Partnerships/S Corporations/Limited Liability Companies
All corporations and limited liability companies doing business in Pennsylvania are required to pay capital stock/foreign franchise tax. Businesses that elect federal subchapter S status are considered Pennsylvania S corporations and are subject to the 9.99 percent corporate net income tax only to the extent of built-in-gains.
Rather, shareholders in the businesses considered S Corporations are taxed at the personal income tax rate, 3.07 percent. Shareholders of an S Corporation include their shares of income, loss and credit on their personal income tax returns.
Partners in a partnership and members of an LLC taxed as a partnership or S Corporation are taxed at the personal income tax rate, 3.07 percent.