Starting a business in Pennsylvania Checklist
Check business name availability with the Pennsylvania Department of StateSearch online to see if your business name is available: Corporation name: May be in any language, but must be expressed in Roman letters or characters or Arabic or Roman numerals, and shall contain the word “corporation,” “company,” “incorporated” or “limited” or an abbreviation of any of them; the word “association,” “fund” or “syndicate”; or words or abbreviations of like import in languages. LLC name: May contain the term “company,” “limited” or “limited liability company” or an abbreviation of one of those terms. Be expressed in Roman letters or characters or Arabic or Roman numerals. Pennsylvania Department of StateDepartment of State |
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File paperwork to create your businessFile with the state to form your new business. Send your Articles of Incorporation or Articles of Organization with the Corporations Section of the Department of State. Forming a corporation or LLC will cost $125. You have to mail or deliver your documents and the state will take 1-2 days to process them. If you don’t want to do the filing, you can incorporate in Pennsylvania with Northwest Registered Agent. Bureau of CorporationsDepartment of State |
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Register with the Department of RevenueYou don’t have to register your corporation or LLC with the Department of Revenue for taxation. A tax account will be created for you when you form your business. However, you may need to register for other tax types. If you have employees, you need to register for income tax withholding and unemployment insurance. If you sell taxable items or perform taxable services, you need to register for a sales tax license. Fill out the Enterprise Registration Form to set up sales tax, income tax withholding, and unemployment compensation accounts. You can get the form by calling or visiting the Department of Revenue. You can also complete the registration online at www.paopenforbusiness.com Sales Tax:Pennsylvania has 6% state sales tax. Income Tax:Pennsylvania’s personal income tax rate is 3.07%. Pennsylvania Department of RevenueDepartment of Revenue |
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Get a business licensePennsylvania does not have a state business license requirement. But you may require professional and/or local licenses.The Bureau of Professional and Occupational Affairs provides support to 29 licensing boards that issue professional licenses. http://www.portal.state.pa.us/portal/server.pt/community/licensing/12483 Any other registration requirements?Contact your city and county governments to see if you need any local licenses or permits. City of PhiladelphiaIf you do business in Philadelphia you need a Commercial Activity License from the Department of Licenses. You can apply for city licenses and manage your requirements online at https://business.phila.gov/Pages/Home.aspx City of PittsburghPhiladelphia only requires certain types of businesses to have a city license. For a list of licenses issued by the Pittsburgh Bureau of Building Inspection: http://www.city.pittsburgh.pa.us/bbi/html/license_information.html Local License InfoCity of PhiladelphiaDepartment of Licenses City of PittsburghBureau of Building Inspection |
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Collect and Charge Sales TaxDo I need to collect sales tax?You need to collect sales and use tax on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania. There are some exemptions from the tax, including food. What is the Pennsylvania sales tax rate?Pennsylvania has 6% state sales tax. How do I register for Pennsylvania sales tax?Apply for a Pennsylvania sales tax license. Fill out the Enterprise Registration Form to set up a sales tax account. You can get the form by calling or visiting the Department of Revenue. How much does a Pennsylvania sales tax permit cost?There is no fee. PA Department of RevenuePA Department of Revenue
Strawberry Square Fourth and Walnut Streets Harrisburg, Pennsylvania 17128-0101 (717) 787-1064http://www.revenue.state.pa.us/portal/server.pt/community/businesses/11406 |