The steps to set up a business in Pennsylvania, in the order they usually happen. Do them yourself with the official links, or have us handle the filings while you get on with the business.
Choose a structure
A sole proprietorship is simplest but does not separate your personal and business liability. An LLC or corporation does. Being taxed as an S corporation is a tax election, not a separate kind of company, and can lower self-employment tax once a business is profitable. We can walk through which fits your plans.
Pick a name and check it is available
Search the Pennsylvania Department of State's business records to make sure the name is free. If you will trade under a name other than your legal or company name, that name must be registered as a fictitious name.
Register with the Pennsylvania Department of State
An LLC files a Certificate of Organization; a corporation files Articles of Incorporation, both through the Department of State's Business Filing Services. Every company needs a registered office in Pennsylvania, either your own address or a commercial registered office provider.
Get an EIN from the IRS
An Employer Identification Number is your business's federal tax ID. It is free from the IRS and you will need it to open a business bank account, hire, and file returns. Beware of websites that charge for it without saying so.
Register for Pennsylvania taxes
Through myPATH, register for a sales tax license if you sell taxable goods or services, and for employer withholding if you will have employees. Employers also register for unemployment compensation with the Department of Labor & Industry.
Check local requirements
Your municipality may require a business license or charge a business privilege or mercantile tax, and employers withhold local earned income and local services taxes. Zoning and permits depend on where and how you operate.
Stay compliant from the first day
Open a separate business bank account, keep your books monthly rather than at year-end, and plan for quarterly estimated tax payments. Pennsylvania now requires most businesses to file an annual report with the Department of State. Our tax deadlines page lists the key dates.
Want it done for you?
Our business starter packages cover formation, EIN, state registrations and bookkeeping setup at one price.
General information, not legal or tax advice for your situation.