Pennsylvania LLC Taxes & Fees 2026: Complete Guide
Quick Answer
Pennsylvania is one of the lowest-maintenance states for LLC compliance. There is NO annual report — only a decennial (every 10 years) report with a $70 fee. Formation costs $125. LLC members pay Pennsylvania's flat 3.07% personal income tax on their share of LLC income. No franchise tax and no entity-level income tax.
Key Takeaways
- $125 LLC formation fee (Certificate of Organization)
- NO annual report — only a decennial report every 10 years ($70, due December 31)
- No franchise tax on LLCs
- Members pay 3.07% flat PA personal income tax on LLC income
- 9.99% Corporate Net Income Tax only applies if LLC is taxed as a corporation
- Foreign LLC registration: $250
| Item | Cost/Details | Notes |
|---|---|---|
| LLC Formation (Certificate of Organization) | $125 | One-time |
| Decennial Report | $70 | Every 10 years (due Dec 31) |
| Foreign LLC Registration | $250 | For out-of-state LLCs |
| Registered Agent Change | $0 | No separate fee — update via decennial or amendment |
| PA Personal Income Tax (members) | 3.07% | On share of LLC income |
| Corporate Net Income Tax | 8.99% | Only if taxed as C-corp |
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.
Filing Options
- Online: File at Pennsylvania Business One-Stop (1-3 business days)
- Mail: Send to PA Department of State, Harrisburg (2-3 weeks)
- Expedited online: Available for faster processing
Pennsylvania Decennial Report (Every 10 Years)
Pennsylvania requires LLCs to file a Decennial Report — not an annual report. This report is due every 10 years, by December 31 of each decade year.
Decennial Report Schedule
| Filing Year | Due Date | Fee |
|---|---|---|
| 2021 | December 31, 2021 | $70 |
| 2031 | December 31, 2031 | $70 |
| 2041 | December 31, 2041 | $70 |
Key advantage: Pennsylvania's decennial report system means you pay just $70 every 10 years in state filing fees, compared to $75–$500/year in other states. This is one of the most affordable ongoing compliance structures in the US.
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 has a city wage tax of approximately 3.75% for residents and 3.44% for non-residents working in the city.
Why Pennsylvania Has No Annual Report
Pennsylvania replaced its annual report requirement with the decennial system in 1989. The goal was to reduce administrative burden on small businesses while still maintaining an updated business registry. As a result, Pennsylvania LLCs enjoy some of the lowest ongoing state compliance costs in the country.
Note: While there's no annual report, Pennsylvania LLCs still need to maintain their registered office, keep their information current with the Department of State, and file state tax returns annually.
Total Annual Cost Estimate
| Item | Annual Cost |
|---|---|
| Annual Report | $0 (decennial: $7/year averaged) |
| Registered Agent (if using service) | $50–$150 |
| State Tax Compliance (filing prep) | Varies |
| Minimum Annual Total | ~$7 (amortized state fees) |
Penalties for Non-Compliance
- Missed decennial report: $250 civil penalty; risk of losing LLC name in Pennsylvania
- Administrative dissolution: Possible for failure to file decennial report
- Late PA income tax filing: 5% penalty per month, up to 25%; interest at the federal rate
Frequently Asked Questions
Does Pennsylvania require an annual report for LLCs?
What is the Pennsylvania decennial report?
What is Pennsylvania's LLC income tax?
Does Pennsylvania have a franchise tax on LLCs?
How much is the Pennsylvania LLC formation fee?
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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