Annual Filing Requirements for Pennsylvania LLCs

Learn about the annual report and tax filing obligations for Pennsylvania limited liability companies.

To establish and operate a Pennsylvania limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant continuing reporting and state tax filing obligations for Pennsylvania limited liability companies.

Registration every year

In contrast to the majority of states, Pennsylvania does not require LLCs to produce an annual report. Professional Limited Liability Companies (PLLCs) and international LLCs engaging in professional services, on the other hand, must submit with the Department of State a Certificate of Annual Registration (Form DSCB:15-8221/8998). Every year, they must be submitted with the Corporation Bureau by April 15th. The registration may be completed online or by mail. An yearly charge of $520 multiplied by the number of LLC members is required.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. In most states, LLCs pay no income taxes; only its members do.

Pennsylvania will no longer levy a Capital Stock/Franchise Tax on LLCs or require LLCs to submit Form RCT-101 (PA Corporate Tax Report) with the Department of Revenue beginning with tax year 2017. (DOR). LLCs that must submit Form RCT-101 for the 2015 reporting period should designate that return as their final return. For further information, contact the Department of Revenue (DOR).

In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Pennsylvania, like almost every other state, has a corporate income tax. The corporation tax in Pennsylvania is normally computed at a flat 9.99% of taxable income as reported on the business’s federal tax return (with adjustments). To pay this tax, use the state’s company income tax return (Form RCT-101).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in Pennsylvania, on the other hand, must pay state taxes.

To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR, either online or in print form (Form PA-100). Once enrolled, you must submit withholding taxes on a regular basis (such as semi-weekly, monthly, or quarterly) using PA-501 (accessible via the DOR’s online e-tides system). Every year, you’ll also need to utilize a form of Form REV-1667 to reconcile your LLC’s tax withholding.

You’ll also need to register to pay state unemployment insurance (UI) taxes. These taxes are administered by the Pennsylvania Department of Labor and Industry (L&I). These taxes may be registered for online or by utilizing Form PA-100. Then, each quarter, you must report your earnings and pay the UI taxes to L&L.

Taxes on Sales and Use

If your LLC sells items to clients in Pennsylvania, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may sign up online or by mail using Form PA-100. After you register, you will get a PA Sales Tax License. Then, on a regular basis (such as monthly or quarterly), you must file sales tax returns with the DOR via the e-tides online system.

Other States Registration

If you want to do business in states other than Pennsylvania, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.