Is it true that the annual report filing fee for an LLC in PA is $460 per member?

Asked over 3 years ago - Doylestown, PA

Is it true that the annual report filing fee for an LLC in PA is $460 per member? I was told through AVVO that there is no annual report filing fee in PA but I've read conflicting reports. Please advise.

Attorney answers (4)

  1. Steven J. Fromm

    Contributor Level 20

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    Answered . I disagree with the prior attorney. This $460 fee is limited to professsional types of LLCs not regular LLCs. From the filing instructions (DSCB: 15-8221/8998) for the Certificate of Registration comes the following language: "The annual fee is required to be paid only with respect to a member who:
    (1) was licensed to practice the professional service rendered by the company; and
    (2) had principal residence in Pennsylvania. See § 8998(b)(1)." So a regular LLC does not have this burden placed on all its members.

    Hope this helps. If you think this post was helpful, please check the thumbs up (helpful) tab below. Thanks.
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  2. Jan Matthew Tamanini

    Contributor Level 14

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    Answered . Mr. Fromm is correct, and the California attorney who first answered this question is dead wrong (and this is another reason to be careful when you see answers from attorneys who are NOT licensed in the state where your question is based). The annual fee is ONLY for professional limited liability companies in Pennsylvania. The following language comes directly from the Pennsylvania Department of State's website:
    --------

    Q: Does Pennsylvania require annual filings for documents?
    A: Pennsylvania requires annual filings for all limited liability partnerships, domestic and foreign, as well as by restricted professional limited liability companies, domestic and foreign. Nonprofit corporations are also required to file annual reports if there has been a change in corporate officers during the preceding calendar year.
    * * *
    Pursuant to Section 8998(f) of the Limited Liability Company Law of 1994, 15 Pa. C.S., as amended by Act 34 of 2001 (effective August 21, 2001), any domestic or foreign registered restricted professional company in existence on December 31 of any year is required to file a Certificate of Annual Registration. This form and the corresponding annual registration fee must be filed on or before April 15.
    --------
    Pennsylvania's Business Corporation Law defines "restricted professional services" as "chiropractic, dentistry, law, medicine and surgery, optometry, osteopathic medicine and surgery, podiatric medicine, public accounting, psychology or veterinary medicine." If you do not fall within those categories, your LLC isn't required to file an annual registration or pay an annual fee.

    Of course, as with all of my online answers, my advice is limited by the brevity of your question and the facts provided. Additional information would be required to provide definitive legal advice, so this answer isn't intended to, and does not, create an attorney-client relationship.

    Good luck!

    If you feel this answer has been helpful, please consider checking the "thumbs up" box below.

  3. Michael J. Brooks

    Contributor Level 12

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    Answered . Law Offices Michael J. Brooks, Esquire
    (215) 230-3761
    Attorney@Law-Brooks.com “Perspective from the Legal Vantage Point”
    www.Law-Brooks.com

    Disclaimer: Please note you should not rely upon the information provided herein as legal advice. It is for general informational purposes only. Legal advice can only come from a qualified attorney after having had an opportunity to become familiar with all of the fact specific circumstances of a particular legal matter, and then to apply or research the relevant law.

    In general it is true that the annual report filing fee for an LLC is $460 per member. However, annual report filing is limited to LLC’s providing restricted professional services, (i.e., chiropractic, dentistry, law, medicine and surgery, optometry, osteopathic medicine and surgery, podiatric medicine, public accounting, psychology or veterinary medicine). If you are not a professional LLC (doctor, lawyers, etc.) the annual registration and annual fee does not pertain to you. Further, the annual fee is required to be paid only with respect to a member who:
    (1) was licensed to practice the professional service rendered by the company; and
    (2) had principal residence in Pennsylvania. See § 8998(b)(1)."

    If you are a professional seeking to incorporate, there must be two or more members to form an LLC. However, professionals who are seeking to incorporate are sometimes better served with an S-Corp which does not pay the annual fee, and has the potential for substantial self- employment tax savings.

  4. Bryant Keith Martin

    Contributor Level 18

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    Answered . Yes. Go to: http://www.dos.state.pa.us/portal/server.pt/com...
    entitled "Forms."
    Scroll down to the heading: "Domestic Limited Liability Partnership/Limited Liability Company."
    Umder that heading you will find "Annual Registration - Registered Limited Liability Partnership/Company."
    If you open that, you will find a pdf that says the "prescribed annual base fee" is $460 times the number of members.
    I was astounded. I don't know of any other state that has such a charge. Maybe that is in lieu of income taxes. I will leave that to others to research.
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    DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California.
    (Bryant) Keith Martin
    sbbizlaw.com

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