Using Pennsylvania Corporation and Partnership Law
Form a business with Pennsylvania corporate law
Making a new corporation is one of the most common reasons for using Pennsylvania corporation and partnership law. A small business may prefer to file the documentation needed to incorporate a business directly with the state. There are also many companies that provide business formation services for a fee.The most important factor in incorporating in Pennsylvania is choosing a specific business structure. Pennsylvania partnership law makes some important distinctions between a corporation and a partnership. A partnership generally does not pay a business tax although the partners are liable for business debts.
Corporate law defines the way in which the following entities interact:
1. Shareholders that collectively a PA corporation. Shareholders may hold special privileges such electing a board of directors, proposing resolutions and sharing in the company’s income.
2. Directors that oversee the company’s activities. The activities of the board of directors are typically determined by the company’s bylaws. The board of directors and the shareholders are typically the same group of people in a small business.
3. Employees that provide expertise and perform labor for the company. Employees are also shareholders in many cases.
Select the best structure for your business according to Pennsylvania business corporation law
Your choice of business types can include corporations, full partnerships and limited partnerships. There are many sites that summarize business laws in Pennsylvania and you may also need an attorney to explain these laws to you.
Try: Cornerstone Professional Accountancy Group address a variety of issues related to forming a corporation including information specific to Pennsylvania. Startup Legal provides a list of business types available in Pennsylvania and additional information specific to Pennsylvania.
Use a company to create a business under PA corporate law
There are many online services that can submit the required forms on your behalf in exchange for a fee. However, you will still need to comply with the disclosure, operating and reporting requirements.
Try: CorpAmerica provides services for forming a corporation or partnership in Pennsylvania. Getting Incorporated has an order form specifically designed for forming a corporation or partnership in Pennsylvania.
Create a new business by yourself under Pennsylvania corporation law
Each state has a department that is responsible for the formation of new businesses. You can complete these forms yourself and submit them directly to the correct government department.
Try: The Pennsylvania Department of State is responsible for registering new companies in Pennsylvania and maintains online versions of the required forms. Business.gov has links to free advice and answers specific questions about starting a business in Pennsylvania.
- You will need to select a name before you perform a PA incorporation. Many online services provide a name search function to determine if a particular name has been used before. The required forms will also provide spaces for more than one business name in many cases. This increases the chances that an unused name can be found.
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