How to Form an LLC in Pennsylvania

If you are a U.S. entrepreneur or an international startup looking to enter the U.S. market, establishing a Limited Liability Company (LLC) in Pennsylvania is an intelligent move.

The state is well-known for its broad economy, its central location, cutting-edge infrastructure, and business-friendly attitude, making it advantageous for local as well as international businesses.

In this step-by-step guide, we will help you to form an LLC in Pennsylvania, including selecting a name for your business, fulfilling tax obligations, and submitting the new federal BOI report.

Why Pennsylvania LLC?

Pennsylvania, or the Keystone State as it is known, is the fifth-most popular state in the U.S. and known for its unique combination of industrial prowess, startup activity, and access to large consumer bases, making it a strategic location for a wide variety of businesses.

Main Benefits of LLC in Pennsylvania:

Access to Major Markets: The state’s location at the intersection of the U.S. Northeast makes PA and its businesses easy to access and reach world-renowned cities such as New York, Washington D.C, and Boston.

Diverse industries: Pennsylvania excels in healthcare, finance, technology, manufacturing, agriculture, logistics, and education. Whatever your activity, you will find a great business network ready to work with you.

Highly Educated Workforce: With over 250 colleges and universities, Pennsylvania offers unparalleled education and streams of talent for veterans, providing unmatched educational opportunities and nurturing streams of talent for veterans.

Limited Liability Protection: LLCs safeguard company owner’s personal property from business obligations, providing legal protection to business operators.

No U.S. Citizenship Requirement: There is no need for U.S. residency for foreigners to own and run an LLC company in Pennsylvania.

Step-by-Step Process to Form an LLC in Pennsylvania

1. Choose a Unique Name for Your LLC

Your brand is kickstarted by the name of your LLC. It should be distinguishable from other entities in the region and must contain a designator, in Pennsylvania, saying “Limited Liability Company,” “LLC,” or “L.L.C.” will comply.

Naming Guidelines:

• The name must not be deceptively similarity towards existing businesses.
• Certain words such as “Bank,” “Attorney,” or “University” need additional documents or a certain level of governance to be registered as such.
• It is possible to check its name availability using Pennsylvania Corporation Search.

Optional Name Reservation: If you wish to secure a name but are not ready to set up the company, you may submit Form DSCB:15-208 and pay a $70 reservation fee for 120 days.

2. Choose a Registered Office or a Commercial Registered Agent

The state mandates that every LLC has a legal address that physically exists in Pennsylvania for the purpose of receiving official correspondence and legal parcels.

You have two options:

• Registered Office: This address must be in Pennsylvania and cannot be a P.O. Box address.
• Commercial Registered Agent: This can be a third party provider, such as Bizstartz, that receives legal correspondence and service documents on behalf of your LLC.

For International Entrepreneurs:

If you lack a Pennsylvania address, then you must have a Commercial Registered Agent. Bizstartz offers this for non-U.S. residents forming LLCs from abroad.

3. Submit the Certificate of Organization (Form DSCB:15-8821)

This is the document that legally establishes your LLC and is submitted to the Pennsylvania Department of State.

Options to file:

• You can do it online using the PA Business One-Stop Hub
• Via Mail: Send the form and payment to
  • PA Department of State – Bureau of Corporations
  • 401 North Street, Room 206, Harrisburg, PA 17120

Information required:

• LLC name
  
• Registered office or agent address
  
• Organizer details
  
• Whether the LLC will be managed by members or managers

Filing Fee: $125 (non-refundable)

Once approved, you’ll receive a stamped Certificate of Organization as proof of your LLC’s legal existence.

4. Docketing Statement Submissions (Form DSCB:15-134A)

This form is supplementary to the Certificate of Organization and contains the following:

• LLC Title
• Business Activity Description
• Federal EIN (or apply for one)
• Business Commencement Date
• Responsible parties Names and Addresses

This submission assists the Revenue and local offices in monitoring new businesses for taxation and regulatory compliance.

5. Apply For An EIN (Employer Identification Number)From the IRS

An EIN is to a business what a Social Security Number is to a person. It is required for:

• Opening a Bank account in the US
• Filing for Federal and state taxes
• Employee Onboarding
• Business Licenses and Merchant Accounts (Stripe, PayPal, Amazon)

Acquisition Options:

US Applicants: Apply for free online at IRS.gov

Non US Applicants: Apply through SS-4 form via mail or fax. For foreigners without a Social Security Number or ITIN, Bizstartz offers EIN application services.

6. Prepare an LLC Operating Agreement

While it is not a requirement in Pennsylvania, an Operating Agreement is an important internal document that details:

• Ownership percentages
• Member duties and responsibilities
• Profit-sharing rules
• Voting procedures
• Dissolution terms

This document is particularly useful in preventing disputes and providing evidence of a proper legal structure. This is critical when it comes to multi-member LLCs and non-resident owners who seek to use this document to establish credibility with banks and platforms like Stripe.

7. Register for Pennsylvania State Taxes and Licenses

Depending on your business activity and structure, you may need to register with the state’s tax authorities and obtain local licenses.

Common Requirements Include:

• PA Sales Tax License: Required if selling physical or digital goods in Pennsylvania.
• Withholding Account Number: Required if you plan to hire employees.
• Business Privilege or Local Licenses: Many counties and municipalities have their own requirements.

Where to Register:

Use the PA Department of Revenue’s e-TIDES portal or contact local municipalities for license requirements.

8. File the Federal BOI Report (Corporate Transparency Act)

Starting in 2024, all newly formed LLCs will need to submit a Beneficial Ownership Information (BOI) Report to FinCEN in a bid to enhance corporate transparency and mitigate fraud.

Main Things to Note:

• Completion Date: Within three months of formation
• Missing Data: Full names, addresses, and identification numbers of the people that hold ownership or control the LLC.
• Not Following Instructions: Penalties up to 500 dollars per day.

Bizstartz ensures that you stay compliant with federal laws by filling BOI with all LLC packages.

9. Setting up a Business Bank Account

A US bank business account plays an important in in upholding the businesses financial access, financial segregation, and also building business credit.

Requirements:

• Tax no (EIN).
• Business formation documents (Certificate of Organization).
• Operating agreements.
• Photo identification (passport for foreigners).

For non US residents:

• Some fintech online only banks offer account opening online.
• Bizstartz helps in introducing to banking partners that accept foreign owned LLC.

10. LLC Compliance requirements for Pennsylvania

Like most states, Pennsylvania does not require LLCs to file an annual report, in fact, does not report at all. But, there are other compliance requirements to focus on.

✅ Decennial Report.

• Due every 10 years (years ending in “1”—e.g., 2031, 2041)
  
• Required to confirm the business is still active
  
• Filing Fee: $70

✅ State Taxes

• Personal Income Tax: LLCs pay an income tax for a flat fee of 3.07% for the income passed to the members.
• Local Taxes: LLCs are also subjected to income tax by the locality.
• State Taxes: 6% along with surcharges from local tax authorities.

✅ Federal Taxes

By default, an LLC is taxed as a pass-through entity. However, you have the option to elect for corporate taxation as a C-Corp or S-Corp if beneficial.

Cost Breakdown: Forming a Pennsylvania LLC

Can Foreign Entrepreneurs Start an LLC in Pennsylvania?

Absolutely. Pennsylvania permits complete foreign ownership of LLCs without needing to be in the U.S., holding a visa, green card, or any other immigration paperwork.

Non-U.S. Residence Advantages:

• Utilization of U.S. banking systems
• Running ecommerce businesses (Amazon FBA, Shopify, SaaS, etc.)
• Enabled to receive funds through U.S. payment systems like Stripe and PayPal
• Credibility of American brands and trust from customers

Bizstartz has assisted entrepreneurs from over 30 nationalities to establish an LLC in the U.S. remotely.

Last Thoughts: the Advantages of Using LLC Bizstartz

Accessing the U.S. market through launching an LLC in Pennsylvania is simple and comes with a lot of benefits. Pennsylvania has a generous legal structure, reasonable fee schedules, and it is easy to do business there which is a plus for any entrepreneur.

Bizstartz Services Include:

• Forming LLCs in every state
• EIN and BOI filing
• Acting as a Registered Agent
• Opening Bank Accounts
• Assisting with payment processors and Amazon
• Compliance matters ongoing and periodic

Ready to register your LLC in Pennsylvania?

Business name registration is just a click away at Bizstartz.com. We will do it efficiently, at low cost, and remotely.