Which state is cheaper for an LLC: Pennsylvania or Delaware?

Over 5 years, Pennsylvania is cheaper with an estimated total cost of $348, compared to $1,805 for Delaware, saving you approximately $1,457.

Can I register in Delaware if I live and work in Pennsylvania?

You can form an entity in Delaware, but if your principal residence or business operations are in Pennsylvania, statutory nexus rules require you to register as a Foreign LLC in Pennsylvania. In Pennsylvania, the foreign filing fee is $250 plus annual foreign maintenance of $7/year.

2026 Head-to-Head Statutory Comparison

Pennsylvania vs Delaware LLC

Pennsylvania only requires an informational report once every 10 years ($70), making domestic maintenance dramatically simpler than Delaware's annual tax.

5-Year Cost Verdict: Pennsylvania saves an estimated $1,457 over 5 years.

Pennsylvania Model →Delaware Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	Pennsylvania	Delaware
Initial State Filing Fee	$125	$110
Annual Report Fee & Frequency	$7 (annual)	$0 (none)
Annual Franchise Tax	$0 / None	$300/yr
5-Year Estimated True Cost	$348	$1,805
Public Member Anonymity	Standard	High (Anonymous)
Foreign Qualification Fee	$250 upfront ($7/yr)	$200 upfront ($300/yr)

The Reality of Forming Out-of-State

Operating in Pennsylvania with a Delaware LLC?

If you live or conduct physical business in Pennsylvania and form in Delaware, you must register as a Foreign LLC in Pennsylvania. This means paying Delaware's formation fee ($110) PLUS Pennsylvania's foreign filing fee ($250) and two annual registered agent fees.