Pennsylvania LLC Formation: Step-by-Step Instructions
Forming a Limited Liability Company (LLC) in Pennsylvania offers flexibility, liability protection, and a straightforward registration process. Whether youâre a small business owner, freelancer, or expanding entrepreneur, setting up a Pennsylvania LLC ensures your business is legally recognized and compliant with state requirements.
Below is a complete, step-by-step guide to forming your Pennsylvania LLC, including fees, requirements, and helpful notes to keep your registration smooth and error-free.
1. Choose a Name for Your Pennsylvania LLC
Your LLC name must be unique and distinguishable from other registered businesses in Pennsylvania. It should also include a proper designator such as âLimited Liability Company,â âLLC,â or âL.L.C.â
Before filing, check if your desired name is available using the Pennsylvania Department of Stateâs business name search tool.
If youâre not yet ready to form your LLC, you can reserve your chosen name for 120 days by filing a name reservation application. The reservation fee is $70. This prevents others from using the name while you prepare your formation documents.
Tip: Avoid using restricted words like âbank,â âtrust,â or âinsuranceâ unless you have approval from relevant state agencies.
2. Appoint a Registered Office
Pennsylvania requires every LLC to have a registered office within the state. This office serves as your official point of contact for receiving legal and government correspondence.
You can list:
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A physical street address in Pennsylvania (cannot be a P.O. Box), or
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The address of a commercial registered office provider (CROP) authorized to receive documents on your behalf.
Choosing a reliable registered office ensures that your business stays compliant and never misses important state notices or legal documents.
3. File the Certificate of Organization
The Certificate of Organization (Form DSCB:15-8821) is the document that officially creates your LLC. Youâll file this with the Pennsylvania Department of State â Bureau of Corporations and Charitable Organizations.
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Filing fee: $125
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Filing options: Online via the PA Business One-Stop Hub or by mail
Your Certificate of Organization should include:
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LLC name and address
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Registered office address or CROP information
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Names of organizers
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Business purpose (optional)
Once approved, your Pennsylvania LLC is legally recognized and authorized to operate within the state.
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4. Create an Operating Agreement
Although Pennsylvania law doesnât require an Operating Agreement, having one is strongly recommended.
This internal document outlines how your LLC will operate, including:
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Ownership structure and capital contributions
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Voting rights and management responsibilities
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Profit distribution methods
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Steps for adding or removing members
An Operating Agreement helps avoid internal conflicts, clarifies each memberâs role, and strengthens the LLCâs liability protectionâespecially in legal or tax matters.
5. Obtain an EIN (Employer Identification Number)
An EIN, or Employer Identification Number, is a nine-digit number issued by the IRS. It functions like a Social Security number for your business.
Youâll need an EIN if you:
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Have employees
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File federal or state business taxes
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Open a business bank account
You can apply for an EIN free of charge directly through the IRS website. Most applications are approved instantly.
6. File the Pennsylvania Decennial Report
Unlike most states, Pennsylvania does not require annual reports for LLCs. Instead, LLCs must file a Decennial Report every 10 years to confirm the company is still active.
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Purpose: Keeps the stateâs business registry updated
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Filing period: Every year ending in â1â (e.g., 2031, 2041)
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Filing fee: $70
Failure to file your Decennial Report can result in your LLCâs name being forfeited, meaning another entity could claim it.
If your LLC elects to be taxed as a corporation, youâll have to meet additional corporate tax filing requirements with the Pennsylvania Department of Revenue.
7. Optional: Register a âDoing Business Asâ (DBA) Name
If your LLC operates under a trade name thatâs different from its legal name, you must register a fictitious name (commonly called a DBA).
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Registration: File a Fictitious Name Registration with the Pennsylvania Department of State.
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Fee: $70
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Additional step: You must advertise your fictitious name in two newspapers of general circulation in the county where your business operates before filing.
A DBA allows you to market your business under a different brand name while keeping your main LLC entity intact.
Summary
Forming an LLC in Pennsylvania is relatively simple and affordable compared to other states. The process involves selecting a unique business name, filing your Certificate of Organization, designating a registered office, and creating an Operating Agreement to define your internal structure.
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