Help with forming LLC in PA

Hello,

We are in the process of filing the paperwork for LLC in Philadelphia,PA. I am sure there is someone out there with experience who can answer a few of our questions.

This will be an antiques/collectibles/consignment shop. We are looking to profit from the following areas:

Sale of our own items
Sale/commission of consignment
Rental of space within our store
Internet sales

I was told that an LLC form along with a docketing statement to register the name is all we need. Here are our questions:
1. Do we also file for fiticious name?
2. Is there an annual fee for the liscence or is it one and done?
3. Once I have the EIN # (they said it is given over the phone) can we begin operating? Or do we need to wait until we have the liscence in our hands? We have people ready to rent space from us ASAP and we want to be legit before we do so.
4.When do we file the paperwork to report city taxes? Can we operate while we are waiting for that, and just keep records?
5. Are we missing any steps?

This will be a small busines, and is a second income for both of us. There will be no other employees, and we both have benefits and health insurance from our other jobs.

We are looking into an insurance policy to cover us for liability only...any recommendations?

Thank you to all for your time reading and responding!
Donna

Sounds like you should perhaps consult a lawyer. The requirements that need to be satisfied should be posted on your state website. Review it, it'll tell you everything you need, less actually doing it for you.

1. If you're not doing business under the name of the LLC, whatever you registered, then you need to register a fictitious business name with the Secretary of the Commonwealth. Whatever fee that is would be posted on their web site.

2. What license? To operate in the state an an LLC, yes. Expect to pay an annual fee, and sometimes a tax.

3. You get the EIN from the IRS. You can file for it online and get it in about 5 minutes. Don't bother calling the IRS, they're going to fill in the same online form that you would have otherwise used.

4. Presumably to the city. You should visit their website to see how you register for that.

5. Contact a lawyer focusing on small businesses. See what you should have filed, and if he has an recommendations on insurance and what you need based on your business needs.

Evan,

Thank you for your detailed response! Two quick questions.

Just to clarify, if we are using the name we register (just say Thrifty's LLC)then we do not need to file ficticious name, or only if we use our personal names plus LLC?

Can we begin operation once we file the LLC paperwork? or do we need to wait for the liscence to arrive. Once we have the EIN and file the paperwork can we open?

Donna

If the name of your company is "Thrifty's LLC" you can create ads that say "Thrifty's" without the LLC. But if you want to do it was "Thrifty's Gifts & More", then you'd need a fictitious name.

You can operate at any time, presumably you're doing it as a sole proprietorship. But I'd wait for the state to verify that your name is indeed available. It usually doesn't take too long once they receive it, despite them sometimes claiming to allow up to a week.