Pennsylvania Department of State (entity formation) / Pennsylvania Department of Revenue (tax registration) / Local jurisdiction for local licenses
Step by Step
How to do it
Determine your business structure: sole proprietor, LLC, corporation, partnership
Register your business entity with the Pennsylvania Department of State (for LLCs, corporations, and LPs) - file online at file.dos.pa.gov (Pennsylvania Business One-Stop Shop - BOSS) or corps.dos.pa.gov; Pennsylvania offers online filing
Obtain an EIN from the IRS at irs.gov
Register with the Pennsylvania Department of Revenue for applicable state taxes through the PA e-TIDES or myPATH portal at revenue.pa.gov:
- PA Sales Tax License (if selling taxable goods/services): free to obtain
- Other applicable PA taxes (Capital Stock Tax, Corporation Net Income Tax, etc.)
Also register with PA Department of Labor and Industry for unemployment compensation through UC Management System
File a FICTITIOUS NAME REGISTRATION (DBA) with the PA Department of State if operating under a name other than your legal entity name; $70 fee; available online at PA BOSS portal
Check with your city or municipality for LOCAL BUSINESS LICENSES: Pennsylvania municipalities independently administer local business licenses; Philadelphia, Pittsburgh, Allentown, Reading, Scranton, Erie, and many other PA cities require local business licenses; contact your municipality
Check for LOCAL EARNED INCOME TAX (EIT): Pennsylvania has LOCAL earned income taxes (separate from state income tax); businesses must withhold EIT from employees for the municipality and school district where employees work; contact the local collector (LCTCB, DCED/LCTCB system); often administered through PA Local Tax Alliance (ALTA) or local tax collectors
Check for industry-specific state licenses: home improvement contractors (PA Attorney General, HICPA); healthcare professionals (PA State Department of Health or applicable board); real estate, cosmetologists, engineers through the PA Bureau of Professional and Occupational Affairs (BPOA) - dos.pa.gov/ProfessionalLicensing
Renew entity annual report (biennial for LLCs); renew local licenses; renew professional licenses per board schedule
Details
What you need to know
Required Docs
Business name and type of activity
PA business address and registered agent
Entity formation documents
EIN or SSN
Industry-specific certifications
Fee
LLC formation: $125 (online); corporation: $125 (online); BIENNIAL REPORT: $7 (LLC - very low!); corporation annual report: no fee; Fictitious Name (DBA): $70; Sales Tax License: free; local license: varies by city; HOME IMPROVEMENT CONTRACTOR registration: $50/2 years with PA AG
RENEWAL: LLC biennial report every 2 years; local license: annual per city; professional licenses: per board
ONLINE OPTION: Yes - file.dos.pa.gov (PA BOSS portal); revenue.pa.gov (myPATH for tax registration)
WHERE TO GO: PA BOSS Portal (entity formation); PA DOR (tax registration); Municipality (local license); PA BPOA (professional licenses)
Online Option
Yes - file.dos.pa.gov (PA BOSS portal); revenue.pa.gov (myPATH for tax registration)
Where to Go
PA BOSS Portal (entity formation); PA DOR (tax registration); Municipality (local license); PA BPOA (professional licenses)
County-specific variations apply
Pennsylvania has a highly complex LOCAL tax environment. Philadelphia has a Business Income and Receipts Tax (BIRT), Net Profits Tax, and Wage Tax in addition to PA state taxes. Pittsburgh has local earned income and net profits taxes. All PA municipalities with earned income tax must be registered through the Local Tax Enabling Act. The Local Tax Collectors system is fragmented - contact your borough/township/city directly for local tax requirements.
Pennsylvania Notes
Important state-specific details
LLC BIENNIAL REPORT: $7 - among the lowest in the country nationally; due every 2 years.
LOCAL EARNED INCOME TAX (EIT): PA's ~2,500 municipalities and school districts each levy EIT; businesses must withhold for each employee's work location; very complex; use PA DCED's EIT Rate Finder and work with a payroll service or local tax collector.
HOME IMPROVEMENT CONTRACTOR REGISTRATION (HICPA): required for any contractor doing $5,000+ of home improvement work; $50 every 2 years through PA AG.
PA BOSS Portal (file.dos.pa.gov): integrated one-stop business registration.
PA sales tax: 6% state rate; Philadelphia adds 2% = 8% total; Allegheny County adds 1% = 7% total.
Official Source
State office contact
State Office
PA Department of State, Corporations - dos.pa.gov | (717) 787-1057; PA BOSS: file.dos.pa.gov; PA DOR - revenue.pa.gov | (717) 787-1064; PA BPOA (professional licenses) - dos.pa.gov/ProfessionalLicensing