Preliminary information about the State of Pennsylvania
Described as the most affordable state in the Northeast, starting an LLC in Pennsylvania opens the door to entrepreneurs looking to start a business without the notoriously high cost of living.
This, combined with the fact that it has the 2nd most diverse state economy in the US, makes starting an LLC in Pennsylvania a perfect place for entrepreneurs!
establishing a company in Pennsylvania, in Pennsylvania , establishing a company at the most affordable price, and the steps you should take at this stage.
Annual (1 per year)
The registered agent company, from which you will receive support during the installation phase, will provide the mentioned formation documents for the installation. Thus, you do not need to take any extra action. To form your company, you can get online service from Northwest Registered Agent by paying the 39+ State filing fee.
Costs
| Service | Price | In installation | Annual (1 per year) |
| Fee to be Paid to the State During LLC Company Formment | 125$ | ✔ | – |
| In addition to the installation fee, do not forget to add the Northwest Agency fee of $ 39 to the cost. | 70$ | – | ✔ |
- In addition to the installation fee, do not forget to add the Northwest Agency fee of $ 39 to the cost.
- You can renew your Northwest agency fee next year for $125 (address included)
- Pennsylvania LLCs must submit reporting payments ($70) to the state every 10 years
What is Registered Agent?
Agencies that provide services for entrepreneurs who do not reside in the United States to form an llc, receive official documents from the state, and ensure that the company remains healthy are called Registered Agents.
When you decide to form an LLC in Usa, Northwest is one of the best options. Northwest provides a free mailing address for your company.
There are also different agencies, you can access the full list and detailed review page of other Registered Agent companies that establish LLCs from this link .
How to Form an LLC in Pennsylvania?
You can form an LLC remotely online in the state of Pennsylvania Additionally, non-US citizens are not required to have an ID or passport.
You will need a registered agent for the installation, who will prepare and file the necessary documents online for you with the state.
If you do business with the Northwest agency, you do not need to pay extra for the company address because this agency has offices in all US states and allows you to use its offices as your business address. Other details are below.
- The state website may be closed to most countries for security reasons, you can use a US-based VPN or Opera Browser to access it. Choosing a Name for an LLC Company for name selection rules .
- The state website may be closed to most countries for security reasons, you can use a US-based VPN or Opera Browser to access it. Choosing a Name for an LLC Company for name selection rules .
- You can get a domain name for your company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
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- Apply Online: Determine a Registered Agent to establish your company and keep it active. Northwest is among the most affordable and highest quality options. here and order them to establish your company online. Northwest will fulfill all transactions for you according to the order form in your application and will be your Registered Agent in this state
- Operating Agreement: The operating agreement, called the Operating Agreement, determines the management style and rules of the company. It is not required to be created in many states, in Pennsylvania . Northwest will prepare an operating agreement for you free of charge after company establishment and deliver it to you electronically. Although the state does not require it, it is recommended to create it, but you do not need to mail or electronically send this contract to the state, just keep the contract you have prepared and signed.
The approval and establishment time of the LLC company is around 45 days for the state of Pennsylvania.
What happens after your LLC company is approved in the state of Pennsylvania
- After the company is formed, your LLC formation document is delivered to you digitally by your agency.
- Once you receive the incorporation documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register for payment systems such as virtual POS (stripe) or paypal. You can also apply for an EIN yourself by filling out form SS4 and faxing it to the IRS. the Free EIN Application guide . The other option for EIN is to get a paid service. You can get EIN application service from us for $ 29. We can process it on the same day and carry out the entire process for you. the order form after company setup .
State Requirements and Taxes
Federal Taxes: All LLCs require a federal tax identification number, EIN. An EIN is basically the business version of a social security number and is used for important LLC functions. If you obtain your LLC company income from American citizens, you may be required to pay federal income tax to the state after a certain turnover.
State Requirements: In Pennsylvania, LLCs must file a Report with the state every 10 years with or without income. It is necessary to fulfill the report requirements in a timely manner.
Sales Tax Rate in Pennsylvania
Sales Tax in Pennsylvania: Pennsylvania has a 6% state sales tax and allows local governments to collect up to a 2% local option sales tax. There are a total of 68 local tax jurisdictions across the state, which collect an average local tax of 0.166%.
Combined with the state sales tax, the highest sales tax rate in Pennsylvania is 8% in the cities of Philadelphia, Bensalem, Glenside, Feasterville Trevose, and Lansdowne (and seven other cities)
Obtaining Business Licenses and Permits
Pennsylvania requires established businesses to obtain appropriate licenses and permits before providing services or engaging in commercial activities. PA Business Entity Registration with the Department of Revenue, which creates an account that allows the business to establish other accounts and licenses .
The most common license needed is a sales tax license. This license is required for a business that sells taxable goods and services, including digital products, online. A sales tax license allows a business to collect and remit the required 6% sales tax.
Other licenses may be required, such as professional licenses administered by the Pennsylvania Department of State. These licenses are required for certain service professionals, including:
- barbers
- beauticians
- engineers
- medical providers
- Pharmacists
- real estate agents
- social workers
You may also need to obtain a license if your company operates in regulated industries, such as food or alcoholic beverage sales.
Annual Reporting
Pennsylvania LLCs are required to file a decennial report with the state every ten years. Even if the business has not made any other declarations in the last ten years (change, change of registered office, etc.), it still needs to submit this report. The purpose of the report is to let the State Department know that your business still exists. The decennial report can only be submitted by mail and requires a $70 filing fee.
Annual Report Date:
The Pennsylvania Decennial Report is due by December 31 for each year ending with the number “1” (2031, 2041, 2051…). If you forget to file, you lose exclusive rights to your business name, meaning another business can start using it.
You can only file your annual report with the state via physical mail.
For more information on general taxation issues regarding LLC companies, Taxation in America .
