What is an LLC?
In this series, we will discuss some of the types of business entities legally recognized in Pennsylvania, including LLC’s and the most common types of corporations and partnerships.
An LLC, or Limited Liability Company, is a creature of statute that must be formed according to state law. A person cannot form an LLC by accident. (Contrast partnerships, perhaps, which we will discuss in another article.) A Limited Liability Company is best described as a hybrid between a partnership and a corporation, which grew out of a desire of business owners to limit personal liability (like a corporation), while enjoying pass-through tax advantages and ease of management (like a partnership).
LLC’s are a relatively new type of business entity, compared to traditional corporations or partnerships, which have long been legally recognized business entities in the U.S. All fifty states now have laws on the books that allow for the formation of a business entity similar to Pennsylvania’s LLC.
In Pennsylvania, business owners seeking to form an LLC must choose a name for the LLC and determine whether the name is available. Once an available name is agreed upon, the business owners, known as members, must file a Certificate of Organization and a docketing statement with the Corporation Bureau.
Pennsylvania law is very specific that members must either state a physical address for the LLC, or alternatively, state a physical address for a Commercial Registered Office Provider, or CROP. (Post office boxes are not acceptable.) Scolieri-Beam Law Group, P.C. is a Commercial Registered Office Provider.
Additional requirements for LLC’s include disclosure of names and address of all organizers, and annual registration.
The attorneys at Scolieri-Beam Law Group, P.C. are available to meet with you to discuss the various types of business entities available in Pennsylvania and help you decide if an LLC is the right entity for your business. Contact us today at (412)765-0546 or info@scolierilaw.com.