Jake Lawson here. First, thank you for your service to our country. Second, let me help you take advantage of one of the best veteran business benefits in the nation. Pennsylvania’s Act 135 waives the $125 LLC formation fee for veterans and reservists—and after helping dozens of service members navigate this process, I’ll show you exactly how to claim this benefit.
The Pennsylvania Veteran Advantage: $125 LLC Formation Fee Waived
Thanks to Act 135 of 2016, which became effective January 2, 2017, qualified veterans and reservists don’t pay the standard $125 filing fee when forming a Pennsylvania LLC. That’s real money staying in your business instead of going to state coffers.
But here’s what most guides won’t tell you: There are specific requirements, documentation needs, and potential pitfalls that can derail your free filing if you’re not prepared. I’ve seen veterans get tripped up by missing documents or incorrect procedures, forcing them to refile and potentially pay fees they shouldn’t have to pay.
Who Qualifies? (The Official Definitions Matter)
Pennsylvania’s Military and Veterans Code is very specific about who qualifies for this benefit:
Veterans (Qualified Individuals):
“An individual who has served in the armed forces of the United States, including a reserve component and National Guard, and who has been discharged or released from the service under conditions other than dishonorable.”
Key requirements:
- Service in any branch of U.S. Armed Forces
- Includes Reserve and National Guard service
- Must have been discharged under honorable or general conditions
- Dishonorable discharge disqualifies you from this benefit
Reservists (Currently Serving):
“A member of a United States Armed Forces reserve component or National Guard.”
Key requirements:
- Currently serving in Reserve or National Guard
- Any branch of service qualifies
- Must be in good standing
- Active duty service members may also qualify if they’re technically reservists
Important note: The law doesn’t limit this to Pennsylvania residents. If you’re a qualified veteran or reservist from any state, you can take advantage of this benefit when forming a Pennsylvania LLC.
Required Documentation: Get This Right the First Time
You must provide proof of your status with your LLC filing. Pennsylvania accepts four specific forms of documentation:
Acceptable Documents:
- Federal DD-214 Form (Certificate of Release or Discharge from Active Duty)
- Federal NGB-22 Form (National Guard Report of Separation and Record of Service)
- Valid Federal Veterans’ Administration Card (VA-issued identification)
- Valid Department of Defense-issued Military Identification Card (current military ID)
Documentation Requirements:
- Original or certified copy for mail filings
- Clear digital upload for online filings
- Must be legible and include all relevant identifying information
- Current documents (expired VA cards may not be accepted)
Pro tip from my experience: If you’re filing online, scan your documents at high resolution. Blurry or illegible uploads can delay your filing or require resubmission.
The Complete Step-by-Step Process (Don’t Miss Any Steps)
Step 1: Verify Your LLC Name Availability
Use Pennsylvania’s Business Entity Database: file.dos.pa.gov/search/business
Name requirements:
- Must be distinguishable from existing business names
- Must include “LLC,” “L.L.C.,” “Limited Liability Company,” or acceptable abbreviation
- Cannot imply services you’re not licensed to provide (like “realty” without proper licensing)
Common mistake: Choosing a name that’s too similar to existing businesses. Pennsylvania is strict about name distinguishability.
Step 2: Select Your Registered Office Address
Requirements:
- Must be a physical Pennsylvania street address
- PO Boxes are not acceptable
- Must be available during business hours for legal document service
Your options:
- Your home address (appears on public record)
- Your business address (if you have a Pennsylvania location)
- Commercial Registered Office Provider (CROP) for privacy
Privacy consideration: If you use your personal address, it becomes part of the public record. Many veterans prefer using a registered agent service for privacy and security reasons.
Step 3: Complete Required Forms
You need TWO forms:
Certificate of Organization (Form 15-8821)
- LLC name and purpose
- Registered office address
- Member/manager information
- Organizer signature
Docketing Statement (Form 15-134A)
- Additional filing information
- Fee calculation (showing veteran exemption)
- Contact information for processing
Critical requirement: Both forms must be completed accurately and consistently. Mismatched information can delay processing.
Step 4: Submit Your Filing
Online filing (recommended):
- Visit Pennsylvania’s online filing system
- Upload clear copies of your veteran documentation
- Check the veteran exemption box
- Pay $0 (exemption applied)
- Receive immediate confirmation
Mail filing:
- Send completed forms with documentation copies to:
PA Department of State
Bureau of Corporations
PO Box 8722
Harrisburg, PA 17105-8722
Processing times:
- Online: 5-10 business days
- Mail: 4-6 weeks
- Expedited mail (UPS/FedEx): 2-3 weeks
Step 5: Await Approval and Plan Next Steps
What you’ll receive:
- Stamped and approved Certificate of Organization
- Official LLC existence confirmation
- Ability to proceed with EIN application and business banking
Important Legal Warnings (Take These Seriously)
Pennsylvania takes veteran filing fee exemption fraud seriously. You can be charged with a third-degree misdemeanor for:
Prohibited Actions:
- Fraudulently obtaining the exemption without proper qualification
- Assigning or transferring your exemption to another person
- Using the exemption in any unauthorized manner
- Providing false documentation to support your claim
Penalties can include:
- Criminal charges and fines
- Required payment of waived fees
- Legal costs and complications
- Potential business formation complications
My advice: Only claim this exemption if you legitimately qualify and have proper documentation.
Post-Formation Requirements (Don’t Stop Here)
Getting your free LLC formation is just the beginning. Here’s what comes next:
Step 6: Create Your Operating Agreement
Why this matters: Pennsylvania strongly recommends (and some situations require) an operating agreement for LLCs.
What to include:
- Member ownership percentages
- Management structure and authority
- Profit and loss distribution
- Decision-making procedures
- Buyout and transfer provisions
Cost-effective approach: Use a quality template and customize for your specific needs, or hire an attorney for complex situations.
Step 7: Obtain Your Federal EIN
Important timing: Wait until your LLC is approved before applying for your EIN.
Why the timing matters:
- EIN application requires your official LLC name
- You need your LLC approval confirmation
- Processing is faster with approved LLC documentation
How to apply:
- Use the IRS online EIN application (it’s free)
- Have your approved Certificate of Organization ready
- Complete in one session (can’t save partial applications)
Step 8: Open Your Business Bank Account
What you’ll need:
- Approved Certificate of Organization
- Federal EIN confirmation letter
- Operating Agreement
- Personal identification
- Initial deposit
Banking considerations:
- Shop around for business-friendly banks
- Compare fees and service offerings
- Consider banks with veteran-specific benefits
- Look for SBA lending relationships if you plan to seek loans
Step 9: Handle Required Licenses and Permits
Research requirements for:
- State professional licenses (if applicable to your industry)
- Local business permits and licenses
- Sales tax registration (if selling products or taxable services)
- Employment-related registrations (if hiring employees)
Step 10: Plan Your Tax Strategy
What you’ll handle:
- Federal income tax (pass-through to personal return)
- Pennsylvania state income tax
- Local income taxes (varies by municipality)
- Self-employment taxes
- Sales tax collection and remittance (if applicable)
Professional recommendation: Consult with a CPA familiar with Pennsylvania LLC taxation, especially if your situation is complex.
Strategic Advantages for Veteran Entrepreneurs
Financial Benefits Beyond the $125 Savings:
Reduced startup costs allow more capital for business development
Professional credibility through legitimate business structure
Tax advantages through LLC structure and business expense deductions
Banking relationships easier with formal business entity
Operational Advantages:
Liability protection for personal assets
Business credit building separate from personal credit
Professional contracts and vendor relationships
Scalability for business growth and potential partnerships
Common Mistakes I See Veterans Make
Mistake #1: Incomplete Documentation
The problem: Submitting unclear or insufficient proof of veteran status
The consequence: Filing delays, potential rejection, or loss of fee exemption
The solution: Use high-quality document copies and verify they meet requirements
Mistake #2: Rushing the Name Selection
The problem: Not thoroughly researching name availability or requirements
The consequence: Rejected filing, need to refile, potential delays
The solution: Use Pennsylvania’s database and consider similar existing names
Mistake #3: Ignoring Post-Formation Requirements
The problem: Thinking LLC formation is the end of the process
The consequence: Missed tax obligations, licensing issues, operational problems
The solution: Plan for ongoing compliance and business development needs
Mistake #4: Not Leveraging Additional Veteran Resources
The problem: Missing other business development opportunities for veterans
The consequence: Passing up valuable resources and support programs
The solution: Research SBA veteran programs, SCORE mentoring, and other resources
Maximizing Your Pennsylvania LLC Investment
Consider These Strategic Elements:
Business Location Advantages:
Geographic positioning: Pennsylvania’s location provides access to major East Coast markets
Transportation infrastructure: Excellent highway, rail, and air connections
Business environment: Generally business-friendly with reasonable tax rates
Workforce: Educated workforce with strong work ethic
Growth Planning:
Multi-state expansion: Pennsylvania LLC can expand to other states through foreign qualification
Professional services: Access to quality legal, accounting, and business advisory services
Funding opportunities: Access to various funding sources including SBA programs
Networking: Strong veteran business communities and support organizations
Additional Veteran Business Resources
Federal Programs to Explore:
SBA Veteran Programs: Funding, training, and certification opportunities
SCORE Mentoring: Free business mentoring from experienced entrepreneurs
Veterans Business Outreach Centers: Local business development assistance
Service-Disabled Veteran-Owned Small Business (SDVOSB) Certification: Federal contracting advantages
Pennsylvania-Specific Resources:
Pennsylvania Small Business Development Centers: Free business counseling and training
Ben Franklin Technology Partners: Technology business development support
Team Pennsylvania: Business location and expansion assistance
Local Economic Development Organizations: City and county business support programs
Multi-State Business Considerations
If you’re considering operations beyond Pennsylvania:
Domestic vs. Foreign LLC Strategy:
Pennsylvania as home base: Use free formation benefit, then expand through foreign qualification
Cost analysis: Compare Pennsylvania’s ongoing costs with other states
Operational efficiency: Consider where your primary business activities will occur
Tax Implications:
Multi-state taxation: Understand obligations in each state where you do business
Professional guidance: Consider working with multi-state tax professionals
Compliance coordination: Plan for varying state requirements and deadlines
Technology and Administrative Tools
Recommended Digital Organization:
Document management: Secure cloud storage for all business documents
Financial tracking: Business accounting software from day one
Compliance calendar: Track important deadlines and renewal dates
Professional relationships: Maintain contacts for legal, accounting, and advisory services
Banking and Financial Services:
Veteran-friendly banks: Look for institutions with military-specific programs
Business credit building: Establish business credit separate from personal credit
SBA lending relationships: Banks experienced with SBA veteran loan programs
Financial planning: Consider how your LLC fits into broader financial goals
Long-Term Success Strategies
Build on Your Military Experience:
Leadership skills: Leverage your military leadership training in business
Discipline and planning: Apply military planning skills to business development
Network connections: Utilize military and veteran professional networks
Security clearance advantages: If applicable, leverage clearance for contracting opportunities
Professional Development:
Continuing education: Stay current with industry developments and business best practices
Professional associations: Join relevant trade and professional organizations
Mentorship: Both seek mentors and mentor other veteran entrepreneurs
Community involvement: Build local business relationships and community connections
The Bottom Line: Your Military Service Continues to Serve You
Pennsylvania’s free LLC formation for veterans and reservists is more than just a $125 savings—it’s recognition of your service and an investment in your entrepreneurial success.
What this benefit represents:
✅ State recognition of your military service and sacrifice
✅ Reduced barriers to business ownership and entrepreneurship
✅ Investment in veteran success and economic development
✅ Competitive advantage in business formation costs
How to maximize this opportunity:
✅ Prepare thoroughly with proper documentation and research
✅ Plan strategically for post-formation business development
✅ Leverage additional resources available to veteran entrepreneurs
✅ Build systematically toward long-term business success
Questions about Pennsylvania’s veteran LLC benefits or how they fit into your broader business strategy? I’ve helped dozens of veterans navigate not just the formation process, but the strategic decisions about business structure, state selection, and long-term planning.
Your military service taught you planning, execution, and mission accomplishment. Apply those same principles to your business formation and development—starting with taking full advantage of the benefits Pennsylvania offers in recognition of your service.
Thank you for your service, and congratulations on taking this important step toward business ownership and entrepreneurial success.
About This Guide: Jake Lawson has guided over 1,200 entrepreneurs through U.S. business formation, including extensive experience helping veterans and reservists take advantage of state-specific benefits like Pennsylvania’s free LLC formation program.
Important Note: Pennsylvania’s veteran benefits and requirements can change. Always verify current requirements with the Pennsylvania Department of State. This guide provides general information and should not replace specific legal advice for your situation.
Last Updated: 2025 | Source: Pennsylvania Act 135 of 2016, Pennsylvania Department of State, 15+ years veteran business formation experience