Pennsylvania LLC Taxes & Fees 2026: $125 to Form + $7 Annual Report
Quick Answer
Forming a Pennsylvania LLC costs $125. Starting in 2025, PA also requires a new annual report — a $7 filing due each year between January 1 and September 30 under Act 122 of 2022 (it replaced the old decennial/every-10-years report). LLC members pay Pennsylvania's flat 3.07% personal income tax on their share of LLC income. There is no franchise tax and no entity-level income tax on a pass-through LLC.
Key Takeaways
- $125 LLC formation fee (Certificate of Organization)
- NEW: a $7 annual report is now required every year, due January 1–September 30 (Act 122 replaced the old decennial report)
- No franchise tax on LLCs
- Members pay 3.07% flat PA personal income tax on LLC income
- Corporate Net Income Tax (7.49% in 2026, stepping down to 4.99% by 2031) applies only if the LLC elects to be taxed as a C-corporation
- Foreign LLC registration: $250
| Item | Cost/Details | Notes |
|---|---|---|
| LLC Formation (Certificate of Organization) | $125 | One-time |
| Annual Report | $7 | Every year (window Jan 1–Sept 30) |
| Foreign LLC Registration | $250 | For out-of-state LLCs |
| Registered Agent Change | $0 | No separate fee — update via report or amendment |
| PA Personal Income Tax (members) | 3.07% | On share of LLC income |
| Corporate Net Income Tax | 7.49% (2026) | Only if the LLC elects C-corp taxation; steps down to 4.99% by 2031 |
Pennsylvania LLC Formation Costs
Forming an LLC in Pennsylvania requires filing a Certificate of Organization with the Pennsylvania Department of State and paying a $125 filing fee. For the full picture of registering and maintaining your business, see our Pennsylvania LLC compliance hub.
Filing Options
- Online: File at the PA Business Filing Services portal, file.dos.pa.gov (1-3 business days)
- Mail: Send to PA Department of State, Harrisburg (2-3 weeks)
- Expedited online: Available for faster processing
Pennsylvania Annual Report ($7, New Under Act 122)
Beginning in 2025, Pennsylvania requires LLCs to file an annual report with the Department of State. The fee is $7, and the filing window runs January 1 through September 30 each year. This is new: Act 122 of 2022 replaced Pennsylvania's old decennial (every-10-years) report with this yearly filing.
Annual Report at a Glance
| Item | Detail |
|---|---|
| Fee | $7 (LLCs) |
| Filing window | January 1 – September 30 (every year) |
| Where to file | Online at file.dos.pa.gov |
| First year required | 2025 |
Still cheap, now yearly: at $7 per year, Pennsylvania's annual report is one of the lowest in the country (compared with $75–$500/year in many states) — but it is now an every-year obligation rather than once a decade, so calendar it.
Pennsylvania Income Tax for LLC Members
Pennsylvania has a flat 3.07% personal income tax rate — one of the lowest in the country. LLC members pay this on their distributive share of LLC income.
| LLC Income (Member Share) | PA Income Tax (3.07%) |
|---|---|
| $50,000 | $1,535 |
| $100,000 | $3,070 |
| $250,000 | $7,675 |
Pennsylvania also imposes a local earned income tax in many municipalities. Philadelphia levies a city wage tax of 3.74% for residents and 3.43% for non-residents working in the city (rates that took effect for the 2025 tax year). If your LLC elects to be taxed as a C-corporation, Pennsylvania's Corporate Net Income Tax applies instead of pass-through treatment — that rate is 7.49% for tax year 2026 and continues to step down each year toward 4.99% by 2031.
Once you have your tax picture mapped out, plan for the rest of your filing calendar. Our Pennsylvania registered agent requirements guide covers the registered-office rule, and if you formed elsewhere, see how to register a foreign LLC in Pennsylvania. For the year-round checklist, use the Pennsylvania LLC compliance guide.
Act 122: What Changed for Pennsylvania LLCs
For decades, Pennsylvania required only a decennial report — once every 10 years. Act 122 of 2022 replaced that with an annual report, phased in starting 2025, to keep the business registry current (matching how most other states operate). The fee is modest ($7 for LLCs), but the cadence changed from once-a-decade to once-a-year.
Note: Enforcement phases in. For reports due in 2025 and 2026, missing the filing does not trigger administrative dissolution (a transition grace period). Beginning with reports due in 2027, an LLC that fails to file becomes subject to administrative dissolution six months after the September 30 deadline. Always confirm current requirements at the PA Department of State.
Total Annual Cost Estimate
| Item | Annual Cost |
|---|---|
| Annual Report | $7 |
| Registered Agent (if using service) | $50–$150 |
| PA personal income tax (members) | 3.07% of LLC income |
| Minimum Annual Total (state fees) | ~$7 |
Penalties for Non-Compliance
- Missed annual report (2027 onward): no flat late fee, but administrative dissolution six months after the September 30 due date
- 2025–2026 transition: a grace period applies — non-filing does not yet trigger dissolution
- Late PA income tax filing: 5% penalty per month, up to 25%; interest at the statutory rate
Frequently Asked Questions
Does Pennsylvania require an annual report for LLCs?
How much is the Pennsylvania LLC annual report?
What happened to Pennsylvania's decennial report?
What is Pennsylvania's LLC income tax?
Does Pennsylvania have a franchise tax on LLCs?
Official Source
For the most up-to-date information, always verify requirements with the official Pennsylvania Secretary of State website:
https://www.dos.pa.govImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
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Complete Pennsylvania LLC Compliance Guide
View all Pennsylvania LLC requirements, fees, and deadlines in one place.
View PA State GuideOr compare Pennsylvania to every state on the annual report deadlines hub.