Home › Pennsylvania › How-To Guide
Pennsylvania · How-To Guide

How do I get a business license?

Pennsylvania Department of State (entity formation) / Pennsylvania Department of Revenue (tax registration) / Local jurisdiction for local licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. 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
  3. Obtain an EIN from the IRS at irs.gov
  4. Register with the Pennsylvania Department of Revenue for applicable state taxes through the PA e-TIDES or myPATH portal at revenue.pa.gov:
  5. - PA Sales Tax License (if selling taxable goods/services): free to obtain
  6. - Employer Withholding Account (if hiring employees)
  7. - Other applicable PA taxes (Capital Stock Tax, Corporation Net Income Tax, etc.)
  8. Also register with PA Department of Labor and Industry for unemployment compensation through UC Management System
  9. 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
  10. 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
  11. 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
  12. 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
  13. 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