Before you can run a business in Pennsylvania, certain expenses must be covered to accomplish necessary state filings and yearly obligations. From submitting formation documents up to settling taxes, being overwhelmed with these tasks is very likely. In this post, let our trade experts guide you on all PA LLC annual fees you must fulfill to remain in good standing.
Formation Costs for a PA LLC
Business Name Reservation
It’s common knowledge between company owners that your business trade name must not be similar to any entity currently operating within the state. Therefore, before submitting any formation documents, our team recommends running a business name search to ensure that your chosen option is available.
Suppose you already decided on an available trade name but are not yet ready to face all the registration legwork. In that case, you can file for a business name reservation for a $70 filing fee 120 days before your official LLC formation.
Certificate of Organization
One of the first registration fees you’ll need to settle as a Pennsylvania LLC [1] is the filing and processing of the Certificate of Organization to the Department of State. You can accomplish this submission online or via mail along with a $125 fee. This adds up to your standard LLC formation costs and annual fees, too.
Certificate of Good Standing
Transactions like opening a bank account will require you to acquire a certificate of good standing. This document serves as solid proof that your LLC fully complies with state law and tax obligations. You can obtain this certification from the Pennsylvania Department of State for a $40 fee.
EIN Registration
If you’re planning to open a business bank account or hire employees in the long run, getting an Employer Identification Number or EIN from the Internal Revenue System (IRS) upon the formation of your LLC is an important step to consider.
This requirement is also crucial for tax reporting. Although you can process your EIN without any charges, some formation companies offer to assist you in its acquisition if you sign up for any of their incorporation packages.
Registered Agent Service
While it’s not a secret that you can act as your registered agent in Pennsylvania that incurs no charges on your end, our trade experts highly advise electing an industry professional to handle this role.
Other LLC owners opted to select a registered agent service to maintain their privacy and lessen the risk of non-compliance. With the vast experience of these companies, you never have to worry about missing a state notice or demand. You can also rest assured that your registered agent’s address is indicated in public records and not yours.
Should you decide to hire a registered agent service provider to act in this role and receive time-sensitive state documents on your behalf, then its expenses will add up to your PA LLC annual fees.
Foreign LLC Registration
If your LLC is already operating in another state and you intend to expand in Pennsylvania, you’ll need to file a Foreign Registration Statement (Form 15-412) online or through the mail. On top of that, there’s a one-time $150 filing fee you must settle to be processed as a foreign LLC.
(Of course, excellent online formation companies listed here can help you with you LLC creation, as well)
Pennsylvania LLC Annual Fees
Decennial Report
Unlike most states with annual report requirements, Pennsylvania only obliged LLCs under its jurisdiction to submit a decennial report. This process means your submissions with the Department of State are only due every ten years with a report filing fee of $70.
Certificate of Annual Registration
If your LLC engages in professional services, then you’ll be required to file for a Certificate of Annual Registration yearly to the Department of State. This filing can be done online or via mail and costs at least $520, depending on the number of members in the LLC.
Other Taxes
In terms of tax obligations, LLC business entities have a massive advantage when establishing a company in Pennsylvania. In this state, limited liability companies are considered pass-through entities. Therefore, the business itself doesn’t need corporate tax returns, and all profits and losses are taxed in the owners’ personal returns.
Although Pennsylvania doesn’t tax LLCs with franchise taxes, you’ll need to pay withholding taxes and unemployment compensation tax if you’re hiring employees. If you’re selling products, you owe sales and use tax to the state.
(To help you with this endless formation process, you can also seek the professional help of top LLC formation companies listed here)
FAQ
Is there an annual fee for an LLC in Pennsylvania?
No, there’s no annual fee for an LLC in Pennsylvania. Instead, any business operating in the state must file a report every ten years along with $70. However, if your company provides professional services, you’ll be obliged to obtain a Certificate of Annual Registration from the Department of state and pay fees depending on LLC members.
Conclusion
Right about now, you’re probably already well-informed about all the PA LLC annual fees you must settle upon the formation of your business in Pennsylvania. These expenses are crucial factors in maintaining your good standing with the state, so our team highly recommends keeping track of them to avoid additional fees caused by non-compliance risks.
For LLC formation costs and annual fees in other states, you can also see the pages below:
