General Guide to Company Incorporation in Pennsylvania

Updated on Tuesday 24th April 2018

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Pennsylvania is the Keystone State and the 5th most populous in the USA. With a solid and representative economy which ranks the state on the 19th position worldwide, Pennsylvania offers large business opportunities for local and foreign investors. We have prepared a general guide to company incorporation in Pennsylvania and we invite you to take into consideration the main steps for business registration in this state. Our company formation agents in USA are also at your disposal with support and information in this matter.

How to form an LLC in Pennsylvania

If you want to start a business in USA and particularly register a limited liability company in Pennsylvania, you should know that the process begins with the Business Division of the Secretary of the State of Pennsylvania. The main documents of such company are the Articles of Association which need to contain the following information:
  • the name and the nationality of the owners of Pennsylvania LLC;
  • the name of the appointed registered agent which represents the business;
  • the name of the company after a complete verification with the authorities;
  • the business address of the company newly registered in Pennsylvania;
  • details about the activities of your future company in this state;
  • the authorized signature of the owners of the company in Pennsylvania.
We mention that our team of advisors can represent your company in Pennsylvania and can act as registered agents with residency in this state.

Sign an operating agreement for your company in Pennsylvania 

Even though it is an internal document, which can be created or not, it is recommended to bear in mind the operating agreement for your business in Pennsylvania. This document provides information about the rights and liabilities of the owners, the voting rights in the company, the working relations of the shareholders, the capital contributions and the steps of the dissolution when it is the case.

Apply for EIN in Pennsylvania

The Employer Identification Number or simply the EIN represents the federal tax ID and shows that the company is a taxpayer in this state. This is issued by the Internal Revenue Service (IRS) through the local offices in the chosen city for business.

What are the taxes in Pennsylvania?

The sales tax in Pennsylvania is set at 6% and most of the municipalities of this state do not impose any other city sales tax. It is good to know that lodgings tax and the rental tax are part of the tax regime in Pennsylvania. Besides that, there is a local sales tax of 2% rate imposed on taxable products and services in Philadelphia County, Pennsylvania, except the accommodations. The following table shows what other taxes are in Pennsylvania:
Inheritance 15%
State Income Tax 3.07%
Property Tax 1.55%
Gambling Tax 65%


Open a bank account for your company in Pennsylvania

Foreign investors who want to open a company in USA, including Pennsylvania, need to open a bank account and separate the personal assets from the ones of the company. They can choose the local banks in this sense and they need to provide the company’s documents in order to set up the bank account.

Licenses and permits for your company

Depending on the types of activities in Pennsylvania, foreign entrepreneurs should apply for business licenses and permits with the Small Business Administration and with the Chamber of Commerce.

Hire an accounting firm for your business

As soon as the certificate of registration has been issued and the company is ready to operate on the market, it is recommended to hire an accounting firm. This can deal with bookkeeping, payroll, the annual tax filings and can provide tax minimization methods if it is the case.

Economy facts about Pennsylvania

Pennsylvania is the state in which the Declaration of Independence was signed in 1787, in Philadelphia (the largest city in this state). Knowing the importance of this state, the tourism sector is extremely developed. Additionally, Pennsylvania is a prolific business center, with a solid banking sector (the Bank of North America was established here in the 18th century) and insurance industry. Manufacturing, agriculture and gambling sectors are also productive fields in which foreigners can set up their operations, mainly in cities like: Philadelphia, Pittsburgh, Lancaster, Gettysburg or Scranton.

For those interested in registering a company in USA, especially in Pennsylvania, we remind that they can contact our team of company incorporation agents in USA at any time.