How much does it cost to start an LLC in Pennsylvania in 2026?

Forming an LLC in Pennsylvania requires a one-time initial filing fee of $125 paid to the Pennsylvania Department of State. When accounting for standard registered agent compliance ($39-$125/yr), expect initial Year 1 costs to be approximately $164.

What is the true 5-year cost of maintaining a Pennsylvania LLC?

Over 5 years, the true cost of a Pennsylvania LLC is approximately $348. This includes initial formation ($125), recurring annual reports ($7), statutory franchise taxes, and compliance support.

Can I form an out-of-state LLC (e.g. Wyoming or Delaware) if I live in Pennsylvania?

While you can legally form an entity in Delaware or Wyoming, if your principal place of business, employees, or operations are located in Pennsylvania, you must register as a Foreign LLC in Pennsylvania. In Pennsylvania, the foreign qualification filing fee is $250 plus ongoing maintenance of $7/year, often resulting in double fees.

Verified 2026 Statutory Guide

Pennsylvania LLC Cost Calculator & 5-Year Taxes

Q: What are the annual recurring fees for a Pennsylvania LLC?

Pennsylvania charges an annual report fee of $7 filed on a annual basis (due September 30 annually (transitioned from old decennial report to annual $7 report)). There is no state franchise tax on standard LLCs in Pennsylvania.

Initial state filing fee: $125. Ongoing annual report fee: $7 (annual). No state franchise tax.

Compare Pennsylvania vs Others

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in Pennsylvania costs $125 for the one-time Articles of Organization filing fee, plus $7/yr in recurring annual report fees. Over 5 years, maintaining a Pennsylvania LLC costs an estimated $348.

Initial State Filing$125One-time payment

Annual Report$7Due September 30 annually (transitioned from old decennial report to annual $7 report)

Franchise Tax$0none

Registered Agent$39–$125Annual service

Statutory Department: Pennsylvania Department of State

Verify on State Website (.gov)

Pennsylvania LLC 5-Year Cost Model

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Popular:

1. State of LLC FormationInitial: $125

Approval speed: 2-4 business days online•Public Privacy: Standard

2. Where do you conduct business?

If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

3. Estimated Annual Gross Revenue$150,000

Pennsylvania Tax Rule: PA Capital Stock/Foreign Franchise tax has been eliminated (0%).

4. Registered Agent ServiceMandatory by law

5. Expedited State Processing

Expedited State Processing (+$100)

Accelerates state filing from 2-4 business days online to 24-48 hours.

Deciding where to incorporate?

Compare Pennsylvania vs Wyoming & Delaware →

Year 1 Setup Cost

$164

Initial formation fee ($125) + registered agent

Annual Maintenance

$46 /yr avg

Annual report ($7/yr)

5-Year True CostAll Hidden Fees Included

$348(~$6/mo)

Total 5-year statutory commitment to maintain legal compliance in Pennsylvania.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($164)

$164

Year 1Formation

$46

Year 2Renewal

$46

Year 3Renewal

$46

Year 4Renewal

$46

Year 5Renewal

State Formation & Expedited

Franchise & Entity Taxes

Annual / Biennial Reports

Special Mandates (Publication, etc.)

Registered Agent Compliance

Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $164

State Filing$125

Franchise Tax$0

Annual Report$0

Special / Pub$0

Registered Agent$39

Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings

$125

36% of 5-yr budget

Total Franchise Taxes

0% of 5-yr budget

Annual / Biennial Reports

$28

8% of 5-yr budget

Registered Agent Service

$195

56% of 5-yr budget

Publication / Mandates

0% of 5-yr budget

Recommended Business BankingFDIC Insured up to $5M

Open a zero-fee business checking account for your Pennsylvania LLC

Separate your business finances immediately to preserve limited liability corporate veil protection.

Explore Mercury ($0 Monthly Fees)

Pennsylvania LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the Pennsylvania Department of State.

Official State Portal (.gov)

Annual Report Due DateSeptember 30 annually (transitioned from old decennial report to annual $7 report)Frequency: ANNUAL

Normal Turnaround2-4 business days onlineExpedited: +$100

Public Record PrivacyStandardRegistered agent protects personal address

State Personal Income Tax3.07% flat taxLLC pass-through profits flow to owners

Pennsylvania Franchise Tax & Business Privilege Tax Rules

PA Capital Stock/Foreign Franchise tax has been eliminated (0%).

Advantages of a Pennsylvania LLC

Low flat income tax rate (3.07%)
Very low $7 annual report fee

Drawbacks & Hidden Costs

Strict local earned income taxes in municipalities (e.g. Philadelphia 3.75%)

Founder Pro-Tip for Pennsylvania

Pennsylvania switched to annual $7 reports starting 2025; ensure you file by September 30.

Step-by-Step Pennsylvania LLC Formation Checklist (2026)

Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Pennsylvania Department of State registry.

Appoint a Pennsylvania Registered Agent

Must have a physical street address in Pennsylvania (no P.O. boxes) to receive official service of process during regular business hours.

File Articles of Organization ($125 State Fee)

Submit electronically to the Pennsylvania Department of State. Approval is typically granted within 2-4 business days online.

Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

Maintain Ongoing Legal Good Standing (September 30 annually (transitioned from old decennial report to annual $7 report))

Submit the annual report with the $7 fee to prevent automatic forfeiture or late fee assessments.

Compare Pennsylvania with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Filing: $100

Filing: $110

Filing: $300

Filing: $70