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How to Start an LLC in Pennsylvania: If you’re looking to start an LLC in PA, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC at a very low cost in Pennsylvania. Though, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost almost negligible.
On this page, You’ll find all the steps that must be taken to ensure that your Pennsylvania LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Pennsylvania
- After Starting Your Pennsylvania LLC
- Pennsylvania Foreign LLC
- Pennsylvania LLC Formation Review
How to Start an LLC in Pennsylvania
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.
If you wish to start an LLC in PA, you must file your Certificate of Organization with the State and pay a filing fee of $125. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Pennsylvania. Below are all 5 steps that explain everything you need to do to start a Pennsylvania LLC in 2023. Let’s get started! You can always hire a professional LLC formation service in Pennsylvania to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.
Step 1: Decide a Name for Your Pennsylvania LLC
The first step while forming a limited liability company in Pennsylvania is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
LLC Naming Guidelines in Pennsylvania
There are a few specific requirements all the LLCs in Pennsylvania have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available, and no other existing business in Pennsylvania can have the same name. LegalZoom offers unlimited business name searches without any hassle.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Pennsylvania State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Pennsylvania Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Pennsylvania LLC Name Search – Instructions
|Secretary of State|
P.O. Box 5616
Montgomery, AL 36103
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided on, you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $70 to reserve your name with the Pennsylvania Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Pennsylvania Secretary of State by submitting an Application to Register Trade Name in Pennsylvania, along with the filing fee of $70.
Recommended: You can do name search, Trademark search, Trademark registration, copyright registration, and a lot more in one place by hiring a professional service. We recommend using –
LegalZoom – (Worry-free LLC Formation)
Apart from LLC formation, LegalZoom offers Trademark search, trademark registration, copyright registration, and etc. at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc.
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Get a Registered Office in Pennsylvania
The second step to forming an LLC in Pennsylvania is to get a Registered Office. The Registered Office is similar to getting a Registered Agent in other states. The Registered Office is an official physical address where LLCs will receive tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Pennsylvania on their behalf. Hence, getting a Registered Office and hiring a competent Pennsylvania Registered Agent for your LLC is necessary.
Make sure your registered office is a real street address and not just a P.O. Box anywhere in Pennsylvania. Also, be sure to have a dedicated person present in the Registered Office to receive the documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Pennsylvania. Some LLC formation services also offer standalone Pennsylvania registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.
A person above 18 years of age and has a physical address in the state of Pennsylvania can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.
Yes, you can be your own registered agent for the service of process if you are a resident of the state of Pennsylvania and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Pennsylvania.
There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
If an LLC is sued in Pennsylvania, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Registered Agent Consent Application
In Pennsylvania, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $5 should be paid for it.
Step 3: File Certificate of Organization in Pennsylvania
The third and most important step in forming an LLC is to file the Certificate of Organization. This Pennsylvania Certificate of Organization is a legal document that is required to register your business with the Pennsylvania Secretary of State. It costs $125 (by mail and online) to file your formation certificate in Pennsylvania.
The Certificate of Organization includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Pennsylvania LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Pennsylvania, you must register as a Pennsylvania Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. Go to the “Business Filing Forms” section to find the filing form. You can directly start filing your LLC by clicking on the “Online Filing” button below. Read more about the Pennsylvania Certificate of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
Pennsylvania Department of State
Bureau of Corporations and Charitable Organizations
P.O. Box 8722
Harrisburg, PA 17105
Processing Time: Normally, it takes around 3-5 business days (approx) to get your LLC formed in Pennsylvania. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.
Recommended: Online LLC Formation service can fill up and submit all these documents on your behalf in much lesser time along with lifetime customer support and 100% accuracy. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
Every LLC owner has to pay the filing fees to register their business in Pennsylvania. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Pennsylvania.
Step 4: Create Your LLC Operating Agreement in Pennsylvania
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing a Pennsylvania LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Pennsylvania LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.
Recommended: You can get operating agreement templates at a reasonable price with LLC formation service. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂
Step 5: Filing an LLC EIN in Pennsylvania
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business, for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Pennsylvania LLC requires following specific rules and regulations. On the other side, EIN for Pennsylvania foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Pennsylvania. If you do it yourself, it should take you a long time to understand and do all the steps properly.
However, if you use LegalZoom, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Pennsylvania LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.
Apart from that, there are a few things you need to take note of,
- Get a company business bank account. Along with business bank accounts, get a business credit card, business accounting tools, and other tools to check revenues and business expenses. Depending on the business structure, get the business accounting tools.
- File Pennsylvania business permits & licenses. Business licenses are mandatory to run a legitimate business. Before you get suitable business licenses, make sure to check all the details of business licenses you require.
- Get general liability insurance and professional liability insurance with coverage for employees. Before you choose what types of business insurance, you can explore all the details about business insurance companies.
- File a Pennsylvania LLC annual report or biennial report. In Pennsylvania, LLCs must file Decennial Report every 10 years.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Cost of Starting an LLC in the State of Pennsylvania
LLCs can be formed by spending very less price. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Pennsylvania must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Pennsylvania,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$70|
|Certificate of Organization Fee||$125 (by mail and online)|
|LLC Annual (Decennial) Fee||$70|
In Pennsylvania, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be done by paying $70.
In Pennsylvania, an Annual Report has to be produced every year. It costs $70. Also, the State of Pennsylvania requires LLCs to pay a Sales Tax of 6% yearly. Read our guide on LLC costs in Pennsylvania for more information.
Pennsylvania Foreign LLC
If you are interested in forming a Foreign LLC in the state of Pennsylvania, then you need to file the Certificate of Foreign LLC to the Pennsylvania Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Pennsylvania SOS to form your foreign LLC in the state of Pennsylvania. To know more in detail, check out our guide on Pennsylvania Foreign LLC.
Reasons to Start an LLC in Pennsylvania
Pennsylvania State, also known as the country’s Quaker state, is considered one of the most innovative states of the country. This innovation is also shown through the great landmark structures made in the state, which is also great for starting a business. The state is home to plenty of skilled labor force and business opportunities. Apart from that, various business funding options and reductions in tax liabilities are beneficial to start an LLC in the state of Pennsylvania.
When it comes to business funding in Pennsylvania, women entrepreneurs can enjoy more benefits. A woman-owned business or women entrepreneurs in Pennsylvania not only get a reduction in tax liabilities but also get flexibility in getting loans. Pennsylvania has a bunch of banks for small business that provide short-term loans to support SMEs. LLCs, in general, do not have many business taxes to pay. Apart from federal income taxes, there aren’t a lot of business taxes to be paid by LLCs.
Loan and Grant Programs
The first benefit of starting an LLC in the state of Pennsylvania is the loan grant programs available in the state. Various programs started by the government in the state are very beneficial for new startups that lack investment. All an entrepreneur needs to have is an innovative idea or forefront technology usage, with the help of which they can easily enroll in the loan program.
The below-mentioned loan programs fulfill all the basic assistance that the LLC requires in Pennsylvania.
- The first one is the Alternative and Clean Energy program. A grant is provided to companies working to better the energy sources and improve the environment.
- After that, there is a Business opportunity Fund provided to a range of businesses only after examining their business idea and the possible outcomes.
- A High-performance Building program for an LLC grants to LLC for their construction purpose and sets up a high technology building that can cater to better business opportunities and jobs.
- One more important grant program is the Neighborhood Stabilization Program which helps the non-local residents to stabilize their business and personal housing space in the state.
Job Creation Tax Credit
When an LLC starts developing jobs and helps in the state’s economic development, then a tax credit is provided to them. It helps them to expand more and create more such jobs in the region. To gain eligibility for this tax credit, an entrepreneur has to create more than 25 jobs within three years of their LLC startup. If one gets the enrollment, they will get a maximum tax credit of $1000 per employee hired. Read more on Pennsylvania’s classification of LLC tax.
The Opportunity Zone of Pennsylvania
There are more than 300 areas in the state which the government has started considering as opportunity zones. When entrepreneurs start an LLC in the state of Pennsylvania, especially in that area, they will get some tax credits or maybe deferment gains on the fund that one been investing in for more than 5 years. The government’s main motive is the economic development of backward areas by creating jobs and a business environment.
Top 3 Businesses in Pennsylvania
If you want to start an LLC in the state of Pennsylvania, it would be best to get a complete knowledge of established industries. You must know all the top industries based in the state to understand the business environment than before better.
Anthracite coal which is known for its highest carbon percentage is found only in Pennsylvania. Some of the state’s mining regions are Northumberland, Columbia, Schuylkill, etc., producing this coal. Other than coal, there are deposits of limestone also that are found in the state. The limestone supports the vast cement industry of the state.
With the help of all the large-scale mining and small mining products like petrol, gravel, and natural gas, the contribution of mining businesses is around $36.86 billion to the state GDP.
The manufacturing businesses have helped the state by contributing around $93.75 billion, equivalent to 11.89%. Various businesses in metal and machinery production employ more than 569,000 people in the state.
Along with that, there is remarkable support from the manufacturing business to the export sector. They have managed to export around $35.85 billion worth of goods around the world. Some food production industries for which the state of Pennsylvania is famous are:-
- Bakery products like cakes, cookies, bread, and beer.
- There is a massive production of canned mushrooms, potato chips, and ice cream in the state.
Since the year 1682, when the state was formed, agriculture’s role has been crucial in the state’s economy. There are around 59,309 farms in the state, with the average size of the farm being 130 acres. Some of the crops that are grown in the state are:-
- 63.8% of mushrooms in the USA.
- The fifth-largest producer of grapes
- Livestock products like milk, eggs, and beef
Some small businesses that are well established in Pennsylvania are:-
- Property management
- Virtual Assistant
Pennsylvania LLC Formation Review
Time needed: 5 minutes
Just to recap, here are the easy steps again when forming an LLC in Pennsylvania. Click on the steps in this list to read the full detail.
- Name your Pennsylvania LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Pennsylvania, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming a Limited Liability Company in Pennsylvania. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Pennsylvania, but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity, like a social security number, but for a company.
Things to Consider While You Start an LLC in the State of Pennsylvania
In this article, almost all the essential steps are explained to form your LLC. However, apart from these broad steps, there are some other things to consider. For example, business formation plans, business formation documents, business fees, business strategies, business tax accounts, and such. These things are considered to be essential steps when starting your LLC.
By now, you already know about the business naming rules. You can check and find available LLC names in the business name database. If your desired name is not available, then you’ll find it in the database by doing a business search with the name. You can even start with fictitious business names to reserve your LLC name before you form your LLC. Your LLC formation service providers offer business name reservation services in their packages.
Annual costs for maintaining an LLC are much lesser than other business structures. LLC annual costs include the one-time cost of the formation process, fees for business licenses, amendment filing fees, and some other fees and charges.
As soon as your LLC is formed, you must consider a handful of things, such as deadlines. For example, upcoming filing deadlines, deadlines for tax filing, other government filings, and so on. You must be updated with the filings, especially government filings, to avoid late filing fees. If you are to file amendments, then you can hire professionals for amendment filings, as many professionals provide amendment filing services along with tax filing and such.
To form an LLC, along with filing fees, you must pay federal income taxes and some other business taxes. So, it is definitely not absolutely free. As you are about to start your LLC, you must have a business plan. Your business plan should have all requirements so that you can be prepared for all types of business challenges. As soon as you have a solid business plan, you can move further to bank applications for funding, etc.
In Pennsylvania, women entrepreneurs or first-time entrepreneurs can enjoy more tax benefits than others. LLC is a simple business structure to start with. If you’re a new entrepreneur, it is more profitable for you to start an LLC than a traditional corporation. As soon as the LLC is set up, your company must be up-to-date with coverage for employees if you hire employees. On the other hand, file employment taxes for your professional employees.
In the state of Pennsylvania, there is no mandatory rule to submit an operating agreement. It was mentioned above. However, it is useful to have this operating document along with formation documents. You can read the operating agreement guide to know more about its importance. Professional formation service providers help you with the operating agreement templates. Operating agreements have the name and share of the manager, the authority of manager, and also the names and shares of initial managers.
To form an LLC, you can apply online/by mail. The online application takes less time than filing by mail or any other way. The entire process takes a day or two. With the LLC formation service providers and their excellent customer care service, it is even easier to start your LLC.
This is a step-by-step guide, however, there are broad steps to follow. Apart from these, there are things like initial tax reports, various business accounts, handling legal papers, and a business accountant for all other business checking need to be considered.
How Fast Can I Form an LLC in Pennsylvania
The filing procedures for LLC in Pennsylvania may take up to 2-3 business days, both online and in person. As soon as you make the payment, the process will start.
Forming an LLC in Pennsylvania: A Hassle-free Process
When taking the entrepreneurial leap, the last thing you need is bureaucratic red tape hindering your progress. Entrepreneurs understand the importance of speed and efficiency, and rightfully so. So, you might be wondering, how fast can you form an LLC in Pennsylvania?
Setting up a Limited Liability Company (LLC) in Pennsylvania is actually quite a straightforward process that can be completed with relative ease. While each entrepreneur’s situation may differ slightly, certain steps are generally involved in the formation of an LLC. To successfully establish an LLC, you need to follow a few fundamental steps while adhering to the laws and regulations set forth by the state. Although the exact timeframe can vary, Pennsylvania provides a fairly favorable environment for LLC formation.
The first step on your LLC journey is choosing a name for your business. To ensure your chosen name is available and meets all the legal requirements, you can conduct a preliminary search on the Pennsylvania Department of State website. As long as you choose a unique and distinguishable name that complies with the state’s guidelines, this part of the process is usually a breeze.
After that, you need to complete the necessary paperwork, commonly known as the “Certificate of Organization.” This document provides crucial information about your business, such as the name and address of your LLC, the purpose of your business, and details about the LLC’s management structure. Keeping in mind that Pennsylvania utilizes a slightly different terminology, referring to the Certificate of Organization as the “Articles of Organization,” don’t let the verbiage confuse you.
Filling out and submitting the paperwork is a crucial step to set your business officially in motion. With regards to how fast you can complete this step, it largely depends on how efficiently you navigate through the process. Typos or errors can lead to delays, so it’s always wise to double-check your work. Once done, you must file the Articles of Organization with the Pennsylvania Department of State and pay the required fee. Typically, the department’s website provides you with the option to file online, further simplifying and expediting the submission process.
Now, you might be wondering about the duration it takes for your LLC to become legally recognized. While the specific timeline might vary slightly due to factors beyond your control, such as the processing speed of the Department of State, it usually doesn’t take longer than a few business days for your LLC to be approved. However, during peak filing seasons or unusual circumstances, like the current COVID-19 pandemic, there might be some delays that are outside of Pennsylvania’s control.
Contrary to some misconceptions, forming an LLC in Pennsylvania does not usually culminate in weeks or even months of time-consuming bureaucracy. Given the streamlined process put in place by the state, it is possible for ambitious entrepreneurs to establish their LLC relatively quickly and efficiently.
By taking advantage of the resources available through the Pennsylvania Department of State, entrepreneurs can save time and ensure a seamless experience when forming an LLC. Pennsylvania offers entrepreneurs a supportive environment and necessary guidelines to race through the LLC formation process.
Remember, although it’s crucial to act efficiently, rushing the process might lead to mistakes that could come back to haunt you later. So, while speed is vital, also prioritize accuracy and thoroughness. Whether you dream of starting your own business or are ready to take your current enterprise to the next level, Pennsylvania offers you a relatively hassle-free path to establish your own LLC swiftly!
If you are a resident of Pennsylvania, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $125 (domestic LLC) and $125 (foreign LLC), LLC costs in Pennsylvania include $70 for Decennial Reports every 10 years. LLCs are liable to pay sales tax of 6% every year.
It takes 2 to 3 business days to get an LLC in Pennsylvania if you file it online or via mail. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $70 to the Pennsylvania Secretary of State every 10 years and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Pennsylvania Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start an LLC in the state of Pennsylvania at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.