What "foreign LLC" means
"Foreign" here means out-of-state, not out-of-country. If your LLC is formed in Wyoming but you're physically doing business in Pennsylvania, you generally need to register the Wyoming LLC as a "foreign LLC" with Pennsylvania.
Pennsylvania foreign LLC registration cost
- Certificate of authority filing fee: roughly the same as a new domestic LLC in Pennsylvania — ~$125.
- Certificate of good standing from home state: $10-$50.
- Registered agent in Pennsylvania: $50-$200/year (you need a separate one for each state).
- Annual report in Pennsylvania: $7 per year.
- No franchise minimum.
When you must register
"Doing business" definitions vary, but typically include: having an office or employees in Pennsylvania, owning property in Pennsylvania, or executing repeated transactions with Pennsylvania customers. Casual sales to Pennsylvania customers usually don't trigger registration.
Penalties for not registering
- Loss of access to Pennsylvania courts for collections.
- Back-payment of all years' annual fees with penalties.
- Personal liability exposure (the corporate veil weakens in some states).
The math: is it worth forming out-of-state?
If you operate in Pennsylvania, forming in Wyoming or Delaware almost always costs more than just forming in Pennsylvania, because you pay both states. Forming out-of-state pays off only for true holding companies and non-residents.