how much is a llc in pa requirements for teacher [Must-Know Tips]

Last updated : Aug 15, 2022

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hey my name is eric in today's video we're going to be talking about how to start an llc in pennsylvania so this is going to be a meaty video but there's going to be a lot of free resources for you in the description below i'm going to walk you through exactly all the different ways you can do this so there's really three main methods to setting up an llc you can do this through your state website pa.gov or you can hire an attorney and i'm going to show you how you can vet attorneys and also get a free consultation with them and then the third method is using free online tools and as we go through this video we'll be talking about a lot of topics and things that you should be aware of we're going to be discussing what an llc actually is because a lot of people are misinformed on what an llc actually does for you we're going to be talking about a term called piercing the corporate veil if you don't know what that term is you've never heard of that you're definitely going to want to stay on till the end of this video to figure that out to learn more about that we're also going to be discussing why a registered agent is important as it pertains to piercing the corporate veil and one of the first things i want to talk about are learning center resources for you as you're going through this process so i have set up with my own business and i know when you get started it is really overwhelming and one of the resources i have found helpful is inc file because they have a learning center over here and they have a start a business checklist there's lots of resources for you here if you're starting out with your business and as you go down it's just going to walk you through on all the steps you need to know for setting up your business just a helpful free resource for you that you can find in the description below so another resource i would like to give you is the irs.gov website for small businesses where this really comes into play for you is you may find this helpful for establishing your ein your employer identification number if you're planning on creating a business and you're going to have profits you're going to need an ein this is going to walk you through if you do need an ein and how to apply for it online this is helpful because if you go through an attorney or an online tool or your state website there may be an up charge for doing this if you go directly through the irs.gov website there's not going to be any kind of extra fee for going through their website so that's why i make mention of this so as far as going through your website you'll find the url here in the description below this is going to take you through the registration forms i found the pennsylvania state website to be a little bit messier what you can see here is you're going to go down to domestic business corporation and articles of incorporation and what you'll do is you'll fill out this form a couple things that i do want to highlight in this form is that there's a 125 filing fee in the state of pennsylvania there is no way to get around that filing fee you are paying that filing fee whether you go directly through the state through an attorney an online tool there's going to be a 125 filing fee but one of the things i don't really like is they don't give you a lot of information on here on how to fill things out like it's very confusing uh a lot of times some of the states will have these helpful online tools that walk you through and there's like info boxes you can click that's not the case with this particular service they do have this website right here so what happens is you're gonna open this up create a pen file login and that's how you'll actually be able to upload this completed document what i wanted to highlight on here though is section two it's talking about a proposed registered office along with the name of this corporation's commercial registered office provider so what is the registered office why is that important well that really goes back to what an llc actually is so at this point i think it'd be important to establish this because sometimes people aren't familiar with this but basically what llc does is it creates limited liability for you and the way it does that is it creates a division between your business and your personal assets so in the unfortunate case if you're sued the person suing you can only go after your business assets and not your personal assets such as your car your bank account or your home now if your llc is not set up correctly and there are cracks in your llc what that attorney is going to try to do that is suing you is pierce the corporate veil they're going to try to find cracks in your llc one way that they do that is they'll look at your registered office and your registered agent for that office so another ink file resource here in the learning center is about registered agents and what a registered agent does is they make sure that they're a third party that is taking all your important documents paperworks if you were to get sued they're going to make sure that you have that paperwork as well but they're also going to make sure that your tax forms and requests are up to date requests to complete permits company filings reports are all up to date so if you need to renew in the state of pennsylvania they're going to make sure you're doing that essentially a registered agent acts as a third party to make sure that you're dotting your eyes and crossing your t's with your llc and as we just discussed that's really important because if you do get sued that person that's suing you is going to look for cracks in that llc so they can pierce the corporate bail and then go after your personal assets as well so i don't love the fact that that's just kind of haphazardly thrown in here with no kind of explanation of that on this form but that's just my personal opinion i don't love these forms like this i like online tools that actually walk you through the steps and explain everything to you so another way that you can get your llc set up is you can go through an attorney uh you can always look up something on google locally but one service that i like is called avo and i'll explain why i like this service i'm not affiliated with them in any way i've just used them over the years to find good attorneys and what i would recommend is if you're using this tool i'm going to give you this link with all these filters set up what i want to do is i want to look for attorneys that specialize in limited liability companies but they also offer a free consultation and then what i'm going to do is i'm going to look for attorneys with a 9 and up rating on avo so what we've done is we've filtered this down to a list of attorneys in pennsylvania that have a good auto rating you can see their reviews but they also focus in limited liability companies and setting them up so if you use the [ __ ] link in the description below again it's not an affiliate link or anything like that but it will open up to this page to attorneys that specifically offer free consultations with good ratings on avo and they have experience setting up llc's in yo

Thanks for your comment Phil Coverton, have a nice day.
- Willy Picolet, Staff Member

welcome to the certificate of organization and docketing statement and video a limited liability company is a hybrid between a partnership and a corporation it provides the liability protection of a corporation with the pass-through tax advantages similar to those of partnerships and sole proprietorships in order to form your LLC a certificate of organization must be filed with the corporation Bureau accompanied by a docketing statement a docketing statement is a one-page document which ask a few simple questions such as what type of entity your business is what state it is located in your business name a brief description of your business's activity your desired fiscal year and a few other questions we will show you how to complete the docketing statement later in this video your desired business name must be available for use please make sure you have watched the name research video an actual street address or rural route box must be used as the business's address a Pio box is not allowed if you do not currently have an existing business address the state of Pennsylvania allows you to use your home address as your business address if you do not have an existing business address and you do not wish to use your home address you can elect to use a registered agent and you may then use their address on your certificate of organization a registered agent may be someone whom you know who lives in the state of Pennsylvania and is allowing you to use their address for purposes of receiving your LLC's mail you can alternatively hire a company to act as your commercial registered agent and they will then receive and forward your mail for you typical fees for commercial registered agents range between 100 and 350 dollars per year we have included a link below this video to Northwest registered agent we have heard many great things from our clients about their excellent customer service and their annual fee is between 100 and 125 dollars per year depending on how many years you sign up for there will be a few items to think about and have ready prior to completing your certificate of organization number one the address where you would like the approved certificate of organization sent back to number two whether you will be using a business address your home address or the address of a registered agent number three the names and addresses of the organizer or organizers the organizers are simply the individual or individuals who filed a certificate of organization with the state this would be yourself if you're a single member LLC or you and your business partner partners if you're a multi-member LLC number four whether your LLC will be member managed or manager managed the state of Pennsylvania allows LLC's to either be member managed by the owners of the LLC or manager managed by an elected manager or managers if this sounds confusing to you then this section of the certificate of organization will not be applicable it is more common to see member managed LLC's if this is the case and most likely it will be you will simply strike or cross out this section we will show you where to do this later in the video and number five the date your business will start or the date your business was started to form your LLC the certificate of organization and docketing statement are the only documents you will need to file with the state of Pennsylvania the operating agreement in ein which are in the upcoming lessons do not go to the state of PA remember to include all three pages of the certificate of organization the one-page docketing statement ends your filing fee the filing fee is one hundred and twenty-five dollars the one hundred and twenty five dollar filing fee must be made payable to Department of State in the next few slides I will go over the accepted forms of payment that go along with your certificate of organization and docketing statement you can either send in a personal check or a money order along with your certificate of organization and docketing statement again the one hundred and twenty five dollar filing fee must be made payable to Department of State if you are sending in a personal check your check must have a printed name and address on it let's take a look at a few examples this check would not be accepted and your filing would simply be sent back because there is no name or address on the check this check would be accepted because there is a name and an address on the check note the address must be printed it cannot be handwritten also the address does not have to be a Pennsylvania address or the address of the LLC it can be an address from any state you will notice that my checks do not have an address under my name in this case I need to use a money order here is an example of a money order that was used for a filing of mine I have just blacked out my address for privacy but you can see that it is made payable to Department of State for one hundred and twenty five dollars after you mail your documents and the one hundred and twenty five dollar filing fee to the state you can expect to receive a stamped and approved certificate of organization within seven to ten business days they keep the docketing statement until that point do not order business cards do not obtain your EIN also known as the federal tax ID number do not register domain names or start to use your LLC name until you receive approval from the state if there are any errors with your filing or if your desired LLC name is not available the state will simply send back your documentation including your payment along with instructions on what needs to be corrected here's an example of a stamped and approved certificate of organization you'll notice it has the entity number and date filed at the top the approval stamp in the center and the approval date in the lower-left once you receive this your LLC is officially formed let's get started filling out your certificate of organization and docketing statement you can access them from the download section in this lesson and from there you can either print them out or download and save them to your computer here is the certificate of organization which you can find in the download section you have two options you can either print this document out and handwrite it is required that you use blue or black ink or you can save this document it's a PDF so you can save it to your computer and you can type in the information you'll see here I have already filled out this document so you will just need to make the necessary Corrections that apply to you the very first box at the top you're going to enter the address the name and address where you would like the certificate of organization sent back to once it is approved so here I've entered my address we're next going to jump down to section one where you're going to enter the name of your LLC make sure that you include the abbreviation LLC or they will not approve your filing number two if you're using a home address or a business address that goes in Section A you're going to write your address your city state zip and County if you choose to use a registered agent you will put

Thanks souleoY your participation is very much appreciated
- Willy Picolet

About the author

Willy Picolet

I've studied fluid mechanics at Union College, Nebraska in Lincoln and I am an expert in stochastic process. I usually feel good. My previous job was electro-mechanical technicians I held this position for 4 years, I love talking about checkers (draughts) and memory training. Huge fan of Jay Leno I practice qi gong and collect butterflies.