What Are PA LLC Filing Requirements?
PA LLC filing requirements are the regular reports and fees required of a limited liability company (LLC) that is registered in the state of Pennsylvania.3 min read
2. Annual Registration
3. State Business Tax
4. State Employer Taxes
5. Sales and Use Taxes
6. Registration in Other States
PA LLC filing requirements are the regular reports and fees required of a limited liability company (LLC) that is registered in the state of Pennsylvania.
PA LLC Requirements
In order to form an LLC in Pennsylvania, a business owner must fill out certain documents and file them with the state. Once these documents are filed, the business can begin operations, but it also must keep up with annual requirements to remain in good standing with the state.
If such annual requirements are not met, the LLC could lose its ability to protect its owners from liabilities.
Most states require annual reports and fees from all LLCs conducting business in their state whether domestic or foreign. Pennsylvania is actually one of the few states that does not have this requirement.
Certain entity types do have to file annual registration certificates with the state department via mail or online along with a $520 annual fee which is multiplied by the number of members in the business. These entity types include:
- Professional limited liability companies (PLLCs).
- Foreign limited liability companies (foreign LLCs).
All LLCs in PA are required to file a Certificate of Organization upon their initial formation.
State Business Tax
Limited liability companies are classified as pass-through entities when it comes to taxation. This means that the IRS (Internal Revenue Service) doesn't tax such entities, but taxes their owners. The profits and losses of the company pass through to its owners, so they are expected to cover the business' federal and state tax responsibilities on their personal income tax returns.
In 2017, the state of Pennsylvania stopped requiring LLCs to pay Capital Stock or Franchise taxes. The Department of Revenue has all state tax information available on their website.
Not all LLCs are necessarily taxed the same. This depends on how the LLC has chosen to form. If formed as a partnership or other disregarded entity, the pass-through taxation applies. Some business owners choose to incorporate their LLCs. If an LLC files as a corporation, the business itself will be required to pay taxes and is therefore subject to double taxation. This is called corporation income tax.
Corporate taxes in Pennsylvania are calculated at a 9.99 percent flat rate of the taxable income that is included on the federal corporate income tax return of the LLC or corporation. These corporate state taxes are filed and paid with the RCT-101 form.
State Employer Taxes
LLCs with employees are required to pay state employer taxes. In order to do this, you'll first need to obtain an EIN (Employer Identification Number), also called a federal tax ID number. In addition to filing taxes, you'll also need an EIN to open a business bank account.
Employee taxes should be withheld from all employee paychecks. These withholdings will be paid to the PA Department of Revenue once the business has been registered with the state using Form PA-100. Registration can be completed in person, online, or via mail.
Employer withholding taxes must be filed on a regular basis, usually in monthly or quarterly increments, with the PA-501 form. This form can be found on the Department of Revenue website through their E-tides online filing system.
Other employment taxes required for the LLC include:
- LLC tax withholdings (Form REV-1667).
- Unemployment insurance taxes (UI taxes) - paid through the PA Department of Labor and Industry.
Sales and Use Taxes
Any LLCs that sell products are required to collect sales taxes and pay them to the state. In order to handle this process correctly, you'll need to register with the Department of Revenue for sales tax reporting and make regular payments. This will provide your business with a PA Sales Tax License.
Sales and use taxes are paid on a monthly or quarterly basis to the Department of Revenue and can be paid online through their E-tides system.
Registration in Other States
If you plan to conduct business in more than one state, you'll need to file the required documents with each of those states. Some states have different rules regarding what it means to do business in their state, so you'll need to check each of their Secretary of State websites to be sure you're in compliance.
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