How Much Does an LLC Cost in Pennsylvania
From the standard $125 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in Pennsylvania.
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Here are the following fees to consider:
- Domestic LLC Formation Fee: $125
- Foreign LLC Formation Fee: $250
- LLC Annual Report Fee: $7
- LLC Permits and License Fees: $0 to $500+
- Business Taxes: at least 3.07%
- LLC Optional Fees: $0 to $3,000+
There's no getting around the fact that you will have to spend money when forming a business. The question is, how much for an LLC in Pennsylvania?
Remove the guesswork by reading through this comprehensive list of Pennsylvania LLC fees.
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Pennsylvania Domestic LLC Formation Filing Fee
Cost: $125
To form a domestic LLC in Pennsylvania, you must submit 2 types of documents to the Pennsylvania Department of State's Bureau of Corporations and Charitable Organizations. You'll also pay a $125 filing fee to cover the administrative costs of setting up an LLC in the state.
These are the documents you must file to form an LLC in Pennsylvania:[1]
- Certificate of Organization - The official birth certificate of your LLC, establishing its legal existence in Pennsylvania.
- Docketing Statement - A supplemental form that contains additional details about your new LLC.
The Pennsylvania Department of State's Bureau of Corporations and Charitable Organizations typically processes LLC formation applications in 7-14 business days after you file the documents. Pay for expedited services if you need your LLC formed faster.
Act 135 of 2016 waives several fees for starting a veteran-owned LLC in Pennsylvania.[2] This includes the LLC formation filing fee and the Certificate of Amendment.
Pennsylvania Foreign LLC Formation Filing Fee
Cost: $250
If your LLC is already established in a different state and you want to expand your business to Pennsylvania, you need to register it as a foreign LLC.
Foreign LLCs in Pennsylvania must submit a Foreign Registration Statement to the Secretary of State. It typically takes longer to process a foreign LLC application compared to domestic LLC applications, but you can pay for expedited services.
If your foreign LLC's original name is unavailable in Pennsylvania, you must file a Certificate of Assumed Name. The assumed name becomes your LLC's official business name only in Pennsylvania.
You can choose to change your foreign LLC's home state to Pennsylvania. This means your new LLC in Pennsylvania will be considered domestic and governed by the state's laws.[3]
Pennsylvania LLC Annual Report Fee
Cost: $7 (Starting in 2025)
Pennsylvania used to require LLCs to file a Decennial Report, a report submitted every 10 years. However, Pennsylvania Governor Wolf signed Act 122 of 2022, effectively repealing this law and introducing the new annual report requirement.[4]
Starting in 2025, all LLCs in Pennsylvania will need to file an annual report, which is due every September 30.[4] It updates the state of your LLC's current information, including the business address and the names of managers/members. The report also confirms that your business is still active.
Starting in 2027, Pennsylvania LLCs that fail to file an annual report six months after the due date could face administrative dissolution.[4] Your LLC's name will then be made available for use by other businesses.
Pennsylvania LLC Permits and License Fees
Cost: $0 - $500+
Pennsylvania does not have a general state-level business license. However, your LLC may need to get local business permits. The local business permit fees vary per city and could be renewable yearly.
If your LLC's business operations impact the environment or public health, you may need business permits from the Pennsylvania Department of Environmental Protection (DEP).
If your Pennsylvania LLC provides a professional service, you may need a special license from the Pennsylvania Licensing System (BPOA). It includes dentistry, cosmetology, and real estate.
Additionally, the number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated simultaneously by various governmental offices.
A business permit is issued mainly to address safety concerns, like a construction project. On the other hand, a business license is typically given to those qualified to provide professional services, i.e. dental clinics and barbershops.
Such a license is often permanent but can be revoked for misuse, while a business permit is typically valid for a certain period.
Pennsylvania Business Taxes
Cost: 3.07% Individual Income Tax | 6% Sales Tax
LLCs are treated as pass-through entities for tax purposes. This means profits and losses are passed directly to members and reported on their tax returns.
In Pennsylvania, your earnings are subject to a 3.07% individual income tax rate.[5] Additionally, some municipalities collect local income taxes.
If your LLC in Pennsylvania sells products, you must collect a 6% sales tax.[6] You can register online for a seller's permit. This is free of charge.
Additionally, LLC members considered self-employed must pay the 15.3% federal self-employment tax.[7] This tax covers Social Security and Medicare contributions.
Consult with a tax advisor to determine the specific taxes that apply to your business. A qualified accountant could charge $300 yearly for a simple tax return. The fee is higher for more complex tax requirements.
Pennsylvania LLC Optional Fees
While the Pennsylvania LLC fees below are optional, some are unavoidable depending on your business needs. For example, obtaining a Certificate of Subsistence is often necessary when opening a business bank account.
Remember to account for these potential additional expenses:[8]
| Pennsylvania LLC Optional Fees | Cost |
|---|---|
| Pennsylvania LLC Expedited Services Fee | $100 - $1,000 |
| Pennsylvania LLC Registered Office Provider Fee | $up to $400 |
| Pennsylvania LLC Operating Agreement Fee | up to $1,000 |
| Pennsylvania Employer Identification Number | FREE |
| Pennsylvania LLC Name Availability Search Fee | $15 |
| Pennsylvania LLC Name Reservation Fee | $70 |
| Pennsylvania LLC Assumed Business Name Fee | $70 |
| Pennsylvania LLC Certificate of Correction Fee | $70[9] |
| Pennsylvania LLC Certificate of Amendment Fee | $70[10] |
| Pennsylvania LLC Change Registered Office Fee | $5 |
| Pennsylvania LLC Certified Document Copy Fee | $55 + $3 per page |
| Pennsylvania LLC Certificate of Subsistence Fee | $40 |
| Pennsylvania Business Website Domain Fee | $20 - $30 |
| Pennsylvania Business Insurance Premium | varies |
Aside from the $7 annual report filing fee, some business permits and licenses in Pennsylvania are renewable every year. Other ongoing costs include registered agent services and website domain fees.
Pennsylvania LLC Expedited Service Fee
Cost: $100 - $1,000
In Pennsylvania, most of your LLC documents can be expedited for a fee. This includes the Certificate of Organization and the Certificate of Subsistence. The cost depends on how quickly you need the documents to be processed:[11]
- $100 - same-day (received before 10 AM)
- $300 - 3 hours (received before 2 PM)
- $1,000 - 1 hour (received before 4 PM)
You don't have to pay for expedited services if you're not rushing to receive your LLC documents. According to the Pennsylvania Department of State, the regular processing time for filed documents is typically two weeks.
In Pennsylvania, the LLC filing fees are non-refundable and non-transferable.[11] If you make a mistake in any document but have already paid the filing fee, you will need to pay the fee again.
Pennsylvania Registered Office Provider Fee
Cost: up to $400
Unlike most states, Pennsylvania does not require the designation of a registered agent as part of the LLC formation process. However, every business must maintain a registered office within the state.[12]
Your LLC's registered office can be the business's physical address or the address of a Commercial Registered Office Provider (CROP). Like a registered agent, a CROP can accept legal documents and process on your LLC's behalf.
Pennsylvania LLC Operating Agreement Fee
Cost: up to $1,000
The costs associated with the operating agreement come in the drafting of the document. You can create an operating agreement for free by using templates online. Alternatively, it could cost upwards of $1,000 if you hire an attorney.
An operating agreement is a legal document that details important rules for managing the LLC. It also defines the roles and responsibilities of the members or managers. In essence, it's a binding contract that helps prevent and solve any business disputes that may arise later on.
In Pennsylvania, LLCs are not required to have an operating agreement. But if you don't create one, you'll have to follow Pennsylvania's default legal provisions for LLCs. These rules aren't always beneficial to your LLC.
According to Pennsylvania's default rules for LLCs, all members have equal voting rights.[13] It can lead to gridlock when making management decisions as reaching a majority vote becomes difficult, especially for larger LLCs.
Pennsylvania LLC Employer ID Number
Cost: FREE
An Employer Identification Number (EIN) is a unique 9-digit number assigned by the Internal Revenue Service (IRS). This number is used to identify a business entity for tax-related purposes.
You're not required to get an EIN if you're operating a single-member LLC in Pennsylvania. However, you might still need it down the line if you want to hire employees or open a business bank account.
Maintaining separate bank accounts for personal and business finances is a common practice for LLCs. Doing so helps maintain a clear separation between the company and personal finances. This may also prevent using business funds for personal expenses or vice versa.
Pennsylvania LLC Name Search Fee
Cost: $15
Before choosing a name for your LLC, perform a name search for free on the Pennsylvania Department of State website. It shows the names already being used or reserved by other businesses in Pennsylvania. However, the results don't include names from recently submitted filings.
Alternatively, you can pay the $15 name availability search fee to the Bureau of Corporations and Charitable Organizations.[14] This provides a more thorough search with a written response.
Pennsylvania LLC Name Reservation Fee
Cost: $70
There's no additional cost to naming your LLC in Pennsylvania. It's included when you pay the LLC formation filing fee. However, it could take a while for you to gather all the information needed in the Certificate of Organization and Docketing Statement.
If you're not ready to submit your Articles of Organization, you can reserve your desired business name first. Paying the $70 name reservation fee will prevent others from using that name for 120 days.[11]
Don't forget to review Pennsylvania's detailed list of naming regulations to prevent your LLC formation application from getting rejected.
Pennsylvania LLC Assumed Business Name Fee
Cost: $70
An assumed business name allows your LLC to operate under a name different from its official registered name.
For example, if "Tim Jones Enterprises LLC" wants to do business as "Father Time's Bookshop," the latter would be the assumed business name. It's ideal if you want to operate under a business name that is more marketable or doesn't have an "LLC" at the end.
Once you have filed for an assumed name for your Pennsylvania LLC, it has no expiration date. However, it can be canceled if your LLC is dissolved/terminated or you fail to submit the annual report.
Pennsylvania Certificate of Correction Fee
Cost: $70
After your Pennsylvania LLC application is approved, your next focus should be on maintaining its good standing over the long term.
Get a copy of the approved formation documents and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Certificate of Correction.
Pennsylvania Certificate of Amendment Fee
Cost: $70
Your Pennsylvania LLC's Certificate of Organization contains specific details about your business. Should these details change, you must submit the Certificate of Amendment to the Pennsylvania Department of State's Bureau of Corporations and Charitable Organizations.
File a Certificate of Amendment if you:
- Add, remove, or change an LLC member or manager.
- Update your LLC's business address.
- Modify your LLC's stated business activities.
A Certificate of Correction is for fixing mistakes in initial filings. Meanwhile, a Certificate of Amendment is for updating or changing key details as the LLC evolves.
Pennsylvania Change Registered Office Fee
Cost: $5
Your LLC in Pennsylvania can change its registered office address anytime. For example, if you initially put your home address as the LLC's registered office, you can change it to the LLC shop's address.
If the Pennsylvania LLC's registered office address changes, you don't have to pay the $70 amendment fee. Just submit the Change Registered Office Form along with the $5 filing fee.
Yes, you can change your Commercial Registered Office Provider anytime. Remember, LLCs in Pennsylvania are not required to have a CROP, but you can hire one. If there are changes, you don't have to update the state unless your registered office address changes.
Pennsylvania LLC Certified Document Copy Fee
Cost: $55 + $3 per page
Certified copies of business documents are requested from the Pennsylvania Department of State's Bureau of Corporations and Charitable Organizations. These documents verify that your LLC is legitimate and that its details are accurate.
You might need a certified copy of a business document, like the Certificate of Organization. This would be applicable for circumstances such as opening a business bank account or expanding your LLC in another state.
In Pennsylvania, you can request an uncertified document copy for $15 + $3 per page.[11] You'll receive photocopies without any official seal or signature from the Pennsylvania Department of State.
Pennsylvania Certificate of Subsistence Fee
Cost: $40
A Certificate of Subsistence verifies that your business is legally authorized to conduct business in Pennsylvania and is in good standing with the state. The certificate is often necessary to:
- Open a bank account.
- Conduct business outside of Pennsylvania.
- Qualify for business insurance.
- Apply for business loans.
If your Pennsylvania LLC is not in good standing, you must pay any outstanding penalties and fees. You should also file the annual report if you haven't done so. Afterwards, file an LLC Reinstatement Form along with the filing fee. It costs $35 if filed online and $40 via mail or in person.[11]
Pennsylvania Business Website Domain Fee
Cost: $20 - $30
A website domain provides a dedicated online space for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you're not planning to build a business website yet, it's a good idea to buy the domain name at least. This prevents others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Pennsylvania Business Insurance Premium
Cost: varies
All LLCs in Pennsylvania with at least 1 employee are required to get workers' compensation insurance.[15] The cost of business insurance depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
You can find a private insurance company that offers workers' compensation coverage. Alternatively, apply for the State Workers' Insurance Fund (SWIF). It's Pennsylvania's state fund that provides coverage to businesses that are considered high-risk.
Failure to obtain workers' compensation insurance can lead to hefty fines, potential lawsuits from injured employees, and even business closure.
Investing in the right insurance can help protect your business from financial losses. For example, business property insurance covers your LLC's furniture and equipment against damage or loss.
Bottom Line
Pennsylvania's $125 - $250 LLC filing fee is just the beginning of expenses when forming an LLC in the Keystone State. Starting in 2025, all LLCs in Pennsylvania must pay the $7 annual report filing fee.
Creating and maintaining an LLC in Pennsylvania could cost up to $3,000 or more. It will increase depending on the additional services, documents, and licenses your LLC needs.
There are more costs to consider as your LLC grows. These include bookkeeping fees, trademark fees, and paying rent. Ultimately, it's best to set aside an extra budget for unexpected costs.
References
- ^ Pennsylvania Department of State. Pennsylvania Limited Liability Company, Retrieved 01/23/2024
- ^ Pennsylvania Department of State Professional Licensing. Veterans Business Fee Exemption Notice, Retrieved 12/20/2023
- ^ Pennsylvania Department of State Business and Charities. Statement of Domestication - Other, Retrieved 12/20/2023
- ^ Pennsylvania Department of State Business and Charities. Annual Reports, Retrieved 12/20/2023
- ^ Pennsylvania Department of Revenue. Personal Income Tax, Retrieved 12/20/2023
- ^ Pennsylvania Department of Revenue. Sales and Use Tax, Retrieved 12/20/2023
- ^ Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 12/20/2023
- ^ Pennsylvania Department of State. Fees and Payments, Retrieved 01/23/2024
- ^ Pennsylvania Department of State. Statement of Correction, Retrieved 01/23/2024
- ^ Pennsylvania Department of State. Certificate of Amendment, Retrieved 01/23/2024
- ^ Pennsylvania Department of State Business and Charities. Fees and Payments, Retrieved 12/20/2023
- ^ Pennsylvania Department of State Business and Charities. Commercial Registered Office Providers, Retrieved 12/20/2023
- ^ Pennsylvania General Assembly. Title 15 - Chapter 88, Retrieved 12/20/2023
- ^ Pennsylvania Department of State. Record Searches, Retrieved 01/23/2024
- ^ Pennsylvania Department of Labor & Industry. Workers' Compensation Compliance, Retrieved 12/20/2023
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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