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Pennsylvania LLC and INC annual filing requirements
When you form a new business in any state in the USA including Pennsylvania, there are several business laws and regulations that you or your company would be required to follow or comply with. The Pennsylvania LLC annual requirements and the annual requirements for corporations are among the most important business laws in Pennsylvania. This guide has been created to provide insight into the various aspects of the Pennsylvania Corporation or LLC annual filing requirements. The guide will provide an overview of the requirements like the annual registration and processes, state business tax, employer taxes, Pennsylvania decennial report, and annual reports among others.
Pennsylvania LLC Annual Filing Requirements
The annual requirements in Pennsylvania are governed by the Pennsylvania Consolidated & Unconsolidated Statutes. The Pennsylvania LLC annual requirements may be different compared to other entity types like corporations, partnerships, and sole proprietorships. If you start a limited liability company in this state then the mandatory annual requirements are categorized as the following:
Annual Registration
If you form a professional limited liability company (PLLC) in Pennsylvania then the annual registration will be a part of your mandatory requirements. Annual registration is also obligatory if you establish a foreign LLC engaging in professional services. This is one of the most important Pennsylvania LLC annual requirements and the Certificate of Annual Registration must be filed by April 15th each year pursuant to 15 PA Cons Stat § 8998 (2020). This filing should not be associated or mistaken for the Pennsylvania LLC annual report, which is a separate document. You are required to file this certificate with the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations. The fee is dynamic and will be $520 multiplied by the total number of members in the said LLC. If you fail to file the Certificate of Annual Registration, you will be subjected to heavy penalties.
State Business Tax
Every limited liability company has two very important annual requirements that they must be compliant with, which involve filing your state business taxes and the Pennsylvania decennial report. Since an LLC is considered to be a pass-through entity the company is not required to pay taxes. Instead, the members of the said company will have to file personal income taxes at a rate of 3.07%. The members of the LLC will also have to file federal self-employment taxes at a rate of 15.3%, which includes 2.9% for Medicare and 12.4% for Social Security.
The Pennsylvania LLC annual requirements regarding taxes may also vary according to the tax identity chosen by the said company. If a Pennsylvania LLC chooses to be taxed as an S-Corporation then the tax rate will be 9.99%. Apart from this a limited liability company in the state may also have to file sales and use taxes depending on its business activity.
State Employer Taxes
State employer taxes are another one of the important Pennsylvania LLC annual requirements. An employer can be an individual like a sole proprietorship business, or other entity types like a partnership, association, LLC, corporation, and government body among others. The Internal Revenue Code requires such entities to withhold federal income taxes from the wages paid to their employees. The Pennsylvania Department of Revenue declares that if a limited liability company in the state employs people then the LLC is required to withhold personal income tax at a rate of 3.07 percent.
It is also important to note that once you’ve obtained an EIN from the Internal Revenue Service (IRS), you will have to register with the Department of Revenue to obtain an employer withholding account number.
Decennial Report
Every state has different annual requirements although the most common requirement is the annual report. In the state of Pennsylvania, you will be required to file a Decennial Report, which is filed once every 10 years. Let’s look at an example to understand these Pennsylvania LLC annual requirements better.
Example: If you have formed a Pennsylvania LLC prior to January 1, 2012 and have not made any filings since then, a Pennsylvania Decennial Report would have been due in 2021. Now, if you formed an LLC in June 2023 then the report will be due in 2031. This is because it is due once every 10 years ending in a “1” like 2021, 2031, 2041, etc.
The LLC formation documents are also considered to be an important part of the filing process. So, if you’ve filed the Certificate of Organization in 2023, then you won’t be required to file the Pennsylvania Decennial Report in 2031.
Annual Report from 2024
Pennsylvania is one of the few states that do not have an annual report. However, businesses are required to file a Decennial Report. The annual reporting requirements in the state are going to change starting in 2024 as the state will introduce a Pennsylvania LLC annual report like most other states. The Pennsylvania Act 122 took effect on January 2, 2023, and repealed the decennial report requirement. The new Pennsylvania LLC annual requirements will include the following:
- Name of the LLC
- Jurisdiction of Formation
- Registered office address in the state
- Entity number issued by the Pennsylvania Department of State
- Name of at least one member or partner
- Names and titles of the principal officers
- Address of the principal office
The expected due date for filing of the Pennsylvania LLC annual report for domestic and foreign LLCs will be before October 1st, or no later than September 30, 2024, and the filing fee is expected to be $7. By hiring IncParadise as your Pennsylvania Registered Agent, you will be able to file the annual report on time using our entity management software. This software will send email notifications automatically, a month prior to the annual report filing due date.
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Pennsylvania INC Annual Filing Requirements
When you form a corporation in Pennsylvania, there will be different filing requirements apart from the Articles of Incorporation. The important filings for the Pennsylvania Corporation annual requirements include filing your taxes and annual reports. This will be applicable for both domestic and foreign corporations operating in the state and governed by the Pennsylvania Consolidated & Unconsolidated Statutes. Let’s look in detail at the Pennsylvania Decennial Report and other annual requirements.
Decennial Report
The Pennsylvania state business law requires all corporations and other associations registered with the Department of State to file a Pennsylvania Decennial Report if such entities have not made any filings in a period of 10 years since incorporation. This report is an integral part of the Pennsylvania Corporation annual requirements and is applicable for both domestic and foreign corporations.
The primary objective of a Decennial Report is to reveal to the government that those businesses that have not made a single filing with the state department in the last 10 years, still exist. Hence, there is a provision in Title 54 of the Pennsylvania Consolidated Statutes, Sec. 503 for filing of the Pennsylvania Decennial Report. The filing fee for this report is currently $70. Any failure to meet the Pennsylvania Corporation annual requirements may lead to termination or dissolution of the corporation.
Corporation Taxes and Annual Fee
Once you’ve incorporated your new business in the state of Pennsylvania, you will need to be compliant with all state requirements. The Pennsylvania Corporation annual requirements for domestic and foreign entities are almost the same, especially when it comes to filing of taxes. A business corporation operating in the state will be subjected to corporate net income tax, which has a flat rate of 8.99 percent. The corporate taxes unlike a Pennsylvania Decennial Report have to be filed each year on or before April 15th. This tax has to be filed with the Department of Revenue. Apart from this, you may also be required to file net income taxes, franchise taxes, capital stock taxes, sales and use taxes, and corporate loans taxes.
Annual Report from 2024
Most states in the USA require businesses to submit an annual report as part of the state’s annual requirements. Although a Pennsylvania Decennial Report (once in 10 years) has been the state requirement for corporations, it is now about to be changed. An annual report will be introduced as a part of the Pennsylvania Corporation annual requirements. This report has to be filed by corporations and nonprofit corporations before July 1st of each year beginning in 2024. The annual filing fee for the report is $7. The Pennsylvania annual report for corporations will include the following information:
- Name of the corporation
- The jurisdiction of incorporation
- The name of at least one director or partner
- The names as well as titles of the principal officers
- The address of the principal office
- The entity number or entity ID issued by the Pennsylvania Department of State
If you’ve already hired IncParadise as your Registered Agent for your Pennsylvania Corporation, then you can take advantage of our entity management software. This software will help you to file the annual report on time as this automated software sends email notifications a month before the Pennsylvania annual report filing due date. This will ensure your company is in compliance with the Pennsylvania Corporation annual requirements.
Thinking of filing an Annual Report for Pennsylvania Corporation?
Need any Assistance with Pennsylvania LLC or INC Annual Filings?
Annual requirements or compliances are different for each state, but most states have certain common requirements like filing your taxes and annual reports. The Pennsylvania Decennial Report is being repealed and the new annual report is being introduced in 2024 as a part of Pennsylvania Corporation annual requirements or LLC annual requirements.
IncParadise, as your registered agent in Pennsylvania, can assist you with the annual filing requirements for an LLC or corporation. We are experts in new business formation services and can also help you with your Pennsylvania LLC formation or incorporation. We also offer many additional services like EIN, and foreign qualification among others.