Form your company in Pennsylvania

Why form an LLC in Pennsylvania?

Pennsylvania makes sense if you live or run your business in the state: a flat, low 3.07% income tax and a tiny new $7 annual report keep recurring costs down. For a non-resident founder with no PA activity, though, the $125 filing fee and slower processing offer no edge over Wyoming or New Mexico.

A quick reminder from us: forming in a state where you do not actually operate usually means you still have to register (foreign-qualify) in your home state, often with little or no tax benefit. If you are unsure, tell us how you plan to operate and we will recommend the right fit — free.

Costs and fees

The Pennsylvania Secretary of State charges roughly $125 to file Articles of Organization, with an ongoing state cost of about $7/yr report (new 2025). Flat 3.07% personal income tax; $7 annual report; no franchise/capital-stock tax. State fees are paid directly to the state and are separate from our service fee.

• Filing fee: $125 (approximate)
• Ongoing state cost: $7/yr report (new 2025)
• Typical processing time: ~1–2 wks

Taxes and privacy

Personal state income tax in Pennsylvania: Yes. Owner privacy on the public record is generally rated medium.

Your federal tax obligations (and your EIN) are the same regardless of the state you choose — a single-member LLC is taxed as a pass-through by default, and we can obtain your EIN even if you do not have an SSN.

Pros of forming in Pennsylvania

• Flat 3.07% personal income tax — one of the lowest and simplest state income tax rates in the US
• Very low ongoing cost: the new Annual Report (first required in 2025 under Act 122) costs just $7
• No franchise or capital-stock tax (Pennsylvania's capital-stock/franchise tax was fully phased out)
• Members and managers are not named on the Certificate of Organization, giving moderate baseline privacy

Things to weigh

• Higher $125 formation fee than most neighboring states
• Processing is comparatively slow — routine filings commonly take one to two weeks unless you pay to expedite
• New annual report obligation (due Sept 30 for LLCs) carries real teeth: persistent failure to file can lead to administrative dissolution
• The organizer's name and the registered office are public, so full owner anonymity requires a holding-company/agent structure

Banking for your Pennsylvania LLC

Your bank account is not restricted by forming in Pennsylvania — a PA LLC can bank with any US bank or fintech (Mercury, Relay, Wise) that serves out-of-state LLCs. Standard KYC and beneficial-owner disclosure apply at account opening, the same as any state.

Whichever state you choose, we prepare the documents banks ask for and can obtain your EIN even without an SSN. Bank and provider approval is always their decision — we are not affiliated with any bank.

Is Pennsylvania right for you?

Best for: Businesses operating in Pennsylvania. If you operate physically in Pennsylvania, forming here keeps things simple. If you are a remote or non-US founder without a specific reason to choose Pennsylvania, a low-cost, privacy-friendly state like Wyoming or New Mexico is often the better default.

Not sure? Start your application and we will confirm the best state for your situation before anything is filed.