Starting in 2024, all businesses, including foreign associations, that are registered to do business in Pennsylvania will be required to file an annual report.
This change is a result of Act 122 that was signed into law by Governor Wolf in November of 2022. The new annual report will replace Pennsylvania’s current decennial reporting requirement.
The annual report will include the following:
- Business entity name
- Jurisdiction of incorporation
- Name of at least one director, member or partner
- Names and titles of the principal officers
- Address of the principal office
- Entity number issued by the PA Department of State
The annual filing fee associated with the report will be $7 for corporations, limited liability companies, and limited liability partnerships. There will be no fee required for non-profit corporations. The Pennsylvania Department of State estimates that the new annual report filing fee will bring in $4.6 million in net revenue. The deadline for filing the annual report depends on the type of entity. For non-profit and for-profit corporations, the deadline is June 30. For limited liability companies, the deadline is September 30, and all other entity types are due December 31.
The penalty for failing to file the annual report could result in dissolution and the loss of the right to the company’s name. The Pennsylvania Department of State recognizes that the annual report is a significant change for Pennsylvania. Therefore, it will provide organizations with a transition period before imposing any penalties for the failure to file. Organizations will be given an additional six months after the due date of the annual report before they become subject to dissolution, termination or cancellation. The Department will mail the annual notice to all registered entities at least two months prior to the deadline.
About Schneider Downs Tax Services
Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-Profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.
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