How to Start an LLC in Pennsylvania (2026 Guide)
Pennsylvania charges $125 to form your LLC — plus a companion form almost every guide forgets to mention. And starting in 2025, Pennsylvania added something it never had before: an annual report. It's only $7, but if you learned Pennsylvania LLCs years ago, this is genuinely new information.
To start a Pennsylvania LLC, file a Certificate of Organization with the Pennsylvania Department of State for $125, along with a required Docketing Statement (Form DSCB:15-134A) filed at the same time. Online processing typically takes 7–10 business days (mail takes longer). Veterans and military reservists can have the $125 fee waived with proof of service. Starting in 2025, Pennsylvania LLCs must file a new annual report for just $7, due every September 30 — a requirement that didn't exist before. State income tax is a flat 3.07%, one of the lowest in the country, though local earned income taxes (up to 3.75% in Philadelphia) add real complexity on top.
- State filing fee
- $125
- Required companion form
- Docketing Statement
- Veteran fee waiver
- Yes — with proof of service
- Annual report
- NEW in 2025 — $7, due Sept 30
- Income tax
- Flat 3.07%
- Local earned income tax
- Up to 3.75% (Philadelphia)
Why Form an LLC in Pennsylvania?
Pennsylvania offers a moderate formation cost and one of the lowest flat income tax rates in the country. What you get:
- A $125 formation fee — the same whether you file online or by mail.
- A genuine veteran benefit — military veterans and reservists can have the entire $125 fee waived with proof of service.
- A flat 3.07% state income tax — stable since 2004, among the lowest flat rates of any state that levies one.
- A remarkably cheap new annual report — just $7/yr, one of the lowest recurring fees in this entire series.
Two things most guides get wrong or skip entirely: first, Pennsylvania requires a Docketing Statement to be filed alongside your Certificate of Organization — it's a separate form, and missing it is a common, avoidable mistake. Second, if you learned about Pennsylvania LLCs before 2025, forget what you knew about annual reports — Pennsylvania never had one before, and now it does. Older guides and even some AI-generated content still say "Pennsylvania has no annual report," which stopped being true in 2025.
How to Start a Pennsylvania LLC in 8 Steps
Your name must be distinguishable from every Pennsylvania entity and contain "LLC" or one of several accepted designators. Search free through the Department of State.
Every Pennsylvania LLC must continuously maintain a registered agent — a PA resident or authorized entity with a physical in-state street address.
File the Certificate of Organization
The $125 filing — plus the required Docketing Statement — that creates your LLC. Veterans and reservists can have the fee waived.
Not required by Pennsylvania — the law even recognizes oral or implied agreements — but a written one overrides state default rules and satisfies your bank.
Get Your Free EIN from the IRS
Your federal tax ID for banking, hiring, and Pennsylvania Department of Revenue registration. Always free at IRS.gov.
File Your Annual Report (New in 2025)
$7/yr, due every September 30 — a genuinely new requirement most older guides don't mention.
Get Business Licenses & Permits
No statewide general license — but sales tax registration, local permits, and professional board licenses as applicable.
Understand Pennsylvania LLC Taxes
A flat 3.07% state income tax, local earned income taxes up to 3.75% in Philadelphia, and a 6% base sales tax plus limited local add-ons.
What a Pennsylvania LLC Really Costs (2026)
| Cost Item | Amount | When |
|---|---|---|
| Certificate of Organization (required) | $125 ($0 for veterans) | One-time, at formation |
| Annual report (required, new 2025) | $7 | Every year, due Sept 30 |
| Registered agent service (optional) | $100–$300/yr | Annual, if hired |
| Name reservation (optional) | $70 | 120 days |
| Expedited processing (optional) | $100–$1,000 | Faster turnaround tiers |
| EIN from the IRS | $0 — always free | At IRS.gov |
| Docketing Statement | $0 — included | Filed with your Certificate |
Bottom line: $125 to form (or $0 for veterans) and just $7/yr to maintain — one of the cheapest long-term cost structures in this entire series, once you know about the required Docketing Statement. Model your exact setup below.
Pennsylvania LLC Cost Calculator
Pennsylvania LLC Cost Calculator
First-year + 5-year totals · verified July 2026
Excludes state income tax and local permits. The $7/yr annual report keeps Pennsylvania's long-term cost among the lowest in this series.
The Brand-New Annual Report — Genuinely New Information
This is worth repeating because it genuinely surprises people: Pennsylvania did not require an annual report before 2025. If you read an older guide, talked to someone who formed a PA LLC years ago, or even asked an AI trained on older data, you may have heard "Pennsylvania has no annual report" — that was true once, but it changed. Starting in 2025, every Pennsylvania LLC must file a $7 annual report due every September 30, with full enforcement (including dissolution risk) phasing in by 2027.
Pennsylvania LLC Taxes at a Glance
Default LLCs pass profits to your personal return, taxed at Pennsylvania's flat 3.07% — stable for over two decades, among the lowest flat rates of any state with an income tax. Add federal self-employment tax of 15.3% on 92.35% of net profit. The real complexity is local: most Pennsylvania municipalities levy their own Earned Income Tax, typically 1%, but as high as 3.75% in Philadelphia. Sellers collect 6% state sales tax, with limited local add-ons (Philadelphia +2%, Allegheny County +1%). Details in Step 8.
Ahmad Adil's Take: Pennsylvania is genuinely one of the more affordable states in this series, both to form in and to maintain — a below-average filing fee, a real veteran benefit, and a $7 annual report that barely registers as a cost. What I want every founder to actually internalize is the two details that trip people up: don't forget the Docketing Statement when you file, and don't trust anything you read about Pennsylvania LLCs having no annual report, because that changed in 2025. Beyond that, the flat 3.07% state rate is excellent — just make sure you're also budgeting for your specific local earned income tax, since that's where your real Pennsylvania tax bill actually gets decided.
- ✓Forms your Pennsylvania LLC for $39 + the $125 state fee
- ✓Files online with the Department of State
- ✓Free Pennsylvania registered agent the first year
- ✓No upsells · No data selling · Privacy by Default
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Pennsylvania LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the $125 Certificate of Organization, the new $7 annual report due September 30, and Pennsylvania’s flat 3.07% income tax — reflect current Pennsylvania Department of State and Department of Revenue guidance. This is educational content, not legal or tax advice.
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