Thinking of starting your new business in Pennsylvania? You should know every little detail of state requirements to launch your business successfully in Pennsylvania. Here we will discuss the main steps of obtaining a business license, the necessity of licensure in Pennsylvania, local and state-wide laws & regulations, and more.
Do you need a business license in PA?
The requirements of business licensing in Pennsylvania will depend on the location and the scope of your work. Although business licensure may not be mandatory, when establishing your business in the state you should get it registered. Pennsylvania requires obtaining a business license if your work is in healthcare or safety. Additionally, there are certain professions that need to be licensed to operate legally in the state. Here are the most common types of professions demanding a business license in Pennsylvania:
Barbers
Pharmacists
Nurses
Chiropractors
Speech-language pathologists
Crane operators
And more
We strongly recommend reaching out to your local government office to find out whether your business will need a license, permits, or zoning requirements or a simple registration will be fine.
How do I obtain a business license in PA?
Prior to the license application, you should register your business, that’s a must. We will discuss the process of registration and licensure of your business in Pennsylvania, separately.
Registration of your business in PA
If you already have a unique business idea and plan it’s time to take that into action. Here are the main steps you need to take to form your business in Pennsylvania:
Choose the legal entity of your business. You can select your business entity as a partnership, LLC, corporation, sole proprietorship, etc.
Name your business. Once you choose the legal entity you can start to form your business. To do so, first, you need to choose the desired name for your business.
Assign a registered office. The registered office is responsible to receive your business’s tax and legal documents.
Obtain Employer Identification Number (EIN) from Internal Revenue Services (IRS). IRS will assign a 9-digit EIN number to identify your business for tax purposes.
File your business entity with the state. As soon the above-mentioned steps are done and you possess the required paperwork you can start to file for your business formation. If your legal entity is LLC, you should file a Certificate of Organization by submitting the above-mentioned formation documents as well as the LLC Operating Agreement and the $125 filing fee. To form a corporation, you should file the Articles of Incorporation by submitting the formation paperwork along with the $125 filing fee.
Obtaining a business license in PA
Pennsylvania doesn’t offer a general business license that would apply to every company in the state. Instead, the laws and regulations of business licensing are handled by the local governance according to the location and the scope of your work. To apply for a license here is what you should know:
Cities in PA have different licensure requirements. For instance, in Philadelphia, any business that operates within the city limits should hold a commercial activity license. You should also register your business with the Philadelphia Department of Revenue to file Business Income and Receipts Tax ID. In Pittsburg, if your business is in bed & breakfast, mobile vehicle vendor, and others you should get a business license from the Department of Permits, Licenses, and Inspections.
You may need to obtain a sell tax license. If you intend to sell products and services you should obtain Pennsylvania Sales, Use, and Hotel Occupancy Tax License. Businesses that purchase merchandise and resell it to customers might want to get a Sales Tax Exemption Certificate.
Can you run a business without a business license in PA?
All businesses operating in Pennsylvania should meet state and local requirements and obtain an appropriate license. The licensing requirements and regulations may vary from city to city in PA depending on the location and the scope of your work.
Being a skilled creative writer and SEO content writer, with 2+ years of experience I can't imagine any other profession to fulfill my life as much as writing does. As a proud member of geek culture, I enjoy reading, writing, watching Sci-Fi gems, while also advocating the involvement of young, bright-minded girls and women in STEM research. Latter was largely the result of working at UNESCO Chair, Life Sciences International Postgraduate Educational Center as an editor of scientific journals.