Pennsylvania Taxes

Pennsylvania LLC Tax Registration & Requirements

Quick Start Guide
This Quick Start Guide is a brief overview of how to form an LLC in Pennsylvania.

Detailed Lessons:

 

Pennsylvania LLC Costs:
Pennsylvania state fee: $125

Need help?
Hire a reliable service to form your LLC:
IncFile ($49 + state fee) or LegalZoom ($149 + state fee)

Note: Our tax lesson is not as step-by-step as our Forming an LLC in Pennsylvania lesson, due to the uniqueness and variation among businesses in Pennsylvania. Taxes are usually not as straightforward as forming an LLC, and therefore, the information below is an overview, and not a comprehensive guide.

You will most likely need to hire a tax professional in Pennsylvania to make sure you meet all your state and local tax obligations. We recommend using Thumbtack or reading our How to Find an Accountant guide.

Do it yourself in Pennsylvania

Pennsylvania Department of Revenue
717-787-1064
Additional contact info

Registering for Pennsylvania Business Taxes Online
https://www.doreservices.state.pa.us/BusinessTax/default.htm

Pennsylvania General Tax Overview
http://www.revenue.pa.gov/GeneralTaxInformation/Pages/default.aspx

PA-100 (Sales Tax) and Other Business Tax Forms
http://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/Pages/Business-Registration-Forms.aspx
https://www.doreservices.state.pa.us/BusinessTax/default.htm

Sales, Use, and Hotel Occupancy Tax
http://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/Pages/Sales-Use-and-Hotel-Occupancy-Tax.aspx

Pennsylvania Employer Withholding Tax
http://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/Pages/Employer-Withholding.aspx

Local Income Tax
http://community.newpa.com/local-government/local-income-tax-information/

Other Taxes
Depending on your industry, where your Pennsylvania LLC is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.

  • Some examples of other taxes and forms due are:
  • Motor and Alternative Fuel Taxes
  • Employer Withholding
  • Sales, Use and Hotel Occupancy Tax
  • Cigarette Tax
  • Malt Beverage and Liquor Tax
  • Pari-mutuel
  • Amusement Ticket License
  • Keystone Opportunity Zones (KOZ)
  • Neighborhood Improvement Zones (NIZ)
  • Motor Carrier Road Tax/IFTA
  • Motor Fuels Tax
  • Alternative Fuels Tax
  • Public Transportation Assistance Fund/Vehicle Rental Tax
  • Small Games of Chance
  • Local taxes

Your Pennsylvania LLC and Federal Taxes with the IRS:

The default tax status with the IRS is as follows:
– Single-member Pennsylvania LLCs are taxed as Sole Proprietorships.
– Multi-member Pennsylvania LLCs are taxed as Partnerships.

The bulleted list above refers to state and local taxes, not federal taxes filed with the IRS.

Remember, the income/losses from your Pennsylvania LLC will “flow through” to your personal 1040 tax return on a Schedule C, as well as additional Schedules depending on how you derive your income.

Tip: The above language often confuses a lot of people. Notice that we said “taxed as”. This means, in the eyes of the law, your Pennsylvania LLC is still a separate legal entity from you, but the IRS is treating your LLC differently, just for tax purposes.

Technically, your Pennsylvania LLC is still a legal entity with the state and the law, but your LLC is a “tax entity” with the IRS.

Additionally, your tax professional may recommend that your Pennsylvania LLC be taxed as an S-Corporation with the IRS (to save money on self-employment taxes). You’ll need to discuss this with your accountant though, as typically, revenue needs to be above $60,000 for the tax savings to be worth the additional accounting, payroll, and administrative costs.

Local Taxes for PA LLCs

In addition to Pennsylvania state taxes, you also need to file and pay local taxes. For example, to your city, township, county, or borough. Again, it depends on where you are located and what type of business you are in; and we recommend seeking professional assistance.

Our Recommendation for Pennsylvania LLCs

Calculating your tax obligations in Pennsylvania (and with the IRS) can be complicated and if done improperly can negatively impact your LLC.

We recommend that you get help from a tax professional once your Pennsylvania LLC is formed. You can use Thumbtack, Yelp, or check out our How to Find an Accountant guide.

Hiring a tax professional will not only help you keep your Pennsylvania LLC in compliance, but it will also give you an advisor to go to for other business questions.

You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.

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Matt Horwitz
Founder & Educator at LLC University
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! We teach people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your entrepreneurial journey.
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