New Reporting Requirements for PA Businesses Coming Soon
The reporting requirements for Pennsylvania registered businesses and foreign associations are about to change in 2024 with the enactment of Act 122 of 2022 (“the Act”). According to the Act, business entities will now be required to file an annual report with the Department of State. Prior to this change, businesses were only required to file a report every ten (10) years. This was called the decennial filing.
Businesses affected by this change are; domestic filing entities, domestic limited liability partnerships, domestic electing partnerships that are not a limited partnership or registered foreign association. The new filing requirements are effective January 2, 2024.
Each annual report must include the following information:
- business name,
- jurisdiction of incorporation,
- name of one director, member or partner,
- names and titles of the principal officers,
- address of principal office, and
- the entity number issues by the state.
With the annual report, each business must also pay a $7.00 filing fee (excluding non-profit organizations). A business that fails to file the annual report or pay the filing fee risks an involuntary dissolution or could lose the right to use their name. While a business may request that they be reinstated at any time, they would risk that their name is taken by another entity during their dissolution period. These new changes will create more work for the average business, but it will help keep the State’s entity information accurate and up to date. Having access to more accurate information will benefit everyone in the long run.