The $125 is a one-time fee. You pay it once when you file your Certificate of Organization to create your LLC. It never comes back. Pennsylvania does have a separate $7 annual requirement starting in 2025, but that’s a different charge.
This is one of the most common points of confusion for new PA LLC owners — and it’s worth clearing up completely so you know exactly what you’re committing to financially.
What the $125 Covers
The $125 is the state filing fee for your Certificate of Organization — the document that officially creates your Pennsylvania LLC. You file it once through the PA Department of State’s Business Filing Services portal. Once it’s processed, your LLC is formed and the $125 is gone forever from your obligations.
There’s no annual renewal of your LLC formation itself, no recurring registration fee, and no fee just to keep your LLC in existence year over year.
What IS Annual: The $7 Annual Report (New in 2025)
Pennsylvania replaced its old Decennial Report (filed once every 10 years) with a new Annual Report requirement that kicked in on January 1, 2025. Every Pennsylvania LLC now owes $7 per year — filed by September 30 each year.
The $7 annual report is entirely separate from the $125 formation fee. Think of it this way: $125 is what you pay to create your LLC. $7/year is what you pay to keep it active.
What About Registered Agents?
If you hire a registered agent service, that’s another recurring annual cost — typically $49 to $125 per year depending on the provider. But this is optional. You can serve as your own registered agent at no cost, as long as you have a physical Pennsylvania street address and you’re available there during business hours.
Does Pennsylvania Have an Annual Franchise Tax?
No. Pennsylvania does not charge an annual franchise tax on LLCs. This is one of PA’s real advantages over states like California, which charges a minimum $800 franchise tax every year. In Pennsylvania, your annual LLC maintenance cost is $7 (plus registered agent if you use one). That’s it.
Full Picture: One-Time vs. Ongoing Costs
| Cost | One-Time or Annual? | Amount |
| Certificate of Organization filing fee | One-time | $125 |
| EIN (Employer ID Number) | One-time | $0 (free from IRS) |
| Operating Agreement | One-time | $0 (DIY) |
| Annual Report | Annual (every year) | $7 |
| Registered Agent Service | Annual (optional) | $49–$125/year |
| PA Franchise Tax | N/A | $0 (PA has none) |
Frequently Asked Questions
You pay it when you submit your Certificate of Organization to the PA Department of State. If you’re filing online through file.dos.pa.gov, you pay by credit or debit card at the end of the filing. There’s no cost to reserve or search a name before filing.
Yes, in one case: Pennsylvania waives the $125 filing fee for veterans and reservists starting a new business. Contact the PA Department of State to confirm eligibility and required documentation.
If your LLC gets administratively dissolved (for example, for missing annual reports after 2027), reinstating it costs $170 plus $7 for each missed annual report. You do not re-pay the $125 formation fee for reinstatement.
Yes. Filing an amendment to your Certificate of Organization — for a name change or other updates — costs $70 with the PA Department of State.
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