Form Your Pennsylvania LLC for Free With Inc Authority

With over 250K clients under its belt, Inc Authority is one of the most popular LLC formation service providers in the USA. What's more? It offers most of its essential LLC formation services for free!

Start Your LLC Today

1-Year Registered Agent Service Free

Inc Authority offers one-year registered agent service for free with both paid and free plans.

You'll get tax planning guidance and business credit advice as part of your free plan.

Inc Authority’s customer support team will take care of any queries you have along the way.

Things to Know Before Forming an LLC in Pennsylvania

The Commonwealth State, Pennsylvania, has some interesting regulations for those who want to form an LLC there.

Here’s everything you need to know before you start an LLC in Pennsylvania:

  • The personal income tax rate for LLCs (since they enjoy pass-through taxation) is 3.07%. With corporations, the tax rate is 9.99%. For C-corps it’s charged on net corporate income and for S-corps it’s on built-in gains.
  • Unlike in other states, you do not need to hire a registered agent to receive your official documents on your behalf. Pennsylvania provides a list of Commercial Registered Office Providers that you can select for this role.
  • If you wish to reserve an LLC business name in Pennsylvania, it will cost you $70. So if you’re not ready to use your business name yet, you can have it reserved for up to 120 days by paying the required state filing fee.
  • Please note that Pennsylvania charges a 6% sales tax on LLCs selling taxable items. An additional 1% local tax is charged for every item purchased, used, or delivered to Allegheny and 2% for Philadelphia.

This next section contains a guide to help you form an LLC in Pennsylvania.

Inc. 5000



USA Based Support


Processing Time

Name Your Pennsylvania LLC

The first step towards creating a Pennsylvania LLC is making sure your business name isn’t already taken. You can do this for free on the Pennsylvania Department of State Business Search website. Inc Authority also does this for you for free.

Ensure your LLC name contains the word Limited Liability Company, company, or limited or the initials to each. Also, make sure the name doesn’t contain any words relating to a Corporation, such as corp, or any other restricted words

Provide an Official Address in Pennsylvania

For your business’s legal correspondence, you’ll need to provide a physical mailing address of an office located in Pennsylvania. This could be a registered agent, although that’s not a requirement in this state, unlike most other states.

Alternatively, you can have a Commercial Registered Office Provider (CROP) receive your LLC documents on your behalf. The state provides a long list of CROPs you can choose from. You’ll need to get into a written agreement with them first.

File Your LLC Formation Documents

Next, you’ll need to file your LLC Certificate of Organization (or what other states would call Articles of Organization) with Pensylvannia’s Department of State Bureau of Corporations and Charitable Organizations. This will cost you $125. 

If you’re registering a foreign LLC, you can file a Foreign Registration Statement for $250. Pennsylvania allows for the domestication of foreign LLCs for $125 to make your LLC a domesticLLC in Pennsylvania, and foreign in your home state.

Create an Operating Agreement

While the state of Pennsylvania does not require LLCs to have an operating agreement, it’s advisable to have one. It’s a legally binding document that outlines how your LLC will be operated and what roles they will play in the LLC.

An LLC operating agreement contains details about the business, such as each member’s rights and responsibilities and their initial investments, voting rules, and procedures for dissolution, addition and departure of members, and more.

Get a Federal Employer Identification Number (EIN)

An Employer Identification Number is like your business’s social security number. It’s how the Internal Revenue Service identifies your business for federal tax obligations. So If you plan on having any employees, your LLC will need an EIN.

You can apply for an EIN on the IRS’s official website. However, this process can get difficult and tedious so most people prefer to outsource it. Inc Authority provides the service as part of its paid Starter plan, making it quicker and easier.

Understand Pennsylvania State’s Tax Requirements

LLCs enjoy pass-through taxation, which means that the business income passes through to the LLC members. Members then report it on their personal income tax returns as well as their self-employment tax, which happens at the federal level.

Some LLCs are eligible for S-corp status, which helps them save on self-employment taxes. At the state level, Pennsylvania imposes state-level payroll taxes at the rate of 3.07% on taxable income, and sales taxes of 6%.

Open a Business Bank Account

You’ll need to open a business bank account to separate your personal and business assets. Mixing business and personal finances can put your personal assets at risk in case your business faces a lawsuit or if it gets into debt.

This way, you’ll be able to enjoy limited liability without question. Having a business bank account also helps make the most of your LLC income. You can open a savings account, a capital reserve, or an investment account for your business.

Research and Acquire Business Licenses and Permits

Pennsylvania provides licenses to businesses to ensure the safety and health of its citizens. Professions that require business licenses from the state include barbers, medicine board, pharmacy, real estate, engineers, cosmetology, nursing, etc.

Besides business licensing, your business may need permits depending on your city or county of operation. You’d need to check with your local authorities for zoning and permit regulations for your city or county, to find out the permits you need.

Get Business Insurance

You’ll need insurance if you plan to hire employees for your LLC. You’ll need worker’s compensation insurance to provide them with medical benefits in case of an injury or sickness and health insurance if you have over 50 full-time employees.

Another form of insurance you may consider getting if you’re offering professional services is professional liability insurance. This type of insurance covers your costs if a customer sues your business for negligence or providing subpar services.

Establish a Business Online Presence

Next, you’ll need to establish an official website to solidify your online presence. It’s not difficult to create a website, as there are numerous website-building tools out there that can help you. Inc Authority has this service as part of its paid packages.

You’ll need an official domain name for your business and a good website hosting platform. An official website comes with official email addresses as well, that you and your team can use for your business. This all helps add to your credibility.

Market Your LLC

Once you’ve got the right documents, have your finances set up, and your LLC is up and running, you can now get the word out. Building a strong marketing strategy to reach your target audience and introduce them to your products and services.

Promote your business using different marketing tactics. Some marketing tactics you could try out include creating a social media presence, partnering with influencer marketers, offering loyalty programs, product giveaways, and more.

Stay Compliant

The state of Pennsylvania only requires restricted and benefit LLCs to file annual reports, unlike most other states. Restricted LLCs need to file an Annual Registration Report while Benefit LLCs need to file an Annual Benefit Report.

This, however, is set to change in 2025 as all states will be required to file an annual report. This will cost $7. Initially, all LLCs only filed a Decennial report every 10 years and the report needed to be filed on a year ending with ‘1’, like 2021.

Why Outsource LLC Formation Instead of Handling It Yourself?

While you can handle the formation process on your own, there are too many state regulations to keep up with. As such, it’s easier to have a business formation service do it on your behalf.

Here’s why you should outsource this function.


Save the time you would have spent scouring the internet for information on the requirements to start a business and figuring out state regulations. Instead, leave the formation to the experts and use your time to focus on scaling your business, increasing sales, etc.


Customer Support

Forming a business by yourself can be frustrating as you may not know who to consult if you get stuck along the way. But if you outsource, you’ll have the guidance you need to help you understand the process and deal with any challenges that come along.

Simplified Process

Outsourcing your business formation to a third party simplifies the process. The service provider will take most of the load off your back, including most of the paperwork. This way, you will only have to deal with simpler tasks, such as follow-ups, compliance, and more.

Get Started with Inc Authority


If you’re looking to file your documents with the state and nothing more, this is the plan for you. Here are the services you’ll get.

  • Business name check: Inc Authority will check your business name to make sure no other LLC or Corporation has it in the state. Once you’re certain your name is available, you can register your LLC with the state.
  • Preparation and filing: Inc Authority does not charge to file your formation documents with the state. You’ll only pay the state filing fee which is constant regardless of the formation platform you choose.
  • Registered agent services: Inc Authority provides free registered agent service for a year. They’ll receive your formal notices and legal documents from the state and federal government on your behalf.
  • Digital storage and delivery: Inc Authority delivers a physical copy of your start-up documents to your official address. Alternatively, these documents are stored online and you can easily access them anytime.
  • Tax planning consultation: New entrepreneurs don’t often know what their tax obligations are at the state or federal level. Inc Authority offers a free tax consultation to help businesses plan and save tax income.
  • S-election form: Some businesses choose the S-corp pass-through taxation option to save on self-employment taxes. Inc Authority prepares the S-election form (form 2553) and files it for you.
  • INC CARE support: As part of their free package, Inc Authority offers customers 24/7 support. You can reach out with your queries to customer service representatives via phone or email.
  • Business credit and funding analysis: An Inc authority business funding and credit expert will analyze your credit situation and assess your funding needs. They’ll then suggest solutions on how to improve each.

Price: Free

Starter Plan

Most businesses find that they need extra services besides those provided in the free package. Here’s what to expect on the Starter paid plan.

  • Operating Agreement or bylaws: While it’s not a requirement, each Pennsylvania LLC should have a set of rules that outline its operations. Inc Authority provides a customizable template you can use for this purpose.
  • Employer Identification Number (EIN): As mentioned earlier, you’ll need to obtain a federal EIN for your business as it’s essential to your Pennsylvania LLC formation process. The Starter plan has this as part of its offerings. 
  • Ownership/stock certificates: If your LLC issues certificates to your members as proof of ownership, then this plan is for you. Inc Authority provides certificate templates you can use to draft these documents. 
  • Corporate forms and documents package: This package helps you draft your business documents. Usually, to get your new business running, you need numerous documents, and it can be hard to keep tabs on each one.
  • Annual compliance notifications: New businesses need to keep tabs on compliance requirements such as filing taxes and annual reports on time. Inc Authority sends notifications to keep you up to date.
  • Professional tax consultation: Inc Authority provides expert tax consultation for businesses to help them figure out the best tax-saving options. Unlike free tax analysis, this one’s more comprehensive and specific to your business. 
  • Web domain + 5 business email addresses: Having a web domain and an official email address helps your business’s credibility. And Inc Authority offers 5 email addresses and a domain name on the Starter plan.

Price: Custom

Fasttrack Plan

For their top-tier plan, Inc Authority offers expedited filing, comprehensive tax advisory, and more. Here’s everything in detail.

  • Expedited preparation & filing: Rush LLC registration is part of Inc Authority’s premium plan. If you’re in a hurry to get your paperwork filed for whatever reason, this is the plan for you. The Inc Authority team will prioritize your filing and submit your application in 24hrs. 
  • Customer success advisor: Inc Authority’s Fasttrack plan comes with a customer success manager. They’re a business expert who will guide you through every step of your Pennsylvania LLC formation, help with any doubts, and make sure you’re set up for success.
  • Private banking specialist: To ensure your business’s financial continuity, you’ll need to open a separate bank account. With a private banking specialist from Inc Authority guiding you, you’ll know which bank accounts to open, where, when, and how each will be useful for your new LLC. 
  • Personalized business advice: Another one of the major perks of choosing the premium plan is that you get personalized business advice. Inc Authority has business experts in different industries who will give you tailored advice to help you scale your business.

Price: Custom

Trademark Registration

Inc Authority offers trademark registration services for businesses. This includes a federal trademark availability search and expedited filing of your paperwork with the United States Patent and Trademark Office (USPTO).

A trademark expert will be allocated to you to complete and monitor your application while you wait for a response. You’ll be notified of any renewal dates for your trademark registration and you’ll get 3 years of trademark monitoring.

Revocable Living Trust

This is related to LLC formation but is important for your business or personal assets long term. If you’re worried about probate and would like to start planning for your finances early, Inc Authority prepares a revocable living trust for you.

This is better than a Last Will and Testament if most of your assets are in real estate. A revocable living trust avoids the hassle of requiring an executor to sell property at discounted prices, or insurance money being used to pay for probate expenses.

Business Credit Analysis

New businesses often struggle to build their credit rates which becomes a disadvantage when they’re seeking funding. Inc Authority uses a multi-tiered credit building system to build your business’s credit efficiently and faster.

You’ll get 90 days of hands-on coaching from a business credit expert. Resultantly, you’ll maximize your credit score and improve your profile with major credit bureaus.  Your coach will set up your business profile with Dun, Bradstreet, and Experian.

Business Funding Analysis

This is meant to help new and existing businesses find capital and high credit limits. Inc Authority links eligible businesses with low-interest lenders who offer personal loans and credit cards. You can get between $30,000 to $100,000.

They’ll walk you through the pre-application requirements t. Then, they’ll connect you with FICO underwriters for a consultation. They’ll then submit your funding application and issue support to raise your approval chances.

Business Plan Creation

With this paid package, Inc authority writes and edits your business plan for you. This includes details like your business mission statement, marketing analysis, financial projections, executive summary, revenue model, and more. 

The business plan will be tailor-made to your needs to help you acquire funding and grow. You’ll get a dedicated business plan advisor to walk you through the creation process and handle all your queries. This includes any revisions you may need.

Website Design and SEO Marketing

This package comes with a few crucial benefits. First, if you want to create a website, Inc Authority connects you with a website designer who’ll customize your website based on your business needs to boost your online visibility.

You’ll get a specialized SEO marketing assistant to help you optimize your meta titles, product descriptions, headings, and keywords. You’ll also get a professionally designed logo, 500 personalized business cards, location listings, etc.

Personal Limited Liability

This business structure protects your personal assets in the event that your business gets sued or is in debt. An LLC offers similar protection as a Corporation, though not as extensive. The state treats your business as a separate legal entity.

Your LLC can handle its own lawsuit expenses and pay its own debts. However, unlike Corporations, Limited Liability Companies enjoy liability protection without having to deal with numerous formal requirements or double taxation.


No Registered Agent Needed

The Commonwealth state does not need businesses to have registered agents like most other states. This does not mean that you shouldn’t have one. It means that you’ll have options. You only need to provide a registered office address.

The state provides a list of offices on its official website that you can use for your correspondence. Once you get into a contractual agreement with a commercial registered office provider (CROP), they can act as your “registered agent”.

Favorable Filing Fees

Pennsylvania annual report filing fee is affordable. According to the new law that took effect in 2022, Pennsylvania LLCs will be required to file their annual reports from 2025. Traditionally, only restricted and benefit LLCs filed these reports.

The rest of the LLCs filed decennial reports (every 10 years) for $70. Now, annual reports will cost $7 every year for LLCs. This filing fee is much more affordable compared to most other states where charges are higher than $50.

Fewer Restrictions

Unlike C-Corporations, LLCs have fewer restrictions imposed on their operations. For instance, C-corps need to file numerous formation paperwork to be considered legal, while LLCs only file a single application with the state for the same recognition.

Also, LLCs get the freedom to decide how their business is operated, how they choose managers, and how they designate responsibility. They have no rules regarding annual meetings and they can have as many members as they want.

Management Flexibility

Pennsylvania has no rules as to who should manage the LLCs. This decision is left entirely to the owners. This includes choosing between a single-member LLC or a multi-member LLC—either owned and managed by a single person or more people.

Members also have the option of having member-managed LLCs or manager-managed LLCs. Owners can either manage their business themselves or appoint a manager to do it on their behalf. Corporations do not enjoy this flexibility.

Increased Credibility

It’s easier to build your credibility as an LLC than it is to do so as a Sole Proprietorship. Business entities with this structure are viewed as more structured and formal, and this gives them an advantage when seeking funding.

In Pennsylvania, your business will be required to adopt the words LLC or limited liability company and this adds to its positive outlook. As a result, the people you transact with will know right away that you’re a structured business.

Frequently Asked Questions (FAQs)

Filing for a Certificate of Organization for a domestic limited liability company in PA costs $125. If during filing you decide to acquire a fictitious name or a Doing Business As (DBA), you will pay $70 for registration. Name reservation also costs $70.

Foreign LLCs have different charges for formation in Pennsylvania. Registration for a foreign LLC will cost $250 unless the foreign LLC wants to be domesticated. In this case, the fee is similar to that of forming a domestic LLC ($125).

Restricted professional LLCs pay at least $500 for registration in Pennsylvania.

Some benefits of forming an LLC in Pennsylvania include

  • Personal limited liability: Just like with Corporations, this business structure protects your personal assets if your business gets sued or is in debt. An LLC is treated as a separate legal entity and has its own legal rights.
  • No registered agent needed: Pennsylvania does not need businesses to have a registered agent. They provide a list of commercial registered office providers (CROPs), that can act as your “registered agent”.
  • Favorable filing fees: Pennsylvania annual report filing fee is affordable. They charge an annual filing fee of $7 every year for LLCs. The fee is affordable compared to most other states that charge $50 and higher.
  • Fewer restrictions: Unlike Corporations, LLCs have fewer restrictions imposed on their operations. For instance, C-Corps need more complex formation paperwork and have more ongoing compliance requirements.
  • Management flexibility: There are no rules as to who should manage LLCs. The owners can manage their business themselves or appoint a manager to do it. Corporations and Partnerships do not enjoy this level of flexibility.
  • Increased credibility: It’s easier to build your credibility as an LLC than it is to do so as a Sole Proprietorship. Business entities with this structure are viewed as more structured and formal, which gives them an advantage when seeking funding.

Pennsylvania Corporations and LLCs both cost $125 to register.

Pennsylvania LLCs are subject to a 3.07% income tax rate while corporations get taxed 9.99% corporate net income tax. Some cities also impose their own local income taxes.

For instance, Philadelphia charges 3.87% personal income tax on residents and 3.44% on non-residents. Besides that, there are a few general differences between LLCs and Corporations. 

For instance, forming a Corporation requires loads of paperwork that go beyond the state level, while LLCs are simpler to form.

Single-member LLCs are only required to pay the standard 3.07% income tax. LLCs that choose to be taxed as C-corps pay 9.99% corporate net income tax. 

LLCs that elect S-corp status are also subject to the same rate as C-corps but only on their built-in gains. Their shareholders,  however, are only subject to the 3.07% personal income tax on their paychecks.

Online filings in Pennsylvania take between 5 and 6 weeks in general. Applications filed by mail take up to 8 weeks, which is longer because of the time your documents are in the mail. 

Expedited filings are available at extra costs. For one-hour filings received before 4 pm, you’ll pay $1,000. 3-hour expedited filings received before 2 pm cost $300 while same-day services cost $100.