liability Company is considered to be one of the most popular structures in the nation due to the many advantages it has over other structures. You can form a single-member or a multi-member LLC as well as a domestic or foreign entity in the state. IncParadise can help you form an LLC in Pennsylvania and assist you through the entire registration process for this state.

Entrepreneur’s guide to forming a business in Pennsylvania

Choosing a location for your business is a major focal point for first-time business owners and entrepreneurs. Because Pennsylvania is an economically diverse state, it offers just the right infrastructure, top industries, and small business incentives and grants. If you want to register a corporation or start a small business in Pennsylvania, you will find that the availability of an educated workforce becomes advantageous for all forms of new entities.

Why do companies prefer to incorporate and register in Pennsylvania?

Many factors have driven entrepreneurs to register a business in Pennsylvania including its thriving economy with a Real Gross Domestic Product (GDP) of $726.04 billion. Today, the state is home to over one million small businesses in a variety of industries including advanced manufacturing, life sciences, medical technology, logistics, food processing, and manufacturing among others. This is mostly due to the many advantages and benefits that the state has to offer. Some of the top benefits of doing business in Pennsylvania are:

• Tax Incentives – Taxes play a decisive role when it comes to forming a new business in any state. When you decide to start a business in Pennsylvania, you can leverage the various business tax incentive programs offered by the state. These tax credit programs can help offset your overall tax liability.
• Competitive labor market – Skilled employees are crucial to the overall success of any business, and the state has a competitive labor market for skilled talent. The state is home to a rapidly growing tech community. There are also several top educational institutions and it’s supported by state-sponsored workforce training programs.

Wondering how to start a business in Pennsylvania?

Steps to start a business in Pennsylvania

If you’re planning to register a business in Pennsylvania, there are several details to consider and different processes to follow. Figuring out how to establish and maintain a new business can seem difficult when you’re just starting out. Each facet of your business like finances and licensing will have an impact on certain other components in your company. The Starting a business in Pennsylvania checklist will help strengthen your core business objectives.

1. Prepare a Pennsylvania Business Plan

The initial stages are a crucial period for setting your new company on the right course. If a business is a boat, then a business plan is like the sails that will help it move in the right direction. This is also known as a strategic plan. It not only helps entrepreneurs start a small business in Pennsylvania, but it also focuses on the necessary steps for achieving short-term and long-term objectives. This is one of many important points in the starting a business in Pennsylvania checklist. Some of the most important components of a good business plan include:

• Executive summary
• Business Overview
• Organization, ownership, & management
• Industry & market analysis
• Products and services
• Competitive analysis
• Branding and marketing
• Logistics and operations
• Financial statements and projection

2. Attend Entrepreneurial Training or Development Programs in Pennsylvania

Once you’ve decided to register a business in Pennsylvania, you should focus on entrepreneurial training or development programs. Such business development or entrepreneurial training programs are essential to helping the business achieve steady growth and future success. When doing business in Pennsylvania, you will need knowledge, valuable resources, connections, PA training, and development programs for small business owners. Some of the top programs include the Business Workshops & One-on-One Counseling programs by the Pennsylvania SBDC and Partnerships for Regional Economic Performance (PREP) program by DCED, PA.

3. Choose a Business Structure for your Pennsylvania Business

Choosing the right entity structure for your new business is one of the most important decisions you will need to make before you register your company with the state. The entity structure you select will play a key role in your tax and legal considerations. For this reason, you need to determine which type of entity will be the most suitable for your business. The structure you decide on will also determine the process and fee to register a business in Pennsylvania. It is important to note that each type of entity structure has its own characteristics, advantages, and even disadvantages. The type of business structures you can choose for doing business in Pennsylvania are:

• Sole Proprietorship
• Domestic and foreign LLC
• Domestic and foreign corporations
• General partnership
• Limited partnership
• Limited liability partnership (LLP)
• Limited liability limited partnership (LLLP)
• Nonprofit corporations
• Professional associations

4. Naming Your Pennsylvania Business

An important requirement to register or incorporate in Pennsylvania is confirming a business name. The company name is responsible for creating the very first impression with the client or customer of the said company. The name is not only used for the registration process but also for other business processes like licensing, applying for loans, filing taxes, and marketing. Hence, when choosing a name, you need to consider several aspects like:

• It is important to follow the state naming requirements and guidelines. These are governed by the 2022 Pennsylvania Consolidated & Unconsolidated Statutes, Title 54 – Names.
• The business name should be distinguishable from any other company in Pennsylvania. You need to also adhere to not using restricted words like the word bank. You cannot use words that have similarities with government agencies.
• Once you have chosen a name, it is time to conduct a Business Entity Search also known as name availability search.
• Pennsylvania requires you to reserve a business name by filing the name reservation form pursuant to 15 PA Cons Stat § 202 (2022).
• If you don’t want to use your legal name then you will need to register a fictitious name. This name also known as DBA (Doing Business As) will be registered pursuant to 54 PA Cons Stat § 311 (2022).
• You will have to officially publish a notice post filing an application for registration of the fictitious name.

5. Choose Your Location for Pennsylvania Business

If you’ve made the decision to start a business in Pennsylvania then the location of your company is an important focus area. The location of your company influences several aspects related to your business like operations, scalability, profitability, competition, risk, and expenses among others. There are some key factors that a company needs to consider when choosing a location and they are:

• Accessibility – One of the foremost factors is accessibility. If your business activity relies on clients, vendors, transportation and logistics then an accessible office will ensure doing business in Pennsylvania is easy. This means that your chosen location should be accessible to clients or customers. If you are in the manufacturing industry then your office should be close to transportation hubs, opportunity zones, and foreign trade zones.
• Competitors – Competition is necessary but too much competition can kill a business. Being closer to your competition can be a good strategy but may also hurt your business. Healthy competition can fuel innovation and you can even leverage their marketing strategies for your company’s profit.
• Operating and related costs – When you start a small business in Pennsylvania, one of the areas that will impact the company’s ability to run smoothly is operational costs. This cost will vary from one company to another depending on the primary business activity. Some of the elements that influence the operational cost include the coast of inventory, electricity and water, transportation and logistics, rent of commercial space, marketing, employee salary, and other miscellaneous expenses.
• Local zoning ordinances – Last but not least; it’s always important to check local zoning ordinances. These rules and regulations vary according to the city or county that your business is located in e.g., the local ordinance of Philadelphia County will be different from that of Allegheny County or Pittsburgh city. Local zoning ordinances also define the need for local Pennsylvania business licenses and permits for specific business activities.

• Philadelphia
• Pittsburgh
• Erie
• Allentown
• Reading
• Lancaster
• Scranton
• York

6. Register Your Business with the Pennsylvania Department of State

Whether you want to incorporate in Pennsylvania or start a home-based company, most kinds of businesses will need to undergo the process of a new business registration with the state. You will be required to fill out and submit documentation in accordance to the type of entity structure chosen. The documents have to be filed with the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations. Let’s look at an example to understand this.

Do you want to form a new business in Pennsylvania?

7. Get Your EIN

An Employer Identification Number (EIN) is an important point on the starting a business in Pennsylvania checklist. It is mandatory for certain business structures and optional for others like a sole proprietorship without employees. In general, an EIN will provide your business with certain advantages. It is mostly used for filing your taxes but can be required for opening a business bank account or for taking out a loan. One of the most important benefits of having an EIN is that it will boost the overall credibility of your company. The Employer Identification Number is issued by the Internal Revenue Service (IRS).

8. Open a Business Bank Account for Pennsylvania Business

Whether you’re just starting as a sole proprietor or want to register a business in Pennsylvania as a corporation, one of the important business requirements is opening a bank account. You may think that your personal savings account would suffice, but realistically, it will make accounting difficult and lead to confusion when filing your tax return. Some of the reasons a company may require a separate account also known as a business bank account are:

• It is a legal requirement for certain types of businesses like corporations
• It will help in separating your personal income and expenses from that of the company
• The checking account will make expense tracking easier and help streamline the financial records as well as the tax information of the company.
• It will help provide clear records for audits
• A business banking account will help establish business credit by maintaining good financial habits

9. Obtain the Necessary Pennsylvania Business Licenses and Permits

If you’ve decided to start a small business in Pennsylvania, it would benefit you to know that one of the most important requirements in the state is obtaining the proper business licenses. Unlike many other states, Pennsylvania does not have a state license or general business license, although local licensing is required. The Pennsylvania business license requirements will vary according to different factors like the primary business activity and location of the company. Business licensing can be divided into three categories that include:

• Business licenses by Industry – If your business activity falls under a specific industry then the type of license needed will be determined by that industry. These licenses will be issued by different government agencies or bodies. If you decide to start a small business in Pennsylvania as a restaurant then you will need to apply for the Retail Food Facility Licenses issued by the Pennsylvania Department of Agriculture.
• County or City Licenses – You may need to apply for and obtain a Pennsylvania business license in the city or county where your company is located. Different counties or cities have different licensing rules, regulations, fees etc., and the type of license or permit will depend on business activity. In the city of Pittsburgh, the Department of Permits, Licenses, and Inspections issues local licenses for different types of activities like bed and breakfast and stationary Vendors.

10. Get Business Insurances

All forms of businesses typically require some type of business insurance, as it helps them to cover any costs associated with liability claims and property damage. If you start a business in Pennsylvania and have not invested in proper business insurance then as an owner, you may be at a risk of having to pay out costly damages or even for legal claims against the company. Every new or established company at some point in time faces some form of risk. Good business insurance can protect owners and the business. If you incorporate in Pennsylvania then the most common forms of business insurance that you can choose from are:

• General liability insurance
• Product liability insurance
• Professional liability insurance
• Employment practices liability insurance
• Business interruption insurance
• Workers’ compensation insurance
• Business Owner’s Policy (BOP)
• Home-based business insurance

11. Annual and Ongoing Requirements

Once you register a business in Pennsylvania, you will need to ensure complete compliance with state annual requirements. Different states in the USA have different annual requirements and fulfilling them will guarantee that your status will remain in good standing in the state. When you incorporate in Pennsylvania, one of the requirements is to file your annual report. Pennsylvania requires you to file a Decennial Report (once every ten years). The submission period of 10 years is expected to change to a one year period from 2024. The filing fee for the annual report depends on the type of business structure.

Some Important Quick Resources for Pennsylvania Businesses

When you are creating a business plan, you will need all possible resources and information concerning the operations of the new company. The information will not only help you to register and start a business in Pennsylvania but it will also provide information concerning others like the Pennsylvania business license, taxes, annual reports, small business development programs, and state business incentives among others. Let’s look at some of the important resources.

Pennsylvania Secretary of State

The office of the Pennsylvania Secretary of State has a website where you will find different types of information related to general and specific business requirements like forms, fees, business record searches, online licensing services, and much more. It is also known as the Pennsylvania Department of State.

• Pennsylvania Department of State
  302 North Office Building,
  401 North Street
  Harrisburg, PA 17120
  Phone – (717) 787-1057
  Email: RA-CORPS@pa.gov
  Website – https://www.dos.pa.gov/Pages/default.aspx

Pennsylvania Department of Revenue

This is an important department if you plan on doing business in Pennsylvania. You’ll get information and resources related to Personal Income Taxes and state business taxes. They provide information related to tax rates and the types of taxes applicable to your company. They also have a dedicated customer service team.

• Pennsylvania Department of Revenue
  11th Floor, Strawberry Square,
  Harrisburg, PA 17128-0431
  Phone – 717-787-1064
  Website – https://www.revenue.pa.gov/Pages/default.aspx

Pennsylvania Department of Labor & Industry

After you register a business in Pennsylvania, you may need to hire employees or a skilled workforce. This is where the Pennsylvania Department of Labor and Industry comes into the picture as it provides information and resources related to the various facets of employment. You will get information on workers’ compensation services, occupational and industrial safety standards, labor law, workforce protection, career training & development resources, and grants among others.

• Pennsylvania Department of Labor & Industry
  1700 Labor & Industry Building
  Harrisburg, PA 17120
  Phone – 717-787-5279
  Website – https://www.dli.pa.gov/Pages/default.aspx

Small Business Administration (SBA) Pennsylvania

The U.S.Small Business Administration is an independent agency created to provide the necessary support for small businesses and entrepreneurs. They provide valuable resources related to starting a business, Pennsylvania business license, funding opportunities in the state, grants programs, loan assistance, business development, entrepreneurship education, and credit risk management among others. They have several branch offices in Pennsylvania with the largest being in the Philadelphia District.

• SBA Pennsylvania
  2601 N. Third St.
  Suite 503
  Harrisburg, PA 17110
  Phone – 717-782-3840
  Website – https://www.sba.gov/district/philadelphia

Pennsylvania Business One-Stop Shop

The primary objective of a Pennsylvania Business One-Stop Shop is to help you start a business in Pennsylvania. They provide a team of business experts from various industries in PA who can provide you with the tools, resources, and experience that will assist you with future planning. They have a small blog targeted at small businesses and also provide information on small business funding. They provide information on various entrepreneurship and business events like the 9-Week Financial Boot Camp starting in June 2023. You can also find various business forms in their library section.

• Pennsylvania Business One-Stop Shop
  410 Northeast St
  Williamstown, PA 17098
  Phone – 1.833.722.6778
  Website – https://business.pa.gov/

Partnerships for Regional Economic Performance

The Partnerships for Regional Economic Performance (PREP) is a program that has been designed by the PA Department of Community & Economic Development (DCED). This partnership involves a network of partners throughout the state who work in sync to deliver vital business assistance. The local and regional partners can assist entrepreneurs with all aspects of business development and growth, and help them to create a starting a business in Pennsylvania checklist around these aspects. Some of the areas of focus for PREP include: specialized workshops, financial incentives, one-on-one counseling, and expansion into new markets among others

• Partnerships for Regional Economic Performance
  Harrisburg Regional Chamber & CREDC
  3211 North Front Street, Suite 201
  Harrisburg, PA 17110
  Phone – 717.213.5042
  Email – melissa@hbgrc.org
  Website – https://dced.pa.gov/programs/prep/

Pennsylvania Small Business Development Center

The primary objective of the Pennsylvania Small Business Development Centers (SBDC) is to help entrepreneurs start a small business in Pennsylvania, achieve growth, and prosper. They provide no-cost confidential consulting services and a variety of educational programs to first-time business owners. There are 15 centers in the state that provide assistance with various business issues like creating a business plan, marketing analysis, commercialization of technology, investigating funding opportunities, competitive research, and SBIR/STTR Proposal Preparation Assistance among others.

• Pennsylvania Small Business Development Center
  155 Technology Center
  200 Innovation Boulevard
  University Park, PA 16802
  Phone – (814) 863-4293
  Website – https://www.pasbdc.org/

PA Chamber of Business and Industry

The Pennsylvania Chamber of Business and Industry is a type of business advocacy association whose objective is to assist businesses of all different types and sizes in all industry sectors. They also advocate key policies that affect industries and businesses and provide resources and information on human resources, OSHA, workplace safety, information technology, and employee benefits among others.

• PA Chamber of Business and Industry
  417 Walnut Street
  Harrisburg, PA 17101, US
  Phone – 717.255.3252
  Website – https://www.pachamber.org/

Ready to start a business in Pennsylvania?

Pennsylvania’s proximity to major ports on the East Coast gives businesses and entrepreneurs the strategic advantage they need to successfully operate. When you register a business in Pennsylvania, you will be able to leverage different state programs including financial incentives and grants. Although the startup registration process may seem a little complex, a reputable Pennsylvania registered agent like IncParadise can provide valuable assistance with business formation or incorporation.

Home-Based Business in North Carolina

If you’re planning to start a home-based business in North Carolina then it’s important to understand the various facets of such an entity. A small business that can be operated over the internet or offline is considered to be working from home. You can start a home-based business from anywhere within your home or the residence of a friend like modern-day cloud kitchens or IT consultancy startups from a garage. Once you have the right home business licenses in North Carolina, your startup will be fully operational and you can provide services or goods locally, nationally, and even go global.

Why start a home-based business in North Carolina?

The business market has shifted focus in the last few years and home-based businesses seem to be the new trend. The greatest benefit or salient aspect of this type of business is that the administrative and managerial activity is confined to the personal residence of the owner. It is easy to start a home-based business in North Carolina because of the state’s pro-business climate. There are several advantages to running a company from home and some of them include:

• Low startup cost – How to start a home business in North Carolina and the cost associated with it are important topics. A report by the U.S. Small Business Administration reveals that the startup costs for home-based businesses can vary from $2,000 to $5,000. The overall cost of registering and operating a new business in North Carolina is lower than in several other states like New York, Minnesota, Wisconsin, Nebraska, and West Virginia, among others. Apart from this, operating from your residence will mitigate the cost of renting or leasing commercial space and the costs associated with overheads and utilities.
• Funding programs and state resources – One of the main drivers of success for home-based business ideas in NC is finances. More often than not, such companies can experience business failure because of a lack of funds, overestimation of revenue, and underestimation of operating costs. The state of North Carolina provides several resources for small companies operating from home. The most valuable state resources are grants and funding programs. Some of the top programs include Inception Micro-Angel Funds (IMAF), Carolina Small Business Development Fund, Business Loan and Growth Programs, Federal Community Development Block Grant (CDBG), and Local Grants Program for Minority and Women-owned Businesses among others.

Popular home-based business ideas in North Carolina

The Internet and technology have not only made business processes smoother and more efficient, but they are also responsible for creating alternate revenue streams for home-based businesses. Today, there is no dearth of home-based business ideas in NC and you can start one with ease. Some of the most popular kinds of home businesses are:

• Virtual Assistant (VA) – A Virtual Assistant or VA is an independent contractor who specializes in providing a variety of administrative services to an individual client or a firm.
• Recruitment Agency – It’s also known as a staffing agency and plays a key role in sourcing candidates according to company or industry requirements.
• Pet Daycare Services – This is one of the popular home-based business ideas in NC. A pet daycare service provider can also offer additional services like grooming, training, bathing, and similar services.
• Print-on-demand – This is a small part of a bigger advertising industry. You will need home business licenses in North Carolina to operate this type of firm. It involves the design and printing of T-shirts, new employee packets, mugs, and other apparel, as well as home goods.
• Meal Delivery Services – You can conduct this type of business using your home kitchen. This is a type of meal kit service where freshly prepared meals are delivered right to the customer’s doorsteps or offices.
• SEO Services – A Search engine optimization (SEO) service is one of the top home-based business ideas in NC. There are several aspects of SEO where you can offer your expertise like Google Adwords Services, Google Analytics Management, Google Analytics Support, Social Media Optimization, and Content Management among others.
• Online Classes – This is one of the new categories and will require home business licenses in North Carolina or occupational permits. You can provide online classes for a variety of subject areas from high school subjects, to professional skills and competencies through various online platforms.

Form your North Carolina home-based business Today!

Steps to Start Home Based Business in North Carolina

It’s time to take your business idea to the next level. However, it’s extremely important to be certain that you’ve identified all of your business related requirements. The following steps are tremendously important for launching and operating your home-based company successfully. Let’s look at some of the key areas to focus on.

1. Prepare your home-based business plan

If you’re interested in learning how to start a home business in North Carolina, then the first step would be to create a good business plan. A strategic plan can vary depending on the industry sector you are planning to focus on. The importance of a plan lies in the fact that it will create a path that your company can follow. Some of the key components to include in your business plan are:

• High-level overview or Executive summary of the company
• Company Description
• Industry sector
• Target audience
• Products or Services
• Existing competition
• Revenue generation model
• Marketing and Sales Strategy
• Startup Expenses
• Funding for the business

2. Check zoning laws and regulations for your home-based business

It is important to check zoning laws and regulations before you start a home-based business in North Carolina. Each city or county has its own zoning ordinances and these rules define how a residential or commercial property situated in a specific geographic zone, can be used. Accordingly, you will also have to apply for home business licenses in North Carolina. Zoning laws can have an impact on the location of your business as they have been designed to protect public health and safety. Let’s look at an example to understand how this works.

Example: If you are planning to start your home business in Raleigh then zoning is governed by the Planning and Development Department. Home businesses are allowed in Raleigh according to zoning ordinances but you will be required to apply and obtain a permit to operate such a business. You will need to define whether the said business falls under Home Occupation or Live-Work. Most home-based business ideas in NC fall under the Live-Work category for which you will need to apply for a Live-Work Permit Application pursuant to Unified Development Ordinance (UDO) Section 6.7.3.E. If you are planning construction to the residential dwelling for business purposes then you will need to apply for a Residential Permit Application.

3. Choose a business structure and register your business

If you are wondering how to start a home business in North Carolina, it involves many processes like the new business registration or incorporation process. Although, the most important step is to choose the right legal structure as this will determine the registration process, as well as several other facets such as management, tax rate, documentation requirements, liability protection, and fundraising capabilities. The registration process forms and fees vary depending on the chosen structure.

Register your home-based business in North Carolina!

4. Check if you need to obtain an EIN

If you plan to start a home-based business in North Carolina or choose self-employment while working from home then at some point, you may need to apply for an employer identification number (EIN). This is a unique 9-digit number also known as the Federal Employer Identification Number (FEIN), and is assigned to businesses by the Internal Revenue Service (IRS). The requirement for an EIN is determined by the legal structure and other factors like hiring employees or if you have a Keogh plan.

5. Register for taxes

If you are planning to operate your business from home or your residence then you may be required to register for taxes. The type of taxes you have to file will depend on certain factors like:

• The type of business structure you chose to register such as a corporation, LLC, or partnership.
• Home occupation or business activity like selling of products or services.

6. Get insured

Now more than ever, entrepreneurs are running their businesses from their residences due to easier accessibility to the Internet and technology. So, if you want to start a home-based business in North Carolina, you will need to maintain insurance for your business. The standard homeowners’ insurance that most people may have will not include protection that is specific to your business property such as technology, equipment, and software among others. Hence, choosing the right home-based business insurance will help with safeguarding your interests.

• You can add an endorsement to your existing homeowner’s insurance policy like doubling the standard policy limits.
• You can also add an endorsement that is specific to your business needs.
• You can opt for a standalone business insurance policy with better coverage limits.
• You can choose a policy that provides business liability coverage, property coverage, electronic data processing equipment coverage, and loss of income coverage among others.

7. Obtain necessary licenses and permits

Once you’ve registered your home-based business ideas in NC, the next step is to submit your application to obtain the appropriate business licenses. A business license or permit allows you to operate your home-based startup in the state without any hiccups. Home business licenses in North Carolina can be categorized under the following:

• Sales Tax License – This type of license is mandatory for a home business that sells products directly or indirectly to its consumers. A few great examples would include an e-commerce website or software developer and seller.
• Occupational or Professional License – If you’ve started a home business that focuses on a specific occupation or profession then you will have to apply for these types of home business licenses in North Carolina. A few examples of such occupations would include an architect, attorney, boarding kennel operator, and Certified Public Accountant (CPA) among others.
• County Licenses – Licenses and permits will be issued by the city or the county when you start a home-based business in North Carolina. You will need to check with the county where your company is located for the appropriate municipal licenses.

8. Market your business

Marketing is integral to the growth of any business including home-based business ideas in NC. Marketing your home-based business doesn’t have to be an expensive affair. The internet along with smart marketing strategies will provide just the right amount of exposure and help save money. Here are some methods, tools, and strategies that can be quite useful:

• Email weekly newsletters.
• Use word of mouth.
• Start a company website.
• Start a company blog.
• Use banners and posters on social media platforms.
• Use digital advertising like PPC (Pay-Per-Click).
• Create listings in major online directories like Yelp.
• Partner with another company to promote your business.
• Offer complementary products or services.

Ready to Start Your Home-Based Business in North Carolina?

When learning how to start a home business in North Carolina, it is important to understand that this type of entity will be different from other commercial enterprises. Choosing a structure is important because it will determine the advantages and liabilities of your company. If you want to operate your home-based company successfully and need a little bit of assistance, our experts can guide you through the registration process.

Introduction – Why North Carolina?

If your business is ready for expansion and growth, or you are planning to launch a new business, then choosing a location is very important. Selecting the right location depends on several factors including taxes, customer segment, infrastructural support, logistics, competition, import and export, cost-effectiveness, and state small business incentives. North Carolina offers support programs that are attractive to domestic and foreign entities, as well as for relocating a business to North Carolina. Today, NC is home to several top companies including Bank of America, Honeywell, Lowe’s, Truist Financial, and Duke Energy among others. There are many ways to move your company to this state including entity domestication in North Carolina, but first let us identify the numerous benefits this state has to offer.

Favorable business climate

One of the biggest reasons for moving your business to North Carolina is the favorable business climate. North Carolina is ranked #1 on the list of top states for business, as well as states with the best business climate. Some of the reasons for this top ranking are:

• The state has one of the lowest corporate income tax rates
• It has one of the lowest overall business costs
• The construction costs in the metro areas of the state are 15 percent lower than in other states
• The legal climate and regulatory environment is also considered to be extremely favorable
• The state offers an unparalleled quality of life
• North Carolina is centrally located in the East-Coast region of the USA

Excellent infrastructure

The overall business climate in North Carolina is driven by several other smaller factors including infrastructure. The state’s public and commercial infrastructure have been growing at a steady pace making it favorable for relocating an LLC or moving a corporation to North Carolina. The state is home to 4 major international airports and 2 seaports that enable trade. It’s also home to the largest consolidated rail system and the Second-largest state-owned highway system in the USA, thus providing transportation advantages to businesses and their workforce.

Quality workforce and education

A good education is one of the main driving factors of growth and expansion for any company because it creates competent employees and a strong workforce. Today, North Carolina is considered to be a high-skill, knowledge-based economy driven by innovation and technology. This type of economy also demands a workforce that is adaptable and skill oriented. Hence, they emphasize quite a bit on science, technology, engineering and math (STEM) education. Relocating a business to North Carolina means that your company will have access to a strong, skilled, and professional workforce. This is due to several of the top local educational institutions like The University of North Carolina, Wake Forest University, and Winston-Salem State University among others. The state also has a workforce infrastructure for promoting training and education continuation programs to help employees learn on the job.

Business incentives and assistance

North Carolina has several kinds of assistance and support programs established for small businesses and medium-sized enterprises. Amongst them are the performance-based incentive programs that have been created to help entrepreneurs with relocating a corporation or moving an LLC to North Carolina. These programs also help lighten the overall tax burden and lower the initial costs for the entity. Some of the top business incentive and assistance programs in the state are:

• Job Development Investment Grant (JDIG)
• One North Carolina Fund (OneNC)
• Rural Division, Building Reuse Program
• Community Development Block Grant, Economic Development Program
• Public Infrastructure Funds
• Historic Preservation Tax Credit
• Sales and Use Tax Exemptions and Refunds
• Utility Account Grants
• Customized Training Program
• City & County Grants
• New Market Tax Credit program

Steps to Move a Corporation to North Carolina

If you are thinking of moving your business to North Carolina then there are many benefits that the state has to offer from infrastructure to business development programs. When moving your business, you may have several questions such as, “Does North Carolina allow domestication, and what is the applicable process for relocating a business or corporation?” There are primarily two options for moving your corporation to this state, so let us look at these options in detail.

Register as a foreign corporation

The first option for relocating a business to North Carolina is registering it as a foreign company. This is an option for owners who want to operate their corporation in their home state (state of incorporation) as well as in other states like North Carolina. The process for moving a corporation to North Carolina is through a foreign qualification. The process is governed by the 2020 North Carolina General Statutes, Chapter 55, Article 15. The process for foreign qualification is as follows:

• Designate a registered agent in North Carolina for handling service of process, pursuant to NC Gen Stat § 55D-30 (2020)
• If your existing name is not available through the name availability search, then you will be required to register a fictitious name pursuant to NC Gen Stat § 55D-22 (2020)
• File the Applications for a Certificate of Authority pursuant to NC Gen Stat § 55-15-03 (2020)
• You will also need to submit a Certificate of Existence (Certificate of Good Standing) issued by the home state or state of incorporation

Do you want to start a foreign corporation in North Carolina?

Dissolve a home Corporation and establish a new Corporation in North Carolina

The second option for moving a corporation to North Carolina is through dissolution. This involves dissolving your company in your home state, then going through the process of domestic incorporation in North Carolina. Moving your business to North Carolina will require you to follow the laws and process of dissolution of the home state. The process of dissolution will also vary according to the state and may involve voluntary, judicial, and administrative dissolution. Some general procedures are applicable in all states including:

• Approval of dissolution of a corporation by incorporators, directors, or shareholders
• Filing Articles of dissolution in the home state
• File any federal, state, and local taxes and claims outstanding
• Publication of notice of dissolution if applicable
• Wind up all affairs in the home state such as canceling business licenses and permits

• Appoint a registered agent in North Carolina for service of process
• Identify and reserve a business name using the Application to Reserve a Business Entity Name
• File Articles of Incorporation pursuant to NC Gen Stat § 55-2-02 (2020) along with the appropriate fee
• Prepare bylaws for the North Carolina Corporation
• Apply for business licenses and permits

Incorporate in North Carolina with ease!

Steps to Move an LLC to North Carolina

If you’re thinking of relocating a business to North Carolina then you can benefit from state support programs including small business incentives and grant programs to lower taxes and gain access to the availability of a skilled workforce. You may have certain questions regarding relocation like, “Does North Carolina allow domestication, and what is the process for moving an LLC?” There are two options available and each option has its own process, laws, and requirements. Let us look at each of the options in detail.

Register as a foreign LLC

The first option for moving an LLC to North Carolina is to register an existing entity as a foreign LLC. This process is also known as foreign qualification and it works best for business owners who are thinking of expanding their business to this state while remaining operational in their home state. Relocating a business to North Carolina through foreign qualification will require several steps. This type of entity relocation is governed by 2020 North Carolina General Statutes, Chapter 57D – North Carolina Limited Liability Company Act, Article 7 – Foreign LLCs.

• Hire and maintain a registered agent in North Carolina for handling service of process pursuant to NC Gen Stat § 57D-7-06 (2020)
• You can keep the existing name of your foreign LLC only if it is available. If the said name is unavailable then you can choose a DBA by filing for an assumed name certificate.
• File the Certificate of Authority to transfer an LLC to NC through foreign qualification pursuant to NC Gen Stat § 57D-7-03 (2020)
• Submit a Certificate of Existence also known as a Certificate of Good Standing issued by the home state

Apply for LLC foreign qualification in North Carolina

Dissolve a home LLC and form a new LLC in North Carolina

The second option for moving an LLC to North Carolina involves dissolving the home state LLC and registering the domestic limited liability company in this state. The rules for dissolution are governed by the LLC Act., of the state where it was initially formed. Some finer points of dissolution will remain the same in all states like the approval of a dissolution and the filing of certificates or articles of dissolution. It’s important to note that an LLC can be dissolved either voluntarily or involuntarily. The process for moving your business to North Carolina through a dissolution will involve the following steps:

• Approval of dissolution of an LLC through unanimous member consent
• Filing Articles of dissolution in the home state
• File any outstanding claims as well as federal, state, and local taxes
• Publish a notice of dissolution if applicable
• Cancel business licenses and permits

• Appoint a registered agent in North Carolina to handle service of process
• Conduct an LLC name availability search and reserve a business name pursuant to NC Gen Stat §55D-23 (2020)
• File Articles of Organization pursuant to NC Gen Stat § 57D-2-21 (2020) along with the appropriate fee
• Prepare the North Carolina LLC operating agreement
• Apply for the appropriate business licenses and permits

Register your LLC in North Carolina Today!

Move Your Business to North Carolina with IncParadise

IncParadise is one of the top registered agent service providers in North Carolina. We provide a variety of services to fulfill different business requirements. We can help you with the process of relocating an LLC or moving a corporation to North Carolina by facilitating the paperwork for dissolution in your home state, foreign qualification, and new business registration in NC.

North Carolina Registered Agent

A registered agent in North Carolina is a company or an individual who is recognized by the state as the official point of contact for a limited liability company or a corporation operating in the state. A registered agent is also known as a resident agent in many states. The registered agent services in North Carolina can vary from one agent to another but their primary role is to receive service of process, as well as other legal and official documents and communications on behalf of the said entity.

What is a North Carolina registered agent?

A registered agent in North Carolina is also known as an agent for service of process, and even a statutory agent. A registered agent (RA) has to be hired in compliance with state laws to receive service of process (SOP) on behalf of specific entities or forms of businesses. Every state in the USA has business laws relevant to maintaining an agent in that state. The 2020 North Carolina General Statutes governs registered agent services and other business and RA requirements. The North Carolina registered agent requirements and laws also determine the change of a registered office or registered agent and the resignation of a registered agent in the state.

What are the roles and responsibilities of a registered agent in NC?

Federal and state business laws have defined the roles and responsibilities of a registered agent and they are more or less the same for all states in the nation. It is important to note that registered agent services in North Carolina are necessary for both new and existing businesses. The responsibilities of a NC registered agent include the following:

• Service of Process – The primary business objective that a registered agent in North Carolina fulfills is service of process. Service of process refers to the action of informing a company, firm, or individual regarding a pending lawsuit against them or the entity. When you appoint RA in North Carolina then they will also have to receive any legal notices as a part of the service of process. They will also receive any summons or writs forwarded by any person representing the office of the Secretary of State.
• Business Related Documents – If you form a new business in North Carolina then the state will send you important documents concerning your company. Whether your company is a domestic or foreign entity, all business-related mail is important as it may include information related to compliance with state annual requirements. When you appoint RA in North Carolina, it becomes the responsibility of the said agent to receive all business documents on behalf of the company.

Who can be a registered agent for your NC business?

The laws for a registered agent vary from one state to another. It’s also important to note that each state including North Carolina has its own rules regarding the qualification criteria for a registered agent. The North Carolina registered agent requirements state that a firm or an individual can act as your resident agent or statutory agent if they qualify.

What are the requirements of an NC registered agent?

The state of North Carolina has outlined the requirements for a registered agent. The statutory agent can be a registered business or an individual resident of the state. It is always recommended to conduct a North Carolina registered agent search based on the state requirements to ensure that you or your company can benefit from the best possible services. Some of the requirements pursuant to Article 4 of the 2020 North Carolina General Statutes are:

• The foremost North Carolina registered agent requirement is to accept service of process and official notifications on behalf of their clients pursuant to NC Gen Stat § 55D-33 (2020)
• An NC agent should have a registered office or should maintain a physical address pursuant to NC Gen Stat § 55D-30 (2020)

Are you looking for top Registered Agent Services in North Carolina?

Can I be my own registered agent in North Carolina?

Yes, you can be your own registered agent in North Carolina. It’s important to make sure that you meet all state requirements as prescribed by law. When applying as an individual, there are specific requirements to qualify and they include:

• To be a North Carolina registered agent, you should be over 18 years of age
• You need to have a physical street address, and a PO Box address is not allowed
• You should be available during office hours throughout the week

How to choose a registered agent in North Carolina?

A registered agent becomes necessary when you start a new business in North Carolina or during the planning stages before registering with the state. This is because the 2020 North Carolina General Statutes, NC Gen Stat § 55D-30 (2020) states that each domestic, foreign, and nonprofit entity must appoint a registered agent in North Carolina and continuously maintain a registered agent in the state. Finding the right agent may seem difficult, especially with hundreds of qualified agents readily available for service. This is where the North Carolina registered agent search becomes important. Statutory agent services can vary from one agent to another and so do their pros and cons. However, there are some tips that you may want to consider:

• Look for a professional registered agent who will ensure all types of filings are taken care of.
• When conducting a North Carolina registered agent search, consider your options for customizable electronic notification services.
• Price should not be the focal point of consideration, quality and value should be
• A reputable agent will provide additional compliance tools to help you fulfill and maintain annual state requirements.
• If you appoint a registered agent in North Carolina then he/she or the company should keep regular business hours.
• A nationwide registered agent service like IncParadise can offer long-term benefits such as assistance with foreign qualification or moving your business to other states.
• Choose an agent who specializes in handling sensitive documents and offers a forwarding service too.
• They should provide reliable software like the Entity Management Software by IncParadise.

Why choose a professional registered agent service in NC?

The primary reason for conducting a North Carolina registered agent search is to find a highly professional service. Hiring a registered agent in this state is a legal requirement, but finding a service that is consistently available every business day during business hours can be difficult sometimes. If your chosen company takes a holiday and misses the opportunity to receive a document on your behalf, or doesn’t offer automated services that provide notifications about your upcoming or overdue annual report, then it can cost your company greatly. Hiring a professional registered agent services in North Carolina like IncParadise will allow you to enjoy many benefits including:

• A professional registered agent service will maintain regular business hours so that will allow them to receive all legal notices and important state or official documents.
• An NC resident agent will not only receive official documents but should also forward them to the owner of the said company.
• A professional registered agent will have a physical address that is compliant with state requirements.
• A registered agent in North Carolina will help you handle and organize all of your business-related documents.
• Some registered agent services provide offsite storage facilities for legal and sensitive documents.
• One significantly important service offered is sending timely automated reminders like those sent for filing your NC annual reports.
• When you appoint a registered agent in North Carolina, your private information will remain protected.

Want to hire us as your North Carolina registered agent?

How to change a registered agent in NC?

There are many scenarios and reasons why any business would want to change their registered agent in North Carolina. Some of the most common reasons include:

• You want a professional service provider in the state
• Your existing RA doesn’t provide service in North Carolina
• Your current registered agent doesn’t meet NC state requirements
• Your designated resident agent has moved out of this state
• You have been the registered agent for your company but want to appoint a registered agent in North Carolina because your business has expanded

File and submit Statement of Change of Registered Office and/or Registered Agent

If you are considering changing your registered agent in North Carolina then the first step is to file and submit the Statement of Change of Registered Office and/or Registered Agent (form BE-06). The form must be submitted to the North Carolina Secretary of State (SOS), Business Registration Division. You can submit it online or through postal mail.

• The complete street address and county of the new registered office.
• New registered agent’s name, signature, and title.
• The old registered agent information including their name and street address.

Want to change your North Carolina registered agent?

Choose IncParadise as Your North Carolina registered agent!

If you’re planning to register or incorporate a new business in North Carolina then it’s mandatory to maintain a registered agent in the state. It’s important to conduct a North Carolina registered agent search to find a professional and reputable service. IncParadise is one of the reputed and professional registered agents in this state who adheres to the North Carolina registered agent requirements established by the office of the Secretary of State.