Launch your business
- Pick your business location.
- Choose a business structure.
- Choose your business name.
- Register your business.
- Get federal and state tax ID numbers.
- Apply for licenses and permits.
- Open a business bank account.
- Get business insurance.
A business license in PA is required to legally do business in the state of Pennsylvania. The state requires businesses to be fully licensed and registered depending on the type of services and products they provide.
Step-By-Step Startup
| Structure | Cost |
|---|
| Pennsylvania Limited Liability Company Click for step-by-step instructions | Formation: $125 EIN: $0 PA-100: $0 + fees for needed licenses |
| Pennsylvania Corporation Click for step-by-step instructions | Incorporation: $125 EIN: $0 PA-100: $0 + fees for needed licenses |
The Commonwealth's filing fee for a Pennsylvania LLC Certificate of Organization is $125. Hire Northwest, and your total, out-the-door cost is $350, including filing fees, registered agent service, and loads of useful forms and tools to help your Pennsylvania LLC get up and running.
How To Start A Business When You Have Literally No Money
- Ask yourself what you can do and get for free.
- Build up six months' worth of savings for expenses.
- Ask your friends and family for extra funds.
- Apply for a small business loan when you need extra cash.
- Look to small business grants and local funding opportunities.
- Find out about—and woo—potential angel investors.
When it comes to business licensing, landlords are often required to register their properties and obtain specific licenses for their rentals, just as with any business owner. Attaining the mandatory licenses will protect your property, tenants and personal assets.
How much do sales tax permits cost (2019)?
| State | Cost |
|---|
| Pennsylvania | $0 |
| Rhode Island | $10 |
| South Carolina | $50 |
| South Dakota | $0 |
It is important to note that obtaining a business license is not the same as forming an LLC or other legal entity for your business. The license approves your engaging in a specific business in a certain jurisdiction; an LLC provides an official, legally-recognized business entity.
It usually ranges from $50 - $400 or more, depending on what type of business you're operating. There may be an additional processing fee of $25 or so as well. Wait to receive your license. The time it takes to process your license will vary, depending on the type of business entity you are creating.
You need a Commercial Activity License to do business in Philadelphia. This includes businesses that are located outside the city limits that do business in the city. This license links all of your businesses and the legal entity you registered for your Business Income and Receipts Tax (BIRT).
Visit the City's eFile/ePay website to open a Philadelphia tax account number online. This number is used to pay businesses taxes, as well the Earnings and Wage Tax. If you're a business, a tax account number and Commercial Activity License (CAL) are required for any business operating in Philadelphia.
The current rates for the Business Income & Receipts Tax (BIRT) are 1.415 mills (1.415% per $1,000) on gross receipts, and 6.25% on taxable net income. In 2018 the rate was 6.30% on taxable net income. The BIRT is based on both gross receipts and net income. Both parts must be ?led.
You will need to register your business first and obtain a federal tax ID number (called an EIN) from the IRS before you apply. This is accomplished online, by phone, fax or mail. The state application form requires you to identify yourself and describe your business. The wholesale license in Pennsylvania is $500.
To obtain a seller's permit, you must file Pennsylvania Enterprise Registration Form (PA-100), which may be submitted either online or by printing out the form and mailing it to the Pennsylvania Department of Revenue.
How to Get a Housing Rental License in Philadelphia
- Step 1: Obtain a Commercial Activity License and a Philadelphia Business Tax Account Number.
- Step 2: Confirm that You have the Zoning Approval & Certificate of Occupancy for the Property.
- Step 3: Ensure There Are No Outstanding Violations on the Property.
- Step 4: Make Sure Your Taxes Are Paid-Up.
The Food License Application must be completed to serve, prepare, or distribute food within the City of Philadelphia. You should apply for the Food License using this form and submit a single check or money order payable to the “City of Philadelphia” for the total fee amount.
The requirements for business licenses may differ by state. To find out what licenses and permits are required in your state, visit the SBA. This resource can tell entrepreneurs what licenses they need to obtain and where they should go to register. In many cases, business owners can apply for their licenses online.
Obtain and complete a food vendor's license application from your local health department. You can visit the health department in person to obtain an application. You'll need the name of your establishment, an address for a permanent kitchen facility and the owner's personal information.
The easiest business to start is a service business, especially for a beginner. A service business is any kind of business where you sell services. In other words, you sell your skill, labor or expertise — instead of products or goods.
Business licenses are issued by all levels of government and, depending on what type of goods you plan to sell, you may need to obtain a business license on federal, state and/or local levels. Certain businesses are required to obtain a federal business license, such as the sale of alcohol or firearms.
To form an LLC, a business license is not required but it may be necessary to register the LLC with the state and obtain an occupational license before the LLC can legally operate as a business. The type of occupation you have and plan for your LLC may require additional requirements to get a business license.
- Step 1 : Entity Selection. You first need to select from sole proprietor, LLC, partnership, or Corporation.
- Step 2:File a Certificate for Entity. Sole proprietors, partnerships, need a to file a dba, LLCs, or Corporations need filed corporate at the state level.
- Step 3:Get License and EIN.
- Step 4: Get Tax Registrations.
Business licensing requirements and issuance are handled at the state level. Some counties and cities require additional business licenses for anyone doing business within their boundaries. If you maintain a business presence in multiple states, you need to apply for a business license in each state.
Typically, if no license is required at the state level, there are state professional licensing requirements that will apply. In addition, most states require local business licenses issued at the city or county level.
You might be wondering, how much does the average business owner make? According to PayScale's 2017 data, the average small business owner income is $73,000 per year. But, total earnings can range from $30,000 – $182,000 per year.
How to Start a Business in PA: Everything You Need to Know
- Choose and Reserve a Name for Your Company.
- Choose a Business Structure and Form Your Company.
- Obtain Required Permits and Licenses.
- Obtain an EIN and Complete State and Local Tax Registrations.
- Open a Business Bank Account and Keep Good Records.
However, you can apply for some of the most important of these licenses and permits by filing Form PA-100, Pennsylvania Enterprise Registration. The form is used primarily to register new businesses with the state but it also contains sections for business licenses. You can complete the form on paper or online.
- Conduct market research. Market research will tell you if there's an opportunity to turn your idea into a successful business.
- Write your business plan.
- Fund your business.
- Pick your business location.
- Choose a business structure.
- Choose your business name.
- Register your business.
- Get federal and state tax IDs.
