Pennsylvania LLC Cost Guide (2024)

How much does an LLC cost in Pennsylvania?

The most essential filing fee for starting an LLC in Pennsylvania is for the Certificate of Organization, which currently costs $125. Without this document, your limited liability company (LLC) won’t even begin to exist. 

But you should expect to spend more than $125 on your LLC creation because there are other costs to account for: hiring a registered agent, getting business licenses, rent and utilities, and much more. Understanding these costs and appropriately budgeting for them can help you get a solid footing for your new business venture. 

That’s where this guide comes in. We’ll cover some of the most common startup costs for an LLC in Pennsylvania, including:

• Common Pennsylvania LLC Fees
• Ongoing Pennsylvania LLC Fees
• Other Pennsylvania LLC Costs to Consider
• Calculating Your Total Pennsylvania LLC Cost

With this information, you’ll be able to budget effectively in the Keystone State.

Common Pennsylvania LLC Fees

Here are some of the most common expenses you can expect when you start an LLC in Pennsylvania: 

Business Name Reservation Fee in Pennsylvania

Reserving a business name for your Pennsylvania LLC involves a fee of $70. This reservation ensures that the name is held for you for a period of 120 days, during which no other entity can register under that name. This gives you ample time to prepare and file your formal business registration documents without concern of losing your chosen business name.

Certificate of Organization Filing Fee in Pennsylvania

The Certificate of Organization, commonly referred to in other states as the Articles of Organization in many states, must be filed with the Pennsylvania Department of State to legally establish an LLC. The filing fee is $125and it’s a one-time fee.

Pennsylvania does waive the filing fee for small businesses started by veterans and reservists. To qualify for the exemption, you must provide proof of your veteran or reservist status while filing. 

Registered Agent Fees

Every LLC in Pennsylvania is required to designate a registered office where legal documents can be sent on behalf of the business. The annual fee for a registered agent service (someone who can fulfill this requirement for you) generally ranges from $100 to $300. The registered agent must have a physical address in Pennsylvania and be available during normal business hours.

Employer Identification Number

Obtaining an Employer Identification Number (EIN) from the IRS is necessary for tax purposes, and it’s free of charge if you file it yourself. This number is required to open a business bank account, hire employees, and file certain business tax returns. The application process can be completed online through the IRS website, providing immediate issuance of an EIN.

Pennsylvania Fictitious Name Fee

If an LLC chooses to operate under a name other than its officially registered name, it must register a fictitious name, sometimes called a Pennsylvania DBA or “doing business as” name. In Pennsylvania, the fee for registering a DBA is $70. This registration allows the company to conduct business, open bank accounts, and advertise under this alternate name.

Foreign LLC Formation in Pennsylvania

LLCs organized outside of Pennsylvania that wish to conduct business in the state must register as a Pennsylvania foreign LLC. The filing fee for this registration is $250. This process includes submitting a Certificate of Good Standing or the equivalent from the home state along with the appropriate registration forms to the Pennsylvania Department of State.

Pennsylvania Decennial Report

Unlike many states, Pennsylvania does not require LLCs to file an annual report, but they do require a decennial report, which is filed once every 10 years to confirm the business is still active. The fee for this decennial report is $70.

Certificate of Subsistence in Pennsylvania

A Certificate of Subsistence, known in many states as a Certificate of Good Standing, verifies that an LLC is compliant with state regulations and has filed all necessary documents. The fee for obtaining this certificate is $40. It is often required for financial transactions and legal matters to confirm the business’s legal status.

Operating Agreement

While not mandated by Pennsylvania law, it’s advisable for LLCs to create a Pennsylvana operating agreement. This internal document outlines the ownership structure, operational guidelines, and financial arrangements among members. Preparing an operating agreement helps prevent disputes among members and provides clear guidelines on the management of the LLC. 

This document can often be drafted without external costs, but consulting with a legal professional can provide additional security.

Ongoing Pennsylvania LLC Expenses

Even after you create an LLC, there are some ongoing expenses you’ll need to anticipate. Here are the most common ones: 

Decennial Report

In Pennsylvania, rather than an annual report, LLCs are required to file a Decennial Report every 10 years. This report confirms whether the business is still active and maintains its registration details up to date with the Pennsylvania Department of State. The fee for filing this report is $70. It’s crucial for LLCs to comply with this requirement to avoid being classified as inactive and potentially losing exclusive rights to their business name.

Registered Agent Renewal Fees

Maintaining a registered agent in Pennsylvania is a continuous requirement for LLCs. This agent is responsible for receiving important legal documents and some state communications on behalf of the LLC. If you’re hiring a service, you’ll have an annual fee likely ranging between $100-$300. To keep your agent coverage continuous, you’ll need to keep those payments up to date.

License and Permit Renewals

The costs and requirements for renewing licenses and permits in Pennsylvania vary widely depending on the business type and location. These could include professional licenses, health permits, or local business operation licenses. Staying updated on these renewals is vital for legal business operation and can prevent significant fines and business interruptions. Business owners need to monitor these dates closely and budget for the associated costs accordingly.

Operational Costs

Operational costs for an LLC in Pennsylvania encompass a broad range of expenses including rent, utilities, payroll, marketing, business insurance, workers’ compensation insurance, and more. These costs depend heavily on the scale and nature of the business operations. Managing these expenses effectively is crucial for maintaining profitability and business sustainability. Regular review and budgeting for operational costs help in making informed decisions that support business growth and efficiency.

Other Pennsylvania LLC Costs to Consider

Budgeting well as a Pennsylvania small business owner requires attention to detail for both expected and unexpected costs. Here are a few other vital expenses to account for. 

Specific Licenses and Permits

In Pennsylvania, the requirement for specific licenses and permits depends significantly on the type of business and its location. For instance, a healthcare business such as a dental clinic would require several specific permits and licenses to operate legally. This would include a health department permit, professional licenses for each practicing dentist, and possibly hazardous waste disposal permits. Each of these licenses would come with its own set of fees, application processes, and renewal requirements. 

This particular example is specific to healthcare providers, but every LLC will have different licensing needs based on their industry — such as construction, food service, or childcare — each accompanied by varying fees and regulatory compliance demands. Business owners must research and comply with both state and local regulations to ensure they meet all legal requirements for operation.

Certified Documents

LLCs in Pennsylvania may need certified copies of business documents for various reasons, such as registering for state business licenses, completing certain bank transactions, or complying with court requests. Documents that might need certification include the Certificate of Organization and amendments to them. 

Certified copies are obtained from the Pennsylvania Department of State, and the cost is typically around $40 per document. The process involves submitting a request online or via mail, along with the necessary payment. Having these certified documents is crucial for proving the legality and legitimacy of the business in formal and legal settings.

Professional Services

Maintaining an LLC often requires expertise in areas where the business owners may not be fully knowledgeable, such as legal compliance or financial management. In Pennsylvania, the typical costs for ongoing legal services can range from $150 to $400 per hour, depending on the complexity of the legal matters and the expertise of the attorney. Accounting services may vary from a few hundred to several thousand dollars per year, based on the services provided, such as bookkeeping, tax preparation, and financial planning. 

These professional services can help ensure that the LLC complies with current laws and regulations, manages its finances effectively, and reduces risk of legal or financial issues. When hiring professionals, it’s essential to consider their experience with similar businesses and their reputation within the industry to help ensure they provide valuable guidance and support.

Calculating Your Total Pennsylvania LLC Cost

It’s actually a little tricky to calculate the exact cost for your unique LLC since every business is different. But no matter what type you form, you can expect to at least pay the filing fee of $125 to get up and running by filing your Certificate of Organization. But a wide variety of businesses will need to pay fees for business licenses, rent and utilities, legal assistance, and more. 

If you’d like more specific startup cost estimates for your business, you can use a free online cost calculator. Estimating these costs can help you set a realistic budget for your Pennsylvania LLC, helping you successfully navigate both expected and unexpected expenses.