How to Form an LLC in Pennsylvania, Step by Step
Pennsylvania has no general business license and a name-search rule that trips people up. Here is the full sequence, from name check to local permits.
Pennsylvania puts its LLC steps in one state guide. The state has a few quirks. It has no general business license. Its name search has a rule about designators that catches people off guard. Here is the whole sequence, done right. Not settled on the LLC yet? Our piece on whether an LLC is right for you can help you decide. For the general version of this process, see how to form an LLC.
Check if your LLC name is available
Pennsylvania's guide says to search the business name without using a designator. Search for ABC Company, not ABC Company LLC.
This matters because of the second rule. Pennsylvania's guide says a different designator does not make a name distinguishable. ABC Company LLC is the same as ABC Company Inc. So if your search turns up ABC Company Inc, ABC Company LLC is not distinguishable from it. Picking a different designator will not save it.
What if the only results are Fictitious Names? Pennsylvania's guide says the name is still available for use.
Search alternate spellings too. Pennsylvania's guide says to use alternate spellings of the business name to check for similar names that are trademarked.
Then check trademarks. Pennsylvania's guide says that if a trademark is used in an unrelated business industry, the name can still be used despite the trademark registration. So a trademark held by a company in a field far from yours may not block you. When in doubt, pick another name.
Get a federal EIN
Pennsylvania's guide says to obtain a federal employer identification number online through the IRS website.
One tip from the state's own guide: save and email yourself a copy of the EIN awards letter if you elect to receive it electronically. Pennsylvania's guide says the EIN document will be needed in the future to open bank accounts and obtain business insurance. Lose it and you will wish you had that email. For more on the process, read about getting an EIN number or the IRS EIN itself.
During the EIN step you also pick your LLC's tax classification. Pennsylvania's guide says you select whether you will be a single-member LLC, LLC Partnership, LLC S-Corporation, or LLC C-Corporation. This is not a throwaway question. Pennsylvania's guide says the election you make determines the necessary income tax return you must file at the federal and state level. To compare two of the options, see LLC vs. LLC taxed as an S-Corp.
File your Certificate of Organization
Filing this certificate is what brings your LLC into existence. Pennsylvania's guide says to legally create the domestic LLC by filing the Certificate of Organization in the Department of State's Business Filing Services system.
The guide applies to all LLC subtypes. That includes single-member LLCs, LLC partnerships, and LLCs that elect S-Corporation status. Whichever one you picked during the EIN step, the guide covers it.
Our page on the state filing fee for an LLC covers what states charge.
Register for business taxes in myPATH
Pennsylvania runs its business tax registration through the Department of Revenue's myPATH system. But do not assume you must complete it.
Pennsylvania's guide says not all businesses in PA are required to complete an online business tax registration in myPATH.
One registration some businesses need is the sales tax license. Pennsylvania's guide says you will need a sales tax license if you sell anything that is subject to sales tax. The good news: Pennsylvania's guide says there is no fee for the sales tax license.
Figure out business licenses
Here is the quirk that surprises people. Pennsylvania's guide says there is no general business license that all businesses are required to have in PA. No single statewide license covers every business.
That does not mean you are free and clear. Pennsylvania's guide says there may be a specific license based on your business activity. Pennsylvania's guide says to refer to the Business Licensing Reference Guides in the Help Center for more information about specific business activities. Start there.
For more on the general topic, see our page on the business license.
Check your municipality
The state license question is only half of it. Pennsylvania's guide says to check with your municipality to determine if you need any local business licenses or tax accounts.
Pennsylvania's guide says to search your home or business address on its Local Registrations, Permits, and Zoning webpage to find the proper local contact. Type in your address, get the right office, and ask them directly.
The short version
Search your name without a designator, and remember that a different designator does not make a name distinguishable. Get your EIN online and save the letter. Pick your tax classification with care. File the Certificate of Organization in Business Filing Services. Register in myPATH only if your business needs it, and grab the free sales tax license if you sell taxable goods. Then check for activity-specific licenses and call your municipality. That is the Pennsylvania sequence, start to finish.