How to Start an LLC in Pennsylvania (2024 Guide)

The state’s 1.1 million small businesses employ 2.5 million people – almost half of the state’s private workers. If you’re thinking about starting your own small business or taking your sole proprietorship to the next level, forming an LLC in Pennsylvania may be the right choice. This guide will help you learn how to start an LLC in Pennsylvania. and provide helpful links to the resources you’ll need to get started.

Starting an LLC in Pennsylvania will include the following steps: 

• #1: Decide on a Unique Name for Your Business
• #2: Determine a Registered Office for Your Business
• #3: Get an EIN
• #4: File a Certificate of Organization
• #5: Register Your Business With the Pennsylvania Department of Revenue

The process for creating an LLC in Pennsylvania is similar to many other states, but there are also some significant differences. You can make it easier on yourself by using a business formation service to do the leg work, or you can do it yourself.

Deciding on a name for your LLC can be more difficult than you think. To reduce the likelihood that consumers will be confused, Pennsylvania law requires that all business entities have unique names. Pennsylvania LLC names must contain the phrase “limited liability company,” or common abbreviations to that effect (LLC, L.L.C., Lt. Liability Co., etc.), and cannot contain words that may be confused with government or other official entities.

Before you submit any paperwork to register a Pa. LLC, check the Pa. Department of State business entity database to make sure your desired LLC name isn’t already in use. To ensure that your proposed name is acceptable before continuing the process, you can file a name reservation form online or by mail. If the Secretary of State approves your name reservation request, you can be assured that your name will be available for 120 days – plenty of time to finish your LLC formation.

It’s also important to create an llc operating agreement that outlines the policies and structure of your business.

Pennsylvania requires that every LLC designate an actual street address (no P.O. boxes) as its registered office. Also, someone (an individual or business) must be available at that address during regular business hours and authorized to accept service of legal documents on behalf of the business. Although a member of the LLC may fulfill this role personally, there are also many businesses that provide registered office (or “registered agent”) services for a reasonable cost.

An important step in learning how to start an LLC in Pa. is to obtain an Employer Identification Number (EIN), which is issued by the Internal Revenue Service (IRS). This unique identification number for your business entity, which isn’t required if your LLC has only one member, is a helpful way to separate your business and personal finances. An EIN is necessary to open a business bank account, as well as obtain funding, credit cards, and other business financial tools.

Once you have chosen and reserved a name and designated a registered office, it’s time to file your Certificate of Organization with the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations. This document must include:

• Your LLC’s name and principal place of business
• The street address of your registered office
• The name of each member
• The signature of the organizer (the person who completes the form)
• The date the LLC formation will be effective

Along with your Certificate of Organization, Pa. law also requires that you file a “docketing statement.” This form informs the Commonwealth about who will be responsible for filing the LLC’s tax statements and when. You must include the name of your entity and a description of its business activity. If your LLC has an EIN, you may also include it.

In addition to determining how to start an LLC in Pa., you may also need to obtain licenses or permits from the state or municipality in which you plan to operate. These could include professional licenses, zoning permits, environmental permits, regulatory licenses and more. If you have employees, you must report them to the state and pay applicable taxes.

Businesses that sell taxable goods or services must register for a sales tax permit and comply with collection and remittance requirements. If you plan to operate under a different name than that of your LLC, you will also need a “fictitious business name” license. To determine what permits or licenses you will need and arrange to obtain them, file a Pennsylvania Business Entity Registration form or register online with the Pa. Department of Revenue.

Entrepreneurs forming a limited liability company in Pennsylvania should prepare for the above-average LLC costs and fees that come with registering in the state. The base filing fee alone to establish an LLC with the Pennsylvania Department of State is $125. Hiring an attorney for the formation process typically costs between $400-$700. 

After its formation, a Pennsylvania LLC must pay the annual fee of $300 by April 15th to maintain active status. This is one of the highest ongoing costs for LLCs in the U.S. Additionally, LLC owners in Pennsylvania need to budget for income taxes, licensing fees if applicable, legal and accounting assistance, and other basic costs of running a business.

A limited liability company, or LLC, is a simple kind of business entity that separates the finances and operations of a business from the owners. Whether you are starting a Philadelphia LLC or a Pittsburgh LLC, Creating an LLC in Pennsylvania can help the owner(s) of a business limit their personal legal and financial liability without imposing many other regulations on how the business is operated.

Aside from liability protection, members of a simple Pennsylvania LLC that is operated as a “pass-through” entity pay taxes on its profits individually as income. However, in most cases, creating an LLC allows you the flexibility to treat your business as an S Corp for tax purposes. While this will make your Pennsylvania LLC liable for corporation taxes, it can also have significant tax benefits for the members. Before you can decide how to pay taxes, however, you must learn how to start an LLC in Pennsylvania

When forming an LLC in Pennsylvania, you have two ways to do it: DIY or outsourcing to an LLC service. If you’re wondering which option is better for you, here is a breakdown:

A DIY LLC formation follows the steps established earlier in this article. By doing it yourself, you give yourself a new skill and a deeper understanding of Pennsylvania’s business formation process. However, there are legal risks that come with forming your own LLC, especially if you’re unfamiliar with how to do it.

Hiring an LLC service relieves many of these legal risks, with the provider taking the burden on your behalf in exchange for a fee. These services can also streamline your LLC formation, as they have knowledge of this process. This allows you to focus on running your business. Hiring LLC services also allows you to have a registered agent who will handle the legal documentation that would usually go to you.

A Pennsylvania LLC can be organized for any legal business purpose. Although the law assumes all regular LLCs are for-profit, Pennsylvania also allows nonprofit limited liability companies. If you wish to begin a non-profit LLC, you must designate that status in your Certificate of Organization.

An LLC can also elect to be a benefit company if it has a “purpose of creating a general public benefit, in addition to any other purposes they have as a limited liability company.” Benefit companies must file and publish an Annual Benefit Report summarizing its efforts to create public benefit during the year.

Limited liability companies that intend to provide certain kinds of professional services must form as a restricted professional company. This restriction applies to professionals in the following industries:

• Chiropractic
• Dentistry
• Law
• Medicine and surgery
• Optometry
• Osteopathic medicine and surgery
• Podiatric medicine
• Public accounting
• Psychology
• Veterinary medicine.

Restricted professional companies must indicate their industry on their Certificate of Organization and file a Certificate of Annual Registration each year.

There is no annual registration filing requirement for regular, non-restricted Pennsylvania LLCs.

Forming an LLC in Pennsylvania is a fairly straightforward process that can be completed in just a few steps. The state provides ample resources like step-by-step guides and template forms to simplify the paperwork which makes it a great place to start an LLC. Additionally, exploring leading LLC formation services can further streamline the process.

For more help, you can check out the Pennsylvania Department of State Business Filing Services website. It’s also worth reviewing the various registration forms available on the site. Finally, it’s worth reviewing Act 170, which references the Uniform Limited Liability Company Act (ULLCA) if you have questions.

Starting an LLC in Pennsylvania is an easy and economical way to join the ranks of proud small business owners in this thriving community. Find out more about how to start an LLC in Pennsylvania, the fees associated with each step of the process and where to go to get more information.

Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.

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We conducted a survey in 2024 of 200 professionals who were currently using LLC services or had used LLC services within the past year. We analyzed the results of this survey to determine the following rating criteria:

• Features (20%)
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Visit the full LLC methodology page for more details on our rating system.