How To Sign Pennsylvania Banking Form

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- [Narrator] How to form a LLC in Pennsylvania. Pennsylvania is an excellent place to form a new LLC. Hosting the sixth largest economy in the country, with a high business survival rate, and great access to venture capital. Every state has slightly different requirements for forming a LLC, follow along closely to learn the requires steps for creating your own Limited Liability Company in the state of Pennsylvania. (slow piano music) There are two ways to form a LLC in Pennsylvania. You can for one yourself, or you can hire a service to do it for you. Option one, do it yourself. Let's start by looking at the five basic requirements to form an LLC in Pennsylvania on your own. You can also find these steps in more detail on our website, linked in the description below. One, name your LLC. Every state has it's own rules about what kind of names are allowed for LLCs, in general, you will need to observe these naming guidelines. Your name must include the phrase Limited Liability Company or one of it's abbreviations, LLC or L.L.C. with a period following each letter. Restricted words such as bank, attorney, law office, et cetera, may require additional paperwork and may also need a licensed professional to be part of the LLC. Your name cannot include works that could confuse your LLC with a government agency such as FBI, Treasury, State Department, et cetera. You cannot use a name that has already been registered. To see if your name is available in your state, you'll need to do a name search. This free service is available on your state's Secretary of State website. Check out our free guide for finding the direct link to your state, we also recommend that you check to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it. Two, choose a registered office. You are required to submit the address of your registered office for your Pennsylvania LLC. A registered office is the official mailing address for all legal mail from the state related to your business. Your registered office must be a street address, not a PO Box, within the state of Pennsylvania. Your registered office can also be the address of a commercial registered office provider, or commonly know as a Registered Agent service. Three, file the Certificate of Organization. To register your Pennsylvania LLC, you'll need to file the Certificate of Organization with the state of Pennsylvania. This can be done online, or by mail. You should decide whether your LLC will by member-managed, or manager-managed. Member-managed means all the members of the LLC manage the company. This is good for small organizations where everyone is involved in the day to day operations. The second option is manager-managed, where individuals are appointed to manage the LLC. This is appropriate for larger organizations where not everyone is involved in the day to day affairs of the business. Four, create an Operating Agreement. Although not every state requires it, your should always create an Operating agreement to establish ownership terms and member roles for your LLC. This foundational document is the core of your LLC and will help you maintain your organization, as well as further establish your LLC as a separate legal entity. There are six main sections of an Operating Agreement. Organization outlines when and where the company was created, who the members are, and how the ownership is structured. Management and voting addresses how the company is managed as well as how the members vote. Capital contributions covers which members financially support the LLC and how more funds will be raised in the future. Distributions outlines how the company's profits and losses are shared among members. Membership changes describes the process for adding or removing members as well as if, and when members can transfer their ownership shares. And dissolution, which explains the circumstances in which the LLC may be dissolved. An Operating Agreement is an internal document. It does not need to be filed with the state, however, it should be updated every time there is a change in membership or management at the company. You can download a free sample Operating Agreement, or create a custom one using our free Operating Agreement tool at howtostartanLLC.com. Five, obtain an EIN. Lastly, you'll need to get an Employer Identification Number, or EIN from the IRS. Also know as a Federal Tax Identification Number, your EIN is like social security number for your LLC and is how the IRS tracks your business for tax purposes. An EIN is also necessary to open a business banking account and legally hire employees. EINs are free of charge, and can be obtained from the IRS online or through the mail. And with that, you'll have formed a Pennsylvania LLC on your own. Option two, hire a professional service. The second way to create a Pennsylvania LLC, is to hire a professional service to create you LLC for you. Hiring a professional service to file your forms and act as your Registered Office, more commonly know as a Registered Agent, will cost you an additional 50 to 150 dollars, however, there are several benefits to working with a pro. A hired Registered Agent helps with getting your reports filed on time, helps you stay organized by keeping your business mail separate, and is available at all regular business hours to accept official mail and legal papers on your LLC's behalf. A final and important additional benefit of using a service is privacy. A professional service will provide a level of privacy by withholding your personal name and home address from the LLC's contact information. There are many reasons why you might now want your personal information easily accessible and associated with your business. Hiring a professional LLC formation service is an easy way to accomplish this. Now that you have seen the different requirements and ways you can form an LLC in Pennsylvania, visit our site and take some time to research your options and establish a solid foundation for your business activities. Click on the links in the description below to research the top five professional formation services or get more information on how to form a Pennsylvania LLC on your own. Now you know all the steps to form an LLC in your state. For a more detailed guide, how to howtostartanllc.com. You can also create an Operating Agreement and use our business plan tool free of charge. Give the video a like if you found it useful and subscribe if you'd like to see more. And if you have questions or encounter any road blocks, leave a comment below. Good luck in starting your small business. (relaxing music)