50 State Series: How to move your LLC or corporation out of Pennsylvania and keep your EIN

Attorney and CPA Chad D. Cummings explains Pennsylvania’s tax situation in this presentation. While the state is reducing its individual income tax rate to 3.07 percent and phasing down the corporate rate toward 4.99 percent, local income taxes in many municipalities, particularly Philadelphia’s high wage tax, push the combined rate significantly higher for business owners. Pennsylvania also maintains a 7.49 percent corporate income tax, limited net operating loss offsets, a low Section 179 expensing cap, an inheritance tax reaching 15 percent, and other structural burdens. Florida and Texas impose no state personal income tax and offer far more competitive environments. This presentation shows how redomestication allows Pennsylvania business owners legally to move a company to a new state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Pennsylvania, the effective rate you actually pay may justify making the move. Learn more: https://www.cummings.law/redomestication/