How to Incorporate a Business in Pennsylvania

A corporation is a business entity that partially protects its owners from legal and financial liability while offering a host of tax benefits. To incorporate in Pennsylvania, follow these steps.

Instructions

Difficulty: Moderate

1. Download the Articles of Incorporation packet from the Pennsylvania Department of Corporations Web site (see Resources, below). You can also contact the Department of State directly by calling [phone].
2. Search the Department of Corporations' database to find out if the name you'd like to use for your corporation is available. The service is free and you can search for any number of variations.
3. Reserve the name of your corporation by submitting a Name Reservation form to the Secretary of State's office. A fee is required.
4. Fill out and submit the Articles of Incorporation to the Secretary of State's office. Specify all required information, including the name of the company. There is a fee for processing the Articles of Incorporation with the Secretary of State.
5. Allow 8 weeks for the paperwork to be reviewed and processed. Once the company has been registered, you will receive a copy of your paperwork including your Articles of Incorporation and an Employer Identification Number (EIN).

Tips & Warnings

• While you are not required to hire legal counsel with experience in business law, it is advisable if you have little or no experience incorporating a business.
• Be sure you fully understand the costs associated with using online services to incorporate your business in Pennsylvania. Online services can double the cost of incorporating your business.
• Make sure you understand the liabilities that a corporation in Pennsylvania is responsible for, including taxes on income or dividends paid to shareholders. Read Pennsylvania's corporate code for details about liabilities (see Resources, below).