LLC Cost in Pennsylvania – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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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.

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

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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Pennsylvania$125Decennial – $706%
Delaware$90$250None
West Virginia$100$256%
Maryland$126None6%
Ohio$125None5.75%

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

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

One of the most significant expenses associated with maintaining an LLC in Pennsylvania is the annual report fee. This fee, which must be paid every year, helps to keep the state’s records updated with the latest information about the company. Failure to file the annual report on time can result in penalties and even the dissolution of the LLC, so it is crucial for business owners to ensure this fee is paid promptly.

Another ongoing cost of running an LLC in Pennsylvania is the publication requirement. When forming an LLC in the state, businesses are required to publish a notice in two newspapers for three consecutive weeks. While this cost may not seem substantial, it is an expense that must be budgeted for to ensure compliance with Pennsylvania state law.

In addition to the annual report fee and publication requirement, business owners should also consider the cost of obtaining any necessary licenses and permits to operate their LLC in Pennsylvania. Depending on the nature of the business, these licenses can vary in price and may need to be renewed periodically, adding to the overall maintenance cost of the LLC.

Furthermore, business owners should factor in the cost of any professional services they may need to ensure their LLC remains compliant with Pennsylvania state regulations. Hiring an accountant or attorney to help navigate the complex legal requirements can be beneficial but can also add to the overall cost of maintaining the LLC.

Overall, the cost of maintaining an LLC in Pennsylvania can vary depending on the size and nature of the business. While some expenses may seem minor, they can quickly add up and impact the company’s bottom line. It is essential for business owners to budget for these ongoing costs and stay informed about any changes in state regulations that may affect the financial health of their LLC.

In conclusion, while the upfront cost of forming an LLC in Pennsylvania may be affordable, business owners must be prepared for the ongoing expenses associated with maintaining the company. By understanding the various costs involved and budgeting accordingly, LLC owners can ensure their business remains compliant and in good standing with the state.

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.

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