How to Form an LLC in Philadelphia, Pennsylvania: Complete 2025 Guide

Why Form an LLC in Philadelphia, Pennsylvania?

Philadelphia Pennsylvania LLCs provide liability protection for business owners while maintaining tax flexibility. According to the Pennsylvania Department of State, a limited liability company offers "the liability protection of a corporation for owners, with the advantage of being treated as a partnership for taxation purposes."

Step 1: Choose Your Philadelphia LLC Name

Pennsylvania LLC names must include "Limited Liability Company," "LLC," or "L.L.C." as required by the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations.

Philadelphia LLC Name Requirements:

• Must be distinguishable from existing Pennsylvania entities
• Cannot contain restricted words suggesting government affiliation
• Must end with required designator phrases
• Post office boxes are not acceptable for registered addresses per Pennsylvania statute 15 Pa.C.S. § 135(c)

Check name availability through the Pennsylvania Business Search Database before proceeding with formation documents.

Step 2: Designate a Pennsylvania Registered Agent

Every Philadelphia LLC requires a Commercial Registered Office Provider (CROP) under Pennsylvania law. According to the Pennsylvania Department of State filing requirements, this provider must maintain a Pennsylvania street address.

Registered Agent Options:

• Self-designation: Business owner serves as registered agent
• Professional service: Third-party Commercial Registered Office Provider
• Business address: Any Pennsylvania street address (not P.O. boxes)

Commercial Registered Office Providers receive official legal correspondence and maintain registered office addresses as outlined in Pennsylvania corporate statutes.

Step 3: File Certificate of Organization with Pennsylvania

Philadelphia LLCs are legally formed by filing Certificate of Organization Form DSCB:15-8821 with the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations.

Required Filing Information:

• LLC legal name with proper designator
• Registered office address in Pennsylvania
• Organizer name and address
• Effective date of organization
• Purpose statement (if non-profit)

Filing Fee: $125 for Certificate of Organization plus accompanying Docketing Statement DSCB:15-134A

Submit through Pennsylvania Business Filing Services online portal for fastest processing. Mail filings to:

Pennsylvania Department of State
Bureau of Corporations and Charitable Organizations  
P.O. Box 8722
Harrisburg, PA 17105-8722

Step 4: Obtain Federal EIN from IRS

All Philadelphia LLCs need an Employer Identification Number (EIN) from the Internal Revenue Service. The IRS provides EINs free through their official application tool.

EIN Application Process:

1. Complete online application at IRS.gov EIN Assistant
2. Provide responsible party information (Social Security Number or ITIN required)
3. Receive EIN immediately upon online approval
4. Download EIN Confirmation Letter for banking and tax purposes

Important: Form your Pennsylvania LLC before applying for an EIN, as the IRS requires entity formation with state authorities first.

Step 5: Register for Philadelphia Business Taxes

Philadelphia LLCs conducting business within city limits must obtain a City business tax account number through the Philadelphia Tax Center.

Philadelphia Tax Registration Requirements:

• Business Income and Receipts Tax (BIRT) registration
• Sales tax license (if selling taxable goods)
• Employer withholding taxes (if hiring employees)

Access Pennsylvania Department of Revenue myPATH system for state tax account registration. Not all businesses require myPATH registration—only those needing specific tax accounts or licenses.

Step 6: Obtain Philadelphia Commercial Activity License

All Philadelphia LLCs must secure a Commercial Activity License (CAL) from the City of Philadelphia Department of Licenses and Inspections.

CAL Application Requirements:

• Federal Employer Identification Number
• City business tax account number
• Registered business address
• Current status on all Philadelphia taxes

Apply through eCLIPSE online portal or visit:

Permit and License Center
1401 John F. Kennedy Blvd.
MSB, Public Service Concourse
Philadelphia, PA 19102

Cost: Commercial Activity License is provided at no charge by the City of Philadelphia.

Step 7: Consider Additional Licensing Requirements

Industry-specific licenses may be required depending on your Philadelphia LLC's business activities. The Pennsylvania Licensing System (PALS) provides comprehensive information on state licensing requirements.

Common Philadelphia Business Licenses:

• Food service: Licenses through Philadelphia Department of Public Health
• Construction: Various permits through Philadelphia L&I
• Professional services: Licensing through relevant Pennsylvania boards
• Retail sales: Sales tax license through Pennsylvania Department of Revenue

Check federal licensing requirements through the U.S. Small Business Administration website for regulated industries.

Step 8: Create LLC Operating Agreement

Pennsylvania does not require LLC operating agreements, but creating one protects your Philadelphia LLC's limited liability status. Operating agreements establish:

• Member ownership percentages
• Management structure and voting rights
• Profit and loss distribution methods
• Buy-sell provisions for member changes
• Dissolution procedures

Written operating agreements prevent disputes and maintain corporate formalities essential for liability protection.

Step 9: Ongoing Philadelphia LLC Compliance

Philadelphia LLCs must file annual reports with the Pennsylvania Department of State starting in 2025. According to updated Pennsylvania law, the annual report fee is $7 for all LLCs.

Annual Compliance Requirements:

• Annual report filing: Between January 1 and September 30 annually
• Fee payment: $7 to Pennsylvania Department of State
• Information verification: Legal name, addresses, and management details
• Philadelphia tax compliance: Maintain current status on all city taxes

File annual reports through Pennsylvania Business Filing Services portal to maintain good standing status.

Philadelphia LLC Formation Costs Summary

Total minimum cost for Philadelphia LLC formation: $125

Frequently Asked Questions

Expert Resources for Philadelphia LLC Formation