How to create an S Corp in Pennsylvania?

Forming an S corporation in Pennsylvania involves a combination of state-level business registration and federal tax election. While Pennsylvania doesn’t have a special S corp entity type, it allows corporations and LLCs to elect S corporation tax status after registration.

Here’s a step-by-step breakdown:

Step 1: Choose a Business Name

• Must be distinguishable from other registered names in Pennsylvania.
• Include a corporate designator (e.g., “Inc.” or “Corporation”).
• Search availability on the Pennsylvania Department of State website.

Step 2: Appoint a Registered Office

• Pennsylvania requires either a registered office address or a commercial registered office provider (CROP)
• This is where legal documents will be delivered

Step 3: File Articles of Incorporation

• Submit Form DSCB:15-1306 (Articles of Incorporation – For Profit Corporation)
• File online via Penn File or by mail
• Include a docketing statement with the filing

Step 4: Obtain an EIN from the IRS

• Apply for an Employer Identification Number (EIN) at IRS.gov
• Required for opening business bank accounts, hiring employees, and tax filings

Step 5: Elect S Corporation Status

File Form 2553 with the IRS within:

• 2 months and 15 days after forming your corporation, or
• The start of the next tax year. This designates your entity as an S Corp for federal tax purposes.

Step 6: Register for Pennsylvania Taxes

• Depending on your business activities, register with the PA Department of Revenue for:
• Employer withholding
• Sales tax
• Corporate net income tax (if applicable)

Key Considerations

• Pennsylvania does not tax qualified S Corps under the CNIT, but it does impose a 3.07% state-level personal income tax (PIT) on corporate income.
• Shareholders report income on their personal state tax returns.
• Annual filings and local taxes may still apply.

For professional support with incorporation, S Corp election, and state compliance, firms like One IBC USA offer tailored business formation services for Pennsylvania and beyond.