How to Form an LLC in Pennsylvania | 2025

Over a million small businesses contribute to ​Pennsylvania’s vibrant economy and employ approximately 2.4 million people, contributing to the state's rapid growth and innovation. For entrepreneurs and business owners aiming to establish a presence in Pennsylvania, forming a Limited Liability Company (LLC) can be the right option.

This guide will walk you through the process of starting an LLC in Pennsylvania, detailing each step and its associated costs. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How to Form an LLC in Pennsylvania (Step-by-Step)

Creating a Pennsylvania LLC involves a few essential steps with the Department of State. Here's how to get your business legally registered:

Step 1: Choose a Name for Your LLC

The name of your Pennsylvania LLC must include "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C" to clearly indicate its business structure. It must be distinguishable from existing business names registered with the Pennsylvania Department of State.​

Use the Pennsylvania Business Entity Search tool to ensure your desired name is available. If you're not ready to register your LLC immediately, you can reserve the name for 120 days by filing a Name Reservation form and paying a $70 fee.​

Step 2: Appoint a Registered Office or CROP

Unlike many states that require a registered agent, Pennsylvania requires businesses to designate a Registered Office. This can be a physical address in Pennsylvania (P.O. Boxes are not permitted) or the address of a Commercial Registered Office Provider (CROP) authorized to receive legal and government correspondence on your behalf.

Step 3: File the Certificate of Organization

To formally register your Pennsylvania LLC, file Form DSCB:15-8821 (Certificate of Organization) with the Department of State.

You’ll need to provide:

• The LLC’s legal name.
• Registered office or CROP details.
• Organizer’s name and signature.
• Optional: a delayed effective date.

The filing fee is $125 and can be submitted online via the Business One-Stop Hub or by mail.

Step 4: Submit the Docketing Statement

The Docketing Statement is a required form submitted alongside your Certificate of Organization. It includes:

• LLC name.
• Federal EIN (if already obtained).
• Business purpose or description.
• Organizer's name and mailing address.

This form, filed alongside your Certificate of Organization, is crucial as it ensures your LLC is recorded for state tax and public record purposes.

Step 5: Draft an LLC Operating Agreement

While Pennsylvania does not legally require an LLC Operating Agreement, it is crucial for establishing how your business will function internally. The agreement defines the ownership structure, member roles, voting rights, and decision-making process.

It also sets clear rules for profit distribution, handling member departures, and dissolving the business if needed. Whether your LLC has one member or several, having a well-drafted Operating Agreement helps prevent disputes and reinforces your limited liability protection.

Step 6: Apply for an EIN

An Employer Identification Number (EIN) is required if you:

• Hire employees.
• Open a business bank account.
• Elect the corporate tax treatment.
• File federal or payroll taxes.

You can get an EIN for free through the IRS website.³ Even single-member LLCs benefit from having one, as it avoids using your Social Security Number for business matters. Most banks will require an EIN before you can open a business account under your LLC's name.

Step 7: Register for Pennsylvania State Taxes

Depending on your business activities, you may need to register with the Pennsylvania Department of Revenue for sales tax, employer withholding tax, use tax, or unemployment compensation tax. If your business sells taxable goods or services, you'll also need to apply for a sales tax license before you can legally collect and remit sales tax in the state.

Use the Pennsylvania Online Business Tax Registration to complete this step.²

Step 8: Obtain Local Licenses and Permits

Pennsylvania does not offer a general statewide business license. Instead, local governments set licensing requirements based on your business location and industry. Depending on where your LLC operates and what services you provide, you may need zoning or home occupancy permits, health permits (particularly for food-related businesses), or professional and trade licenses.

Contact your local municipality to determine which permits or approvals apply to your business and to ensure full compliance with local regulations.

Step 9: Maintain Ongoing Compliance

Although Pennsylvania law does not require LLCs to file an annual report, you’re still responsible for meeting several ongoing compliance obligations. Your LLC must maintain a valid registered office or CROP, keep all necessary local permits up to date, and file state and federal taxes accurately and on time.

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What Are the Business Requirements for a Pennsylvania LLC?

To legally operate a domestic limited liability company in Pennsylvania, you must complete several core filings and comply with state and local regulations.

• File a Certificate of Organization and Docketing Statement.
• Designate a Registered Office or hire a CROP.
• Obtain an EIN from the IRS.
• Create an LLC Operating Agreement (internally).
• Register for applicable state taxes.
• Comply with local licensing requirements.

These steps establish your business structure and help ensure compliance with both state and federal laws.

What Are the Benefits of Starting an LLC in Pennsylvania?

Starting an LLC in Pennsylvania offers a host of benefits that can give your business a competitive edge. These include:

• Limited Liability Protection: Owners are not personally responsible for business debts or lawsuits.
• No Annual Report Requirement: Pennsylvania eliminates this administrative burden that most other states require.
• Tax Flexibility: Pass-through taxation is standard, but you can elect S corp or C corp treatment if it better suits your business.
• Low Entry Costs: There is a $125 formation fee and no franchise tax

How Much Does It Cost to Start an LLC in Pennsylvania?

Item	Cost
Certificate of Organization	$125
Name Reservation (optional)	$70
CROP Service (if used)	$100–$300/year
Local Permits/Licenses	Vary by area
Fictitious Name Registration (DBA)	$70

Expect to spend between $125–$500+ to form and launch your Pennsylvania LLC, depending on your specific needs and whether you use third-party services.

Can I Open an LLC in Pennsylvania Without Living There?

Yes. Pennsylvania allows nonresidents and out-of-state entrepreneurs to form LLCs. Maintaining a physical registered office or contracting with a Commercial Registered Office Provider is the key requirement.

This flexibility makes Pennsylvania attractive for remote founders and distributed teams operating across multiple states or countries.

Can a Nonresident Open a Company in Pennsylvania?

Yes. You do not need to be a U.S. citizen or resident to form an LLC in Pennsylvania. Nonresidents should be aware of a few considerations:

• You’ll need a U.S. mailing address or hire a CROP for legal services.
• Nonresidents without a Social Security Number must apply by mail using IRS Form SS-4 and include an ITIN or explanation to obtain an EIN.

Nonresident LLC owners can fully participate in Pennsylvania business activity, including online ventures, real estate, and service-based businesses.

Comparison with Other States

Feature	Pennsylvania	Delaware	New York	Florida
Filing Fee	$125	$90	$200	$125
Annual Report Requirement	None	$300 (franchise tax)	$9 (Biennial)	$138.75
Publication Requirement	Only for DBA	No	Yes (costly)	No
Best For	Local Businesses	Startups/VCs	Legal/Media Firms	Online Sellers
Foreign LLC Required?	Yes	Yes	Yes	Yes

Pennsylvania is ideal for local and regional businesses seeking minimal paperwork and predictable costs. Its lack of annual reporting requirements makes it particularly appealing for small teams that want a low-maintenance setup.

Delaware is favored by startups, venture-backed companies, and corporations due to its business-friendly legal system and well-established Court of Chancery. However, ongoing fees and franchise taxes are significantly higher.

A New York LLC is often the go-to choice for media, legal, and finance firms operating in the state, but its publication requirement can significantly increase the cost and complexity of the formation process.

Florida is a strong choice for online sellers and service-based businesses looking for low barriers to entry. While it does require an annual report, its regulatory environment remains relatively straightforward for small business owners.

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FAQs About Pennsylvania LLCs

Does a Pennsylvania LLC Offer Privacy Protection?

Pennsylvania does not offer anonymous LLC formation. Organizer and Registered Office information becomes part of the public record. Hiring a CROP can help shield your personal address from public listings.

Why Do People Use Pennsylvania for LLC Formation?

Many entrepreneurs choose Pennsylvania because it has:

• No annual reporting requirement.
• Competitive filing fees.
• Favorable legal environment for smaller teams.
• Accessibility for both local and international founders.

Is Pennsylvania LLC Tax-Free?

No. While LLCs benefit from pass-through taxation at the federal level, Pennsylvania businesses may still be subject to:

• State income tax (for members)
• Sales and use tax (if applicable)
• Employer and unemployment taxes

You may also owe local business privilege taxes, depending on your municipality.

What Are the Disadvantages of a Pennsylvania LLC?

While the state offers many benefits, there are a few trade-offs:

• No anonymous ownership protections.
• Limited privacy unless you hire a CROP.
• Some localities impose strict licensing or zoning laws.
• Complex EIN process for non-U.S. residents without SSNs.

Conclusion

If you're building a scalable business with a small but growing team, forming a Pennsylvania LLC is a smart legal and financial move. The state’s streamlined filing process, low ongoing maintenance, and favorable tax structure make it a top choice for founders across industries.

Form an LLC in State
New York
Ohio
Oregon
Mississippi
Massachusetts

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Sources:

1. 2024 Small Business Profile | US Small Business Administration
2. Pennsylvania Online Business Tax Registration
3. IRS website