When forming a business, one of the first steps is to put the necessary documents into place. This includes setting up bylaws, Articles of Organization and Articles of Incorporation, depending on the business entity.
Like all other states, Pennsylvania requires limited liability companies (LLCs) to file an Articles of Organization, also known as a Certificate of Organization.
What is it and what is its purpose?
An Articles of Organization is an essential legal document to form an LLC. It is a formation document recognizing an LLC as a state business. It contains the following basic information about the company:
- The LLC’s name
- The LLC’s official business address
- The members’ names
- The certificate’s effectivity date
LLC owners in Pennsylvania must pay a filing fee currently costing $125. Additionally, they should attach a docketing statement, which names the LLC’s tax-responsible party and describes its business activity.
Articles of Organization usually come with an operating agreement, similar to bylaws. The agreement includes extensive information, such as each member’s duties, rights, obligations and liabilities. While Pennsylvania does not require the same to form an LLC, it is recommended to have one.
What you should prepare before filing
Before filing the articles, the LLC must meet the local requirements of its county or city, completing the necessary business licensing and zoning requirements. Different rules and regulations also apply depending on the type of business. For instance, food businesses have more requirements and regulations compared to others.
The process of creating a business can be overwhelming. One error could push back a business’s formation progress by a lot. Partnering with a professional with in-depth knowledge of business formation can help you ensure that you are on the right track.