Form Your Pennsylvania S Corporation
Incorporate in the Keystone State and elect S corp status for pass-through taxation and self-employment tax savings — with no franchise tax and a low-cost $7 annual report (new as of 2025)
Filed in Pennsylvania
The Keystone State · PA
- State filing fee$125
- Processing time7-10 business days online; longer by mail
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$7/year (annual report, new since 2025) — due Jan 1 - Sep 30 annually
- State tax rate7.99% corporate net income tax
- Expedited optionsame day (request received before 10:00 a.m.) (+$100)
Form your Pennsylvania S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your Pennsylvania S-Corp
Free formation means you pay only the $125 state filing fee. All core services are included at no extra charge.
Articles of Incorporation filing
We prepare and submit your Articles of Incorporation to the Pennsylvania Department of State.
Registered agent
Required in Pennsylvania — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in Pennsylvania
Pennsylvania pairs a strategic Northeast location between New York and D.C. with two thriving metros, Philadelphia and Pittsburgh, making it a strong base for S corporations seeking pass-through taxation and payroll-tax savings. The franchise tax was eliminated in 2016 and ongoing compliance is inexpensive ($7 annual report), though the state's 7.99% corporate net income tax and S corp reasonable-salary rules should factor into your planning.
Pass-through taxation — profits flow to shareholders' personal returns, avoiding the corporation-level double tax that C corps pay
Self-employment tax savings — only your reasonable W-2 salary is subject to payroll taxes, while distributions are not
No Pennsylvania franchise tax (eliminated in 2016), keeping ongoing entity costs low
Low-cost ongoing compliance — Pennsylvania's annual report is just $7/year (new requirement effective 2025)
Strategic Northeast location between New York and Washington, D.C., with two major metros in Philadelphia and Pittsburgh
Strong healthcare, education, and technology sectors, plus thriving startup ecosystems anchored by Carnegie Mellon and Penn
Limited liability protection for shareholders, separating personal assets from business debts
Enhanced credibility with banks, investors, and clients from operating as an incorporated entity
Key features of a Pennsylvania S-Corp
- State filing is an ordinary corporation; S corp status is a separate IRS election via Form 2553
- $125 state filing fee with 7-10 business day online processing through the PA Department of State
- Pass-through taxation avoids entity-level double tax; 7.99% PA corporate net income tax may still apply at the entity level
- No Pennsylvania franchise tax (eliminated 2016)
- Low-cost $7/year annual report (new requirement effective 2025)
- Reasonable-salary rule applies — distributions above your W-2 wage escape self-employment tax
Major industries in Pennsylvania
Form your Pennsylvania S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes 7-10 business days online; longer by mail.
- 01
Choose and Verify Your Corporate Name
Your name must include a corporate designator such as 'Incorporated,' 'Corporation,' 'Company,' 'Limited,' or an abbreviation. Check availability through the Pennsylvania Department of State's business entity search before filing.
- 02
Appoint Directors and a Registered Office
Name at least one director and maintain a registered office address in Pennsylvania. The state does not require a commercial registered agent for domestic corporations, but a Pennsylvania address for service of process is mandatory.
- 03
File Articles of Incorporation
Submit your Articles of Incorporation to the Pennsylvania Department of State. The filing fee is $125 and online processing typically takes 7-10 business days (longer by mail). Pennsylvania also requires corporations to publish notice of incorporation in two newspapers.
- 04
Obtain an EIN from the IRS
Apply for a free Employer Identification Number from the IRS. You'll need it to file Form 2553, open a business bank account, run payroll, and hire employees.
- 05
Elect S Corporation Status (Form 2553)
File IRS Form 2553 to elect S corporation tax treatment. The election must be filed within 75 days of formation (or by March 15 to apply to the current tax year). This federal tax election is what makes your Pennsylvania corporation an S corp.
- 06
Set a Reasonable Salary and Run Payroll
The IRS requires S corp shareholder-employees to take a reasonable W-2 salary before distributions. Establish payroll, withhold taxes, and document your compensation to stay compliant and capture the self-employment tax savings.
Pennsylvania S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
Pennsylvania S-Corp requirements checklist
Everything you need to form and maintain a Pennsylvania S-Corp in 2026.
- File Articles of Incorporation with the PA Department of State ($125)
- Maintain a registered office address in Pennsylvania
- Publish notice of incorporation in two newspapers (required for Pennsylvania corporations)
- Obtain an EIN from the IRS
- File IRS Form 2553 to elect S corp status within 75 days of formation (or by March 15)
- Meet S corp eligibility: no more than 100 shareholders, all US citizens or residents, and one class of stock
- File the Pennsylvania annual report each year ($7), due January 1 – September 30 (new requirement since 2025)
Filing information
- Formation document
- Articles of Incorporation
- Filing agency
- Pennsylvania Department of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $70 (120 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $125 Pennsylvania state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Articles of Incorporation filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in Pennsylvania)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
Pennsylvania S-Corp questions, answered
Common questions about forming an S-Corp in Pennsylvania. Can't find an answer? Talk to our team.
How do I form an S corporation in Pennsylvania?
An S corporation is a federal tax election, not a separate state filing. You first form an ordinary corporation by filing Articles of Incorporation with the Pennsylvania Department of State ($125), then file IRS Form 2553 to elect S corp tax treatment. Online processing typically takes 7-10 business days.
How much does it cost to form an S corp in Pennsylvania?
The Pennsylvania state filing fee for Articles of Incorporation is $125. Electing S corp status with IRS Form 2553 is free. Pennsylvania also requires corporations to publish notice of incorporation in two newspapers and to file a $7/year annual report (new since 2025).
When must I file Form 2553 to elect S corp status?
File IRS Form 2553 within 75 days of forming your Pennsylvania corporation, or by March 15 to have the election apply to the current tax year. Miss the window and your corporation is taxed as a C corp until the next eligible year (late-election relief may be available).
Who is eligible to be an S corporation?
S corp shareholders must be US citizens or residents — foreign owners are not eligible. The corporation can have no more than 100 shareholders and only one class of stock. If you don't meet these rules, an LLC or C corp may be a better fit.
What is the reasonable salary requirement?
The IRS requires S corp shareholder-employees to pay themselves a reasonable W-2 salary before taking distributions. Only that salary is subject to payroll and self-employment taxes; distributions above it are not, which is the core tax-saving benefit of the S corp election.
What taxes does a Pennsylvania S corporation pay?
S corp income generally passes through to shareholders' personal returns, avoiding the entity-level double tax. Pennsylvania has a 7.99% corporate net income tax and a 6% sales tax, and there is no franchise tax (eliminated in 2016). State income tax obligations still apply, so plan accordingly.
Does Pennsylvania require an annual report?
Yes. Effective January 1, 2025 (under Act 122 of 2022), Pennsylvania corporations must file a low-cost $7 annual report with the Department of State, due January 1 – September 30 each year. This replaced the former decennial report.
Do I have to file a BOI report for my Pennsylvania S corporation?
No. Under FinCEN's March 2025 interim final rule, US domestic entities and US persons are exempt from Beneficial Ownership Information reporting. Only foreign-formed entities registered to do business in a US state must file, so a Pennsylvania-formed corporation owned by US persons does not.
Pennsylvania government filing resources
Filing fees for common S-Corp services
Official Pennsylvania state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
Reservation lasts 120 days (bank name reservations last 6 months).
PA does NOT issue 'Certificate of Good Standing.' Domestic filing associations get a Subsistence Certificate.
Learn moreCertified copies: $55 base plus $3 per page.
$15 per document (NOT per page).
No fee: PA's official Business One-Stop hub help guide states 'There is no fee to submit your application.' Registration is via the Pennsylvania Online Business Tax Re…
Learn moreApplication for Reinstatement: $35 delivered electronically / $40 not delivered electronically, plus $15 for each Annual Report not previously paid plus the $7 Annual…
Learn moreEverything you need to run your Pennsylvania S-Corp
Formation is the first step — stay compliant and operational with these services.
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Formation is free — you pay only the $125 Pennsylvania state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in 7-10 business days online; longer by mail.
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