Perhaps you are hoping to form an LLC in PA. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Pennsylvania.
On this page, you’ll learn about the following:
Pennsylvania LLC Cost of Filing
Here are the costs involved in forming an LLC in Pennsylvania.
Cost of Filing Formation Certificates
The Pennsylvania Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Pennsylvania Department of State.
Pennsylvania Domestic LLC
- Online Filing costs $125.
- Decennial Report filing costs $70
- Name Reservation fee costs $70
- By Mail: Fill out the application form, and send it to Pennsylvania Department of State Bureau of Corporations and Charitable Organizations P.O. Box 8722 Harrisburg, PA 17105-8722. Costs $125.
Pennsylvania Foreign LLC
- Online Filing costs $250.
- Decennial Report filing costs $70
- Name Reservation fee costs $70
- By Mail: Fill out the application form, and send it to Pennsylvania Department of State Bureau of Corporations and Charitable Organizations P.O. Box 8722 Harrisburg, PA 17105-8722. Costs $250.
Note that filing online is ideal, not only because you need to go to the Department of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Pennsylvania LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Pennsylvania, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
| |
 | $299 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Pennsylvania Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to the Pennsylvania Department of Revenue
The registration of the LLC in Pennsylvania is possible by following a simple step-by-step procedure. You can file for your LLC by mail as well as online. The business taxes that An LLC has to pay in Pennsylvania are:
State Income Tax
State Income tax is levied on all the income you make from your LLC, & your earnings are taxed through your personal tax return. The standard income tax rate in Pennsylvania is 3.07%. One can apply for all the standard allowances and deductions while filing the Income Tax Return.
State Sales & Use Tax
All the service providers & the tangible goods sellers wishing to form an LLC are liable for the State Sales & Use Tax. The State Sales & Use Tax rate in Pennsylvania is 6%.
Federal Self-Employment Tax
Federal Self Employment Tax or Social Security or Medicare tax has to be paid by all the LLC members. The Federal self-employment tax rate in Pennsylvania is 15.3 percent.
Federal Income Tax
Similar to the State Income Tax, the Federal Income Tax also depends upon your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.
The Federal Income Tax is levied on all the profits your LLC makes after all the deductions & allowances, such as Healthcare or Retirement Plans, are calculated.
Employee & Employer Taxes
An LLC that has many employees working under it has to pay Employee-Employer taxes. Such tax can be calculated on the basis of various factors, e.g., the amount, number of employees, etc.
Cost Comparison between states
Pennsylvania has many neighboring states, namely Maryland, Ohio, West Virginia, Delaware, etc. Let us take a look at the different rates of taxes levied on LLCs in this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Pennsylvania | $125 | Decennial – $70 | 6% |
| Delaware | $90 | $250 | None |
| West Virginia | $100 | $25 | 6% |
| Maryland | $126 | None | 6% |
| Ohio | $125 | None | 5.75% |
In addition to the taxes listed above, there can be many other taxes or costs charged on an LLC in your region. Kindly consult with a finance professional in your region to verify the tax rates or business costs of registering an LLC in Pennsylvania.
Other Costs
- Pennsylvania Name Reservation: $70 for online fillings or by mail
- Doing Business As (DBA): $70 for online filling or if filing by mail
- Certified Document Copies: $55 + $1 per page if filing by mail or $40 + $1 per page for online filing
- Certified of Good Standing: $40
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Pennsylvania LLC: $70
How Much Does It Cost to Maintain an LLC in Pennsylvania
To maintain an LLC in Pennsylvania you will need to pay a decennial fee of $70 along with state income tax at 3.07%, sales & use tax at 6% and federal taxes.
Starting a business comes with many responsibilities that extend beyond setting up a physical location or website. Business owners must also ensure they are in line with all legal requirements, including creating a business structure. In Pennsylvania, one available structure for business owners is the limited liability company (LLC).
The LLC business structure is popular because it provides business owners with a certain level of liability protection while also being flexible in terms of management and tax considerations. However, forming an LLC and maintaining it comes with certain ongoing costs, which business owners must be aware of before deciding to form an LLC.
The cost to maintain an LLC in Pennsylvania varies depending on several factors, including the size of the business, the industry, and the type of LLC selected. However, some common expenses that business owners can expect to incur include filing fees, annual report fees, and legal fees.
Filing fees are incurred when the business is first formed and filed with state authorities. In Pennsylvania, the filing fee for creating an LLC is $125. This fee is a one-time expense but should be factored into the overall cost of forming an LLC.
In addition to the initial filing fee, LLCs in Pennsylvania are required to file an annual report and pay a fee of $70 to keep their entity in good standing. Annual report fees are also necessary in other states, and the amount varies based on the state’s requirements.
Legal fees vary depending on the business’s needs, but an LLC must have proper legal documentation to operate. Certified articles of organization that outline the LLC structure and operating agreement documents, which specify how the company is organized and managed, must be prepared and maintained. Additional legal documentation could include contracts, agreements with vendors, and employee agreements.
Beyond these recurring costs, some expenses arise only when other events occur. In case of lawsuits and other legal issues, the LLC should have insurance coverages to mitigate the expense of legal fees. Potentially, businesses can also incur costs if the business experiences a change of ownership or merges with another entity.
Despite the ongoing cost of an LLC, it is essential to keep in mind that the benefits compliment the expense. Retaining the protection that the LLC structure provides ensures that you are guarded individually, safeguarded, limiting the owner’s personal liability. Appropriate management and tax considerations permit improved professional credibility and balanced personal and professional lives.
In sum, creating and maintaining an LLC in Pennsylvania requires ongoing investment, but it remains a popular choice and investment for business owners in the state. Provided the proper management and professionalism that running a business demands, small setbacks and expenses incurred will be in concurrence with the benefits the LLC ensures. Business owners intending to form an LLC should consult with an attorney to discuss the costs and any other available options or factors that render their unique circumstance, it bears reiteration that cost estimates were not stated on a variety of factors mentioned and should be employed in an overall discussion of all the key concerns with legal biddings in Pennsylvania.
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
In Conclusion
The cost of Pennsylvania is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
