An LLC is a type of business entity used by individuals, partnerships, corporations, trusts, and estates to limit personal liability. In addition to filing taxes, an LLC must file an annual report known as an “LLC annual report.” This document contains basic information about the organization, including the owners, members, manager(s), and director(s).
The LLC annual report must include the following:
• Ownership Structure – How many people are involved in the ownership of the LLC.
• Members – Who owns the LLC.
• Manager(s) – Who manages the day-to-day operations of the LLC.
A federal income tax return must also be filed annually with the Internal Revenue Service (IRS) if the LLC earns $1,000 or more during the year from sources within the United States. If the LLC earns less than $1,000, it does not need to file a federal income tax return.
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Annual Registration
The Pennsylvania Department of State requires foreign limited liability companies (LLCs), domestic LLCs, general partnerships, corporations and unincorporated associations to file an annual report with the department. This includes information about the company’s name, address, principal place of business, registered agent, date of organization, number of members, officers, directors and shareholders, and financial statements.
Foreign LLCs must register annually. If you do business in Pennsylvania, you must file an annual report with us. You can find out how much it costs to register here.
All LLCs in Pennsylvania are required to file an annual report. A sample form is included in our forms section.
State Business Tax
Limited liability companies (LLCs) are often used as pass-through entities. They allow owners to defer personal income taxes while still enjoying the benefits of limited liability protection. However, there are some drawbacks to operating as an LLC. For example, you must pay double taxation if you choose to operate as a corporation rather than as an LLC. In addition, certain states impose additional taxes on corporations. These include California, Florida, Illinois, New York, Ohio, Pennsylvania, Texas, Virginia, Washington, and Wisconsin.
The IRS considers LLCs to be passthrough entities. As such, they do not require separate filing requirements. Instead, they are taxed like partnerships. If you elect to form an LLC, it is important to understand how it will impact your taxes.
State Employer Taxes
To register a company with the Pennsylvania Department of Labor & Industry, you’ll need an employer identification number (EIN). You must apply for one within 30 days of establishing your business. If you don’t have one, you’ll need to pay $50 and file a Pennsylvania Business Registration Form 501. Once registered, you’ll need to withhold sales tax from employees’ wages and file quarterly withholding reports.
Registration in Other States
When conducting business in multiple states you’ll need to register with the appropriate state authorities. In some cases, you might even need to register in every state where you do business. For example, if you are operating an LLC in California, you must register it in California. You cannot just register it in New York because you’re operating there too.
Each state has different rules about how you conduct business within their borders. Some require registration while others don’t. Check with the Secretary of State for each state where you plan to conduct business.
If you want to operate an S Corporation in another state, you’ll need to file Form 2553 in both states. Doing so allows you to avoid double taxation on income earned in those states.
Create your LLC Corporation with just 3 easy steps
There may be other potential fees or requirements for an LLC in Pennsylvania.
There are many different types of corporate legal structures, such as sole proprietorships, partnerships, corporations, limited liability companies (LLCs), and general partnerships. Each type of structure has advantages and disadvantages, and each requires compliance with specific requirements.
The following list provides a brief overview of some of the most common types of fees associated with forming an LLC in Pennsylvania, including filing fees, annual membership dues, document filing fees, and franchise tax payments. This information is intended to provide you with a basic understanding of what it costs to form an LLC in Pennsylvania.
Filing Fees
In addition to the initial $75 filing fee, there are additional fees based on how many members you want to incorporate. For example, if you want to incorporate three members, the total cost is $150; however, if you want to add another five members, the total cost rises to $300. You must pay the entire amount upfront.
Annual Membership Dues
If you choose to incorporate, you must pay annual dues equal to one-half of 1% of the value of Changing the net assets owned by the corporation. Net asset value is determined by Reserving by adding together all of the corporation’s Amending assets minus liabilities. In the case of a single-member LLC, the net asset value equals the sum of the individual’s assets minus his/her liabilities. Suppose you do not include a provision for payment of annual dues in your articles of organization. In that case, the board of directors may set the annual dues at whatever level it deems appropriate.
Changing the Registered Agent
The law requires that every corporation file a statement with the Secretary of State listing the name and address of the person designated to receive service of process. This document is called a “registered agent.” If someone else receives service of process, it could mean that the lawsuit isn’t properly served. This can lead to serious problems down the road. For example, if a judgment against your company goes unpaid, the court could seize property owned by your company.
A CROP is a place where you can accept mail. You don’t need to physically go there to do business. Instead, you send mail directly to the CROP. A CROP is usually located near your registered office.
When you register your company with us, we provide a list containing information about qualified CROPS. We’re happy to help you select one. Our fee is $5 per year for companies with less than $100,000 in annual gross sales.
Reserving a Name for Your LLC in Pennsylvania
To begin, you have to select a name for your PA corporation. In Pennsylvania, you are allowed to reserve a name for a limited period of time. This is called reserving a name. If you do not reserve a name within the allotted timeframe, the name becomes available again.
You are able to reserve a name for one year for just $50. However, it costs $70 to reserve a longer-term name.
A PA PLLC must submit an annual report to the Secretary of Revenue. You can use any name for your PA Corporation.
An attorney will assist you in setting up your PA PLLC and filing the necessary paperwork.
Ammending Certain Facts About Your LLC (PA)
If you want to change anything about your limited liability company (LLC), such as adding partners or changing your address, it must be filed with the Pennsylvania Department of State. An amendment can be filed online or via IncFile. If you file online, you pay $70 and receive a receipt within 24 hours. If you use IncFile, the fee is $30 and you receive a confirmation email.
The document you file is called a “business formation document.” This includes articles of organization, operating agreement, membership certificate, notice of commencement, and name correction form. These are the same forms used to start an LLC. All amendments will be considered effective once approved by the state.
Frequently Asked Questions
How to Obtain a Certificate of Good Standing in Pennsylvania
A Certificate of Good Standing, or CGS, is required in most states to establish an entity as a legal person. In Pennsylvania, it’s called a Certificate of Subsistance, or COS. Whether you are starting a new business or just getting ready to take out a loan, you must obtain a COS in Pennsylvania. This document proves that your business has been legally registered under the laws of the Commonwealth.
The process varies depending on whether you want to form an individual or corporate entity. For example, individuals file a COS application directly with the Secretary of the Commonwealth. Corporations use the Online Services Center, which provides a secure portal where you can submit your information and pay fees. Once submitted, the secretary issues a COS within 24 hours.
How to Dissolve an LLC in Pennsylvania
If you want to dissolve your limited liability company in Pennsylvania, there are two broad stages to take care of. First, you must close your business tax accounts. Second, you need to file articles of dissolution. There are several reasons why you might want to dissolve your LLC. You could sell off assets, liquidate, wind down operations, or simply retire. Whatever the reason, you need to make sure to take some action soon.
When you are ready to dissolve, follow the steps in the guide above. We have put together a step-by-step process that takes you through everything you need to know about dissolving an LLC in Pennsylvania.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.
