Philadelphia Business Formation Lawyers
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Philadelphia Business Formation Lawyers
The formation of a business can affect all future endeavors and strategic choices of the business. Business formation will even affect all legal and financial aspects of your company. No matter the type, Freundlich & Littman, LLC can help you decide the best option for your business.
Even if the business is a sole proprietorship with a singular employee a designation at the end of the business could be crucial. It could mean that customers place more trust in your business. For example, Amazing Houses, LLC appears more legitimate than, “Amazing Houses”. We can help you sort through all the advantages and disadvantages to make the right decision for your business.
Frequently asked questions about forming a business:
- What legal considerations should I have when starting a business?
- From a legal standpoint, a few important basic considerations, include but are not limited to: register a business name with the department of state, acquire a federal tax identification number, comply with state and local tax requirements, obtain business permits and licenses if applicable, and create a corporate formation document.
- Do I need a lawyer to start a business?
- Although not required, it is recommended to consult with an attorney to avoid common pitfalls.
- What kind of attorney do I need for starting a business?
- You may not need a lawyer to start your business, however many entrepreneurs choose to consult with an attorney in order to ensure the legality of their venture and the most efficient way to organize the business. Choose an attorney who practices business law.
- What are the legal steps to take when forming a business?
- Here are some steps worth considering when starting your business. 1. Pick a name. 2. Register a Fictitious Business Name/DBA. 3. Incorporate your Business or Form an LLC. 4. Get a Federal Tax ID number. 5. Learn about employee laws. 5. Obtain the necessary business permits and licenses. 7. File for trademark protection. 8. Open a bank account to start building business credit.
Business Formation Options
Business formation rhetoric often confuses new business owners. There are several options available to a business in the states of Pennsylvania and New Jersey. The differences, benefits, and disadvantages to each business designation can be hard to navigate.
We can help determine which business formation designation is better for you whether it be:
- LLC (Limited Liability Company)
- LLP (Limited Liability Partnership)
- Partnership (Limited and General)
- PC (Professional Corporations)
- Sole Proprietorship
Sole proprietorships are cheaper to form. LLCs require yearly fees. Corporations have more stringent filing requirements. LLCs gives a business the freedom to design their business. A corporation must have a certain number of board members. They must also file minutes and reports. Members of a corporation have responsibilities to shareholders. We at Freundlich & Littman understand the confusion and are here to help.
PA Registration Law
The Pennsylvania Department of States has this to say about forming businesses in Pennsylvania:
“In general terms, any conduct more regular, systematic, or extensive than that described above constitutes doing business and requires the foreign association to register to do business. Typical conduct requiring registration includes maintaining an office to conduct local intrastate business, selling personal property not in interstate commerce, entering into contracts relating to the local business or sales, and owning or using real estate for general purposes. But the passive owning of real estate for investment purposes does not constitute doing business”
Like foreign companies need to register if they are “doing business” within the state. They are not permitted to operate unless the registration is complete. There is a whole list of exceptions for the “doing business” requirement.
According to State, “Being an interest holder or governor of a foreign association that does business in this Commonwealth does not by itself constitute doing business in this Commonwealth.” Keep this in mind if you are a foreign business looking to operate in Pennsylvania.
No matter the business type you will need to file all the proper documents with the Pennsylvania Department of State. Forms for every charity and business can be found at http://www.dos.pa.gov/BusinessCharities/Business/RegistrationForms/Pages/default.aspx
There are problems that arise with each type of business formation. When someone sues a corporation for instance, it is possible that the owner’s personal assets could be at stake. Likewise, certain types of formations can protect the personal assets of shareholders. For instance, LLCs protect an individual’s assets.
Before making any business decision, it is highly important to make sure you have everything you need. In Pennsylvania, a business must have the proper forms to fully register with the state. These are legal documents; therefore, any mistake in the formation of your business could be costly.
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