LLC Cost in Pennsylvania – How Much to Pay for 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.

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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.

Having an LLC in Pennsylvania can be beneficial, but you need to be aware of the costs involved. The fees associated with setting up and maintaining an LLC vary depending on your circumstances and business plan. Some of these costs are included in the fee of creating the LLC, while others are separate expenses. For instance, some LLCs hire a registered agent to handle communications with the state.

The cost of forming a LLC in Pennsylvania includes state filing fees, as well as taxes and other costs associated with the business. Depending on your business, you may also have to pay additional fees for industry-specific licenses and taxes. Some business licenses and taxes can cost a lot of money to apply for and renew. However, there are also some options to save money on these fees.

If you want to avoid paying additional fees, you can choose to form a sole proprietorship instead of an LLC. While it can save you money, you will have to keep track of all of your taxes and pay them on time. In some cases, you may be charged a fine for not paying your taxes. If you are a reservist, you can apply for a small business exemption fee waiver. You may also need to hire a lawyer to draft the certificate of organization. You will also need an employer identification number (EIN). You can obtain an EIN from the Internal Revenue Service.

Pennsylvania also requires you to file decennial reports every ten years. You must file your report by December 31 of each decennial report year. You must also file a Certificate of Amendment if you make any changes to your original certificate. If you need to change the registered office of your business, you must also file a Change of Registered Office form. The fee for filing a Certificate of Amendment is $70.

If you have employees, you may also need to pay payroll taxes and unemployment insurance taxes. Pennsylvania LLCs must also pay the state income tax at a flat rate of 3.07 percent. You will also need to pay state and federal sales and use tax. The state also requires you to show that your business is in good standing with all state agencies and banks.

You will also need to register for a federal Employer Identification Number (EIN). This number is required by the IRS for hiring employees, and it is also needed by Pennsylvania for business tax purposes. You can apply for an EIN on the IRS website. You will also need an EIN to open a bank account for your LLC.

You can also choose to have a company or an attorney draft the operating agreement for you. An attorney can charge as much as $150 for a year of service, but some companies offer full year of registered agent service for a low price.

The cost of maintaining an LLC in Pennsylvania can be daunting, but it doesn’t have to be. You can file for a Certificate of Organization online for less than $125. You can also file a name reservation for your LLC for $70. This will give you the right to use the name for 120 days. Depending on your industry, you may also need to renew your business license.

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.

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