PA Certificate of Annual Registration LLC is a requirement for any professional limited liability company (PLLC) or foreign LLC that engages in professional services to continue doing business in the state of Pennsylvania.

Forming an LLC in Pennsylvania

There are three ways to submit your docketing statement and articles of organization to the Pennsylvania Bureau of Corporations once you have completed these documents:

  • Online
  • Mail
  • In person

Filing online or through the mail requires payment of a $125 filing fee. Once this has been paid, your LLC will normally be approved to operate in the state within seven to 10 business days. If you choose to file in person, there will be an expedited processing fee assessed in addition to the normal $125 filing fee. It is worth noting that filing in person is the only method available if you need expedited service. Also, note that the expedited fee increases depending on how quickly you need your request to be processed:

  • Same day approval is available before 10 a.m. for an additional $100
  • Three-hour approval is available before 2 p.m. for an additional $300
  • One-hour approval is available before 4 p.m. for an additional $1,000

The easiest way to get expedited service is to arrive shortly after the bureau opens at 8 a.m. and request same-day processing for $100. If you don't need approval for your LLC the same day, it is recommended that you file online. However, if you simply can't wait a few days for your approval, filing your request in person is your best option.

Annual Filing Requirements in Pennsylvania

While many other states require companies to file annual reports, Pennsylvania does not have this requirement. However, your company will need to submit a Certificate of Annual Registration every year with the Department of State if:

  • The company is a professional limited liability company, or PLLC
  • The company is a foreign LLC that engages in professional services

Your Certificate of Annual Registration needs to be filed no later than April 15 each year and should be submitted directly to the Pennsylvania Corporation Bureau. This can be done via mail or online. Filing this certificate also requires payment of $520 multiplied by the total number of members in the LLC. For example, if your company has three members, the total annual fee would be $1,560.

In terms of income taxes, limited liability companies are usually set up as pass-through tax entities. In simple terms, this means federal tax liabilities pass through the company itself, and the individual members of the LLC are responsible for paying the taxes. This is true in most states, and Pennsylvania is no exception. Beginning in 2017, the state of Pennsylvania no longer required LLCs to pay the capital stock/franchise tax or file a Pennsylvania Corporate Tax Report (Form RCT-101) with the Pennsylvania Department of Revenue. For more information, you should contact the Department of Revenue or an attorney that is knowledgeable in these matters.

Some LLC owners choose to have their companies treated as corporations for tax reasons. This can be done by filing an IRS Form 2553 with the Internal Revenue Service. Unlike normal LLC scenarios, when a company chooses to be taxed in this way, it files a separate tax return from its members. Pennsylvania, like most other states, imposes corporation income taxes. The corporate tax rate in Pennsylvania is normally calculated at a flat rate of 9.99 percent of all taxable income that a company reports on its federal tax return, including applicable adjustments. This tax can be paid using Pennsylvania's corporation income tax return form, or Form RCT-101.

If your company has employees, you'll be required to pay related employer taxes. These taxes are paid on the federal and state level. The first thing you'll need to do is withhold employees' income taxes and then pay those taxes to the Department of Revenue. To begin, you'll need to register your company with the Department of Revenue. This can be done online or via mail by sending in a Form PA-100. Once you have registered, you'll be required to file your company's withholding taxes on one of the following schedules:

  • Semi-weekly
  • Monthly
  • Quarterly

You will also be required to reconcile your company's tax withholdings on an annual basis.

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