How Much Does an LLC Cost in Pennsylvania?

Pennsylvania is home to over 1 million small businesses. These entities employ over 2.5 million individuals across the state.

Check out this comprehensive guide on obtaining a Pennsylvania LLC certificate, including how much it costs to register a Pennsylvania LLC.

How much is the Pennsylvania LLC formation filing fee?

The purpose of the formation filing is to register your business with the state and to form an LLC. This filing allows the business to be recognized as a legal entity and to operate under the laws of Pennsylvania. It also protects your personal assets by separating them from your business.

The primary legal document to form an LLC is the Certificate of Organization, which includes the name of the Pennsylvania business, the address of the registered office, and the names of the organizers of the business. 

The filing fee is $125.

How much do LLC Articles of Organization cost in Pennsylvania?

In Pennsylvania, the Articles of Organization are also called the Certificate of Organization. This filing will help establish your business as a legal entity.

The Certificate of Organization will include the following and help you to form an LLC:

LLC business name

The full legal name of the small Pennsylvania business. The business name must be distinguishable from other entities in your Certificate of Organization. It also should include limited liability company, LLC, or L.L.C. at the end of the business name. 

LLC's registered office

The physical address where all legal documents and correspondence should be sent. 

Effective date of the business

The filing date should be the effective date of when your LLC was formed. This should be listed in your Certificate of Organization.

Organizer information

These are the names of the individuals or entities that form the Pennsylvania LLC. 

Management structure

Typically, this information is optional, but it is recommended that you list whether the Pennsylvania LLC is member-managed or managed by managers in your Certificate of Organization. It can also list whether it is a single-member LLC or a multi-member LLC.

Signatures

Signatures of the person or persons filing the Certificate of Organization.

Filing Fee

According to the Pennsylvania Department of State, the filing fee is $125 for your Certificate of Organization.

However, there may be an additional fee for expediting the process. This ranges from $100 to $1,000, depending on how fast you want your documentation or Certificate of Organization to be processed.

How much is the Pennsylvania Decennial Report fee?

Pennsylvania requires LLCs to file a decennial report. This report must be filed every 10 years to show that the Pennsylvania LLC is active. 

The cost to file a decennial report is $70. However, the decennial report requirement expires at the end of 2024, according to the Department of State.

How much does a registered agent cost for Pennsylvania LLCs?

A registered agent is a crucial part of an LLC’s business operation. A registered agent can be an individual or entity that is responsible for accepting all legal documentation and correspondence on behalf of the business.

You want to make certain your registered agent is reliable and trustworthy.

A registered agent has the following responsibilities: a) accepting legal documentation, which may include subpoenas, legal notices, and other important correspondence, b) forwarding the documents to the appropriate individual in the Pennsylvania LLC promptly, c) receiving government correspondence, and d) always maintaining a physical address.

The registered agent cannot have a P.O. box as an address, according to the Pennsylvania Department of State.

The cost of a registered agent in Pennsylvania LLC can vary and depends on the level of service offered. It can have a $50 to $300 annual fee. You can save money by being your own registered agent for free.

How much does a Pennsylvania seller’s permit cost?

A seller’s permit authorizes an LLC to collect sales tax for products or services that it sells in Pennsylvania. 

In Pennsylvania, there is no charge to obtain a Pennsylvania seller’s permit. The permit can be applied for via the Pennsylvania Department of Revenue's online systems, such as e-TIDES.

How much do local business licenses cost in Pennsylvania?

Pennsylvania doesn’t require general business licenses to conduct business in the state. While there isn't a Pennsylvania business license to obtain, your industry may require you to obtain additional licenses, like a sales tax license, to operate your small business in Pennsylvania.

Depending on your Pennsylvania LLC’s business focus and industry, these guidelines will help you determine license costs: 

• Location is important. Depending on the city, county, or municipality your business is in, there may be a requirement for a license or fee. Larger cities may have higher fees than rural towns. 
• The nature of the business matters. If you’re in the restaurant industry, you may be required to purchase health permits or liquor licenses. The costs of these permits vary.
• The size of the business and the number of employees could also impact whether you need to purchase a license. 

The range of these Pennsylvania business license fees could range from $25 to $500 or more.

How much is the annual Pennsylvania LLC fee?

Starting in 2025, Pennsylvania LLCs will have to file a report that is accompanied by an annual fee. The annual report should include the following: 

• Pennsylvania business name
• Jurisdiction of formation
• Registered office address
• Name of at least one director, member, or partner
• Names and titles of the principal officers, if any
• Address of the principal registered office
• Entity number issued by the Pennsylvania Department of State

The new annual fee is $7 for limited liability companies. The deadline for limited liability company annual filings (domestic and some foreign entities) is Sept. 30, and the annual report of any other domestic filing entity or foreign filing association is due by Dec. 31 of each year.

How much does business insurance cost in Pennsylvania?

The cost of business insurance varies depending on the industry, type of business, location, and specific coverage requirements. Here is a list of potential business insurance you may need (depending on the type of business):

General liability insurance

Liability protection insurance protects you from claims of bodily injury, property damage, and personal injury that may result from your business operations.

The cost of this insurance ranges from $300-$1,000 per year. 

Commercial property insurance

Purchasing this insurance for your LLC in Pennsylvania protects you from damage to your business property, including buildings, equipment, and inventory, due to events like fire, theft, or natural disasters.

The cost of this insurance is generally $500-$2,500 annually. 

Worker’s compensation insurance

If you’re a small business with employees, Pennsylvania law requires that you purchase worker’s compensation insurance. This covers employees' medical expenses and lost wages if they become injured or ill due to their job.

Professional liability insurance

This insurance protects against any errors or omissions in services you provide in your Pennsylvania LLC. The professional services that usually have this type of insurance are lawyers, physicians, consultants, accountants, real estate agents, architects, and health care professionals or individuals working in veterinary medicine. The cost of these professional services insurance varies and can range from $500 to $3,000 per year. 

Commercial auto insurance

If you use a vehicle for business purposes, it is a good idea to have commercial auto insurance. This insurance covers liability and physical damage coverage. The cost of this insurance is $750 to $2,000 per vehicle. 

What is the Pennsylvania franchise tax?

A franchise tax is the cost the government charges for doing business in its state.

Prior to 2016, franchise taxes were imposed on all corporations and charitable organizations with capital stocks, joint-stock associations, business trusts, LLCs, and all other entities classified as corporations for federal business income tax purposes that were formed or did business in Pennsylvania.

After 2016, the franchise tax was eliminated for Pennsylvania LLCs.

Other Pennsylvania fees and business costs you might encounter

When you start a business, there are various costs that you may encounter as you establish your business. Here are some of those Pennsylvania LLC costs: 

Trademark registration

To protect your business name or logo, you may want to file for a trademark in Pennsylvania. The cost for trademark registration is $50 under Pennsylvania law.

Business loans

If you need financing, you might encounter fees associated with securing a business loan, such as origination fees or application fees.

Professional licenses

Certain professions require state-issued licenses, which can range from $50 to $500 depending on the industry.

Marketing costs

If you choose to advertise your business, you may want to market using print publications, online advertising, or social media posts. These limited liability costs can vary depending on how much you want to spend on marketing.

What is the total cost to start an LLC in Pennsylvania?

You may be asking, "How much does an LLC in Pennsylvania cost if I choose to do it on my own?" The total LLC cost to start a limited liability company could be within an affordable range or could be expensive, depending on how many of these steps you plan to do on your own. Here is an estimate, but be aware that the total cost depends on the type and size of your business, the location, and the industry.

• Limited Liability Company formation filing fee: $125
• Registered agent service (optional): $50 to $300
• Local business entity license: $25 to $500
• Business insurance (optional but recommended): $500 to $3,000 annually
• Trademark registration (optional): $50
• Total estimated initial cost: $250 to $1,000+

FAQs

Does it cost more to register a foreign LLC in Pennsylvania?

Registering a foreign LLC simply means your business was formed in another state or country, and now you’d like to have the authorization to conduct your business in Pennsylvania. It doesn’t necessarily mean you operated a business entity outside the U.S. 

It does cost more to register a foreign LLC in Pennsylvania. To register a foreign LLC, you will need to file a Foreign Registration Statement (DSCB: 15-412) with the Pennsylvania Department of State.

The filing fee for this registration is $250, which is higher than the $125 filing fee for forming a domestic LLC in Pennsylvania. In addition, you will be required to maintain any fees or costs in the home state where your LLC is established. You will also have to set up a registered agent service in Pennsylvania, which will cost $50 to $300, depending on the level of service you would like.

Can you get grants to help cover the cost of starting a business in Pennsylvania?

If you need some help getting your small business started, there are several Pennsylvania grants that will help you reach your goal. Here are potential resources regarding grants that may help in your search:

Pennsylvania Department of Community and Economic Development

This government agency provides grants to several different types of small businesses, corporations, and charitable organizations based on specific industries or areas. One example includes the PA Minority Business Development Authority (PMBDA), which offers grants and loans to minority-owned businesses in Pennsylvania.

Federal grants

There is the possibility of grant help through federal aid. Grants.gov offers individuals an opportunity to look for federal grant opportunities. Typically, federal grants are for specific sectors and industries, but there may be some grant money available for your Pennsylvania LLC or charitable organizations.

County and city grants

Depending on what Pennsylvania city or county you live in, you may be eligible for local grants, especially if your small business generates jobs for locals and economic development.

Private foundations

Some private foundations may offer grant money if your small business is seeking to support social impact or community development. 

The Small Business Development Centers in Pennsylvania are a resource you may want to consider. This organization doesn’t provide grants but offers resources on how to apply for grants and general guidelines on how to navigate the grant process.

What’s the cheapest way to start an LLC in Pennsylvania?

Starting an LLC can be relatively affordable if you do the research and do many of the steps yourself.

Here is a step-by-step guide to setting up an LLC in Pennsylvania in an affordable way: 

1. You can file the Certificate of Organization, also known as the Article of Organization, using a form provided by the Pennsylvania Department of State. This is a mandatory step that can be done online or through the mail. The cost is $125. You can pay this from your personal account or business bank account.
2. Serve as your own Pennsylvania registered agent as long as you have a physical address that maintains normal business hours. 
3. Draft an LLC operating agreement using operating agreement templates online. There are many resources that show you how to create an operating agreement.
4. Apply for your employer identification number (EIN) directly from the Internal Revenue Service through the IRS website. The employer identification number (EIN) is required if you plan to hire employees, open a business bank account, or file business taxes. Make sure you note your employer identification number on all legal documents.
5. Choose not to use special online services to help you prepare documents and use online resources for managing your domestic LLC that are offered by Small Business Development Centers in Pennsylvania. These centers also have individuals who will offer free guidance on any questions you may have regarding your small business. 
6. Maintain compliance on your LLC and limit the cost to your business bank account by filing any annual reports. 

By handling most of the registration details and other tasks yourself and paying only the necessary filing fee costs, you can start an LLC in Pennsylvania for as little as $125.