Corporate Name Endings
* The name may be in any language but must be expressed in English letters or characters or Arabic or Roman numerals; shall contain word “corporation,” “company,” incorporated,” or “limited” or an abbreviation.
Articles of Incorporation Requirements
- Minimum Number – One or more.
- Residence Requirements. – No provision.
- Age Requirements – Must be 18 or older.
- Directors are not required to be listed in the articles of incorporation.
- The officers are not required to be listed in the articles of incorporation.
- No extra filing fees based on number of share or amount of par value.
Annual Statements – based on the amount of stock.
- Basis. Capital stock value is (1) the product of one-half times the sum of a corporation’s average net income capitalized at 9.5% plus 75% of such corporation’s net worth (2) minus $100,000 [72 P.S. S:7601]. Algebraically, capital stock value equals [(.5) * ((average net income/.095) * (.75 * (net worth)) – $100,000)]. Net worth is the sum of the corporation’s issued and outstanding capital stock, surplus, and undivided profits as of the close of the tax year. Minimum tax is $300.
Income Tax Rate
- 9.9% of taxable income.
For more information on taxes, visit www.revenue.state.pa.us
- Shareholders have limited liability protection
- May be listed and traded as a publiccorporation on the stock market or “over the counter”
- Has a separate and independent tax status from its owners
- Profits are not subject to “double taxation”
- Corporate losses may be “passed through” to share holders
- Shareholders are afforded the same protection as C Corp.
- Contains characteristics of both corporation and partnership
- Shareholders may take advantage of “Pass-Through” taxation
- Limited liability for share holders
Not for profit corp
- Eligible for tax-exempt status
- Limited Liability protection
- Qualify for public and private gains