How to Start an LLC in Pennsylvania in 2026: Filing, Annual Report and First-Year Cost

Pennsylvania changed the rules for LLCs recently, and many guides haven't caught up. Forming one still costs $125 for a certificate of organization, filed with a docketing statement. What's new is the annual report: since 2025 every LLC files one each year for $7, and from the reports due in 2027, an LLC that skips it will be administratively dissolved. Add the Department of Revenue's sales tax license, local taxes and, in Philadelphia, a Commercial Activity License, and you have the whole picture. This guide takes a first-time founder through each step in order, shows where the money goes and finishes with a worked first-year budget. Fees and rules were checked against the Department of State and Department of Revenue in October 2026.

Quick answer

To start an LLC in Pennsylvania, file a certificate of organization (DSCB:15-8821) and a docketing statement (DSCB:15-134A) with the Department of State and pay $125. List a Pennsylvania registered office or a commercial registered office provider. Every year after that, file the $7 annual report between January 1 and September 30.

• The name needs a designator such as company, limited, limited liability company or LLC

• Standard processing: allow 15 business days; same-day service costs $100 extra

• No newspaper advertising for LLCs

• Missed annual reports lead to dissolution starting with reports due in 2027

• Sales tax license from the Department of Revenue: free, renewed every five years

What a Pennsylvania LLC is and who should form one

A Pennsylvania LLC is formed under Chapter 88 of Title 15 of the Pennsylvania Consolidated Statutes, the state's Uniform Limited Liability Company Act. The company is separate from its members, so its debts and lawsuits are its own and owners aren't personally liable just because they own or manage it. That protection holds as long as you run the LLC as a separate business, with its own bank account, contracts in its name and clear records of money in and out.

For federal tax purposes, a one-owner LLC is a disregarded entity and a multi-owner LLC is a partnership unless you elect corporate treatment. Pennsylvania follows that choice for its personal income tax, which applies at a flat 3.07% to LLCs not taxed as corporations.

An LLC suits contractors, cleaning firms, landscapers, salons, online sellers, consultants and property owners across the state. You don't need to live in Pennsylvania or be a US citizen to be a member. If your business actually runs in another state, forming here won't avoid that state's fees: you'd need to register there too. Form where you work.

Professionals have a separate route. Doctors, dentists, lawyers, accountants, psychologists, veterinarians, chiropractors, optometrists and podiatrists who want an LLC must form a "restricted professional company" by ticking the box on the certificate and naming the service. Restricted professional companies also file a Certificate of Annual Registration with an annual fee by April 15 each year, on top of the annual report.

Pennsylvania LLC at a glance (2026)

$125

Certificate of organization

DSCB:15-8821 + docketing statement

$7

Annual report

due January 1 – September 30

15 business days

Standard processing

per the Department of State

$5

Change of registered office

Step 1: choose a name with the right designator

The certificate of organization requires a designator in the name, such as "company", "limited" or "limited liability company", or an abbreviation of one of them like "Co.", "Ltd." or "LLC". Pennsylvania's flexibility here means "Keystone Joinery Company" is a valid LLC name.

The name must also be distinguishable from other names on the Department of State's records. Search the Business Filing Services database before you file and try a few variations. Some words are restricted or need approval from another agency, for example words that suggest banking, insurance, education or a licensed profession. If another business consents, you can file its consent to appropriation of name (DSCB:19-17.2) with your certificate.

To hold a name before filing, reserve it for $70. Most founders skip this and file the certificate directly, which claims the name at the same time. A name accepted by the state doesn't give you trademark rights, so run a federal trademark search if you plan to build a brand. If you'll trade under a different name, Pennsylvania registers fictitious names with the Department of State; our DBA guide covers how trade names work.

Step 2: choose a registered office or a CROP

Pennsylvania is one of the few states that doesn't use the term "registered agent". The Department of State's FAQ says its records show a registered office address, and that is where legal papers are served. The certificate gives you two options, and you complete one or the other:

• (a) A registered office address in Pennsylvania: a street address, not a PO box alone, where someone can accept papers during business hours. It can be your home, your shop or a member's office.
• (b) A commercial registered office provider (CROP) and the county of venue. A CROP is a company registered with the Department of State to act as the registered office for other businesses.

Registered office options in Pennsylvania

	Your own address	Commercial registered office provider
State fee to set up	Included in the $125 certificate	Included in the $125 certificate
Yearly cost	$0	About $50–$300 (market estimate)
Address on public record	Your home or office	The CROP's name and county
Must be reachable	Yes, during business hours	Handled by the CROP
Change later	$5 change of registered office	$5 change of registered office

State fee to set up

Your own address

Included in the $125 certificate

Commercial registered office provider

Included in the $125 certificate

Yearly cost

Your own address

$0

Commercial registered office provider

About $50–$300 (market estimate)

Address on public record

Your own address

Your home or office

Commercial registered office provider

The CROP's name and county

Must be reachable

Your own address

Yes, during business hours

Commercial registered office provider

Handled by the CROP

Change later

Your own address

$5 change of registered office

Commercial registered office provider

$5 change of registered office

The CROP price range is our estimate from published provider pricing, not a state figure. Choose a CROP if you don't want your home address on the public record, if you live out of state or if you're often away. Changing the registered office later costs $5, and you can also update it on your annual report.

Step 3: file the certificate of organization and docketing statement

The certificate of organization (DSCB:15-8821) is short. It asks for the name, the registered office or CROP, the name of each organizer, the effective date and, only if relevant, whether the LLC is a restricted professional company or a benefit company. You can attach additional provisions, but most small businesses leave the detail to an operating agreement. All organizers sign. The docketing statement (DSCB:15-134A) goes with it and gives the Department and the Department of Revenue the information they need to set up your records.

Filing a Pennsylvania LLC

1. 1

   Search the name

   Check the Department of State's Business Filing Services search for anything not distinguishable from your name.

2. 2

   Open Business Filing Services

   Create an account at file.dos.pa.gov and start a certificate of organization for a domestic LLC. Paper forms go by mail to the Bureau of Corporations and Charitable Organizations in Harrisburg.

3. 3

   Enter the registered office or CROP

   Give a Pennsylvania street address (no PO box alone) or the name of your commercial registered office provider and the county of venue.

4. 4

   Add organizers and the effective date

   List every organizer. Choose effective on filing, or a later date and time.

5. 5

   Complete the docketing statement

   Online, it's part of the filing. On paper, attach one completed DSCB:15-134A.

6. 6

   Pay $125

   Add expedited service only if you need it: same day $100, three hours $300, one hour $1,000.

   Tip: Eligible veteran- and reservist-owned small businesses can claim a fee exemption by attaching proof of status.

Processing. The Department of State asks filers to allow 15 business days for standard processing. Expedited service is charged on top of the $125 fee and depends on the time your filing is received.

No advertising. Pennsylvania business corporations must publish a notice of incorporation, but the Department of State is explicit that no advertising is required to form a domestic LLC.

Why filings come back. The usual reasons are a name without a designator or too close to an existing one, a registered office that is only a PO box, a missing docketing statement on paper filings and an unsigned certificate. Correct the item and resubmit.

Step 4: EIN, operating agreement and bank account

Once the certificate is filed, apply to the IRS for an employer identification number. It costs Free ($0) and takes minutes online; our EIN guide walks through the form. You'll need it for a business bank account and for the Department of Revenue's myPATH registration.

Pennsylvania doesn't require you to file an operating agreement, but the LLC Act lets the agreement set most of the rules: who manages, how profits are split, what happens if a member leaves. Without one, the Act's defaults apply. Even a single-member LLC should have a short agreement, because banks ask for it and courts look at it when deciding whether the company is really separate from its owner.

Open the bank account in the LLC's exact name with the EIN, and run every business payment through it. Mixing personal and business money is the most common reason a court looks past an LLC's liability shield.

Beneficial ownership reporting. Since FinCEN's March 2025 interim final rule, companies formed in the United States don't file beneficial ownership information reports, so a new Pennsylvania LLC has no BOI filing (current position: Not required for US-formed companies).

Step 5: register for state and local taxes

Sales tax license. If you sell taxable goods or services, register through the Department of Revenue's myPATH system for a Sales, Use and Hotel Occupancy Tax License. There's no fee, and the license is renewed every five years. The state rate is 6%, with an extra 1% in Allegheny County and 2% in Philadelphia. Sellers at fairs, flea markets and other temporary events need a transient vendor certificate as well. Our Pennsylvania sales tax guide covers rates, exemptions and filing frequency.

Employer accounts. If you hire, register for employer withholding through myPATH and for unemployment compensation with the Department of Labor and Industry, and buy workers' compensation insurance before the first employee starts.

Local taxes. Many Pennsylvania municipalities and school districts levy an earned income tax, and some charge a business privilege or mercantile tax and a local services tax on people who work there. Rules vary by municipality, so ask the local tax collector where you operate. In Philadelphia, every business needs a Commercial Activity License, which is free, and owes the Business Income and Receipts Tax; our Philadelphia business license guide explains both.

The annual report: what changed in 2025 and what happens from 2027

Act 122 of 2022 repealed Pennsylvania's old decennial report, which most entities filed only once every ten years, and replaced it with an annual report starting in 2025. It applies to most domestic and foreign associations, including LLCs.

When and how much. LLCs, domestic and foreign, file between January 1 and September 30 each year. The fee is $7 for a for-profit LLC and $0 for one with a not-for-profit purpose. Corporations have an earlier window (to June 30), and limited partnerships a later one (to December 31), so don't copy a deadline from a corporate client's calendar.

What's in it. The report gives the company's name, jurisdiction, registered office, principal office, the name of at least one governor (a member or manager), any principal officers and the entity number. No financial information is required. You file online in Business Filing Services by finding your entity and choosing "File Annual Report". You can update the report during the year at no extra charge.

The 2027 deadline that matters. For reports due in 2025 and 2026 the Department of State didn't dissolve anyone for not filing. That grace period ends with reports due in 2027. A domestic LLC that hasn't filed its 2027 report will be administratively dissolved six months after the due date, which for LLCs falls around the end of March 2028. A foreign LLC's registration is terminated instead. Either way, the name becomes available to any other business.

Reinstatement. A dissolved domestic LLC can be reinstated at any time for $35 online or $40 on paper, plus $15 for each annual report it missed, as long as nobody else has taken the name. A foreign LLC can't reinstate; it must file a new foreign registration.

A Pennsylvania LLC's calendar

Formation

Certificate and docketing statement filed; $125 paid; EIN obtained

Before first sale

Free sales tax license through myPATH; local licences where required

January 1 – September 30

Annual report, $7

April 15

Owners' PA-40 returns; partnership return for multi-member LLCs; restricted professional companies' annual registration

Six months after a missed 2027+ report

Administrative dissolution; reinstatement $35 + $15 per report

How a Pennsylvania LLC is taxed

Personal income tax. A single-member LLC's profit is reported on the owner's PA-40 as net profits from a business, and a multi-member LLC files a Pennsylvania partnership information return and passes income to the members. The rate is a flat 3.07%. Pennsylvania doesn't follow every federal deduction, so the state figure can differ from your federal one; your preparer will reconcile them. Multi-member LLCs with nonresident members must make withholding payments on their behalf.

If the LLC is taxed as a corporation. An LLC that elects C corporation treatment pays the corporate net income tax, which is 7.49% for 2026 tax years and is scheduled to fall each year. Pennsylvania recognises the federal S corporation election, so an S-electing LLC generally passes its income to owners for personal income tax instead. Weigh the trade-offs in our LLC vs S corp guide and how to pay yourself from an LLC.

Federal self-employment tax applies to members who work in the business. Local earned income tax usually applies to your net profits as well as to wages, and is collected by your local tax collector.

What it costs: a worked first-year budget

The table shows three realistic Pennsylvania LLCs. State fees are from the Department of State's schedule; the CROP line is an estimate.

What's not in the table. Local business privilege or mercantile taxes, Philadelphia's BIRT, food and health permits, insurance and tax preparation. They depend on where you operate and what you do.

Year two and after. The state cost to stay registered is just the $7 annual report, one of the lowest in the country. Compare a New York LLC's publication requirement in our New York LLC guide.

Worked examples

A Pittsburgh marketing consultant. Dana files online in April 2026, lists her Shadyside office as the registered office and pays $125. She gets her EIN once the filing is approved. She sells only services, so she needs no sales tax license, but she checks with Pittsburgh's tax office about local taxes on her business income. She sets a reminder to file her annual report between January and September each year for $7.

A Lancaster gift shop owner who reserved the name. Tom reserves "Red Rose Makers Company" for $70 while he negotiates a lease, then files the certificate with the docketing statement. His bank asks for a subsistence certificate, which costs $40. Before opening he registers in myPATH for a free sales tax license and starts collecting 6%.

An LLC that forgets the annual report. A Harrisburg contractor's LLC misses its 2027 report. Six months after the September 30 deadline, the Department of State dissolves it and the name becomes available. To keep trading under the LLC, the owner files for reinstatement online for $35 plus $15 for the missed report, and is lucky that nobody has taken the name in the meantime.

Pennsylvania LLC launch checklist

0/9

• Name searched, with a designator, and distinguishable
• Registered office address or CROP chosen
• Certificate of organization and docketing statement filed; $125 paid
• EIN obtained from the IRS
• Operating agreement signed by all members
• Business bank account opened in the LLC's name
• Sales tax license through myPATH (if selling taxable goods)
• Local tax and licence registrations (Commercial Activity License in Philadelphia)
• Calendar reminder: annual report January 1 – September 30

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Common mistakes and how to fix them

Believing Pennsylvania has no annual report. It did until 2024. Since 2025, every LLC files one each year, and from the 2027 reports a missed filing leads to dissolution.

Paying a look-alike service. The Department of State has warned about mailings that charge many times the $7 fee to file the annual report. You can file it yourself in minutes in Business Filing Services.

Forgetting the docketing statement. Paper filings without DSCB:15-134A are returned. Online filings include it.

Using a PO box as the registered office. It must be a street address or a CROP. Fix it with a $5 change of registered office or on your next annual report.

Copying a corporation's deadline. Corporations file by June 30; LLCs have until September 30. Missing either matters.

Advertising the formation. That's a corporate requirement. LLCs don't advertise.

Official links

• PA Department of State — Business Filing ServicesFile the certificate of organization and annual report
• Certificate of Organization (DSCB:15-8821)$125
• Annual Reports$7, due by September 30 for LLCs
• Fees and PaymentsExpedite, reinstatement and certificate fees
• myPATH (Department of Revenue)Sales tax license and employer withholding
• IRS — Apply for an EINFree

Out-of-state LLCs doing business in Pennsylvania

An LLC formed elsewhere that does business in Pennsylvania files a foreign registration statement with a docketing statement for $250. It needs a Pennsylvania registered office or CROP and files the same annual report each year. If its registration is terminated for not filing, it can't reinstate and has to register again from scratch. If you live and work in Pennsylvania, forming here avoids paying two states.

What to do next

Check your name with the LLC name checker, decide between your own address and a CROP, then file your certificate and get your EIN. Use the startup cost calculator to fold the $125 filing and local costs into your opening budget, and set a yearly reminder for the annual report.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

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

The Department of State charges $125 to file a certificate of organization (DSCB:15-8821) with a docketing statement. Optional extras are a $70 name reservation, a $40 subsistence certificate and expedited service from $100. After that, the yearly state cost is the $7 annual report. The sales tax license from the Department of Revenue is free.

Does a Pennsylvania LLC have to file an annual report?

Yes, since 2025. Pennsylvania replaced its old decennial report with an annual report. LLCs file between January 1 and September 30 each year and pay $7. The report lists the registered office, principal office and at least one governor; no financial information is needed. Starting with reports due in 2027, an LLC that doesn't file faces administrative dissolution six months after the due date.

What happens if I miss the Pennsylvania annual report?

For reports due in 2025 and 2026 there was no dissolution penalty. Starting with reports due in 2027, a domestic LLC that doesn't file is administratively dissolved six months after the due date and loses the exclusive right to its name. It can be reinstated at any time for $35 online or $40 on paper, plus $15 for each missing report, if the name is still free.

Does Pennsylvania require a registered agent?

Not in name. Pennsylvania requires a registered office: either a Pennsylvania street address where the LLC can be served, or a commercial registered office provider (CROP) plus the county of venue. A PO box alone is not acceptable. Using a CROP keeps your home address off the public record and costs a yearly fee.

How long does it take to form an LLC in Pennsylvania?

The Department of State asks filers to allow 15 business days for standard processing. For a faster result, it offers same-day ($100), three-hour ($300) and one-hour ($1,000) service on top of the $125 fee, depending on when your filing arrives.

Do Pennsylvania LLCs have to advertise their formation?

No. The Department of State says no advertising is required to form a domestic LLC. Pennsylvania business corporations must publish a notice of incorporation, which is why some guides mention advertising, but that rule doesn't apply to LLCs.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Fees and Payments — Pennsylvania Department of State · accessed 9 October 2026
2. 2.Annual Reports — Pennsylvania Department of State · accessed 9 October 2026
3. 3.Pennsylvania Limited Liability Company — Pennsylvania Department of State · accessed 9 October 2026
4. 4.Certificate of Organization — Domestic LLC (DSCB:15-8821) — Pennsylvania Department of State · accessed 9 October 2026
5. 5.Frequently Asked Questions (business) — Pennsylvania Department of State · accessed 9 October 2026
6. 6.Personal Income Tax — Pennsylvania Department of Revenue · accessed 9 October 2026
7. 7.Corporation Tax Rates — Pennsylvania Department of Revenue · accessed 9 October 2026
8. 8.Get an employer identification number — IRS · accessed 9 October 2026
9. 9.Beneficial Ownership Information — FinCEN · accessed 9 October 2026