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.
On this page, you’ll learn about the following:
- Pennsylvania LLC Cost of Filing
- Taxes Payable to the Pennsylvania Department of Revenue
- Cost Comparison between states
- Other Costs
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.
Our Rating & Pricing
#1 TOP PICK
Free LLC Setup
$49 + State Fees
$299 + State Fees
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.
|States||Filing Fee||Annual/Biennial Fee||Sales Tax|
|Pennsylvania||$125||Decennial – $70||6%|
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.
- Pennsylvania Name Reservation: $70 for online fillings or by mail
- Doing Business As (DBA): $70 for online filling or if filing by mail
- Certified Document Copies: $55 + $1 per page if filing by mail or $40 + $1 per page for online filing
- Certified of Good Standing: $40
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Pennsylvania LLC: $70
How Much Does It Cost to Maintain an LLC in Pennsylvania
In Pennsylvania, LLCs are required to pay an annual fee to the state government. The fee covers the costs of maintaining compliance and standing with the law. The fee is paid annually or every two years, and is usually quite minimal. There are some fees, however, that you should be aware of and be prepared to pay. These fees are listed below. When starting an LLC, it is important to research the requirements in your area and then contact local officials to get more information.
Filing annual reports is not required in Pennsylvania. However, every 10 years, LLCs must file their Decennial Report of Association Continued Existence. The fee for this report is $70, and it must be filed by December 31 of the year ending in a 1. The form must include the official business name, address, title, and signature. If you are unsure of the requirements for your business, it is a good idea to consult a lawyer or accountant.
While there are no state-imposed restrictions, there are a number of other taxes a business must pay. A self-employed individual must pay a 15.3% federal self-employment tax to cover their Social Security and Medicare obligations. As an employer, you must also collect and remit federal income taxes and pay employer’s share of payroll taxes. You must also pay federal unemployment tax and Pennsylvania business licenses, which are often required in order to operate in Pennsylvania. Having the right license is important for the operation of your business.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.