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.
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.
Do you want to file an Annual Report for your Pennsylvania LLC?