Strategic East Coast location with access to major markets
Higher upfront costs but no ongoing franchise tax
Pennsylvania offers a strategic location on the East Coast with access to major metropolitan areas including Philadelphia, Pittsburgh, New York City, and Washington D.C. The state has a diverse economy with strong sectors in manufacturing, healthcare, energy, and agriculture.
Access to major markets within driving distance
Unlike many states, no annual franchise tax on LLCs
Well-developed transportation, utilities, and business services
Expedited processing options for urgent formations
State Filing Fee
$175
Registered Agent (Optional)
$99-199/year
Processed the same business day if submitted by 3 PM
Processed within 24 hours of receipt
Your LLC name must be distinguishable from existing business names in Pennsylvania and include "Limited Liability Company," "LLC," or an acceptable abbreviation.
Pennsylvania requires a registered office with a Pennsylvania address (not a PO Box). You can serve as your own registered office or hire a professional service.
Submit your Certificate of Organization to the Pennsylvania Department of State online through the PENN File system or by mail with the $175 filing fee.
Standard Processing
7-10 business days
24-hour Service (+$50)
24 hours
Same-day Service (+$100)
Same business day
Pennsylvania LLCs must file biennial (every two years) reports by April 15th of odd-numbered years with a $70 fee. The first report is due in the second odd-numbered year after formation.
You must maintain a registered office in Pennsylvania at all times. If you move or change your registered office, file a Statement of Change.
Pennsylvania doesn't impose an annual franchise tax on LLCs, keeping ongoing compliance costs limited to the biennial report fee.
Pennsylvania has a flat state income tax rate of 3.07% on individual income. LLCs are pass-through entities, so profits are taxed on members' personal returns.
Pennsylvania has a state sales tax rate of 6%, with additional local taxes that can bring the total rate to 8% or higher in some areas (particularly Philadelphia).
Many Pennsylvania municipalities impose local income taxes and business privilege taxes. Philadelphia, for example, has a business income and receipts tax that can significantly impact business costs.
Obtain an Employer Identification Number (EIN) from the IRS. This is required for tax filings, opening business bank accounts, and hiring employees.
Register for applicable Pennsylvania taxes:
Required if selling taxable goods or services
Required if you have employees
Required if you have employees
Required for most businesses with employees
Depending on your business type and location, you may need:
While not required by Pennsylvania law, an operating agreement is highly recommended to establish governance rules, member rights, and operational procedures.
If operating in Philadelphia, additional requirements apply:
Pennsylvania requires workers' compensation insurance for most businesses with employees. Even single-employee businesses (including the owner) may need coverage in certain industries.
Pennsylvania's Right-to-Know Law may require certain business records to be made available to the public. This primarily affects businesses that contract with government entities.
The $175 filing fee is now one of the higher costs among states
Reports are due every two years by April 15th
Philadelphia and other municipalities have significant business taxes
Must be a physical Pennsylvania address
Many Pennsylvania municipalities require local business licenses
State | Filing Fee | Annual Cost | Income Tax Rate |
|---|---|---|---|
Pennsylvania | $175 | $35 (biennial) | 3.07% |
| New Jersey | $125 | $75 | 1.4%-10.75% |
| New York | $200 | $9 | 4%-10.9% |
| Delaware | $90 | $300 | 0%-6.6% |
| Maryland | $100 | $300 | 2%-5.75% |
Pennsylvania LLCs work well for:
Access to major metropolitan markets
Strong industrial base and infrastructure
Major pharmaceutical and medical device presence
Significant natural gas and renewable energy activity
$175 filing fee is among the highest in the region
High local taxes can significantly impact costs
States like Delaware or Florida may offer better tax treatment
Some states have simpler ongoing requirements
Take advantage of Pennsylvania's strategic location and business infrastructure. We'll handle the formation process and ongoing compliance requirements.
Learn about Pennsylvania's significant fee increase and how it compares to other states.
Pennsylvania biennial reports are due every two years by April 15th.