Does Pennsylvania recognize the federal S-corporation election?

Yes. Pennsylvania follows the federal S election, and no separate state election form is required. Filing federal Form 2553 with the IRS is enough. The corporation does still file PA-20S/PA-65 (PA S Corporation/Partnership Information Return), with RK-1/NRK-1 schedules to shareholders.

Which Pennsylvania return does an S corporation file?

PA-20S/PA-65 (PA S Corporation/Partnership Information Return), with RK-1/NRK-1 schedules to shareholders.

Pennsylvania S-Corporation Election

By Edmond Hui · Facts verified July 29, 2026 against primary state sources

Pennsylvania follows the federal S election. Filing IRS Form 2553 is enough. There is no separate Pennsylvania election form. Pennsylvania is one of 42 states that follow the federal election with no state form of their own.

S corporation facts for Pennsylvania: the state recognizes the federal S election for state tax purposes. Incorporating costs $125 to file. The annual report fee is $7. — Pennsylvania recognizes the federal S election for state tax purposes; filing IRS Form 2553 is the federal step. Source: MyStateLLC 50-state S-corp election dataset, compiled from state filing offices and revenue departments, July 2026; any figure we could not confirm is labeled on the page.

State treatmentFollows the federal election

Separate state formNot required

State corporate income taxYes

Does Pennsylvania recognize the federal S election?

State treatment of the S election

Follows the federal election	Yes
Separate state election form	None required
State return	PA-20S/PA-65 (PA S Corporation/Partnership Information Return), with RK-1/NRK-1 schedules to shareholders

No separate state election to file: the federal election on IRS Form 2553 carries over. That is the election only, the corporation still files PA-20S/PA-65. Of the 50 states, 42 follow the federal election with no state form of their own, and 1 more, New York, recognizes S status but requires an election of its own as well.

What an S corporation still owes Pennsylvania

Generally none. Under a 2006 Pennsylvania law, every federal S corporation is automatically a Pennsylvania S corporation; income passes through to shareholders and is reported on the PA-20S/PA-65 information return. There is no minimum entity-level tax and no capital stock/franchise tax.

Franchise or gross-receipts tax

None. Pennsylvania's Capital Stock / Foreign Franchise Tax was eliminated for tax years beginning on or after January 1, 2016. There is no minimum corporate tax and no annual franchise or privilege tax on corporations.

Pennsylvania corporation vs Pennsylvania LLC

State filing charges only. Corporate income tax and franchise tax are excluded because both depend on income or net worth, so no flat figure exists for either entity.

	Corporation	LLC
Formation filing fee	$125	$125
Report cadence	Every year	Every year
Report fee	$7	$7

Both entities cost $125 to file in Pennsylvania, so the filing fee is not a reason to pick one over the other.

Full Pennsylvania LLC cost breakdown · LLC vs C-corp explained · LLC vs S-corp explained

How Pennsylvania compares

State treatment of the federal S election	States
Follows the federal election, no state form needed	42
No corporate income tax, so no state election exists	5
Has a corporate income tax and does not follow the election. The corporation is taxed like a C corporation	2
Follow the election but still impose some entity-level tax on the S corporation, California, Illinois, New York, Massachusetts and Delaware among them	N/A
Require a separate state election form as well	1

Compare all 50 states · LLC vs S-corp · S-corp salary and savings calculator

Frequently Asked Questions

: Yes. Pennsylvania follows the federal S election, and no separate state election form is required. Filing federal Form 2553 with the IRS is enough. The corporation does still file PA-20S/PA-65 (PA S Corporation/Partnership Information Return), with RK-1/NRK-1 schedules to shareholders.
: Generally none. Under a 2006 Pennsylvania law, every federal S corporation is automatically a Pennsylvania S corporation; income passes through to shareholders and is reported on the PA-20S/PA-65 information return. There is no minimum entity-level tax and no capital stock/franchise tax.
: PA-20S/PA-65 (PA S Corporation/Partnership Information Return), with RK-1/NRK-1 schedules to shareholders.

Where these numbers come from

This page covers how Pennsylvania treats the federal S-corporation election and what an S corporation still owes the state. Every figure was checked against Pennsylvania's own published sources on July 29, 2026, the state business filing agency's fee schedule, the governing statute, and where a state tax applies, the state Department of Revenue. Commercial formation-service pages were used as leads only and are never cited. Anything the review could not confirm from an official source is left blank on this page rather than filled with an estimate.

Corporate income tax and franchise tax are quoted as the state publishes them, as rate schedules and thresholds, and are excluded from every dollar total here. They depend on income or net worth, so there is no flat figure that would be true for every corporation.

Primary sources:

https://www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registrations/annual-reports
https://www.pa.gov/agencies/dos/programs/business/fees-and-payments
https://www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates
https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/corporation-taxes/corporate-net-income-tax/act-45-of-2025
https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/partnerships-s-corporations-llcs
https://www.pa.gov/content/dam/copapwp-pagov/en/dos/programs/business/forms/offsite-forms/15-1306-Art-of-Incorp-For-Profit.pdf
Pennsylvania statute: Act 67 of 2006 (automatic Pennsylvania S corporation status)
Pennsylvania statute: Act 53 of 2022 (Corporate Net Income Tax phase-down)
Pennsylvania statute: Act 45 of 2025 (left the phase-down schedule unchanged)

This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It describes rules that can differ from state to state, and fees, rates, forms and deadlines can change after we review them. It cannot tell you what applies to your own business: that turns on where the business is formed, where it operates and how it is taxed. Confirm anything you rely on with the state or federal agency concerned, or with a licensed attorney or CPA, before you act on it.

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Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

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