Are you thinking about starting a new business in Pennsylvania? One of the first and most critical steps is to conduct a Pennsylvania business entity search. This is a crucial step for business owners who want to find out whether their preferred name is available and access important information about businesses that are already in operation. In this complete guide, we will walk you through what is a business entity search, why you need it, and how to do it right.
What is a Business Entity Search in Pennsylvania?
A Pennsylvania business entity search is a process used to search official records of the Pennsylvania Department of State. It is useful for determining the availability of a business name, and provides details on registered businesses in Pennsylvania including their status, type, formation date, and more.
This process is critical for business owners, investors, and lawyers who want to avoid trademark disputes, rules, and regulations, and to make informed business decisions.
Why Do a Business Entity Search in Pennsylvania?
Performing a business entity search in Pennsylvania provides several advantages:
1. Name Availability Check
You need to check if your preferred name is not taken before you register your business. This keeps you away from legal problems and offers an original identity in the market.
2. Legal Compliance
The Pennsylvania Department of State requires that all business names must be distinct. A business entity search can check if your selected name is compliant under Pennsylvania law.
3. Competitor Examination
The Pennsylvania business entity search can also search competitors for you, such as formation dates and business type.
4. Due Diligence
If you are investing in or partnering with a company, a business entity search can provide insight into their legal status, or if they are in good standing or no longer exist.
How to Conduct a Business Entity Search in Pennsylvania
The Pennsylvania Department of State offers an intuitive business entity search that can be completed online.Follow these simple steps:
Step 1: Visit the Pennsylvania Department of State Website
Go to the official Pennsylvania Business Entity Search tool.
Step 2: Select Your Search Criteria
You can search with several filters, such as:
- Business name
- Entity number
- Officer name
- Registered agent
Step 3: Enter the Business Name
To determine if your preferred business name is available, enter it into the search field and choose “Starts With” or “Contains” based on how specific you would like your results.
Step 4: Review Findings
Will show all entities that match. Click on any name to see information like:
- Entity number
- Type (LLC, corporation, etc.)
- Status (active, dissolved)
- Address
- Registered agent
- Formation date
Step 5: Do Something
If your desired business name is not currently taken, you can register it now. If it is already taken, you’ll have to pick a different name.
Types of Business Entities You Can Search For
The Pennsylvania business entity search supports several entity types:
- Corporations (C-Corp, S-Corp)
- Limited Liability Companies (LLCs)
- Limited Partnerships (LPs)
- Limited Liability Partnerships (LLPs)
- Nonprofits
- Sole Proprietorships (DBAs/fictitious names)
It can be helpful to know the type of business entity you are working with to be able to better evaluate the information discovered in the search.
Aspects to Be Mindful of When Doing a Business Entity Search in Pennsylvania
When doing a business entity search in Pennsylvania, be sure to be especially mindful of the following:
- Entity Status Is the entity active, inactive, or dissolved? This indicates whether the business is in good standing with the state government and whether they are currently active.
- Formation Date
The incorporation or registered date shows how long ago the entity was formed and how long they have been in existence. - Registered Agent
Being aware of who accepts service of process of legal papers on behalf of the entity is important for service of process.
- Business Address
Confirming the principal place of business is important to ensure that any background or investigative checks, or official correspondence, send to the business owner, the registered agent, or the entity at the right location. - Filing History
Some entities may have previous name changes or amendments to the history. This information can give you an understanding of the entity’s history and how it has developed over the years.
Common Mistakes to Avoid
There are common mistakes that can occur when doing a business search on the Pennsylvania business entity search. Don’t fall into these traps:
1. Spelling the Business Name Incorrectly
Minor spelling mistakes can result in incorrect search results. Double-check spelling.
2. Applying the Wrong Filters
Make sure you use the right filters like “Starts With” or “Exact Match” to narrow down your results.
3. Not Checking for Similar Names
Even if your name is not taken as it is, similar names may lead to confusion and/or trademark problems.
4. Not Looking at the Legal Status
A business can be there but not be in good standing. You should always look at the legal status of the company.
Process for Reserving a Business Name After Your Search
If your search for business entity in Pennsylvania shows that your name is not in use, you may reserve that name ahead of formally registering the company. Here’s what you need to do:
Step 1: Complete the Name Reservation Form
Go to the Department of State’s website and get the Pennsylvania Name Reservation/Transfer of Reservation form.
Step 2: Pay the Filing Fee
You will need to pay a small fee (around $70) to reserve the name.
Step 3: File the Form
Send the completed and signed form and payment to the Pennsylvania Department of State, or if they have the ability to complete the form online; you can complete it there.
Step 4: Receive Confirmation
After approval, the name is held for 120 days so that you may prepare the documents required for registration.
Frequently Asked Questions Regarding Business Entity Search in Pennsylvania
Is Pennsylvania business entity search free?
Yes, the online searching tool is absolutely free.
Can I conduct a search for a fictitious business name?
Yes, fictitious names (also referred to as DBAs) may also be searched through the entity search tool.
What if my desired name is close to another?
You should not use names that are deceptively similar to others. Your application can be denied by the Department of State if your name cannot be distinguished.
Can I immediately register my business after the search?
Yes, if the name is available, you can go ahead and register your business either online or through filing the proper forms.
Final Thoughts on Pennsylvania Business Entity Search
A Pennsylvania business entity search is beneficial for any investor or entrepreneur. Whether you are launching a new business or researching a competitor, this inexpensive yet informative tool provides valuable insight into the business environment of the state.
By following the steps outlined above, you can ensure your business name is unique, complies with legal requirements, and helps you make informed decisions. Don’t forget to make this essential step—these will help you avoid time, and money wasted on legal complications.
