Form a C-Corp in Pennsylvania for Free with Inc Authority

Choose a business name that is unique, memorable, and easy to spell. Your corporate name should also be relevant to your business or industry and represent your business well. Do your research and make a list of relevant names.

Next, conduct a search on the state database to ensure that no other Pennsylvania business has taken your chosen name. This step will filter out most of the names you’ve shortlisted and you can choose the best name from the remaining options.

Once you have finalized your business name, it’s important to reserve it with the state authorities to ensure no one else can use it. This is especially important if you anticipate a delay in starting your Pennsylvania incorporation process.

Pennsylvania is one of the states that allow businesses to reserve a name for a generous 120-day period. You need to pay a filing fee of $70 and submit the application to the Department of State through your preferred channel.

Unlike many other states, Pennsylvania does not require you to hire a registered agent and provide their details during the registration process. As such, it does require a physical street address for your business in Pennsylvania.

If you don’t have one, you can either hire a registered agent or a Commercial Registered Office Provider (CROP). The designated agent will receive all legal documents and other business correspondence on behalf of your business.

To officially register your C-Corp in Pennsylvania, you need to prepare and file Articles of Incorporation with the Secretary of State. You will need to pay a non-refundable filing fee of $120 to submit your application and register your business.

You will also need to submit a docketing statement, apart from the Pennsylvania Articles of Incorporation. For both, you’ll have to provide essential business information, such as name and location of the business, and shareholder information.

Every business requires certain rules of governance and Corporate Bylaws provide that for C-Corporations in Pennsylvania. It’s a document that lays down the internal rules for how your business will be governed and how decisions will be made.

Bylaws also define shareholders’ rights and responsibilities, and ownership details. Though you’re not legally required to create Corporate Bylaws, it’s a good practice to have these. This document will be useful in case of any future conflict.

C-Corps in Pennsylvania are required to appoint a board of directors who will be in charge of overseeing the business. Before you hold your first board meeting, you need to appoint initial directors who will oversee things till the meeting.

During the meeting, the shareholders will vote and elect the final board of directors, for the next term. These directors may not necessarily be shareholders of the company or Pennsylvania resident, but should be adults over 18 years of age.

The first board of any Corporation is extremely important as this is where the directors will make a lot of strategic decisions. They’ll appoint corporate officers who will be responsible for managing the day-to-day operation of the business.

At the first meeting, you’ll also need to adopt bylaws, issue shares, authorize stock certificates, set a fiscal year for your business, and make other important business decisions. Make sure you record the minutes of the meeting.

A C-Corp in Pennsylvania must issue stock to its shareholders, directly proportional to their contribution to the business. This need not necessarily be a financial contribution, but could also be in the form of real estate or services.

In the state of Pennsylvania, you do not need to mention the stock’s par value at the time of incorporation. This is the minimum rate at which the stock can be sold. Pennsylvania gives you the liberty to decide your stock’s par value later.

To run your C-Corp in Pennsylvania, you’ll need to do several things, such as open a business bank account and pay payroll taxes. You will need a federal EIN (Employer Identification Number) to perform many of these functions.

Just like a social security number identifies an individual, an EIN or Tax ID identifies a business. The Internal Revenue Service (IRS) uses it to track the tax activities and compliance status of the various businesses in the country.

Even after you’ve officially registered your C-Corp in Pennsylvania, you can’t start operations right away. You need to acquire various types of licenses and permits to start operating your business in the state according to the rules.

The permits you may need vary depending on your industry, type of business, and business location. You may need something as generic as business licenses and environmental permits to something specific like a liquor license.

Every business must have an official website in this digital age, as not having one can put you at a disadvantage. After all, your website is the face of your business and the primary source of information about your business, products, & services.

You need to find a domain name that matches your official business name and secure it even before you start the incorporation process. Then, you should start the website building process as it can take several months to complete.

Lastly, you can start operations and run your business in Pennsylvania. Make sure you stay compliant with all ongoing compliance requirements for the state. To keep running your business, you need to remain in good standing with the state.

Some of the major requirements will be related to annual report filings and paying Pennsylvania corporate taxes. Stay up to date with the deadlines for various tasks and fulfil your obligations on time to avoid any penalties.

Here’s what you’ll get with the free plan:

• Business name check: An easy way to check whether your chosen company name is available for use or is already in use by some other business.

• 1-year registered agent services: A complimentary one-year registered agent service, which you can upgrade to a paid one after the term is complete.

• C-Corp formation: A streamlined process for filling out and filing your Articles of Incorporation with the Pennsylvania Department of State.

• Pennsylvania S-Corporation election: Free review, preparation, and filing of Form 2553 of the IRS to get your business the S-Corp status for tax purposes.

• Tax advisory: A quick tax consultation to help you assess your C-Corp’s tax requirements and ways in which you can save some business taxes.

• Digital document storage: The option to store all business documents online to easily organize, share, and access them anytime, anywhere.

• Business funding analysis: A quick consultation with an expert on your short-term funding needs, where they’ll also provide sources of funding.

Price: Free

Here are the additional services you’ll get with this plan:

• Corporate bylaws: Inc Authority not only provides you with templates for corporate bylaws but its team of experts will also help you draft a comprehensive one for your business.
• Corporate Stock certificates: C-Corps in Pennsylvania often issue stock certificates for shareholders denoting their ownership interest in a business. Inc Authority can help you with this.
• Employer Identification Number: With this plan, Inc Authority will help you get a Tax ID number for your C-Corp in Pennsylvania. This includes preparing, reviewing, and filing your application.
• Corporate forms and documents package: With this package, you get a comprehensive set of templates for drafting various kinds of business and legal documents that you may need.
• Annual compliance notifications: A Pennsylvania C-Corp has many annual compliance requirements and Inc Authority can help you by reminding you of these obligations and upcoming deadlines.
• Detailed tax consultation: While you get a brief consultation even with the free plan, with this plan you’ll get detailed guidance on how to plan your taxes and how to maximize your business tax savings. 
• Web domain + 5 business email addresses: Inc Authority will help you secure a web domain matching your business name. You can also get 5 business email addresses for your company.

Price: Custom

Here’s what you’ll get, over and above the services in the Starter plan:

• Customer success advisor: Inc Authority will assign you a dedicated advisor who will not only guide you through the business formation process but even after that. They’ll help you scale and grow your business and make it a success.

• Private banking specialist: Inc Authority will assign you a private banking specialist who will assist you in finding the best business banking solutions. They’ll help you find the right bank and types of accounts for your business.

• Personalized business advisory: Inc Authority doesn’t just help form businesses but also helps them scale and grow. A personal business advisor will help guide you on how to grow your business even after the formation process is over.

• Expedited preparation & filing: One of the most important benefits of going with this plan is that your application will move to the top of the list. Their team will prepare, review, and file your application within the same day.

If you’re looking for high-touch, premium services, then this is the best plan for you. If not, then the free plan covers all the essentials for business formation.