StructureCost2026

Pennsylvania: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,332 a year less than a sole proprietorship in Pennsylvania. All figures are 2026 tax and fees.

$4,332 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Pennsylvania, at these numbers.

More settings revenue, salary, filing status, payroll costs, PTET

Pennsylvania, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $25,218 $0
Itemized: $25,218
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxpa.gov, checked Oct 23, 2026$2,853
Yearly cost$25,218
Single-member LLC $25,223 +$5 $125
Itemized: $25,223
Annual Reportpa.gov, checked Oct 23, 2026$7
Self-employment taxirs.gov, 2026 rates$14,129
Federal income taxirs.gov, 2026 rates$8,234
State income taxpa.gov, checked Oct 23, 2026$2,853
Yearly cost$25,223
LLC taxed as an S corp lowest $20,886 −$4,332 $125
Itemized: $20,886
Annual Reportpa.gov, checked Oct 23, 2026$7
Payroll tax on your salaryirs.gov, 2026 rates$6,544
State disability and paid leavepa.gov, checked Oct 23, 2026$28
Payroll service and tax return (estimate)$1,800
Federal income taxirs.gov, 2026 rates$9,599
State income taxpa.gov, checked Oct 23, 2026$2,908
Yearly cost$20,886
S corporation $20,886 −$4,332 $125
Itemized: $20,886
Annual Reportpa.gov, checked Oct 23, 2026$7
Payroll tax on your salaryirs.gov, 2026 rates$6,544
State disability and paid leavepa.gov, checked Oct 23, 2026$28
Payroll service and tax return (estimate)$1,800
Federal income taxirs.gov, 2026 rates$9,599
State income taxpa.gov, checked Oct 23, 2026$2,908
Yearly cost$20,886
C corporation $30,465 +$5,247 $125
Itemized: $30,465
Annual Reportpa.gov, checked Oct 23, 2026$7
Payroll tax on your salaryirs.gov, 2026 rates$6,544
State disability and paid leavepa.gov, checked Oct 23, 2026$28
Payroll service and tax return (estimate)$2,000
State corporate income taxpa.gov, checked Oct 23, 2026$4,083
Federal corporate income tax (21%)irs.gov, 2026 rates$10,589
Federal income taxirs.gov, 2026 rates$4,763
State income taxpa.gov, checked Oct 23, 2026$2,451
Yearly cost$30,465
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Pennsylvania

Electing S corp tax treatment for an LLC starts to pay in Pennsylvania at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

Pennsylvania has no pass-through entity tax electioncbiz.com.

ProfitSole propLLCLLC as S corpC corp
$30,000$6,037$6,043$7,661$8,153
$50,000$11,159$11,164$11,143$13,837
$75,000$17,635$17,640$14,311$21,128
$100,000$25,218$25,223$20,886$30,465
$150,000$41,887$41,891$34,953$50,976
$200,000$59,137$59,142$49,782$70,671
$300,000$100,860$100,862$82,398$111,328

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Pennsylvania

LLCCorporation
Filing to form$125Certificate of Organization (DSCB:15-8821)$125Articles of Incorporation (For Profit)pa.gov
Yearly reportAnnual Report, $7 a yearAnnual Report, $7 a yearpa.gov
Report dueSeptember 30June 30

Not in the calculator: Most municipalities and school districts levy a local earned income tax (often around 1%) and a local services tax up to $52 a year. Philadelphia charges its Business Income and Receipts Tax on gross receipts and net income, the wage and net profits taxes, and Pittsburgh has a payroll expense tax.

Switching calculators for Pennsylvania

By profession in Pennsylvania

Questions

Is an S corp worth it in Pennsylvania?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $20,886 a year against $25,223 for a plain LLC, $4,337 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Pennsylvania?

The state charges Annual Report, $7 a year. Forming one costs $125.

Does Pennsylvania recognise the S corp election?

Yes. The federal election carries over with no separate state form. Pennsylvania follows the federal S election unless the corporation elects out. Income passes through to shareholders at 3.07%.

What income tax does Pennsylvania charge?

Pennsylvania taxes personal income at a flat 3.07% (2026). C corporations pay 7.49% of net income.

How this page models Pennsylvania (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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