New York vs Pennsylvania LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026New York charges $200 to form an LLC; Pennsylvania charges $125. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Pennsylvania runs about $144 less in total state fees than New York. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
New York imposes an entity-level annual tax on every LLC ($25 minimum). Pennsylvania does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Pennsylvania costs $75 less to form ($125 vs $200).
- Pennsylvania is $23 per year cheaper to maintain ($107 vs $130).
- New York imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Pennsylvania does not.
- New York requires newly formed LLCs to publish a formation notice in local newspapers; this can add $50 to $1,800 depending on county.
- New York requires LLCs to adopt a written operating agreement by statute. The other state treats it as recommended rather than required.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only Pennsylvania
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
Both states
- Online filing
- Paid expedited tier
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in New York, business operates there No foreign LLC registration needed. You pay New York fees only. | $330 | $130 | $590 |
| You live in Pennsylvania, business operates there No foreign LLC registration needed. You pay Pennsylvania fees only. | $232 | $107 | $446 |
| Non-resident forming in New York with operations elsewhere You pay New York's fees plus a typical home-state foreign LLC registration of about $200 per year. | $530 | $330 | $1,190 |
| Non-resident forming in Pennsylvania with operations elsewhere You pay Pennsylvania's fees plus a typical home-state foreign LLC registration of about $200 per year. | $432 | $307 | $1,046 |
New York vs Pennsylvania: full comparison
| Dimension | New York | Pennsylvania |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 3 business days | 3 business days |
| Expedited option Paid fast-track filing | $25 | $100 |
| Annual report Required in addition to tax | Required, $9 | Required, $7 |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | $25 minimum | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | Required | No |
| Operating agreement Required by state statute | Required by statute | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $250 | $250 |
| State sales tax General statewide rate | 4.0% | 6.0% |
Taxes in New York and Pennsylvania
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
New York tax
$25 minimum annual tax (gross-receipts-tiered basis). State income tax applies to member-level pass-through income. Corporate rate 7.3%.
Pennsylvania tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 7.5%.
Ongoing compliance
The recurring filings each state requires after formation.
New York
Annual report $9, due on your anniversary month. Registered agent required in New York.
Pennsylvania
Annual report $7, due 09/30 each year. Registered agent required in Pennsylvania.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
New York
- Prepare a publication-ready notice (required in New York).
- Check business-name availability on the New York entity search.
- Appoint a registered agent with a physical New York street address.
- File Articles of Organization (DOS-1336) for $200.
- Wait for approval. Online typically 3 business days. Paid expedite from $25.
- Adopt a written operating agreement (statutorily required in New York).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $9 when it comes due.
Pennsylvania
- Check business-name availability on the Pennsylvania entity search.
- Appoint a registered agent with a physical Pennsylvania street address.
- File Certificate of Organization – Domestic Limited Liability Company (DSCB:15-8821) for $125.
- Wait for approval. Online typically 3 business days. Paid expedite from $100.
- Adopt an operating agreement (recommended, not required by Pennsylvania statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $7 when it comes due.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both New York and Pennsylvania (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in New York or Pennsylvania does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
New York Department of State - Division of Corporations, State Records and Uniform Commercial Code
- Website
- dos.ny.gov/division-corporations-state-records-and-uniform-commercial-code
- Phone
- (518) 473-2492
- Department of State, Division of Corporations, State Records, and Uniform Commercial Code, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231
- Office
- One Commerce Plaza, 99 Washington Avenue, 6th Floor, Albany, NY 12231
- Hours
- 9:00 AM to 4:30 PM Eastern, Monday to Friday
Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations
- Website
- www.pa.gov/agencies/dos/programs/business.html
- Phone
- (717) 787-1057
- RA-CORPS@pa.gov
- Bureau of Corporations and Charitable Organizations, 401 North Street, 206 North Office Building, Harrisburg, PA 17120
- Office
- 401 North Street, 206 North Office Building, Harrisburg, PA 17120
- Hours
- 8:00 AM to 4:45 PM Eastern, Monday to Friday
New York State Department of Taxation and Finance
- Website
- www.tax.ny.gov
- Phone
- (518) 457-5181
- NYS Department of Taxation and Finance, W.A. Harriman Campus, Albany, NY 12227
- Office
- W.A. Harriman Campus, Albany, NY 12227
- Hours
- 8:30 AM to 4:30 PM Eastern, Monday to Friday
Pennsylvania Department of Revenue
- Website
- www.pa.gov/agencies/revenue.html
- Phone
- (717) 787-1064
- Pennsylvania Department of Revenue, 1131 Strawberry Square, Harrisburg, PA 17128
- Office
- Strawberry Square, Harrisburg, PA 17128
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in New York or Pennsylvania?
Pennsylvania is cheaper at formation ($125) than New York ($200). Ongoing costs are also different: $107 vs $130 per year. Total over three years: $446 vs $590.
-
Can I form an LLC in New York if I live in Pennsylvania?
Yes, but your Pennsylvania business will almost certainly need to register as a foreign LLC in Pennsylvania too, which means paying Pennsylvania's foreign registration fee and any ongoing Pennsylvania obligations on top of the New York ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in New York vs Pennsylvania?
New York online: 3 business days; Pennsylvania online: 3 business days. New York offers paid expedite from $25. Pennsylvania offers paid expedite from $100.
-
Which state has lower taxes for an LLC, New York or Pennsylvania?
New York: state income tax applies to member-level pass-through income, plus a $25 minimum entity-level tax. Pennsylvania: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. New York and Pennsylvania both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Does New York or Pennsylvania have a publication requirement?
New York does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. Pennsylvania has no publication requirement.
-
Do I need a written operating agreement in New York or Pennsylvania?
New York requires LLCs to adopt a written operating agreement by statute. Pennsylvania treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.
-
Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in New York or Pennsylvania to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More New York and Pennsylvania comparisons
More New York vs ...
Sources
- Filing fee: dos.ny.gov/fee-schedules · verified April 21, 2026
NY DOS Division of Corporations fee schedule: domestic LLC Articles of Organization filing fee = $200. Professional service LLC same fee. - Expedited filing: dos.ny.gov/fee-schedules · verified April 21, 2026
Expedited surcharges on top of the filing fee: 24 hours = $25, same day = $75, 2 hours = $150. We report the cheapest 24-hour tier. Biennial Statements cannot be expedited. - Foreign LLC registration fee: dos.ny.gov/application-authority-foreign-limited-liability-companies · verified April 21, 2026
Foreign LLC Application for Authority filing fee = $250 (standard). Professional service foreign LLC = $200. Foreign LLCs are also subject to the publication requirement. - Operating agreement requirement: www.nysenate.gov/legislation/laws/LLC/417 · verified April 21, 2026
NY LLC Law Section 417(a): 'the members of a limited liability company shall adopt a written operating agreement.' Must be adopted before, at, or within 90 days after the filing of the Articles of Organization. The agreement is not filed with the state, but is statutorily required. - Publication requirement: www.nysenate.gov/legislation/laws/LLC/206 · verified April 21, 2026
NY LLC Law Section 206 requires publication of a notice of LLC formation in two newspapers for six consecutive weeks within 120 days of formation, followed by filing a Certificate of Publication ($50) with DOS. Failure to publish suspends the LLC's authority to carry on, conduct, or transact business in New York. Cost ranges are referenced via county clerk designations; representative estimate ~$1,200 mid-range. - Annual report fee: dos.ny.gov/biennial-statements-business-corporations-and-limited-liabi… · verified April 21, 2026
Biennial Statement fee = $9, mandated by NY LLC Law Section 301(e). Filed via the e-Statement Filing Service. Filing period is the calendar month of original Articles of Organization filing, every two years. - Franchise tax: www.tax.ny.gov/pit/efile/annual_filing_fee.htm · verified April 21, 2026
New York charges an annual LLC filing fee on Form IT-204-LL, tiered by NY source gross income: <=$100k = $25; $100,001-$250,000 = $50; $250,001-$500,000 = $175; $500,001-$1M = $500; $1M-$5M = $1,500; $5M-$25M = $3,000; over $25M = $4,500. Disregarded-entity single-member LLCs pay a flat $25. Recorded as gross-receipts-tiered franchise-style charge because it functions as a mandatory annual state charge on the LLC entity even when pass-through. - Corporate income tax rate: www.tax.ny.gov/bus/ct/def_art9a.htm · verified April 21, 2026
Article 9-A NY corporate franchise tax: base rate 6.5% for most corporations; 7.25% applies to business income over $5M (extended through 2026 under the 2021 state budget). LLCs are pass-through by default and do not owe Article 9-A unless they elect C-corp status federally. - Sales tax rate: www.tax.ny.gov/bus/st/stidx.htm · verified April 21, 2026
NY statewide sales and use tax rate is 4%. Local jurisdictions add additional rates; combined rates range from about 7% to 8.875% (NYC). We record the statewide rate only. - Business name search: apps.dos.ny.gov/publicInquiry/ · verified April 21, 2026
NY DOS Division of Corporations Public Inquiry entity search. Can lookup by entity name or DOS ID. - Online filing portal: dos.ny.gov/articles-organization-domestic-limited-liability-company-0 · verified April 21, 2026
Official DOS page for Articles of Organization for domestic LLCs. Links to online filing. Acknowledgement receipt emailed within minutes; processing typically completed in 2-3 business days. - Certificate of Formation name: dos.ny.gov/system/files/documents/2024/05/articles-of-organization.pdf… · verified April 21, 2026
Form DOS-1336, Articles of Organization for a Domestic Limited Liability Company, published by the NY DOS Division of Corporations. - Filing fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
Pennsylvania Department of State 'Fees and Payments' schedule: Certificate of Organization (domestic LLC) = $125. Veterans, reservists, and National Guard members may qualify for fee waiver with proof of service. - Expedited filing: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
PA Department of State expedited service tiers (over-the-counter or electronic only, not available by mail): Same-day (request in by 10 AM) $100; 3-hour (by 2 PM) $300; 1-hour (by 4 PM) $1,000. We report same-day $100 as the cheapest expedited tier. - Certificate of Formation form: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
A Pennsylvania LLC is formed by filing Certificate of Organization (DSCB:15-8821) together with a Docketing Statement (DSCB:15-134A) with the Bureau of Corporations and Charitable Organizations. Fillable PDF is hosted at pa.gov. - Online filing portal: hub.business.pa.gov/ · verified April 21, 2026
PA Business One-Stop Hub (Keystone Login). Online filing portal for Certificate of Organization, annual report, amendments, and UCC. Online LLC formation is typically approved within 1–3 business days based on the Department's published Business Filing Services guidance. - Business name search: file.dos.pa.gov/search/business · verified April 21, 2026
Pennsylvania business entity search, operated by the Department of State. Cloudflare bot-verification gate appears on first load; page otherwise resolves normally. - Naming rules: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
15 Pa.C.S. Chapter 2 (Entities Generally): Sections 202 (requirements for names) and 204 (name restrictions, including required designators such as 'company,' 'limited,' 'limited liability company,' or an abbreviation). Official Pennsylvania General Assembly statutes. - Operating agreement requirement: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
15 Pa.C.S. §8815 recognizes operating agreements (written, oral, or implied) but does not require LLCs to adopt one. Under Chapter 88 (Pennsylvania Uniform Limited Liability Company Act of 2016), default statutory rules govern in the absence of an operating agreement. - Publication requirement: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
PA Department of State LLC information page: 'No advertising is required when forming a domestic limited liability company.' The old pre-2017 publication rule was repealed by Act 170 of 2016. - Foreign LLC registration fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
PA DOS fee schedule: Foreign Registration Statement (foreign LLC) = $250. - Annual report fee: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
Pennsylvania Annual Reports page: under Act 122 of 2022, LLCs must file an annual report (Form DSCB:15-146) each year between January 1 and September 30. Fee is $7 for for-profit LLCs. Beginning with 2027 filings, non-compliance triggers administrative dissolution 6 months after the deadline. - Franchise tax: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
Pennsylvania eliminated the Capital Stock/Foreign Franchise Tax effective for tax years beginning January 1, 2016. No franchise or capital stock tax applies to LLCs. Restricted professional companies pay a separate annual registration fee of at least $500 under 15 Pa.C.S. §8998. - Corporate income tax rate: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
PA Department of Revenue Corporate Net Income Tax rate for 2026 = 7.49% (Act 53 of 2022 schedule). Rate steps down 0.5 points per year to 4.99% by 2031. Applies to C-corps and to LLCs that elect C-corp treatment. - Sales tax rate: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-… · verified April 21, 2026
Pennsylvania Sales, Use and Hotel Occupancy Tax base rate is 6%. Allegheny County adds 1% local tax and Philadelphia adds 2% local tax; statewide base rate reported here.