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  5. How To Start an LLC in Pennsylvania: The Ultimate Guide for 2024

How To Start an LLC in Pennsylvania: The Ultimate Guide for 2024

Suzanne Stewart Suzanne StewartFinance Specialist July 16, 2024
July 16, 2024
If you’re eager to turn your business dreams into reality in Pennsylvania, forming a Limited Liability Company (LLC) could be the perfect launchpad. Establishing an LLC can enhance your credibility, provide tax flexibility, and protect your personal assets from business liabilities.

Moreover, Pennsylvania’s Keystone Innovation Zone (KIZ) Tax Credit Program offers tax credits of up to $100,000 annually to businesses in eligible industries such as life sciences, information technology, and advanced manufacturing. The state has also designated 300 Opportunity Zones, where businesses can benefit from tax deferrals.

However, forming an LLC is not without its challenges. It involves several steps that demand a thorough understanding of state business regulations, including the filing of necessary documents and adherence to reporting requirements. Non-compliance can lead to serious legal and financial consequences, potentially jeopardizing your business.

The process is detailed and requires careful attention, which is why we have developed this straightforward guide to help you navigate the complexities of LLC formation. Let’s dive in!

Short on Time? Here’s a Summary of How To Start an LLC in Any US State:

If you’re pressed for time, here’s a quick rundown on how to start an LLC in any US state. This list covers the essential steps for LLC formation across all states, though specifics can vary. Our complete guide offers a more detailed breakdown for Pennsylvania, and we recommend consulting with a legal expert, Pennsylvania’s Department of State office, or one of our recommended LLC formation services for the most accurate information.

  1. Select a unique and compliant name for your LLC following Pennsylvania’s regulations.
  2. Appoint a Registered Agent who will manage legal documents and official communications on behalf of your LLC. You can also hire an LLC formation service like ZenBusiness1
  3. File the Articles of Organization with the Secretary of State, including essential details like your LLC’s name and address, as well as the Registered Agent’s information.
  4. While optional, it’s wise to obtain an Employer Identification Number (EIN) from the IRS and register for relevant state and federal taxes.

How To Start an LLC in Pennsylvania: The Ultimate Guide

Before you dive in, here are some critical points to consider:
  • Pennsylvania mandates that you file a Docketing Statement with your LLC’s Certificate of Organization.
  • To amend any previously filed documents, submitting a Statement of Validation is required.
  • From 2025 onward, all Pennsylvania LLCs must file Annual Reports.
  • Depending on your business type, you may need to apply for additional business licenses and permits.

1. Decide on a name for your LLC

Select a name that aligns with your business identity while still adhering to Pennsylvania’s naming rules. Ensure the name is 100% unique, not overly similar to existing entities, and includes an LLC designator such as “Limited Liability Company,” “LLC,” or “L.L.C.” You can use the Pennsylvania Department of State website to perform a name availability search.

Consider securing a domain name for your business, which is included with an LLC formation plan from Tailor Brands1.

2. Choose a Registered Office Address

A Registered Office Address is mandatory for handling official documents and correspondence for your LLC in Pennsylvania. This should be an actual street address or rural route box number in the state, not PO boxes. You can use your own mailing address or that of an LLC member or a trusted friend.

But if you want to keep your address private, you can hire a Commercial Registered Office Provider (CROP) like ZenBusiness and use its address as your Registered Office Address.

3. Submit your Certificate of Organization

Your Certificate of Organization need to be submitted to the Pennsylvania Department of State, accompanied by a $125 fee. This document must include your:
  • LLC’s name
  • Registered Office Address
  • Commercial Registered Office Provider’s information, if applicable
  • Organizer(s) signature and name

4. Draft an LLC Operating Agreement

Though optional in Pennsylvania, an Operating Agreement is advisable. It specifies the LLC’s management structure, member roles, and financial arrangements, helping to prevent internal disputes. It generally outlines:
  • The percentage of ownership of members
  • The LLC’s management structure
  • Everyone’s voting privileges
  • How members can be added or removed
  • How profit and loss is allocated
By clarifying the above, an Operating Agreement minimizes the chance of disputes about how the company will be run.

5. Get a Federal Employer Identification Number (FEIN)

An FEIN (or EIN) is a unique 9-digit tax number you can apply for from the IRS. Though optional, an FEIN is essential for hiring employees and setting up a business bank account. For single-member LLCs without employees, an SSN might suffice, but an FEIN is recommended for clearer separation of personal and business finances.

6. Apply for state and local taxes

Based on your LLC’s activities and location, you may need to register for additional relevant Pennsylvania taxes, including, but not limited to:
  • Sales taxes
  • Workers’ compensation taxes
  • Payroll taxes
  • Unemployment insurance taxes
  • Income tax withholding
Consult the Pennsylvania Department of State or an authorized LLC formation service for detailed registration procedures.

7. Apply for any necessary licenses and permits

There may also be additional licenses and permits you’re required to get for your LLC, which you can find out about by consulting state and local agencies. These licenses and permits may include:
  • Professional licenses
  • Safety permits
  • Environmental permits
  • Occupational licenses
  • Health permits
  • Land use permits
  • Sales tax licenses
  • Zoning approvals

8. Remain compliant

There are a number of tasks you need to do to keep your business compliant after registration. Ensure your LLC remains in good standing by:
  • Submitting an Annual Report. Starting in 2025, the State of Pennsylvania requires business owners to submit an Annual Report by June 30 every year, which costs $7.
  • Having a Registered Office Address. Your Registered Office Address must be a physical address in Pennsylvania and remain accessible throughout the operation of your business.
  • Adhering to state and federal tax obligations. You must keep up to date with your tax obligations, including filing and paying federal income tax, state income tax, sales and use tax, and payroll tax.
  • Renewing necessary licenses and permits as required. To avoid legal issues, you must also ensure your permits and licenses are up to date.
Staying diligent in these areas will protect your LLC’s limited liability status and ensure operational continuity.

These Are Our Top LLC Formation Services in Pennsylvania

There are enough LLC formation services out there to make choosing one a taxing task. When evaluating LLC formation services and ranking them, we prioritized the criteria below:
  • Offering a cost-effective free plan that only requires you to pay mandatory state fees.
  • Providing a comprehensive range of features that offers you significant value.
  • Any unique services are not widely available with other LLC formation services, such as financial, branding, or legal services and tools.
  • User-friendly interfaces and robust customer support which give you the best possible (and most stress-free) experience.
  • Customizable service options to ensure you can find the perfect fit for your specific business needs.
Here are our top picks for LLC formation services in Pennsylvania, designed to meet diverse business requirements efficiently.

ZenBusiness homepage with preferred business name text field to get started
ZenBusiness offers LLC formation services beginning at $0 (excluding state fees)
ZenBusiness, a well-regarded LLC formation service, caters to both small side hustles and ambitious enterprises, providing a range of customizable plans and product bundles to suit varying budgets.

ZenBusiness presents a free plan1, along with two levels of paid plans: Pro and Premium. While the free plan involves a processing time of 2–3 weeks, there’s an option to purchase an add-on for quicker processing. The Pro and Premium plans ensure filing within 3–4 days. Notably, all plans feature a 100% Accuracy Guarantee, so you can trust ZenBusiness to file error-free documents.

Furthermore, all ZenBusiness plans incorporate an extra advantage: ZenBusiness Money Essential, a free financial management tool automating expense tracking. For more comprehensive features, an upgrade to ZenBusiness Money Pro is available, aiding in monitoring expenses, income, invoices, mileage, taxes, and more. Unsure of your requirements? You can enroll in a complimentary 30-day trial of ZenBusiness Money Pro for comparison.

Features

  • Free tax consultation. Sign up and receive a complimentary 30-minute tax consultation thanks to ZenBusiness’ partnership with 1-800Accountant.
  • Convenient mobile app. Manage your account effortlessly through ZenBusiness’ mobile app, available on both Android and iOS.
  • No-code website builder. With ZenBusiness’ Premium plan, you gain access to its exclusive in-house website builder, complete with a domain name and email address for your business.
  • Customizable free plan. Tailor ZenBusiness’ free plan to meet your exact needs by adding select add-ons, ensuring you only pay for the services you require.
Free plan (plus state fees)?
Expedited option?
Fastest available LLC filing time 3–4 days
Customer support Live chat, email, phone, online resources

2. Tailor Brands: Customizable Branding and LLC Formation Service1

Tailor Brands homepage, with business name text field to get started
Tailor Brands ensures a rapid and smooth launch for your business
Tailor Brands offers a compelling advantage through its visual design and marketing tools, coupled with optional services to enhance your experience. Beyond fundamental LLC formation, it encompasses graphic design, branding, social media management tools, and website development.

A noteworthy aspect of Tailor Brands is its no-cost business plan generator. By sharing some information about you and your business, Tailor Brands gives you a customized checklist1 to steer you from your current stage to a fully established online presence. While you’ll receive prompts to explore its plans and services along the journey, this serves as a fundamental yet valuable roadmap for transitioning from just a dream to actionable steps in your business endeavor.

Features

  • AI logo maker. All Tailor Brands plans include access to its free logo maker, with advanced features available under the Elite plan.
  • Zazzle merchandise design. Jumpstart your LLC with exclusive deals on printed merchandise through Tailor Brands’ partnership with Zazzle.
  • Custom website design services. Enhance your online presence with Tailor Brands’ custom website design services, available for an additional fee.
  • Trademark, licensing, and permit support. Tailor Brands provides license, permit, and trademark application services as optional add-ons.
Free plan (plus state fees)?
Expedited option?
Fastest available LLC filing time 2 days
Customer support Chatbot, email, phone, online resources

3. Swyft Filings: Quick Formation Service for Small Business Owners1

Swyft Filings homepage, allowing users to choose entity type and state of formation to get started
Swyft Filings will manage all the documentation for you to get your LLC running as soon as possible
If you’re a fledgling business owner seeking a straightforward method to embark on your journey, consider Swyft Filings as an excellent alternative. Swyft Filings’ LLC registration process1 demands minimal paperwork, catering especially to those new to the process.

The sign-up process takes only a few minutes, and the subsequent access granted to Swyft Filings’ client account dashboard proves exceptionally user-friendly. It also offers a lifetime customer support in all plans, giving you assistance whenever you need it during the process.

With any plan, you’re entitled to a complimentary 14-day trial of ComplianceGuard, a tool that helps you maintain state-level business compliance. It offers annual reports, meeting minutes, and alerts about impending filing deadlines. Swyft Filings remains at your side from your initial steps as a novice to your status as a seasoned veteran.

Features

  • Federal EIN application. This service is included with Swyft Filings’ Standard and Premium service plans and offered as a paid add-on with its free Basic plan.
  • Business license applications. Swyft Filings provides research and application services for licensing and permits, which is available as a paid add-on.
  • Specialty documents. Access important document templates like Operating Agreements and banking resolutions with Swyft Filings’ Standard and Premium plans.
  • Free Basic plan. Swyft Filings offers a no-frills basic service that covers all the essentials for starting your LLC.
Free plan?
Expedited option?
Fastest available LLC filing time Same day
Customer support Chat, phone, email, online resources

Get Your Pennsylvania LLC Up and Running Today

Starting an LLC is a rewarding journey, provided you can wade through the paperwork and responsibilities required. However, this process can be made easier and effortless by our top three featured LLC formation services, designed to remove any hassle and complexity.

Whether your LLC is a small venture or a larger enterprise, ZenBusiness offers a plan to fit your needs1. It provides exceptional value, including a 100% Accuracy Guarantee and a year worth of Worry-Free Compliance services to help you stay compliant.

If branding is your priority, consider Tailor Brands1, which is renowned for its comprehensive creative services and tools, covering everything from logo design to website development.

For beginners looking for guidance, Swyft Filings is an ideal choice1, offering a straightforward sign-up process and a user-friendly client dashboard.

Here are our top picks at a glance for Pennsylvania:

Standout feature Bonus feature #1 Bonus feature #2 Starting price
ZenBusiness Free year of Worry-Free Compliance Money Pro accounting software subscription 100% Accuracy Guarantee $0
Tailor Brands Free AI logo maker Branding and marketing tools State and local permit research and filing service $0
Swyft Filings All-in-one formation package Free trial of ComplianceGuard Easy-to-use dashboard and user-friendly sign-up $0

FAQ

How do I go about forming an LLC in Pennsylvania?

To establish an LLC in Pennsylvania, you need to adhere to all the requirements set forth by the Department of State. This process includes selecting a distinct name for your LLC, filing your Certificate of Organization, and covering the necessary filing fee. You can manage these steps independently or opt for an LLC formation service to ensure thorough and accurate completion.

What are the benefits of starting an LLC in Pennsylvania?

Forming an LLC in Pennsylvania provides the benefit of separating your personal and business assets. It allows for flexible management structures, giving members the power to decide how the LLC is operated. Additionally, Pennsylvania offers tax incentives such as credits and deferrals to eligible businesses.

Is it possible to start an LLC in Pennsylvania for free?

Yes, you can. You can form your business yourself on Pennsylvania’s Department of State business website or take advantage of numerous free formation plans offered by select LLC formation services. However, regardless of the method you choose to start your LLC, state fees imposed by the Department of State are mandatory. We suggest using ZenBusiness, which offers a basic free plan featuring a free year of Worry-Free Compliance services and a 100% Accuracy Guarantee, as well as the option to add various paid add-ons as needed.

Are there any LLC formation services that provide Commercial Registered Office Provider (CROP) services in Pennsylvania?

Many LLC formation services offer CROP services to provide you with a Pennsylvania Registered Office Address and maintain compliance and business communications during standard state office hours. Our top three recommended providers offer to serve as your CROP in Pennsylvania, although this service comes with an additional annual fee. Using your own physical address as your Registered Office Address could be a more economical choice and is fully compliant with legal standards.

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