If you’re a small business owner, it’s important to understand how these changes impact you and what steps you need to take to ensure compliance. This post will walk you through the ins and outs of the new regulations, including who’s affected, what needs to be included in reports, and key deadlines to keep in mind.
Whether you’re running a corporation, nonprofit, or association, this blog will help you prepare for these changes and avoid unnecessary penalties.
What is Pennsylvania Act 122 and Why Does It Matter?
Pennsylvania Act 122 was passed to modernize the state’s business filing system and improve compliance monitoring. Starting in 2025, businesses in Pennsylvania will need to file an annual report to maintain their good standing status with the state.
Previously, annual reporting requirements in Pennsylvania were relatively lenient, particularly for nonprofits and associations. However, under Act 122, businesses must now submit updated information annually. This regulation aligns Pennsylvania with most other states that already mandate similar requirements.
Why does it matter?
Non-compliance could result in penalties, including dissolution of entities or suspension of business privileges. Understanding the new rules is crucial to ensure uninterrupted operations and maintain good standing.
Understanding the New Annual Report Requirements
The annual report mandated by Act 122 must include specific pieces of information. Here’s what every eligible entity needs to know about the process:
What is Required in the Annual Report?
When filing your annual report under Act 122, you’ll need to provide the following key details:
- Business Name and Address – Ensure that the legal name of your business and its principal place of business are correct and up-to-date.
- Employer Identification Number (EIN) – This is the federal tax identification number for your entity.
- Business Type – Specify whether your business is a corporation, nonprofit, limited liability company (LLC), or another type of entity.
- Registered Agent’s Name and Address – Include information about the person or entity responsible for receiving legal documents on your behalf.
- Names and Addresses of Officers or Directors – For corporations, this includes executives like your president, treasurer, or board members.
- Ownership Details – Certain businesses may need to report their ownership structure or key stakeholders.
Ensuring accuracy in your reporting is essential. Incorrect or incomplete filings could lead to penalties or delays in processing.
Who is Affected by These Changes?
Act 122 applies to a wide range of business entities in Pennsylvania. Here’s a breakdown of who’s required to file:
- Corporations – Including C-corporations, S-corporations, and professional corporations.
- Nonprofits – Nonprofit organizations must now submit annual reports, even if they’ve previously been exempt from similar requirements.
- Limited Liability Companies (LLCs) – Both single-member and multi-member LLCs fall under the new regulations.
- Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs) – Partnerships will also need to comply with the reporting requirements.
- Associations – Organizations such as trade associations and community groups are required to file reports.
If you’re unsure whether your business is affected, it’s essential to consult with a legal or tax professional to confirm your obligations.
Deadlines for Filing and Penalties for Non-Compliance
To stay compliant under Act 122, you’ll need to file your annual report by the deadline specified by the Pennsylvania Department of State. While specific dates may vary depending on your entity type, most businesses will need to submit their reports by a set annual deadline, which could be June 30th, September 30th or December 31st. Refer to the table below:
| Association Type | Filing dates |
| Corporations (business and nonprofit) / domestic and foreign | January 1 – June 30 |
| Limited liability companies / domestic and foreign | January 1 – September 30 |
| Limited partnerships, limited liability partnerships, business trusts, professional associations/domestic and foreign | January 1 – December 31 |
What Happens If You Don’t File?
Failure to file an annual report can result in serious consequences, including:
- Loss of Good Standing – Your business may lose its good standing status with the state, which could hinder your ability to operate or secure funding.
- Fines and Penalties – Late fees and fines may be imposed for missing the submission deadline.
- Administrative Dissolution – For corporations and LLCs, failure to file could lead to the state dissolving your business or revoking its charter.
Mark your calendar well in advance and set reminders to avoid missing this critical deadline!
Resources and Assistance for Small Business Owners
Navigating Act 122’s requirements doesn’t have to be overwhelming. Fortunately, there are resources available to help Pennsylvania small business owners stay on track:
- Pennsylvania Department of State Website – The official website provides detailed guidance and forms for annual filings.
- Business Legal Advisors – Consulting with a legal professional can ensure your filings are accurate and complete.
- Accountants or Tax Professionals – Experienced professionals can help gather and verify the necessary financial and registration information for your report.
- Small Business Development Centers (SBDCs) – Located throughout Pennsylvania, SBDCs offer free or low-cost assistance, including workshops and one-on-one consultations.
Preparing for Act 122 and Avoiding Non-Compliance
With Act 122 now in effect, it’s vital for Pennsylvania small business owners to adapt to the new annual filing requirements. Staying informed, organized, and proactive will help ensure your business remains in compliance.
To recap, here’s how you can best prepare:
- Verify Your Business Details – Gather the required information for your annual report, ensuring it’s accurate and up-to-date.
- Understand Deadlines – Know the exact filing timeline and avoid waiting until the last minute.
- Consult Professionals – Reach out to Integra Business Solutions with any questions.
- Set Reminders – Use digital calendars or project management tools to track filing deadlines.
- Utilize Available Resources – Leverage free guides, templates, and support from local business organizations.
By taking these steps, you’ll not only fulfill your obligations under Act 122 but also build a stronger foundation for your business’s long-term success.