Does a PA S Corp File an RCT-101? Filing Requirements and Tax Information for PA S Corporations

All companies doing business must file a PA RCT-101, the corporate tax form for Pennsylvania. As a PA S Corporation, you do not need to file the income tax portion of the form (You will file PA 20 S for that). Your company needs to fill out the portion related to the capital stock tax or franchise tax. This tax is on the net worth of the company as calculated by a formula (being phased out).

See the REV-1200 for instructions. S Corps with Built-In-Gains file RCT-101 for 2015.

The tax is low rate with exemptions. A tax professional can help. Instructions are online.

Changes in LLC Taxation

Starting in 2017, PA no longer taxes LLC Capital Stock or requires LLCs to file the RCT-101.

Shareholders in S Corps are taxed at the 3.07 percent personal rate.

Forming an LLC in PA

  • Name
  • Registered Agent
  • File Certificate
  • Operating Agreement
  • Get EIN
  • Form 2553

The cost is $70 plus a $125 filing fee.

S Corps have corporate taxes. LLCs do not. LLCs are more flexible and taxed differently. S Corps have stricter rules.

All entities file RCT-101 for Capital Stock Tax or Corporate Tax. Information can be found in Rev-1200 and Tax Compendium.

RCT-101 is due annually either on April 15 or 30 days after the federal due date.

PA S Corps shareholders owe personal tax.

Residents file PA-40 with $1 or more in taxable income.

The small business tax rate is 21% for C corps. S Corps and sole proprietors are taxed on personal rates.

The PA franchise tax (RCT-101) is not required anymore.

The PA Capital Stock Tax based on property was replaced by a 10-digit number since 2013 and completely phased out in 2016.

Corporations with outside PA activity must file RCT-101 to pay the 9.99 percent corporate tax.

PA won’t accept a federal extension. Use form REV-276 instead.

S Corps with a federal extension get a 5-month PA extension.

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