How to start an LLC in Pennsylvania in 2024

Brynne Conroy

BLUEPRINT

Updated 1:30 p.m. UTC May 23, 2024

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Doing business as an LLC can provide a lot of benefits under the right circumstances. The LLC business structure provides you with some liability protection, and unlike a corporation, it allows your income to pass through to your personal income taxes rather than incurring an additional tax at the corporate rate. Tax laws can vary by state, but this benefit holds in Pennsylvania.

According to Ryan Crivella, a Pittsburgh-based attorney specializing in entrepreneurial ventures, there are additional benefits to opening your LLC in Pennsylvania depending on your industry. He cites Western Pennsylvania in particular as an area of growth for those in the fields of software, robotics, advanced manufacturing and other tech innovations.

“The region’s access to world class research universities, a skilled workforce and supportive entrepreneurial ecosystems provides opportunities for growth and collaboration,” says Crivella. “By establishing an LLC in Pennsylvania, entrepreneurs can leverage these advantages and position their businesses at the forefront of cutting-edge industries, fostering innovation and paving the way for long-term success.”

Here are 9 steps to start an LLC in Pennsylvania:

Set up a Pennsylvania business one-stop shop account.
Name your LLC.
Select a registered office.
Submit LLC formation paperwork.
Draft an operating agreement.
Apply for an employer identification number (EIN).
Register with myPATH for state taxes.
Explore business license requirements in Pennsylvania.
Submit annual reports.

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9 steps to start an LLC in Pennsylvania

1. Set up a Pennsylvania business one-stop shop account

In Pennsylvania, you can streamline your business setup process by first creating a Pennsylvania business one-stop shop account, which is Pennsylvania Department of State’s online filing portal. This account will allow you to easily file key business documents, including formation and annual report documents. In addition, it will allow you to more efficiently manage your business with the state using stored documents and even business checklists.

To create an account, visit the Pennsylvania Department of State business one-stop shop page and click “register.” Follow the prompts to set up your free account.

2. Name your LLC

To successfully name your Pennsylvania LLC, your chosen name must be unique from other names registered in the state and comply with Pennsylvania’s requirements. To ensure it follows requirements, review Pennsylvania’s naming guidelines. Next, you can check name availability using Pennsylvania’s business search tool.

If the name is available but you’re not quite ready to officially register your business with the state, you can reserve the business name for future use. Reservations can be made using the Secretary of State’s online filing portal by filling out the name reservation form. The reservation fee is $70 and reservations are effective for 120 days.

To learn more about how to name your business, including legal and best practices, read our business name guide.

3. Select a registered office

In Pennsylvania, you’ll need to have a registered office for your LLC. That could be the same address as the business’s physical address. However, there does need to be someone constantly available at the address during all regular business hours to accept legal documents on you LLC’s behalf. If that’s too much of a burden, you may want to outsource the responsibility to a commercial registered office provider (CROP).

In other states, a CROP is referred to as a registered agent service. To learn more about this requirement, read our registered agent guide. Before you hire a registered agent or CROP in Pennsylvania, review the best registered agent services to find your perfect match.

4. Submit LLC formation paperwork

Unlike many other states, Pennsylvania requires two forms to register your business with the state: an application for a certificate of organization (often called articles of organization) and a docketing statement. You can file both of these forms using your business filing portal that you set up in step one. The application for your certificate of organization comes with a filing fee of $125. This fee can be waived if you are a veteran or reservist.

Uniquely, using this form, Pennsylvania also allows LLCs to register as benefit companies, which means they are for-profits that also serve the public good. To qualify, the LLC must provide a “material positive impact on society and the environment.” That could look like providing products or services to low-income community members, promoting the arts or sciences or some effort to preserve the local or global environment, for example.

You also have to submit a new entity docketing statement (also through your business filing portal). This is a brief form that serves as a cover sheet for your certificate of organization. It primarily outlines who to contact come tax time.

To learn more about how to prepare and file your certificate of organization, read our LLC articles of organization guide.

New LLC reporting requirement alert

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024.

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete.

Here’s what you need to know:

LLCs formed before January 1, 2024 have until January 1, 2025 to file.

LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.

New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website.

5. Draft an operating agreement

An operating agreement is a legally-binding document that outlines your LLC’s operating and financial procedures. Pennsylvania doesn’t legally require an operating agreement to start your LLC, but we strongly recommend LLCs draft one to protect its members and business interests.

“An operating agreement is often advisable for an LLC, even when not legally required,” says Crivella. “Amongst other reasons, it brings clarity, legal protection, credibility and the ability to plan ahead for the company’s operations and governance. These are complicated documents and it is advisable to consult with an attorney so that they are tailored to a business’s specific needs.”

To learn more about how to draft an operating agreement, its benefits and its uses, read our LLC operating agreement guide.

6. Apply for an employer identification number (EIN)

Once you have your certificate of formation from the state, you can apply for a free employer identification number (EIN) with the IRS. Your EIN will allow you to complete tasks like filing federal taxes and managing payroll withholdings for employees. You can complete the application entirely online in 15 minutes or less. Upon submission of the form, your EIN will be generated and provided to you on the spot.

To learn more about how to apply for an EIN and its uses, read our EIN guide.

7. Register with myPATH for state taxes

Most LLCs need to get a state tax ID through Pennsylvania’s myPATH service. You may need to register with myPATH if your LLC:

Has employees.
Is required to collect state sales tax.
Pays wine excise tax.
Sells fireworks.
Acts as a booking agent.
Sells tobacco products.
Operates in the gambling space.
Rents vehicles.

The state provides a full list of business taxes you can pay through myPATH. If you’re a single-member LLC running a service-based business with no employees, you may not need to register with myPATH.

8. Explore business license requirements in Pennsylvania

Pennsylvania doesn’t have a general business license requirement, but you may be required to hold licensure if you work in specific fields. For example, barbers must secure licensure through the State Board of Barber Examiners while occupational therapists are overseen by the State Board of Occupational Therapy Education and Licensure.

The state does provide an incomplete list of professions that require licensure. You can use this resource to submit support tickets to find out more about industry-specific licensing requirements, such as those for accountants, chiropractors, funeral directors, nurses or real estate professionals. However, if you’re unsure about requirements in your field, it’s wise to consult with a Pennsylvania business attorney.

Another reason an attorney consult is a good idea is because your township or borough may have additional licensure burdens beyond what the state requires. Depending on your municipality, these requirements may be easy to find on the municipal website or they may require a little more digging. Your search can be sped along with the help of local legal consult.

9. Submit annual reports

An annual report updates the state on key business information, such as your business’s registered office address and contact person. In Pennsylvania, the fee for these annual filings are incredibly nominal — a mere $7.

Right now, Pennsylvania LLCs are only required to submit reports every 10 years. The requirements change to annual filings effective 2025, though, so if you form a Pennsylvania LLC in 2023, you won’t make it to the 10-year mark. This is a big change for Pennsylvania LLCs, so if you don’t comply the first couple of years, the state will provide you with a grace period. But starting in 2027, if you don’t file your annual reports, your LLC could be subject to administrative dissolution.

When this takes effect, the deadline for filing will be September 30 of each year for LLCs. You will know when this requirement has gone into effect because you will receive a notice at your registered office address.

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

Lowest published package price

$39

Live chat

Yes

Find the best LLC services for Pennsylvania: Best LLC formation services

Frequently asked questions (FAQs)

No, you cannot set up an LLC for free in Pennsylvania. There is a $125 fee to apply for your certificate of organization (which legally forms your LLC). That said, many LLC services will provide a little bit of extra support for no additional fee. However, keep in mind that using a service like this won’t get you out of that $125 state filing fee.

To learn about other fees you may be required to pay as you form your LLC, read our cost to start an LLC guide.

LLCs are pass-through entities, meaning that profits and losses are passed through the entity to its members. Taxes are therefore paid by members on their personal income tax returns. However, depending on the types of activities your LLC performs, you may have to pay specialized taxes. For example, if you hire employees, you will have to pay employment taxes.

To learn more about your Pennsylvania tax requirements, sign up for a myPATH service account. In addition, contact a tax consultant to learn company-specific taxes you may have to pay.

Yes, but Pennsylvania uses slightly different terminology. You’re required to have a registered office address, which could be your own address if you’re serving as your own registered agent. Otherwise, you’ll have to use a commercial registered office provider (CROP), which just means you’re using an outside registered agent service.

Currently, Pennsylvania LLCs only need to file reports every 10 years. That all changes in 2025, though, when Pennsylvania LLCs are required to start submitting annual reports with a $7 filing fee.

To dissolve your LLC in Pennsylvania, first consult your operating agreement and follow its dissolution procedures. Then, file a certificate of termination using the state’s online business filing portal. It’s a quick, six-question form and the fee to file it is $70. Also accompanying this form, you will have to submit tax clearance certificates from the Pennsylvania Department of Revenue and the Bureau of Employment Security of the Department of Labor and Industry.

Learn more about how to dissolve an LLC in our LLC dissolution guide.

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Brynne Conroy

BLUEPRINT

Brynne Conroy has over 12 years of experience writing about money, with a particular focus on women's finances and small business lending and credit products. Her debut book was an Amazon #1 New Release across multiple categories, and she has been awarded a PEN America grant for the body of her work in the field. Find her bylines on LendingTree, Her Agenda, GoBankingRates, and Business Insider, and features on MSN Money, Jean Chatzky's HerMoney, and Yahoo Finance.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.