This is generally considered the simplest type of business structure and allows a single individual to assume complete ownership and control of a business. However, this owner also bears complete responsibility for the business’s debts and liabilities. Sole proprietorships may be formed in Pennsylvania without filing any documents with the Department of State.

It should be noted that, per the state’s Fictitious Names Act, any business entity that wishes to operate in Pennsylvania under a fictitious name must register the name with the Department. Fictitious names, sometimes called assumed names, refer to any name used by a business entity that doesn’t directly identify its owner(s).

Corporations are generally considered the most complex form of business structure. They are business entities that legally exist separately from their owners, and usually have the same rights, privileges, and responsibilities as a natural person. There are two main types of corporations in Pennsylvania - Business Corporations, also known as For-profit Corporations, and Non-profit Corporations. Shareholders/members of non-profit corporations do not receive any of its profits.

The general partnership business structure typically involves two or more individuals or entities operating a business for profit. These general partners are equally liable for the business’s debts and obligations and also usually share all managerial aspects of the business equally unless otherwise agreed.

General partnerships in Pennsylvania are typically formed by an agreement between the involved partners and do not need to be filed with the Department of State unless the business will be operating under a fictitious name.

Limited partnerships are a type of partnership involving two or more individuals or entities, where at least one of them acts as a general partner and at least one other as a limited partner. The general partner(s) typically has management control of the business and also has unlimited liability for its debts and obligations. On the other hand, the limited partner does not usually have any control over the business’s day-to-day operations and is typically liable only to the extent of their investment/contribution to the business.

Pennsylvania limited liability general partnerships, sometimes referred to as “limited liability partnerships,” are existing general partnerships that file a Statement of Registration with the Department of State (under Title 15, Chapter 82 of the Pennsylvania Consolidated Statutes). Likewise, limited liability limited partnerships are existing limited partnerships that file a Statement of Registration under this same chapter.

Filing a Statement of Registration usually provides the entity’s general partners with additional protection on their personal liability to its debts and obligations. This type of business structure is usually operated by professional partnerships, such as law firms, medical practices, and accounting firms.

Limited liability companies are generally considered a hybrid between partnerships and corporations. This type of business structure typically provides the liability protection of a corporation for its owners, while also offering them the tax advantages and managerial flexibility of partnerships.

These are corporations, partnerships, limited liability companies, and business trusts that were formed outside Pennsylvania but wish to do business in the state. These business entities typically have to register with the Department of State by filing a Foreign Registration Statement and a Docketing Statement before conducting any business in Pennsylvania.