LLC Cost in Pennsylvania – How Much to Pay for an LLC


Save time & be confident while starting your Pennsylvania LLC; use best professional help -
#1 TOP PICK
 TailorBrands - ($49 + State Fees) Online Pennsylvania LLC Setup
pennsylvania_state_seal

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

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

$49 + State Fees

  • Set up LLC without hassle

  • Take you through all steps

  • Start your LLC worry-free

$299 + State Fees

  • Turnaround in a few days

  • EIN & Website Included

  • Operating Agreement Included

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

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.

Whether you’re thinking about starting a new business or re-establishing one, knowing How Much Does It Cost to Maintain an LLC is an important consideration. As one of the first states to establish the United States, Pennsylvania has a rich history and culture. With its fertile farming land and plentiful business opportunities, the state has much to offer a new business. To get started, you can form an LLC in Pennsylvania. It’s not difficult to do, but it does require a considerable amount of money and time.

There are many expenses involved in forming and maintaining an LLC in Pennsylvania. While there aren’t many upfront costs, you may have recurring expenses later on. The best way to determine how much it will cost to form an LLC in Pennsylvania is to understand which expenses apply and which fees are optional. Using a registered agent service can be an excellent way to reduce these costs. In addition to forming an LLC in Pennsylvania, many companies offer yearly reports.

Many LLCs hire a registered agent service to handle important documents for them. The registered agent serves as the company’s point of contact with the state and forwards important documents to the LLC. Some formation services even include registered agent service for one year, so you don’t have to pay extra for that. While most companies charge around $150 per year for this service, there are many more fees associated with this service.

The state of Pennsylvania allows business owners to reserve a business name for 120 days. If you wish to reserve a name for your new LLC, you should pay the fee of $70. By doing this, you guarantee that you will have the name of your choice for at least 120 days. You may skip this expense if you don’t want to invest any money in name reservation. If you’re unsure, the Department of State provides name reservation forms, which you can use to make your decision.

Forming an LLC in Pennsylvania requires a Certificate of Organization, which costs $125. There’s no separate fee for filing a docketing statement. LLC filings in Pennsylvania are handled by the Department of State, which lists the fees and requirements on their website. Those who serve in the armed forces can apply for small business exemptions or waive the fee. If your business is foreign, you must also pay a fee of $560 per member.

There are additional fees for foreign LLCs in Pennsylvania. Obtaining a Certificate of Authority from another state, and paying the $250 filing fee, is necessary for foreign LLCs in Pennsylvania. In addition to the processing fee, you may also need to obtain federal, state, and local licenses. This process can take time, so make sure you have the proper paperwork to avoid delays in operations. So, before you begin the process, ask yourself: “How Much Does It Cost to Maintain an LLC in Pennsylvania?”

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.

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.

Leave a Comment