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How to Set Up an LLC in Pennsylvania

Published on August 6, 2025

How to Set Up an LLC in Pennsylvania

Disclaimer: This guide is for informational purposes only and is not intended as legal, tax, or professional advice. Laws and requirements can change, so consult with a qualified attorney, accountant, or the Pennsylvania Department of State for personalized guidance. The information is current as of August 2025.

Step 1: Choose a Business Name and Check Availability

Select a unique name for your LLC that complies with Pennsylvania's naming rules. The name must include words like "Limited Liability Company," "LLC," or abbreviations such as "L.L.C." It cannot imply the business is a different entity type or use restricted words without approval.

Search for name availability using the Pennsylvania Department of State's Business Search Database at https://file.dos.pa.gov/search/business. Enter the name without designators (e.g., search "ABC Company" instead of "ABC Company LLC") to check for conflicts. If similar names appear under entity types like LLC, Corporation, or Limited Partnership, the name is likely unavailable. Also, check the Federal Trademark Database at https://www.uspto.gov/trademarks/search for similar names or spellings to avoid trademark issues.
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Even if a trademark exists in an unrelated industry, you may still use the name.
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For detailed naming guidelines, refer to resources on Pennsylvania LLC names.
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Step 2: Select a Registered Agent

Appoint a Registered Agent (also called Registered Office) who will receive legal documents, state notices, and service of process on behalf of your LLC. The agent must have a physical street address in Pennsylvania (no PO Boxes) and be available during regular business hours (Monday to Friday, 9 a.m. to 5 p.m.).

Options include:

  • Yourself (if you meet the requirements).
  • A friend or family member.
  • A professional Registered Agent Service (recommended for privacy, as their address goes on public records instead of yours).

Hiring a service like Northwest Registered Agent costs about $39 plus state fees and includes mail scanning and forwarding.
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The agent's details will be included in your filing documents.

Step 3: Obtain an Employer Identification Number (EIN)

Apply for a federal Employer Identification Number (EIN, also called FEIN) from the IRS, even if you have no employees. This is like a Social Security Number for your business and is required for taxes, banking, and hiring.

Apply online for free at https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. The process takes about 15 minutes, and you'll receive the EIN immediately. Save the confirmation letter for records, as it's needed for bank accounts and insurance.
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During application, select your LLC type (e.g., single-member, partnership, S-Corp, or C-Corp), which affects tax filing requirements.
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Step 4: File the Certificate of Organization

File the Certificate of Organization (Form DSCB:15-8821) with the Pennsylvania Department of State to officially create your LLC. This is the key formation document.
Document: https://www.pa.gov/content/dam/copapwp-pagov/en/dos/programs/business/forms/offsite-forms/15-8821-Cert-of-Org-Dom-LLC.pdf

  • Required Information: Business name, registered agent's name and address, organizer's details, effective date (if delayed), and whether it's a restricted professional LLC or benefit LLC.
  • Filing Fee: $125 (one-time fee). Veterans and reservists may qualify for free filing.
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  • Filing Methods:

    • Online: Use the PENN File system at https://file.dos.pa.gov. Faster processing (5-7 business days).
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    • Mail: Send the completed form and payment to Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, P.O. Box 8722, Harrisburg, PA 17105-8722. Add 2-3 weeks for mailing.

  • Processing Time: 5-7 business days for approval, plus any mail time. Check status online.

For help, watch tutorials or contact the Bureau at 717-787-1057 (8 a.m. to 4:45 p.m. ET).
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Step 5: Create an Operating Agreement

Draft an Operating Agreement, an internal document outlining ownership, management structure, member roles, and operating procedures. It's not required to file with the state but is essential for protecting your LLC's limited liability status, resolving disputes, and opening bank accounts.

Document Template: https://docs.google.com/document/d/15eLHoM8axYV9wLKxGOMyX1B7Y6lEIbbeD03FFoF7ulg/edit?usp=sharing

  • Types: Member-managed (default for most LLCs) or manager-managed.

  • Free Templates: Available online, such as member-managed templates in Google Docs, Word, or PDF formats.
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  • Sign and Store: Have all members sign it and keep copies with business records.

This step helps prove your LLC is legitimate, especially in legal or financial matters.
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Step 6: Apply for Business Tax Accounts

Register for state taxes if applicable. Not all LLCs need this, but it's required for certain activities.

  • Use the Pennsylvania Department of Revenue's myPATH system at https://mypath.pa.gov.
  • Common Accounts:

    • Sales Tax License: If selling taxable goods or services (free to apply; see Retailer's Information Guide).
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    • Employer Withholding and Unemployment Compensation: If hiring employees.

    • Other: Corporate taxes (for certain LLCs), fuels tax, tobacco license, etc.

  • No general state business license, but check for industry-specific ones.

For federal taxes, your LLC is taxed as a pass-through entity by default (reported on personal returns), but you can elect S-Corp or C-Corp status with the IRS.

Step 7: Obtain Licenses, Permits, and Zoning Approvals

Determine if your business needs federal, state, county, or local licenses based on industry and location.

  • Federal: For regulated industries (e.g., alcohol, firearms) via agencies like the FDA or ATF.

  • State: Professional licenses (e.g., for doctors, accountants) through relevant boards.

  • Local: Contact your municipality for business licenses, zoning permits, or home occupation approvals. Search your address on local registration tools.
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  • Resources: Use the PA Business One-Stop Hub's licensing guides.

No statewide general business license is required.
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Step 8: Open a Business Bank Account and Handle Ongoing Compliance

Separate personal and business finances by opening a dedicated bank account using your EIN, Certificate of Organization, and Operating Agreement.

Ongoing requirements:

  • Taxes: File federal and state taxes annually. Pennsylvania LLCs may need to file state income tax returns.
  • Reports: No annual reports required for Pennsylvania LLCs. However, file a Decennial Report every 10 years (next due in 2031) to affirm your business existence if no other filings were made in the decade. Fee: $25.
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    (Note: This is a general requirement; confirm with the state.)
  • Changes: File amendments for name/address changes (fee: $70).
  • Renewals: Renew licenses as needed.

Maintain good records and comply with employment laws if hiring staff.

Additional Resources

If you're unsure about any step, consider hiring a formation service or consulting a professional.