Forming an LLC or other business entity type in Pennsylvania comes with benefits for those chasing their entrepreneurial spirit and the hard-but-rewarding experience of small business ownership. In real estate specifically, forming an LLC can make a positive impact on tax bills and keep the lines clear between a professional’s personal and professional business.
Here’s a look at three things to know about the process of forming an LLC in Pennsylvania, which is a Capstone Land Transfer specialty. We consider all regulations and tax structures, set up the LLC, and get you going on the road toward your dream. The entire transaction is painless and transparent with full disclosure and a one-time fee.
Three things to know about LLC formation in Pennsylvania
1.) Where to begin: Pick a unique business name and visit Pennsylvania’s Department of State to file a Certificate of Organization (Form DSCB:15-8821) and Docketing Statement (Form DSCB:15-134A). Those are part of a more thorough list of filing guidelines listed on the state of Pennsylvania’s official website. Another big first step is to file for an Employer Identification Number from the IRS.
2.) Know the business type for you: An LLC is one of the most common entity types for small businesses because of the line it draws between an owner’s personal possessions and the business. But other structures can make sense depending on all factors of the business you would like to start. These include sole proprietorship, partnership, C-Corp and S-Corp, which all have their own lists of pros and cons.
The Small Business Administration has full explainers on the business types, as well as a table to help determine what works best for you. This would be another area where working with Capstone Land Transfer professionals can help inform the right decision at formation
3.) Ongoing compliance is key: Starting a business and forming an LLC (or other entity type) is merely the first step of many toward building a long-term successful business. In addition to the ingenuity and hard work built into the process, small business owners also have to be mindful of ongoing compliance and regulations, not the least of which is federal and state tax compliance.
Filing business taxes in PA is just one of the areas explored in the Pennsylvania Department of Revenue’s Business Resources page. Another good piece of information from the Department of Revenue pertains to incentives, credits and programs that can benefit small businesses.
