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 |
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 | $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.
Maintaining a limited liability company (LLC) in Pennsylvania can be a crucial consideration for entrepreneurs and small business owners. While establishing an LLC offers numerous benefits such as limited liability protection and flexibility in taxation, it’s pertinent to understand the associated costs involved. Whether you are a seasoned business owner or just starting out, comprehending the expenses required to maintain an LLC is vital for sound financial planning.
One of the significant ongoing costs that LLC owners in Pennsylvania face is the annual report fee. As a legal requirement, LLCs in the state must file an annual report with the Pennsylvania Department of State. This report helps to keep the state’s records up to date by providing information about the company’s registered agent, principal office address, and the names and addresses of all LLC members or managers. While the specific fee varies, it’s crucial to account for this expense within the company’s budget.
Another expense that LLC owners need to consider is the state tax filing fee. Pennsylvania imposes a state-level tax on most LLCs, known as the “annual corporate tax fee.” This fee is due every year by April 15th and helps fund the state’s government operations. It’s important to accurately estimate and allocate funds to cover this recurring expense to avoid any surprises or penalties.
Moreover, LLCs operating in certain industries may require permits or licenses that need regular renewal. Pennsylvania maintains a proactive approach towards regulating business activities, ensuring legal compliance and consumer protection. Consequently, LLC owners may be required to incur costs associated with obtaining or renewing permits specific to their line of work. Careful research, understanding industry requirements, and budgeting for these additional expenses are pivotal in maintaining compliance and avoiding any interruptions in business operations.
Additionally, professional services should be factored into the LLC maintenance costs. While some business owners may opt for a DIY approach for various tasks, seeking assistance from professionals can be essential in areas such as legal compliance, accounting, and tax preparation. Hiring a qualified attorney for legal advice and ensuring compliance with various regulations can help protect the LLC’s interests and mitigate potential legal issues. Similarly, considering the services of an accountant or bookkeeper proficient in handling the financial aspects of an LLC can aid in efficient and accurate record-keeping, minimizing the risk of errors or penalties during tax filings.
Lastly, underestimating the value of business insurance can be a costly mistake for LLC owners. While maintaining an LLC already provides a level of personal liability protection, obtaining appropriate insurance coverage is essential for safeguarding against various risks. Depending on the nature of the business, considerations such as general liability insurance, professional liability insurance, and workers’ compensation insurance may be necessary. Looking into different options and obtaining suitable insurance coverage can substantially contribute to the LLC’s long-term stability and protection.
In conclusion, maintaining an LLC in Pennsylvania requires diligent consideration of several ongoing expenses. While these costs are necessary to operate within the legal framework, entrepreneurs and small business owners must carefully budget and allocate funds to cover them. By thoroughly understanding the expenses involved, entrepreneurs can ensure smooth operations, financial stability, and ongoing compliance with the state’s regulations and requirements.
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.
