LLC formation in Pennsylvania: fees, filing steps, and ongoing costs
Data last updated: Apr 21, 2026Where Pennsylvania fits, and where it doesn't
Good fit for Pennsylvania
You live in Pennsylvania and operate here, whether that is Philadelphia, Pittsburgh, or anywhere in between. You run a single-member consulting practice, a small service business, or a real estate holding entity for Pennsylvania property. You want a low recurring cost and a state that does not stack franchise tax, gross receipts tax, or publication fees on top of basic compliance. You are fine with a modest annual filing as long as it stays modest.
Skip Pennsylvania when
You live somewhere else and have no Pennsylvania presence, customers, or property. Pennsylvania does not offer a non-resident privacy or tax-shelter angle that would justify forming here from out of state. The foreign LLC registration fee is also notably higher than the domestic formation fee ($250 versus $125), which makes any non-resident Pennsylvania play more expensive than most alternatives. If you wanted a non-resident home, Wyoming is cheaper and quieter.
What a Pennsylvania LLC actually costs
- Formation filing fee Paid once at formation $125
- Commercial registered agent Annual, estimate $100
- Annual report fee Annual, due 09/30 $7
- Year 1 total estimate Formation plus first-year ongoing $232
Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.
Cost across the first three years
How Pennsylvania compares on the basics
How to apply for an LLC in Pennsylvania
- Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Pennsylvania Secretary of State record. Check availability at the Pennsylvania entity search.
- Designate a registered agent
Every Pennsylvania LLC is required to have a registered agent with a physical street address in Pennsylvania. You can serve as your own agent if you live in Pennsylvania, or hire a commercial service for $99 to $249/yr. See the Pennsylvania registered agent guide.
- File Certificate of Organization – Domestic Limited Liability Company (DSCB:15-8821)
Filing fee is $125. Online filing is available through the state portal. Mail filings are accepted. Paid expedite is available for $100.
- Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
- Adopt an operating agreement
Pennsylvania does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.
Filing walkthrough
You form a Pennsylvania LLC by filing a Certificate of Organization (DSCB:15-8821) together with a Docketing Statement (DSCB:15-134A) through the PA Business One-Stop Hub at hub.business.pa.gov. The filing fee is $125 and online approvals typically clear in about 3 business days. Mail filings run 15 business days. You need a registered office with a Pennsylvania street address, which is Pennsylvania's version of the registered-agent requirement used elsewhere. Commercial registered office providers generally charge $50 to $125 a year.
Pennsylvania eliminated the old newspaper advertising requirement for standard LLC formation in 2017, so there is no publication cost to worry about for regular LLCs. Restricted professional companies (lawyers, doctors, accountants, and similar licensed professions) still have distinct rules and a separate $500 minimum annual registration fee under 15 Pa.C.S. §8998. If you are forming a normal LLC, you are in the easy lane.
Expedited service is available from the Department of State at $100 for same-day processing on requests submitted by 10 AM, with three-hour and one-hour tiers available at higher cost. Veterans, reservists, and National Guard members can qualify for a fee waiver on the filing charge with proof of service.
How Pennsylvania taxes an LLC
Pennsylvania has no franchise or capital stock tax on LLCs. The old Capital Stock/Foreign Franchise Tax was fully phased out for tax years beginning on or after January 1, 2016, and LLCs are simply outside the modern entity-tax regime. A single-member or multi-member LLC taxed as a pass-through owes no entity-level Pennsylvania income tax. Members pay the flat 3.07% Personal Income Tax under 72 P.S. §7302 on their distributive share, which is one of the lowest flat personal rates in the country.
LLCs that elect C-corp treatment for federal tax fall into the Corporate Net Income Tax, which is 7.5% for the 2026 tax year and phasing down 0.5 points per year to 4.99% by 2031 under Act 53 of 2022. If you plan to stay a pass-through, this does not affect you. State sales and use tax is 6.0%; Allegheny County adds 1% and Philadelphia adds 2% local tax on top of the statewide rate.
Restricted professional companies are the one corner where the picture changes. If your LLC delivers a licensed professional service and registers as an RPC, the state charges a separate annual registration fee of at least $500, scaling by the number of licensed professionals. This is not the standard LLC path; most filers will never see it.
Ongoing compliance and costs after year one
Budget $7 a year for the new annual report plus $50 to $125 for a commercial registered office. Under Act 122 of 2022, Pennsylvania replaced the old decennial report with an annual filing, and LLCs must submit Form DSCB:15-146 through the Business One-Stop Hub between January 1 and September 30 each year. The first mandatory reports landed in 2025. Beginning with 2027 filings, missing the deadline triggers administrative dissolution six months after the due date, so this is not optional.
The 2025 rollout is the single biggest thing to update your mental model on if you formed a Pennsylvania LLC any time before then. The old answer was "no annual report." The new answer is "$7, due September 30." Small change in dollar terms, much larger change in calendar discipline.
Common mistakes forming a Pennsylvania LLC
Two patterns come up. First, owners who formed a Pennsylvania LLC before 2025 often still believe the old rule that Pennsylvania had no annual report for LLCs. Act 122 of 2022 changed that, and the first live filings were due September 30, 2025. If you have not filed yours, check your status in the Business One-Stop Hub and get current; administrative dissolution becomes automatic starting with the 2027 cycle. Second, non-residents occasionally form a Pennsylvania LLC thinking the $7 annual fee is the whole story, then discover that foreign qualification back in their home state costs them the usual fees on top, and that Pennsylvania's foreign LLC fee ($250) is notably higher than its domestic fee. Home-state filers get the good deal here; non-residents do not.
State agencies that handle Pennsylvania LLCs
Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations
- Website
- www.pa.gov/agencies/dos/programs/business.html
- Phone
- (717) 787-1057
- RA-CORPS@pa.gov
- Bureau of Corporations and Charitable Organizations, 401 North Street, 206 North Office Building, Harrisburg, PA 17120
- Office
- 401 North Street, 206 North Office Building, Harrisburg, PA 17120
- Hours
- 8:00 AM to 4:45 PM Eastern, Monday to Friday
Pennsylvania Department of Revenue
- Website
- www.pa.gov/agencies/revenue.html
- Phone
- (717) 787-1064
- Pennsylvania Department of Revenue, 1131 Strawberry Square, Harrisburg, PA 17128
- Office
- Strawberry Square, Harrisburg, PA 17128
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
Frequently Asked Questions
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How much does it cost to form an LLC in Pennsylvania in 2026?
The state filing fee for a Certificate of Organization is $125, filed together with the required Docketing Statement through the PA Business One-Stop Hub. Plan for another $50 to $125 per year for a commercial registered office, plus the new $7 annual report. Veterans, reservists, and National Guard members may qualify for a filing fee waiver with proof of service.
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Does Pennsylvania have an annual report for LLCs?
Yes, as of 2025. Under Act 122 of 2022, Pennsylvania replaced its old decennial report with a yearly annual report (Form DSCB:15-146) due between January 1 and September 30 each year. The fee is $7 for for-profit LLCs. Beginning with 2027 filings, missing the deadline triggers administrative dissolution six months later.
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I formed my LLC before 2025. Do I still have to file an annual report?
Yes. Act 122 applies to every existing Pennsylvania LLC, not just new ones. The first mandatory annual report cycle was 2025, with filings due by September 30 that year. If you formed your LLC in 2015 thinking you only had to file a decennial report, that rule is gone and the annual obligation now applies to you.
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Do Pennsylvania LLCs pay state income tax?
A pass-through LLC pays no entity-level income tax in Pennsylvania. Members report their share on their PA-40 return at the flat 3.07% Personal Income Tax rate. An LLC that elects C-corp treatment is subject to the Corporate Net Income Tax, which is 7.5% for 2026 and declining to 4.99% by 2031 under Act 53 of 2022.
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How long does it take to form a Pennsylvania LLC?
Online filings through the PA Business One-Stop Hub typically clear in about 3 business days. Mail filings take around 15 business days. Same-day expedited service is available from the Department of State for an extra $100 if the request comes in by 10 AM, with three-hour and one-hour tiers for more.
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Should I form my LLC in Pennsylvania instead of Delaware or Wyoming?
If you live or operate in Pennsylvania, almost certainly yes. Forming out of state means you will still have to register the foreign LLC back in Pennsylvania, which costs $250 plus the $7 annual report, and you pay both states instead of one. Pennsylvania is affordable, predictable, and does not impose a franchise tax on LLCs.
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Does Pennsylvania have a publication requirement for new LLCs?
No, not for standard LLCs. Pennsylvania eliminated the old newspaper advertising requirement for domestic LLC formation through Act 170 of 2016. Restricted professional companies and benefit companies have their own distinct notice rules, but a regular LLC pays no publication cost.
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Does Pennsylvania require an operating agreement?
No. 15 Pa.C.S. §8815 recognizes operating agreements that are written, oral, or implied, and the state does not require one to be filed. Having a written agreement is still strongly advised for multi-member LLCs and helps preserve the liability shield if governance or ownership is ever contested.
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How do I apply for an LLC in Pennsylvania?
Apply for an LLC in Pennsylvania by filing Certificate of Organization – Domestic Limited Liability Company (DSCB:15-8821) with Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations. The filing fee is $125. Online filing is available through the state portal. Approval typically takes 3 business days online. Mail filings take about 15 business days. Before filing, pick a registered agent (see the Pennsylvania registered agent guide) and confirm your business name is available using the state's entity search.
Further reading on LLCs
How much does an LLC cost?
Formation, annual, and hidden fees broken down across all 51 US jurisdictions.
Registered agents for LLCs
What the role is, whether to be your own, and honest comparison of 12 national services.
LLC vs sole proprietorship
Liability, taxes, cost, and when each makes sense. Written for a working owner.
LLC vs S-corp election
When the S-corp tax election actually saves money, with concrete SE-tax math.
Dissolve a Pennsylvania LLC
Step-by-step dissolution: member vote, tax clearance, state filing, IRS closure.
Formation services compared
Bizee, Northwest, ZenBusiness, LegalZoom, and 11 more. Honest price comparison.
Compare Pennsylvania to another state
Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Pennsylvania.
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- Filing fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
Pennsylvania Department of State 'Fees and Payments' schedule: Certificate of Organization (domestic LLC) = $125. Veterans, reservists, and National Guard members may qualify for fee waiver with proof of service. - Expedited filing: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
PA Department of State expedited service tiers (over-the-counter or electronic only, not available by mail): Same-day (request in by 10 AM) $100; 3-hour (by 2 PM) $300; 1-hour (by 4 PM) $1,000. We report same-day $100 as the cheapest expedited tier. - Certificate of Formation form: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
A Pennsylvania LLC is formed by filing Certificate of Organization (DSCB:15-8821) together with a Docketing Statement (DSCB:15-134A) with the Bureau of Corporations and Charitable Organizations. Fillable PDF is hosted at pa.gov. - Online filing portal: hub.business.pa.gov/ · verified April 21, 2026
PA Business One-Stop Hub (Keystone Login). Online filing portal for Certificate of Organization, annual report, amendments, and UCC. Online LLC formation is typically approved within 1–3 business days based on the Department's published Business Filing Services guidance. - Business name search: file.dos.pa.gov/search/business · verified April 21, 2026
Pennsylvania business entity search, operated by the Department of State. Cloudflare bot-verification gate appears on first load; page otherwise resolves normally. - Naming rules: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
15 Pa.C.S. Chapter 2 (Entities Generally): Sections 202 (requirements for names) and 204 (name restrictions, including required designators such as 'company,' 'limited,' 'limited liability company,' or an abbreviation). Official Pennsylvania General Assembly statutes. - Operating agreement requirement: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
15 Pa.C.S. §8815 recognizes operating agreements (written, oral, or implied) but does not require LLCs to adopt one. Under Chapter 88 (Pennsylvania Uniform Limited Liability Company Act of 2016), default statutory rules govern in the absence of an operating agreement. - Publication requirement: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
PA Department of State LLC information page: 'No advertising is required when forming a domestic limited liability company.' The old pre-2017 publication rule was repealed by Act 170 of 2016. - Foreign LLC registration fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
PA DOS fee schedule: Foreign Registration Statement (foreign LLC) = $250. - Annual report fee: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
Pennsylvania Annual Reports page: under Act 122 of 2022, LLCs must file an annual report (Form DSCB:15-146) each year between January 1 and September 30. Fee is $7 for for-profit LLCs. Beginning with 2027 filings, non-compliance triggers administrative dissolution 6 months after the deadline. - Franchise tax: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
Pennsylvania eliminated the Capital Stock/Foreign Franchise Tax effective for tax years beginning January 1, 2016. No franchise or capital stock tax applies to LLCs. Restricted professional companies pay a separate annual registration fee of at least $500 under 15 Pa.C.S. §8998. - Corporate income tax rate: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
PA Department of Revenue Corporate Net Income Tax rate for 2026 = 7.49% (Act 53 of 2022 schedule). Rate steps down 0.5 points per year to 4.99% by 2031. Applies to C-corps and to LLCs that elect C-corp treatment. - Sales tax rate: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-… · verified April 21, 2026
Pennsylvania Sales, Use and Hotel Occupancy Tax base rate is 6%. Allegheny County adds 1% local tax and Philadelphia adds 2% local tax; statewide base rate reported here.