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.
Besides the required state fees, you'll have additional expenses, such as retaining a certified representative, getting business permits, and securing your company with insurance.
Following extensive research, we have compiled a comprehensive list of initial and ongoing Pennsylvania LLC costs detailed below in this article.
Quick Summary
- When registering an LLC in Pennsylvania, the fee for filing a certificate of organization is exactly $125.
- Hiring a registered agent helps keep your members' personal addresses off the public record.
- To register your out-of-state LLC as Pennsylvania foreign LLC to do business in the Keystone State, you'll need to pay a $250 fee.
How Much Does An LLC Cost In Pennsylvania?
An LLC in Pennsylvania costs $125 in state filing fees and other costs.
After submitting this form to the Pennsylvania Department of State, your LLC will officially be recognized and established [1].
You may also need to pay additional charges, such as business permits, legal fees, and insurance premiums.
While there may be a slight increase in cost by employing an LLC formation service to take care of the official paperwork, it is nothing compared to what you could face trying to go through the process on your own.
Let me break down the rest of the costs in detail below.
Pennsylvania LLC Filing Fees
The fee for registering an LLC in Pennsylvania is just $125, a small price to pay for the countless benefits that come with forming your own limited liability company.
However, if you're a veteran or armed forces reservist running a small business, you may be eligible to waive this fee completely.
Therefore we recommend that you submit your Docketing Statement alongside the Articles.
You can file your documents by mail, in person, or online via the Pennsylvania Department of State's Business Filings Services portal [2].
Pennsylvania Decennial Report Fee
It is necessary to file a Decennial Report and pay the Pennsylvania Department of State a fee of $70 every decade following the registration of your LLC [3].
This report can be mailed anytime within any year that marks ten years since your last filing; for instance, should you register an LLC in 2022, then 2032 would require submission, while again in two decades-time -2042- another one must be sent off.
Pennsylvania Registered Agent Service Fee
Pennsylvania's state law mandates that each LLC must have an established registered office within Pennsylvania's borders.
This address will be a source for all legal documents and should be attended to regularly during business hours (15 Pa CS § 8825) [4].
As an LLC, you must appoint an individual or entity to serve as your Registered Agent in Pennsylvania. This person will be responsible for accepting and forwarding official documents, notices from the state, and other legal correspondence on behalf of your business.
To be successful in this endeavor, companies need a physical address (the Registered Office) within the state and regular business hours.
Registering your office at this stage does not require a registered office fee to be listed on the Certificate of Organization.
Pennsylvania Business/License
Depending on your LLC's Pennsylvania location and work sector, you might need extra Business Licenses or Permits. For instance, it could be necessary to acquire a City Business Permit.
For more information on specific licensing requirements for different industries, the Department of State's Professional Licensing Boards & Commission webpage is an excellent resource [5].
Cost To Form A Foreign LLC In Pennsylvania
If you have a business in another state and want to expand to Pennsylvania, you must register your business as a foreign LLC. It will cost $250. Fill out the Foreign Registration Statement (Form 15-412) to do this.
Forming a Foreign LLC in Pennsylvania will also require an additional fee for issuing a Certificate of Authority.
This fee is $70 and can be paid with your registration form. The filing process then takes up to 10 days to complete.
For more information, contact the Department of State directly at (717) 787-1057 or visit their website.
Other LLC Filing Fees
We have already discussed the essential expenses of starting a Pennsylvania LLC.
However, there may be additional LLC costs that are pertinent to your particular business.
1. LLC Operating Agreement Fee
Crafting an operating agreement won't cost you a cent, depending on the website of your choice. However, if you want something more comprehensive and compliant with regulations, it could run up to $200.
A Pennsylvania LLC Operating Agreement is a legally binding contract between the members of an LLC.
This operating agreement outlines ownership details, management specifics, and profit distributions to ensure all parties agree regarding expectations.
Drafting an Operating Agreement is critical for Single-Member LLCs and Multi-Member LLCs; it should be kept in their business records and provided to each Member.
2. LLC EIN Number Fee
An Employer Identification Number (EIN), or Federal Employer Identification Number (FEIN), is essential for filing taxes, launching an LLC business bank account, and onboarding staff members.
Possessing this number makes managing finances much simpler and more organized.
Save yourself some money and take advantage of the fact that you can obtain an EIN for your LLC directly from the Internal Revenue Service (IRS) - all free.
The online filing process only requires a few minutes, so don't worry about wasting time or shelling out more cash than necessary.
3. DBA (Doing Business As) Name
Looking to operate your business under a different name? Registering for a DBA (known as a "fictitious” name" in Pennsylvania) will cost you just $70.
This allows you to conduct commerce with a moniker other than the one legally registered to your company.
To legally operate under a Doing Business As (DBA) name, you must first file the necessary paperwork with your Department of State and publish a notice in two newspapers in the county where your business is active.
The publication requirements are in Pennsylvania state law 54 Pa CS § 311(g).
4. Certified Copies Of Business Documents
You can obtain certified copies of your business documents for only $40 plus an additional $3 per page.
Having a certificated copy of your Articles of Organization for reference and other operational functions is wise.
5. Pennsylvania LLC Certificate Of Subsistence
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.
By ordering one directly from the Department of State for just $40, you can confirm that all registrations and fees associated with your LLC in Pennsylvania are up-to-date.
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FAQs
Do You Have To Pay For A Pennsylvania LLC Every Year?
No, you do not have to pay for a Pennsylvania LLC annually. Although there is no annual organization filing fee, remember the decennial report fee of $70 every ten years.
Do I Need An Operating Agreement For My Pennsylvania LLC?
Yes, you need an operating agreement for your Pennsylvania LLC. Although it is not a requirement, it is recommended.
Do I Need A Business License In Pennsylvania?
Yes, you do need a business license in Pennsylvania. If you want to acquire a business license for your LLC in Pennsylvania, it will depend on the industry your company is part of and where its primary location falls.
To obtain additional local or state permits, speak with the clerk from either the city or county (if unincorporated) that holds your LLC's main place of operation.
Are There Pennsylvania Business Taxes I Need To Pay?
Yes, 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. Be sure to get advice from a qualified CPA or tax attorney if needed.
Can A Foreign LLC Do Business In Pennsylvania?
Yes, a foreign LLC can do business in Pennsylvania. To conduct business in Pennsylvania, all Limited Liability Companies (LLCs) organized outside of the state must register with the Pennsylvania Department of State. Additionally, foreign LLCs will be required to appoint a registered agent for service of process purposes.
Do You Need Professional Help with Your Pennsylvania LLC?
If you are looking to form an LLC in Pennsylvania, a variety of paperwork and fees must be considered.
To guarantee all these parts come together correctly according to your circumstances, seeking out professional advice may be the safest route.
Professional LLC services in Pennsylvania can navigate the formation process so you wouldn't worry about your LLC cost.
Their expertise can also ensure your LLC complies with Pennsylvania's various state business regulations.
References:
- https://www.dos.pa.gov/BusinessCharities/Business/Resources/Pages/Fees-and-Payments.aspx
- https://file.dos.pa.gov/
- https://www.dos.pa.gov/BusinessCharities/Business/RegistrationForms/Documents/RegForms/54-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.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
