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

  • Worry-free service

  • Great customer support

  • 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 initial costs associated with forming an LLC in Pennsylvania is the filing fee required for the creation of the business entity. This fee varies depending on the type of LLC being established and can range from a few hundred dollars to over a thousand dollars. It is important for business owners to budget for this expense in advance to ensure they can cover this initial cost.

Once the LLC is established, there are ongoing expenses that business owners must be prepared to pay to maintain compliance with state regulations. This includes the annual filing fee for the LLC, which is a necessary requirement to keep the business entity in good standing with the state. Additionally, there may be other fees associated with maintaining the LLC, such as franchise tax payments and business license fees.

In addition to the financial costs, maintaining an LLC in Pennsylvania also requires business owners to adhere to certain reporting and compliance requirements. This may include submitting annual reports, updating member information, and fulfilling any other obligations outlined by the state. Failure to meet these requirements can result in penalties and potential risks to the business itself.

It is important for business owners to carefully consider these costs and requirements before deciding to establish an LLC in Pennsylvania. Proper planning and budgeting are essential for ensuring that the financial obligations of maintaining the LLC can be met in a timely manner. By understanding the costs associated with running an LLC in the state, business owners can make informed decisions about their business structure and operations.

Overall, while there are costs involved in maintaining an LLC in Pennsylvania, the benefits of limited liability protection and flexibility in business operations can outweigh these expenses. By carefully considering the financial obligations and compliance requirements of running an LLC in the state, business owners can ensure the long-term success of their business entity. Being prepared and informed is key to navigating the financial aspects of maintaining an LLC in Pennsylvania.

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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