How Much Does an LLC Cost in Pennsylvania (Full Guide)
Establishing a business entity such as a limited liability company in Pennsylvania may appear costly. However, the process can be much more affordable than you realize.
With my expertise in Mergers and Acquisitions and a Master's Degree in tax law, I've helped over 50 clients figure out Pennsylvania LLC formation costs. After spending 20+ hours reviewing official Department of State fee schedules and comparing formation service providers, I've compiled a comprehensive breakdown of every expense you can expect.
Below, you'll find the exact fees I verified directly with state sources, along with tips I share with budget-conscious clients to minimize costs.
Quick Summary
- An LLC in Pennsylvania costs $125 to file the Certificate of Organization.
- Once the LLC has been approved, you may need to cover the fees for a registered agent service, business licenses, decennial report, operating agreement, and other relevant business documents.
- Starting in 2025, Pennsylvania requires a $7 annual report filed by September 30 each year, replacing the former decennial report.
- For clients working within a budget, I advise them to use the standard filing process and draft an operating agreement using an online template.
Cost to Start an LLC in Pennsylvania
Starting an LLC in Pennsylvania entails mandatory fees to cover the basic expenses.
1. LLC Formation Filing Fee ($125 - Mandatory)
The fee for filing the Certificate of Organization in Pennsylvania is just $125. After submitting this form to the Pennsylvania Department of State, your LLC will officially be recognized and established [1].
However, if you're a veteran or armed forces reservist running a small business, you may be eligible to waive this fee completely.
We advise that you submit your Docketing Statement alongside the Certificate.
You can file your documents by mail, in person, or online via the Pennsylvania Department of State's Business Filings Services portal [2].
According to the Pennsylvania Department of State, approximately 70% of business filings are now conducted online, reflecting the growing preference for digital services due to their convenience and faster processing times.
To avail of the expedited service, I learned that the state only offers this option for online and in-person applications. My application was approved for only $100 on the same day.
2. Registered Agent Service Fee ($80-$300 – Optional)
Pennsylvania's law mandates that each LLC must have an established registered office within the state's borders.
Employing a registered agent service in Pennsylvania costs $80 - $300 per year.
This person will be responsible for accepting and forwarding official documents, notices from the state, and other legal correspondence on behalf of your business and should be available regularly during business hours (15 Pa CS § 8825) [3].
"Pennsylvania law mandates that entities furnish an official mailing address or registered office within the state capable of receiving service of lawsuits and other legal documents on behalf of the LLC. Ensure this address is a physical one as P.O. boxes are not permitted."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
3. Name Reservation Fee ($70 - Optional)
To reserve a business name, you should file a name reservation form and pay the $70 fee to the Pennsylvania Department of State. Your preferred LLC name will not be made available to other companies for 120 days.
Before finalizing their application, I remind clients to check if their desired business name is available and comply with state guidelines.
Expenses Following the Approval of Your LLC
Once the LLC has been approved, there are additional expenses needed to operate the business.
1. Business License (Depending on the Line of Business - Mandatory)
Depending on your LLC's Pennsylvania location and work sector, you might need a Pennsylvania business license or additional permits.
When a client wanted to operate a medical clinic, the state required professional licenses for the business to be legitimate.
For more information on specific licensing requirements for different industries, the Department of State's Professional Licensing Boards & Commission webpage is an excellent resource [4].
2. Annual Report Fee ($7 - Mandatory)
Starting in 2025, Pennsylvania replaced its decennial report requirement with an annual report filing. All LLCs must now submit an this report to the Department of State by September 30 each year [5].
The report fee is $7 for LLCs. Nonprofit LLCs with a not-for-profit purpose are exempt from the fee.
Your first annual report is due the calendar year after your LLC is approved. For example, if your LLC forms in 2025, your first report is due by September 30, 2026.
I recommend filing online through the state's Business Filing Services portal at file.dos.pa.gov. The online form auto-populates your company details, reducing errors, and approval is immediate.
Failure to file by the deadline could result in administrative dissolution beginning in 2027, though the state has waived penalties for the 2025 and 2026 filing years during the transition period.
3. LLC Operating Agreement Fee (Optional, but Recommended)
A Pennsylvania LLC Operating Agreement is a legally binding contract between the members of an LLC.
Drafting an operating agreement won't cost you a cent since the members of the LLC could come up with one. However, when we used an online LLC formation service, we paid $100.
You can avail of online templates for $100 to $200.
4. EIN ($0 - Optional, but Recommended)
An Employer Identification Number (EIN), or Federal Employer Identification Number (FEIN), is a number assigned by the Internal Revenue Service. You need it to file taxes, launch an LLC business bank account and hire staff.
You can save money by obtaining an EIN for your LLC directly from the IRS website - it is free.
5. DBA Name ($70 - Optional)
Registering for a DBA (known as a "fictitious” name" in Pennsylvania) will cost you just $70.
To legally operate under a Doing Business As (DBA) name, a client was required to file the necessary paperwork with the Department of State and publish a notice in two newspapers in the county where the business is located.
The publication requirements are in Pennsylvania state law 54 Pa CS § 311(g).
6. Certified Copies Of Business Documents ($40 + $3 per page - Optional)
You can obtain certified copies of your business documents for only $40 plus an additional $3 per page.
I advise clients to acquire copies of their LLC documentation for record keeping and potential legal issues.
7. LLC Certificate Of Subsistence ($40 - Optional)
Domestic businesses must pay a $40 fee to receive their Subsistence Certificate, regardless of whether they submit their request online or via mail.
If you are looking to secure a loan from your bank or extend the reach of your business into another state, obtaining a Pennsylvania Certificate of Subsistence (also known as a Certificate of Good Standing) is an essential step.
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FAQs
Do You Have To Pay For A Pennsylvania LLC Every Year?
Yes, you must pay $7 annually for the required annual report, due by September 30 each year. The former decennial report requirement of $70 every ten years was repealed in 2025.
Are There Pennsylvania Business Taxes I Need To Pay?
There are Pennsylvania business taxes you need to pay. Depending on the business activity you're engaged in, you may be subject to various state and local taxes, such as personal income tax withholding and sales and use tax.
Does My Pennsylvania LLC Need Business Insurance?
Your Pennsylvania LLC does not need business insurance by state law in most cases, but certain industries mandate coverage. LLCs with employees must carry workers' compensation insurance. General liability insurance typically costs $300 to $1,500 annually depending on your industry and coverage limits.
Does My Pennsylvania LLC Need to Collect Sales Tax?
Your LLC must collect sales tax if you sell taxable goods or services in Pennsylvania. The state sales tax rate is 6%, with an additional 1-2% in Philadelphia and Allegheny County.
References:
- https://www.dos.pa.gov/BusinessCharities/Business/Resources/Pages/Fees-and-Payments.aspx
- https://file.dos.pa.gov/
- https://www.legis.state.pa.us/cfdocs/legis/LI/consCheck.cfm?txtType=HTM&ttl=15&div=0&chpt=88&sctn=25&subsctn=0
- https://www.dos.pa.gov/ProfessionalLicensing/BoardsCommissions/Pages/default.aspx
- https://www.pa.gov/agencies/dos/programs/business/fees-and-payments
