How to Start an LLC in Pennsylvania (A Step-by-Step Guide)

If you’re considering forming a Pennsylvania LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, file a Certificate of Organization, and file an annual report.

But there’s more.

Filing your Certificate of Formation in Washington costs $125, and it takes 5 – 7 business days to be approved.

This guide compiles all the information you need to start an LLC in Pennsylvania today.

What Are the Steps to Start an LLC in Pennsylvania?

To start an LLC in Pennsylvania, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a registered agent in Pennsylvania
• Step 3. File LLC Certificate of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File annual reports

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Search and Choose a Name for Your Pennsylvania LLC

Choosing a name for your LLC is an essential first step. You want a name that stands out but isn’t already in use.

Your LLC name must include phrases like “limited liability company” or abbreviations such as LLC. Avoid names that suggest a connection to government entities.

Before you settle on a name, search the Pennsylvania Department of State’s business entity database. This will help you see if your desired name has already been taken.

If you like a name and want to ensure it’s yours, you can file a Name Reservation form. This costs $70 and keeps your name reserved for 120 days, giving you time to complete your LLC formation.

If you want a business name different from your registered LLC name, you can file for a “doing business as” (DBA) or fictitious name. In Pennsylvania, your DBA doesn’t have to be unique.

Fill out the Registration of Fictitious Name form to register your fictitious business name.

You must include the fictitious name, a brief statement about your business, a street address for your business, and the names and street addresses of the LLC’s members. The filing fee to register the fictitious name is $70. 

Check the availability of your chosen name’s web domain and social media handles. This can help establish your online presence right from the start.

Ensure you don’t start using the name until the Bureau approves it for Corporations. This way, you avoid potential legal issues later on.

Step 2: Choose a Registered Agent for Your Pennsylvania LLC

A registered agent is a person or business that accepts legal documents and official mail for your LLC in Pennsylvania. They act as a point of contact between your LLC and the state.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agents in Pennsylvania:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Pennsylvania Registered Agents

Pennsylvania law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Pennsylvania?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: Prepare and File the Pennsylvania LLC Certificate of Organization and Docketing Statement

To start your LLC in Pennsylvania, you must file the Certificate of Organization and a Docketing Statement. This is a crucial step in making your business official.

The Certificate of Organization includes essential details about your LLC. This form provides critical information such as your LLC’s name, address, registered agent, and members’ or managers’ names.

A Docket Statement tells the state about your business activities and outlines who will handle the LLC’s tax issues.

Step #1. Complete the Form: Obtain and complete the Certificate of Organization and the Docket Statement forms from the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations website.

Include the following:

• The name of your LLC.
• The principal address of the business.
• The address of the registered office.
• The names of all members.
• The signature of the organizer (the person filling out the form).
• The effective date of your LLC formation.

Step #2: File Online or by Mail: You can file your Certificate of Organization online through the Pennsylvania Department of State website or by mailing the completed form to:

Pennsylvania Department of State
Bureau of Corporations and Charitable Organizations
P.O. Box 8722
Harrisburg, PA 17105-8722 

Step #3: Pay the Filing Fee: The filing fee for both documents is $125. You can pay by credit card for online filing or send a check or money order for mail filing.

Once your documents are filed, the state will review and approve them. This process usually takes a few business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare Your LLC Operating Agreement

An LLC Operating Agreement is a crucial internal document for your business. It outlines the structure and management of your Pennsylvania LLC. Even though it is not required by law in Pennsylvania, having one is highly recommended.

This agreement sets clear guidelines for the LLC members. It defines each member’s rights, responsibilities, and ownership percentages, helping prevent misunderstandings or conflicts in the future.

Here are some key elements to include in your Operating Agreement:

• LLC Name and Purpose: Clearly state the name and purpose of your business.
• Membership: List all members and their respective ownership stakes.
• Management Structure: Decide if your LLC will be member-managed or manager-managed.
• Voting Rights: Specify how decisions will be made and the voting rights of each member.
• Profit Distribution: Outline how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

An Operating Agreement also strengthens your LLC’s status as a separate legal entity. This can protect your assets from business liabilities.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It identifies your business for tax purposes. You need an EIN to open a business banking account, apply for specific permits, and take out a business line of credit.

In Pennsylvania, obtaining an EIN for your LLC is essential. Without it, you cannot pay employees, file taxes, or sign vendor contracts.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within four business days.

Step 6: File a BOI Report

To form your LLC in Pennsylvania, you must file a Beneficial Ownership Information (BOI) report. This requirement comes from the Corporate Transparency Act.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

Here’s what you need to prepare:

• Company Information: Name, address, and formation date.
• Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.

Gather this information along with your LLC formation documents. This will help streamline the filing process.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 7: File an Annual Report for your Pennsylvania LLC

Starting in 2025, you must file an Annual Report for your Pennsylvania LLC each year. This replaces the old Decennial Report that was filed every ten years.

The annual report updates your LLC’s contact details with the Pennsylvania Department of State, keeping your business compliant and in good standing.

All Pennsylvania LLCs must submit an Annual Report, regardless of income or activity. The filing fee is $7 per year, and the report is due by September 30 each year.

If your LLC was created between 1994 and 2024, file your first report by September 30, 2025. If you form your LLC in 2025, your first report is due by September 30, 2026.

You can file your Annual Report online or by mail. You will receive a reminder postcard at your registered office two months before the deadline. If you don’t get this postcard, file it on time anyway.

Consider setting reminders on your phone or computer to avoid missing the deadline. This will help you stay organized and ensure your filing is completed.

What are the Different Methods To Start a Pennsylvania LLC?

There are several ways to set up an LLC in Pennsylvania. Each method has advantages and disadvantages, which can affect your choice depending on your needs and resources.

DIY LLC Formation in Pennsylvania

You can file for your LLC, which is often the most budget-friendly option. This involves completing and submitting the necessary paperwork to the state.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Pennsylvania?

If you want to start an LLC in Pennsylvania on a budget, the most affordable option is to do it online. By filing the Certificate of Formation directly with the Pennsylvania Department of State, you can keep costs between $125 and $150, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Pennsylvania?

There are a myriad of Pennsylvania LLC services from which to choose. Choosing the wrong one can affect your Pennsylvania LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Pennsylvania LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Pennsylvania LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Pennsylvania?

Forming an LLC in Pennsylvania costs around $125, which covers the Pennsylvania LLC formation fees. However, there are other fees you need to be aware of.

Here is a summary table of the costs involved in forming an LLC:

Requirement	Cost
New LLC Filing Fee (Certificate of Organization and Docket Statement)	$125
Name Reservation Fee (Optional)	$70
Trade Name Filing Fee (Optional)	$70
LLC Formation Fee (Optional)	$39 (via Northwest)
Registered Agent Fee (Optional)	$0 (via Northwest)
Annual Report	$7 yearly
Total Estimated Cost	$132 – $320

When forming a new company in PA, budgeting about $132-$320 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and essential) expense for every Pennsylvania business owner is filing the Certificate of Organization, which costs $125.

Pros and Cons of Forming an LLC in Pennsylvania

6 Important Things To Do After Creating Your Pennsylvania LLC

After forming your Pennsylvania LLC, several essential steps will help ensure your business runs smoothly. These tasks range from obtaining necessary licenses to managing taxes. Completing them will set your business up for success.

1. Research the Best Licenses and Permits for Your Business

Before you start operating, check what licenses and permits you need. The requirements vary by industry, location, and type of business activity.

These could include professional licenses, zoning permits, environmental permits, regulatory licenses, and more. 

Common options include:

• Business License: Most areas require this to operate.
• Sales Tax Permit: If you’re selling products, get this to collect sales tax.
• Professional Licenses: Certain fields, like healthcare or accounting, need specific licenses.

To determine what permits or licenses you need and to arrange to obtain them, visit the Pennsylvania Department of Revenue website to file a Pennsylvania Business Entity Registration form.

2. Create Business Accounts for Your Pennsylvania LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Pennsylvania Tax Requirements and Managing Your Taxes

Each LLC must comply with Pennsylvania tax laws. Essential taxes to keep in mind include:

• State Income Tax: Your LLC might have to pay state income tax based on profits.
• Sales Tax: If you sell taxable goods or services, you must register for a sales tax permit and comply with collection and remittance requirements
• Self-Employment Taxes: As an LLC member, you’ll likely pay these on your income.
• Employment Taxes: If you have employees, you must report them to the state and pay the applicable taxes.

4. File Your Pennsylvania Annual Report

Pennsylvania LLCs must file an annual report to maintain good standing. This report provides updated information about your business, such as:

• Name and address of your LLC.
• Registered agent details.
• Any changes in ownership or management.

All Pennsylvania LLCs must submit an Annual Report, regardless of income or activity. The filing fee is $7 per year, and the report is due by September 30 each year.

If your LLC was created between 1994 and 2024, file your first report by September 30, 2025. If you form your LLC in 2025, your first report is due by September 30, 2026.

You can file your Annual Report online or by mail. You will receive a reminder postcard at your registered office two months before the deadline. If you don’t get this postcard, file it on time anyway.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

A solid online presence can help attract customers and boost business visibility. Consider this step, even if you operate a local business.

Pennsylvania LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Pennsylvania, you have several options. Each business structure has its features, benefits, and drawbacks.

Sole Proprietorship

A Pennsylvania sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Pennsylvania partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too.

Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer flexibility in management and tax treatment. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Pennsylvania corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Pennsylvania

Starting an LLC in Pennsylvania is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

Starting an LLC in Pennsylvania involves several clear steps:

• Choose a unique name for your LLC.
• Select a registered office to receive legal documents.
• File the Certificate of Organization with the Pennsylvania Department of State.
• Create an Operating Agreement for your LLC

Forming an LLC in Pennsylvania costs $125 for filing the Certificate of Organization.

After forming your LLC, prepare for annual reports, which cost $7 yearly.

Ultimately, forming an LLC can offer you personal liability protection and business management flexibility. Following these steps can lead to a successful venture in Pennsylvania.

Learn More About Starting an LLC in Pennsylvania

If you need additional help to start an LLC in Pennsylvania, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Pennsylvania?

Yes, you can change your registered agent in Pennsylvania. To finalize the change, you must file a form with the Department of State.

How do I change my Pennsylvania LLC’s name?

You must file a name change application with the Pennsylvania Department of State to change your LLC’s name. Ensure the new name complies with state naming rules.

How do I renew my Pennsylvania LLC?

You must file an annual report to maintain your good standing in Pennsylvania. This costs $7 yearly.

How do I dissolve an LLC in Pennsylvania?

To dissolve an LLC in Pennsylvania, you must file a Certificate of Dissolution with the Department of State. Make sure all debts and obligations are settled beforehand.

How do I add a member to a Pennsylvania LLC?

To add a member, you must typically amend your operating agreement and update your registration with the state. It’s best to follow your LLC’s specific rules for adding members.

How do I add a DBA to an LLC in Pennsylvania?

To add a “Doing Business As” (DBA) name, you must register the DBA name with the county or state, depending on local requirements. This allows you to operate legally under the new name.

Can a minor own an LLC in Pennsylvania?

Yes, a minor can own an LLC in Pennsylvania. However, there might be restrictions on contracts and legal agreements, so it’s advisable to consult with a legal expert.

When is the Pennsylvania Annual Report due?

The annual report is due on September 30 yearly.

Does LLC expire in Pennsylvania?

An LLC in Pennsylvania does not expire if you meet any required filings and fees. Make sure to remain compliant with state regulations.

Can a non-resident open an LLC in Pennsylvania?

Yes, a non-resident can open an LLC in Pennsylvania. You must still appoint a registered agent with a physical address in the state.

Can I buy a house or car with my LLC in Pennsylvania?

Yes, your LLC can buy a house or car. However, to maintain liability protection, keeping personal and business finances separate is important.

Can you have multiple businesses under one LLC in Pennsylvania?

Yes, you can have multiple businesses under one LLC using DBA names. This can simplify management and reduce costs.

Is Pennsylvania an excellent state in which to form an LLC? Is it worth it?

Pennsylvania can be an excellent state for forming an LLC due to its supportive business environment. It offers many resources, but consider your specific business needs before deciding.

Can one person form an LLC in Pennsylvania?

Yes, one person can form an LLC in Pennsylvania. This is a single-member LLC and is a common choice for solo entrepreneurs.