Many business owners have chosen to create their Limited Liability Companies (LLCs) in Pennsylvania because of the state’s thriving business climate. Pennsylvania, like every other state, has rules that LLCs must follow, including filing annual and decennial reports. We will look at the requirements for and taxation of Pennsylvania LLCs in this article.
Yes, LLCs must submit an annual report to the Department of State in Pennsylvania. Updated details on the LLC, including its name, address, and the identities of any managers or members, are provided in this report. Each year, the annual report must be submitted by April 15th and costs $70 to do so.
LLCs in Pennsylvania must additionally submit a decennial report once every ten years in addition to the annual report. The decennial report is used to verify that the LLC is still in good standing with the state and is due on the year ending with the numeral “1” (i.e. 2021, 2031, etc.). The decennial report must be filed between January 1 and December 31 of the year it is due, and it costs $70.
All business entities operating in Pennsylvania, including LLCs, are obliged to file the Pennsylvania decennial report. Every ten years, a report is submitted to the state to establish that the organization is still operating and is in good standing. The same details as the annual report are needed for the decennial report, including the name of the entity, its address, and the names of any managers or members. Is it possible to submit a PA decennial report online? The annual report and the decennial report may both be submitted online on the website of the Pennsylvania Department of State. The Business One-Stop Shop, an online filing system, enables you to file, pay fees, and access other business-related services. How are LLCs taxed in Pennsylvania?
One of the highest state income taxes in the nation, 9.99%, applies to LLCs in Pennsylvania. However, state income tax does not apply to LLCs that are categorized as pass-through entities for federal tax purposes. Instead, the LLC’s earnings are distributed to its individual shareholders for personal income tax purposes.
To maintain compliance with state requirements, Pennsylvania LLCs must submit both annual and decennial reports. The Business One-Stop Shop’s website allows for the online filing of these reports. In Pennsylvania, LLCs are furthermore subject to a 9.99% state income tax; however, pass-through entities are exempt from this tax. If you’re thinking about forming an LLC in Pennsylvania, make sure to educate yourself with the rules and seek advice from a tax expert or business lawyer.