How to Start an LLC in Pennsylvania
Forming an LLC in Pennsylvania costs $125 in state filing fees, paid to the Pennsylvania Department of State. Here is the full process, the real costs and the Pennsylvania-specific rules most guides skip.
What it costs
| Item | Cost | Required? |
|---|---|---|
| State filing fee (Pennsylvania Department of State) | $125 | Yes, one time |
| Annual report | $7 | Yes, recurring |
| Registered agent service | $100–$200 / year | Optional (you can be your own) |
| EIN from the IRS | Free | Yes, for banking and taxes |
| Operating agreement | Free–$200 | Strongly recommended |
Step by step
Choose and check your LLC name
Your name must be distinguishable from existing Pennsylvania entities and include "LLC" or "Limited Liability Company". Search availability for free on the Pennsylvania Department of State website before you fall in love with a name.
Appoint a registered agent
Required by law: a person or company with a physical street address in Pennsylvania, available during business hours to receive legal mail. You can be your own agent if you live in the state; most founders who value privacy or don't live there use a service ($100 to $200 per year).
File your formation documents ($125)
File Articles of Organization (in some states called a Certificate of Formation) with the Pennsylvania Department of State. Standard processing: about 5-10 business days online. This is the step that legally creates the LLC.
Get your EIN from the IRS (free)
The Employer Identification Number is your LLC's federal tax ID, needed for bank accounts, hiring and tax filings. The IRS issues it free. If the LLC's principal place of business is in the US and the responsible party has an SSN or ITIN, the IRS online application issues the number immediately (one EIN per responsible party per day). Owners without an SSN or ITIN, including most non-US founders, cannot use the online tool: they file Form SS-4 by fax (about 4 business days), by mail (about 4 weeks) or, for international applicants, by phone at 267-941-1099. Details and the exact numbers are in our non-resident guide. Never pay a service just for an EIN.
Create an operating agreement
Pennsylvania does not legally require an operating agreement, but banks, investors and courts expect one, and it is the document that protects your limited liability if ownership is ever disputed.
Handle ongoing compliance
Pennsylvania requires an annual report of $7. Calendar it the day your LLC is approved, missing it risks late fees and eventually administrative dissolution.
What a Pennsylvania LLC really costs
| Item | Amount | Notes |
|---|---|---|
| Certificate of Organization with docketing statement | $125 | No newspaper advertising required for LLCs |
| Annual report | $7 | January 1 to September 30, starting the year after formation |
| Reinstatement after administrative dissolution | $35 online ($40 paper) plus $15 per unpaid report | |
| Expedite (optional) | $100 same day, $300 three-hour, $1,000 one-hour | Formation only; annual reports cannot be expedited |
| Name reservation (optional) | $70 | |
| Restricted professional LLC annual registration | $500 or more | Only for licensed professions, due April 15 |
Fees from the Department of State fees page.
The annual report that replaced the decennial report
- Pennsylvania dropped its old once-a-decade report and moved to an annual report starting in 2025. Guides that say Pennsylvania has no annual filing are out of date.
- For LLCs the deadline is a fixed date, September 30, not your anniversary. The filing window opens January 1.
- Online reports are approved automatically.
- Starting with 2027 reports, an LLC that does not file will be administratively dissolved six months after the due date, and its name becomes available to others. Reinstatement is possible with no time limit, for $35 online plus $15 for each unpaid report.
- Details on the Department of State annual report page.
Taxes for Pennsylvania LLCs
- No capital stock or franchise tax. It was eliminated in 2016.
- Income tax passes through to the owners at Pennsylvania's flat 3.07% personal income tax rate.
- Corporate net income tax applies only if the LLC elects corporate taxation: 7.49% for 2026 and 6.99% for 2027, on its way down.
- Local taxes: Philadelphia and many municipalities levy their own business taxes; check your city.
Public record
The annual report shows at least one governor, meaning a member or manager, and any principal officers on the Department of State's public business search.
Mistakes we see with Pennsylvania LLCs
- Assuming the deadline is the anniversary month rather than September 30.
- Trusting older guides that say Pennsylvania has no annual report.
- Forming a restricted professional LLC without budgeting for the $500-plus annual registration.
- Ignoring the report once dissolution starts applying in 2027 and losing the name.
Official Pennsylvania links
Pennsylvania LLC: frequently asked questions
How much does it cost to start an LLC in Pennsylvania?
The state filing fee is $125, paid to the Pennsylvania Department of State. Ongoing state cost: $7. Optional costs include a registered agent service (typically $100 to $200 per year) if you don't act as your own.
How long does it take to form an LLC in Pennsylvania?
Typical processing time: about 5-10 business days online. Many states offer paid expedited options if you need the LLC approved faster. The clock starts when the Pennsylvania Department of State receives your filing.
Do I need a registered agent in Pennsylvania?
Yes. Every Pennsylvania LLC must continuously maintain a registered agent with a physical street address in the state to receive legal and official mail. You can serve as your own agent if you have a Pennsylvania address and are available during business hours, or hire a commercial registered agent service.
What happens if I miss the Pennsylvania annual report?
The report costs $7 and missing the deadline typically triggers late fees, loss of good standing and eventually administrative dissolution of the LLC. Reinstatement is possible but costs more than filing on time.
When is the Pennsylvania LLC annual report due?
By September 30 each year, starting the year after formation. The window opens January 1 and the fee is $7. Starting with 2027 reports, an LLC that does not file is administratively dissolved six months after the due date.
Does a Pennsylvania LLC pay franchise tax?
No. Pennsylvania eliminated its capital stock and franchise tax in 2016. Profit passes through to the owners at the 3.07% personal income tax rate, unless the LLC elects to be taxed as a corporation.
Not sure whether Pennsylvania fits your situation?
Before you choose a filing package, talk through your business, location and goals with a real setup specialist. Get a clear formation roadmap at no cost and with no purchase obligation.
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Compare with other states
Fees and rules last reviewed September 2026. State fees change; always confirm with the Pennsylvania Department of State before filing. This guide is general information, not legal or tax advice.