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LLC Cost In Pennsylvania - How Much To Pay In Fees & Taxes in PA

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Last updated February 17, 2023

Written by Dmytro Kondratiev

Editor, lawyer

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When you’ve discovered all ins and outs of how to start an LLC in Pennsylvania, your next point of interest will be the cost of setting up an LLC in Pennsylvania.

How much will you have to spend on the LLC registration and required maintenance? What are LLC annual fees in Pennsylvania? Will the starting and ongoing expenses fit your budget?

Since these are essential questions to answer, below, we’ve made a detailed overview of LLC costs in Pennsylvania to help you efficiently plan your business expenses.

How Much Is an LLC in Pennsylvania?

LLCs are regulated by state laws and formation costs vary by the state accordingly. For this reason, the cost of setting up an LLC in one state might appear noticeably higher than that in another jurisdiction.

Overall, registering an LLC is a pricer affair than running a business as a disregarded entity. Yet, the price will pay off with flexible tax options, a liability screen, and future operational benefits.

Basically, the cost to create an LLC in Pennsylvania will split into:

Formation expenses that cover state fees and regulatory payments most of which are compulsory and required to keep your legal entity compliant;
Post-formation expenses that embrace both obligatory and optional charges and fees you’ll be exposed to depending on your business plans and situation.

This is how we approach the Pennsylvania LLC fees breakdown. This way, it will be easier for you to understand your expenses from short- and long-term perspectives.

Cost to Create an LLC: Compulsory Fees

These are the expenses you need to take into account when starting your Pennsylvania LLC. Some of them are one-time payments while others are to be settled on a regular basis.

Pennsylvania LLC Filing Fee: $125

All limited liability companies start with the statutes that legalize the entity formation and give it an independent legal status. To file the Certificate of Organization in Pennsylvania, you should contact the Pennsylvania Bureau of Corporations and Charitable Organizations.

The Pennsylvania LLC filing fee is $125 for standard processing times. You can either register online or submit the document on paper via mail. Regular timings to approve your application vary from about 4 weeks for mailed applications to a few days for online forms.

The state also has expedited processing options in place at an extra cost:

Same-day service ($100) for applications submitted before 10 am;
3-hour service ($300) for documents delivered before 2 pm;
One-hour service ($1000) for papers provided before 4 pm.

While the prices for rash processing are on the higher side, if you are in an emergency and need your legal structure as soon as possible, it’s a great solution to go for.

Besides, Pennsylvania charges no filing fees to US veterans and military reservists. You just need to verify your status by providing the required governmental approvals or statements.

LLC Fees in Pennsylvania: Registered Office Fee: $0 to $150

A registered agent or a registered office as they call it in Pennsylvania is a law requirement for getting an LLC structure registered and keeping it compliant afterward.

When it comes to the registered or certified office cost, there is no fixed fee or rate. For you, it will depend on the office option you choose:

You can be your own certified office or assign this role to a family member that won’t add to your LLC operational costs;
You may select to hire a third party to do the job and pay for it on an annual basis from about $50 to $150 and more.

By delegating the registered office function to a hired person you have it set for your company and release yourself from this responsibility to get more time for other business tasks.

By far the best option for a certified office in Pennsylvania is a professional agent service. Those providers are available in all US states and ensure high-quality service at reasonable prices while also offering bulk discounts for multi-year and multi-state orders.

Pennsylvania Decennial Report: $70

In most states, limited liability companies are to submit an annual report to update their registered data on a yearly basis. Otherwise, your entity’s good standing status will be at risk.

Pennsylvania is different in this concern and requires a report only once per decade. Thus, instead of a Pennsylvania LLC annual fee, you’ll have to pay a decennial fee of $70 and file a report every decade in a year starting with “1”.

Foreign LLC Cost in Pennsylvania: $250

Already have an LLC registered in another state? Want to make it eligible to run a business in Pennsylvania? If so, you should file for a foreign qualification in this state.

Foreign Pennsylvania LLC cost is $250. You should file Form DSCB:15-412 with the Bureau of Corporations and Charitable Organizations either online or by mail. Expedited processing fees remain the same as for domestic LLCs.

Professional LLC Price in Pennsylvania: $150 + License Fee

If you are going to open an LLC to provide some sort of services in a certain sphere, you need to register a professional limited liability company. The spheres include:

Medicine;
Public accounting;
Law;
Engineering;
Education;
Construction.

Bringing pretty much the same legal protections at a business level, this type of LLC stipulates professional liability for service providers and requires getting a professional license in place.

The license cost will vary by profession and locality and might fall anywhere between $10 and a few hundred USD.

Annual Report for Restricted Professionals: $560 per Member

Foreign and professional limited liability companies in Pennsylvania are exposed to a special annual report requirement. They are to submit a Certificate of Annual Registration to the State Department and pay a $560 fee multiplied by the number of company members.

This report is to be filed before April,15 and delays might cause penalties and fines.

Business License Cost in Pennsylvania: Varies by Locality

Unlike many other states, Pennsylvania doesn’t call for limited liability companies to have a general business license. It means there will be no related registration and annual licensing payments to make.

At the same time, though, your entity might be exposed to some sort of local or industry-specific license or permit to match regulatory requirements.

Contact your county clerk's office and state government authority to find out the list of licenses and permits appropriate to your entity and the upcoming costs. Initial info is available on the PA Licesning System platform.

Pennsylvania LLC Tax Rates

With no state income tax for limited liability companies taxed as disregarded entities, Pennsylvania also incurs no franchise or privilege tax for companies. Other taxes LLCs should consider in the state include:

An income tax paid by company owners over their income share under their personal tax returns at a standard rate of 3.07%;
Sales and use tax for commercial entities charged at a 6% rate across the counties, with the exception of Philadelphia city (2%) and Allegheny county (7%);
Federal self-employment tax for the members of limited liability companies applying pass-through taxation. The tax rate is 15.3%;
State employment taxes in case you use hired workforce. You’ll be levied 3.5% or 9.7% over the first $10,000 of salary for each new worker.

Other Pennsylvania Costs

There are some other costs you might encounter during your PA LLC registration and after that. Most of them are optional and refer to additional services specific to a certain situation.

Pennsylvania LLC Name Reservation: $70

Choosing a name for a company is an important task since it should be distinguishable in the state of your future entity operation. Hence, once you have a great moniker in mind and it appears available in Pennsylvania, you can put it on hold.

By reserving a business name, you’ll have more time to finish the preparation for filing. Pennsylvania allows for a 120-day reservation period at $70. Just file Form 15-208 with the state department.

DBA Filing in Pennsylvania: $70

DBA (doing business as) or fictitious names are widely popular among LLC owners who seek to extend their enterprise to other states and operate in different spheres under the legal umbrella of the same company.

DBAs require state registration to become legal. In Pennsylvania, you’ll have to file Form 54-311 and pay a $70 filing fee per name.

Pennsylvania Certificate of Subsistence: $40

What they call a Certificate of Good Standing is a Certificate of Subsistence in PA. Issued by the Department of State, it costs $40. It might be required by banks and credit agencies when you apply for a business loan.

Pennsylvania LLC Document Copies: Price Varies

You can contact the PA Department of State for the following document copies:

Plain copies that cost $15 per doc plus $3 per each page;
Certified copies that cost $55 per document and $3 per page above that;
You can also order a record search enlisting your entity data at $15 per search.

Pennsylvania Certificate of Amendment: $70

Any changes in your registered company data should be made via filing amendments to your formation documents. You should file a Certificate of Amendment form with the State Department.

An amendment registration fee is $70. Normal processing will take up to 5 business daysб and you can cut that time down to 1 day by paying another $70.

Pennsylvania LLC Reinstatement: $70

In contrast to many other states, Pennsylvania has no administrative dissolution procedure for non-compliant LLCs. However, should you fail to file your decennial report in time, your LLC name will become available for use by other entities.

If that happens, you should file your overdue report with the Department of State and pay a $70 fee to reinstate your LLC name.

Notably, if the name is already taken by another entity, you won’t be able to get it back. So, stick to a reporting schedule.

Pennsylvania Certificate of Dissolution: $70

Winding up your business is not as easy as simply terminating the activities. You need to terminate the legal entity's existence as well by filing a Certificate of Dissolution.

The whole process also entangles tax clearance and the cost of Certificate of Dissolution registration is $70.

FAQ

Does starting an LLC in Pennsylvania justify the costs?

The long-term benefits you’ll enjoy with the LLC such as legal entity independence, liability protection, and adaptable taxation as well as business growth opportunities fully justify formation and maintenance costs.

What is the LLC filing time in Pennsylvania?

Standard filing time is around 4 weeks for mailed applications and about a few days for online forms. You can reduce that to a single day or even only a few hours by paying for the expedited processing.

Does Pennsylvania require a business license for an LLC?

The state has no general business license requirements. However, depending on the industry, the type of activity you run, and your locality, you might need other licenses and permits to stay eligible. It’s advisable that you check with your local authorities for any permissive documents you need.

Should an LLC in Pennsylvania pay an income tax?

It’s the LLC members that will pay income taxes over their parts in LLC profit at a flat rate of 3.07%. LLCs only pay state income taxes when levied as C-Corps.

Does a PA LLC require renewal on a yearly basis?

Pennsylvania has annual report requirements only for foreign and professional LLCs. Common domestic LLCs should file only once a decade.

What is the cheapest way to get an LLC in Pennsylvania?

You’ll get a cheap Pennsylvania LLC by handling formation and registration routines by yourself. This way, you won’t have to pay for any assistance. To further minimize ongoing costs, you could serve your own PA registered office.

Are PA LLCs entitled to tax refunds?

Usually, LLCs in Pennsylvania do not get any tax refunds. You can expect to get some compensation only if you elect a C-Corp tax status for your LLC by filing Form 8832 with the IRS.

Can I pay myself a salary from my Pennsylvania LLC?

As an LLC member, you’ll be considered self-employed and get a part in an LLC income via profit distribution. However, LLCs taxed as corporations are entitled to hire their owners and pay salaries to them.

Can I pay for my cell phone from my Pennsylvania LLC?

Yes, you can, to the extent you use your phone for business. The phone costs are deductible only if business use is over 50% of the total use.

Can I write off my Internet from my Pennsylvania LLC if I work from home?

You can deduct your Internet costs only if you use the web for business purposes most of the time.

Can I write off car payments from my Pennsylvania LLC?

Car costs are deductible proportionally to business use. If you use the vehicle for business purposes only, you can write off all car expenses.

Can I write off fuel receipts from my Pennsylvania LLC taxes?

Fuel receipts are deductible subject to recording the miles you’ve driven for work. To ease the accounting, you can simply write off fuel costs as a part of common driving expenses.