The initial filing fee in both New Jersey and Pennsylvania is $125 and is included in this firm's LLC formation fee.  New Jersey requires the filing of annual reports and a $50 annual renewal fee.  Pennsylvania requires a decennial report to be filed every ten years in years ending with the numeral “1” (e.g., the next decennial reports are due in the calendar year 2021, on the anniversary of initial filing).  The decennial report filing fee is currently $70.  Pennsylvania LLCs organized to render restricted professional service(s) (i.e., chiropractic, dentistry, law, medicine & surgery, optometry, osteopathic medicine and surgery, podiatric medicine, public accounting, psychology, and veterinary medicine) in existence on December 31 of any year are required to file a Certificate of Annual Registration and pay an annual fee of $500, for each member who was licensed to practice the professional service rendered by the company on December 31; and had a principal residence in Pennsylvania on December 31.

The name of every limited liability company must include a designator “limited liability company"(or an abbreviation thereof, e.g.,  “LLC” or "Ltd. Liability Co.") after the business name.

A limited liability company name may not express or imply a purpose to engage in activities as a governmental agency.

A limited liability company filing a Certificate of Organization is granted the exclusive use of its name, in the State where it files.  Limited liability companies may not assume any name the same as, or that is not distinguishable from, the name of any other previously registered corporation, foreign corporation, limited partnership or limited liability company or limited liability partnership.  (This only prevents others from filing a business entity with the same name and does not afford trademark protection).  A preliminary name availability search, of your first choice and follow-up searches as needed are included in this firm's formation fee.

Prior written approval of certain professional and occupational boards or commissions of the Bureau of Professional and Occupational Affairs (BPOA) must be obtained when registering a name of a limited liability company which contains words implying that the proposed LLC is engaging in the practice of a profession or occupation which is regulated by the BPOA (i.e., chiropractic, dentistry, law, medicine & surgery, optometry, osteopathic medicine and surgery, podiatric medicine, public accounting, psychology, and veterinary medicine). In addition, there are certain words, which would imply that an LLC is an educational institution, a bank or other financial institution, an insurer or reinsurer, or a public utility corporation that are restricted unless the filer obtains the prior written approval of the State Board of Education, the Department of Banking, the Insurance Department or the Public Utility Commission/Federal Energy Regulatory Commission.

LLC's must have a registered office address in Pennsylvania.  An actual street or rural route box number must be used as an address. A P.O. Box alone is not acceptable. State agencies use the registered office address to send important legal and tax documents.  The registered office address also  recieves services of process should the LLC become a party in a legal action, like a lawsuit or summons. 

Single-Member LLC’s simply have just one member, and the Operating Agreement is a document giving the one member the rights to make all the decisions and retain all the earnings.  Multi-Member LLC’s have more than one member.  In a multi-member LLC each member should understand that as members you have differing interests, if not potential or actual conflicts of interest, regarding decision making and distribution of earnings.  Consequently, this firm cannot represent multi member LLC members individually, but only the company.  However, to effectively prepare the documents, this firm will want to feel free to discuss with each member any information or confidences obtained from the members that relate in any way to the Operating Agreement (e.g., decision making powers and distribution percentages) or the company.

Although members in multi member LLCs may each have differing interests, in amicable circumstances, the use of one attorney or firm can assist in developing a coordinated, overall plan, encourage the resolution of possible differing interests and, of course, produce cost savings and efficiencies.

For multi member LLCs this firm will initially send out a conflicts letter for the members review and signatures.

A limited liability company can be classified as almost any entity it wants for income tax purposes. A limited liability company that is owned by one person can be taxed as a sole proprietorship, a C corporation, or an S corporation. A limited liability company that is owned by two or more persons can be taxed as a partnership, a C corporation, or even an S corporation (if the LLC meets the S corporation eligibility requirements). This benefit of the limited liability company means that an LLC can choose to be taxed in whatever fashion is most favorable for its investment purposes or to its owners.

Single-Member Limited Liability Company as the type of structure applying for an EIN.

If you are a single-member LLC, you will initially be classified as a disregarded entity (sole proprietor) for the purposes of filing a federal tax return.

• If the only member of the LLC is an individual, the LLC income and expenses are reported on Form 1040 (U.S. Individual Income Tax Return), Schedule C, E, or F.

• If the only member of the LLC is not an individual, the LLC income and expenses are reported on the owner/member's tax return.

If you do not wish to accept the default classification of disregarded entity, you can:

• File Form 8832 (Entity Classification Election) to elect corporate status, or

• File Form 2553 (Election by a Small Business Corporation) to elect S corporation status.

Single-member LLCs may not file a partnership return.

Multi-Member Limited Liability Company as the type of structure applying for an EIN.

If you are a multi-member LLC, we must initially classify you as a partnership.  If you do not wish to accept the default classification of partnership, you can:

• File Form 8832 (Entity Classification Election) to elect corporate status, or

• File Form 2553 (Election by a Small Business Corporation) to elect S corporation status.

How Limited Liability Companies Report Pennsylvania Income

The owner of a single-member LLC reports its income and expenses using PA Schedule C (Profit or Loss from Business or Profession). The owner of a single-member LLC that owns and operates a rental property reports its income and expenses using PA Schedule E (Rents and Royalty Income (Loss)).  LLCs classified as partnerships for federal income tax purposes are required to file PA-20S/PA-65 Information Returns and provide each PA resident partner with PA Schedule RK-1 and each nonresident partner with PA Schedule NRK-1.  LLCs that elect to be classified as corporations for federal income tax purposes are subject corporate net income tax, reported on the Corporate Tax Report (RCT-101).