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Every step to open an LLC in Pennsylvania and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Department of State · Department of Revenue · Department of Labor & Industry · DCED (local taxes) · Insurance Department (Mcare).
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Pennsylvania business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through Business Filing Services (file.dos.pa.gov).
You list a Pennsylvania registered office address or use a commercial registered office provider.
Fictitious names are registered with the Department of State.
Filing fees are nonrefundable, even if the filing is rejected. Expedited service costs extra.
Physicians and some other licensed providers must carry required primary malpractice coverage and participate in Mcare. Your carrier collects the Mcare assessment with your premium.
Register for Employer Withholding and Sales, Use and Hotel Occupancy Tax through the myPATH Pennsylvania Online Business Tax Registration. New businesses can register without logging in.
Under Act 32, employers must withhold the local Earned Income Tax (EIT) based on each employee's work and home PSD codes and send it to the local tax collector, plus the Local Services Tax (LST) of up to $52 a year. Philadelphia employers withhold the city Wage Tax instead of EIT (3.735% residents, 3.425% nonresidents since July 1, 2026).
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Pennsylvania calls it a Sales, Use and Hotel Occupancy Tax License. Register with the Pennsylvania Department of Revenue through myPATH (Pennsylvania Online Business Tax Registration) before you make your first taxable sale in Pennsylvania. You'll collect tax from customers and send it to the state.
Give your supplier REV-1220, Pennsylvania Exemption Certificate so you don't pay tax on inventory you'll resell. The buyer gives it to the supplier with their Pennsylvania account (license) number; it covers future resale purchases but not items the buyer uses itself. The MTC certificate works for resale only, not other exemptions. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Pennsylvania pass $100,000 (previous calendar year (sets collection for the next April through March)), even with no office here.
You must file returns for every assigned period, even if you had no taxable sales.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Pennsylvania. Reports and payments are usually quarterly.
Required at 1 or more employees. Coverage is required even for part-time or family employees. You can buy from a private insurer, the State Workers' Insurance Fund (SWIF), or self-insure with approval. Post a notice with your insurer's contact info.
Report through the PA CareerLink new hire reporting site.
Reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. Residents of those states file REV-419 with a PA employer, and you withhold their home-state tax instead.
Required only for contractors and subcontractors on public works projects over $25,000 (Act 141 of 2022).
Pennsylvania's wage payment rules:
$7.25 an hour.
No statewide paid sick leave. Philadelphia and Pittsburgh have their own laws.
No state retirement plan mandate. A proposed Keystone Saves program has not become law.
Pennsylvania doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
Act 32 requires you to withhold local Earned Income Tax for each employee based on work and home location PSD codes. You also withhold the Local Services Tax where your worksite levies it.
If you have employees working in Philadelphia, or Philadelphia residents, withhold the city Wage Tax. Since July 1, 2026 the rate is 3.735% for residents and 3.425% for nonresidents.
These local laws apply to employees who work within the city or county, on top of the state rules. Where they differ, follow whichever is more generous to the employee.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
The $7 annual report started in 2025. Missing a 2027 or later report can get your entity dissolved and lose you your name.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
Nonprofits pay $0 and benefit corporations pay $70. Starting with 2027 reports, missing a report leads to administrative dissolution 6 months after the due date. Reinstatement is $35 online plus $15 per missed report.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
New sellers file quarterly; you file monthly if your third-quarter tax last year was $600 or more, or semiannually if approved and your tax is $75 or less a year; returns are due the 20th of the month after the period. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Pennsylvania and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 31 | File REV-1667 W-2 transmittal with the Department of Revenue | Pennsylvania |
| Jun 30 | Annual report due for corporations | Pennsylvania |
| Sep 30 | Annual report due for LLCs | Pennsylvania |
| Dec 31 | Annual report due for LPs, LLPs and others | Pennsylvania |
| 30 days after each quarter | Remit Local Services Tax to the local tax collector | Pennsylvania |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Pennsylvania |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Pennsylvania state filing fee for an LLC is $125. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Pennsylvania if you sell taxable products or services there. The state rate is 6%, and local taxes may add to it. Registration cost: See state site.
Out-of-state sellers must register once their sales into Pennsylvania pass $100,000 a year. Having an employee or office in Pennsylvania also creates nexus right away.
Recurring filings include: file the annual report every year; file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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