By Jake Lawson, LLC Formation Strategist
Pennsylvania just made a major change that caught many LLC owners off guard. Starting in 2025, they’re requiring annual reports instead of their old 10-year “Decennial Report” system. After helping over 1,200 entrepreneurs maintain compliance across all 50 states, I can tell you this shift aligns Pennsylvania with most other states—but it also means new obligations for existing Pennsylvania LLCs.
The good news? At just $7 annually, Pennsylvania’s annual report is one of the cheapest in the nation. The challenge? Many established Pennsylvania LLCs have never dealt with annual compliance requirements before.
But here’s what I appreciate about Pennsylvania’s approach: they’re giving everyone a grace period through 2026, and their new online system is remarkably user-friendly.
Let me walk you through everything you need to know about Pennsylvania’s new annual report requirement, including how to navigate their updated filing system.
Pennsylvania’s Major Annual Reporting Change
What changed: Pennsylvania eliminated their 10-year Decennial Report and now requires annual reports like most other states.
When it started: 2025 (first reports due September 30, 2025, for LLCs formed in 2024)
Cost: $7 annually (extremely affordable compared to other states)
Due date: September 30th every year
Grace period: No penalties for 2025 and 2026 filings (Pennsylvania is being generous while everyone adjusts)
Jake’s take: This change actually benefits LLC owners. Instead of potentially forgetting a 10-year requirement, you now have annual touchpoints to keep your information current with the state.
Understanding the New Pennsylvania System
Who Must File
Every Pennsylvania LLC must file annually, including:
- Active LLCs doing business
- Inactive LLCs (even if making no money)
- LLCs with no business activity
- Single-member and multi-member LLCs
No exceptions: Pennsylvania requires this filing regardless of your LLC’s income, activity level, or operational status.
When Your First Report Is Due
The rule: Your first annual report is due the year after your LLC is approved.
Examples:
- LLC approved in 2024 → First report due September 30, 2025
- LLC approved in 2025 → First report due September 30, 2026
Filing window: You can file as early as January 1st of the filing year, giving you a 9-month window.
Pennsylvania’s Generous Grace Period (2025-2026)
Here’s where Pennsylvania shows some compassion for the transition:
No penalties for 2025 and 2026: Pennsylvania won’t charge late fees or dissolve LLCs for missing these first two years of reports.
Why they’re doing this: They recognize this is a major change for existing LLCs and want to give everyone time to adjust.
Jake’s advice: Don’t rely on this grace period. Start good habits now, because penalties begin in 2027.
What Happens Starting in 2027
Late filing consequences:
- Reports become “late” after September 30th
- 6-month grace period to file late reports
- Administrative dissolution if not filed within 6 months
Administrative dissolution effects:
- LLC loses legal standing
- Business name becomes available for others to use
- Loss of liability protection
Reinstatement process:
- File Application for Reinstatement ($35)
- Pay $15 late fee for each missed annual report
- Can reinstate anytime, but name might be taken by others
Filing Your Pennsylvania LLC Annual Report Online
Pennsylvania’s new system uses their “One-Stop Hub” portal, which is actually quite intuitive once you understand the flow.
Getting Started: Create Your Keystone Login
Access: PA Business One-Stop Hub
Account creation:
- Click “Register” to create new account
- Enter registration information
- Verify email address
- Login to your new account
Navigation:
- Select “Business Owner” as purpose of visit
- Skip the Business Profile step
- Access your One-Stop Dashboard
Step-by-Step Filing Process
Step 1: Find Your LLC
- Click “Business Filing Services”
- Select “Search” in left navigation
- Enter your LLC name and search
- Click on your LLC name in results
- Select “File Annual Report”
Step 2: Update Contact Information
Email notifications (recommended):
- Opt-in to receive email reminders
- Add your current email address
- Save changes
Why email notifications matter: Pennsylvania’s postal reminders might not reach you if addresses change. Email provides a reliable backup.
Step 3: Registered Agent Information
If keeping current registered agent: Select “I do not want to change the registered office”
If changing registered agent:
- Select change option
- Enter new registered agent information
- Must be Pennsylvania address
- Cannot be P.O. Box
Professional registered agent services:
- Search for commercial providers
- Select from approved list
- Enter county information
Step 4: Principal Office Address
What this is: The address where your business activities take place or where you keep business records
Requirements:
- Must be physical street address
- Can be home, office, or registered agent address
- Cannot be P.O. Box
- Update if changed since last filing
Step 5: Governor Information
Pennsylvania terminology: “Governors” are essentially LLC managers or authorized persons
Requirements:
- Must have at least one governor
- Can be individual person or entity
- Add if you don’t have one on file
Common setup: Most single-member LLCs list the owner as the governor
Step 6: Review and Sign
Final review checklist:
- Verify all addresses are current
- Check registered agent information
- Confirm contact details
- Review for typos or errors
Digital signature:
- Signer’s capacity: “Authorized Signer”
- Enter your full name
- Use current date
Step 7: Payment and Submission
Payment: $7 via credit or debit card Processing: Immediate approval for online filings Confirmation: Download receipt and approved report
Mail Filing Option
When to consider mail filing:
- You’re not comfortable with online systems
- You prefer paper records
- Technical issues with online system
Requirements:
- $7 fee (check or money order)
- Completed annual report form
- Processing time varies
Jake’s recommendation: Use online filing unless you have specific reasons to avoid it. It’s faster, provides immediate confirmation, and reduces processing delays.
Setting Up Your Pennsylvania Compliance System
Reminder Strategy
Primary reminder: July 1st (gives you 3 months to file) Secondary reminder: August 1st (2 months remaining) Final reminder: September 1st (file immediately)
Multiple reminder sources:
- Personal calendar alerts
- Business calendar systems
- Pennsylvania’s email notifications (if opted in)
- Pennsylvania’s postal reminders (automatic)
Record Keeping Best Practices
Essential documents to maintain:
- Annual report confirmations
- Payment receipts
- Updated business information
- Registered agent correspondence
Organization strategy:
- Create annual folder for each year’s filing
- Store digital copies of all confirmations
- Keep backup copies of important business information
Common Pennsylvania Annual Report Mistakes
After helping hundreds of entrepreneurs with compliance systems, here are the mistakes I see most often:
Mistake 1: Assuming the Grace Period Will Continue
Pennsylvania explicitly states penalties begin in 2027. Don’t get caught unprepared.
Mistake 2: Not Updating Contact Information
Use the annual report as an opportunity to keep your business information current with the state.
Mistake 3: Relying Only on Postal Reminders
Addresses change, mail gets lost. Set up multiple reminder systems.
Mistake 4: Filing Late Due to Procrastination
With a 9-month filing window, there’s no excuse for last-minute rushes.
Mistake 5: Not Understanding Administrative Dissolution
This isn’t just a penalty—it actually terminates your LLC’s legal existence.
Strategic Considerations for Pennsylvania LLCs
Multi-State LLC Portfolio Management
If you have LLCs in multiple states:
- Pennsylvania’s $7 fee is among the cheapest you’ll encounter
- September 30th deadline is different from most states’ calendar year requirements
- Track Pennsylvania separately from other states’ compliance calendars
Business Planning Integration
Use annual reports strategically:
- Review and update business information annually
- Assess registered agent service performance
- Evaluate principal office location needs
- Plan for business changes or expansions
Professional Service Considerations
DIY makes sense when:
- You have one Pennsylvania LLC
- Your information rarely changes
- You’re comfortable with online systems
- You want to save money on simple compliance
Consider professional help when:
- Managing multiple Pennsylvania LLCs
- Frequent business changes require updates
- You travel extensively around deadline time
- You want comprehensive compliance management
Pennsylvania vs. Other States: What Makes It Different
Pennsylvania’s advantages:
- $7 annual fee (among the cheapest in the nation)
- User-friendly online filing system
- Generous grace period for the transition
- Email notification options
Considerations:
- September 30th deadline different from calendar year states
- New requirement for established LLCs
- Administrative dissolution after 6-month grace period
Jake’s assessment: Pennsylvania’s approach is entrepreneur-friendly. The low cost, generous transition period, and modern online system show they want to support business compliance rather than create barriers.
The Bottom Line on Pennsylvania LLC Annual Reports
Pennsylvania’s shift to annual reports aligns them with modern business compliance practices while keeping costs minimal. At $7 annually with a user-friendly online system, they’ve made compliance as painless as possible.
Key success principles:
- Start filing now: Don’t wait for penalties to begin in 2027
- Use the online system: It’s faster and provides immediate confirmation
- Set up multiple reminders: Don’t rely solely on state notifications
- Keep information current: Use annual reports to maintain accurate business records
- Understand the consequences: Administrative dissolution is serious
Remember: Annual reports aren’t just compliance paperwork—they’re your annual check-in with the state to keep your LLC’s legal status current and protected. At $7 per year, it’s one of the best investments you can make in your business’s legal foundation.
Pennsylvania has created a system that balances compliance requirements with business-friendly implementation. Take advantage of their generous transition period and reasonable requirements to establish good compliance habits that will serve your business well for years to come.
Jake Lawson is an LLC Formation Strategist and Tax Advisor who has successfully helped over 1,200 entrepreneurs maintain compliance across all 50 states. He specializes in adapting to changing state requirements and creating sustainable compliance systems that prevent costly mistakes and provides unbiased reviews of compliance services at llciyo.com.