CobaltProsper

How to start an LLC in Pennsylvania

By Brent Chudoba, editor Updated

Forming an LLC in Pennsylvania costs $125 to file the Certificate of Organization with the Pennsylvania Secretary of State. After that you file an annual report of $7. Pennsylvania charges no franchise tax on a standard LLC. Pennsylvania requires filing a Certificate of Organization (not 'Articles of Organization') with the Department of State. The filing fee is $125. Starting in 2025, Act 122 of 2022 requires an ANNUAL report (replacing the old once-per-decade report): $7/year, filed between January 1 and September 30, via file.dos.pa.gov. Missing it repeatedly can lead to administrative dissolution starting with the 2027 filing cycle. No franchise tax applies. Pennsylvania requires a 'registered office' with a PA street address, but this can be the LLC's own business address, no third-party registered agent is mandatory.

How much does it cost to start an LLC in Pennsylvania?

Pennsylvania LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Organization)$125
Annual report$7/year
Franchise or business taxNone
Registered agentNot required (state acts as agent)

Source: Pennsylvania Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Pennsylvania?

  1. Name your LLC. Pick a name that is available and meets Pennsylvania naming rules, then check it against the Secretary of State's business database.
  2. Registered agent. Pennsylvania does not require you to name a private registered agent; the Secretary of State is automatically the agent for service of process. You supply a mailing address for forwarding.
  3. File the Certificate of Organization. Submit it to the Pennsylvania Secretary of State and pay the $125 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Pennsylvania charges $7 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Pennsylvania have a franchise tax on an LLC?

No. Pennsylvania does not impose a franchise tax on LLCs.

How is an LLC taxed in Pennsylvania?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Pennsylvania has a state individual income tax with a top rate of 3.07% (flat brackets), so those profits are taxed on your Pennsylvania return on top of federal tax. Pennsylvania has a flat 3.07% tax on all personal income earned in the state, with no graduated brackets. This rate applies uniformly to wages, salaries, and business income.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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