Short answer: Pennsylvania does not issue a single, general business license that every business needs. Instead, what you need depends on your business structure, what you sell, your profession and where you operate. Most businesses register their name or entity with the Department of State, register for state taxes with the Department of Revenue, and check with their municipality for local tax registration. Some trades and professions also need a specific state license or registration.
This guide walks through the registrations most Pennsylvania businesses need, with notes for owners in Washington County and the Pittsburgh area.
Step 1: Register your business name or entity
How you register with the Pennsylvania Department of State depends on your structure:
- Sole proprietor or general partnership using a name other than the owners’ names: register a fictitious name (“doing business as”). The fee is $70.
- Limited liability company: file a Certificate of Organization. The fee is $125, and LLCs file a $7 annual report each year. See our guide to how to start an LLC in PA and the PA LLC cost calculator.
- Corporation: file Articles of Incorporation with the Department of State.
Choosing the right structure affects liability and taxes, so it is worth deciding before you register. Our LLC vs. corporation guide compares the options.
Step 2: Get an EIN
An Employer Identification Number from the IRS is free and is needed for most LLCs, corporations, partnerships and any business with employees. Banks usually ask for one before opening a business account.
Step 3: Register for Pennsylvania taxes
Register with the Pennsylvania Department of Revenue through its online myPATH system if your business will:
- Sell taxable goods or services. You need a sales tax license. There is no fee to apply.
- Have employees. You need employer withholding and unemployment compensation accounts.
- Owe other state business taxes that apply to your industry.
Step 4: Get any license your profession or trade requires
Many occupations are licensed by the state, often through the Bureau of Professional and Occupational Affairs and its licensing boards. Examples include:
- Health care professionals, such as nurses and physical therapists
- Cosmetologists and barbers
- Real estate agents and brokers
- Engineers, architects and accountants
Other activities need permits from other agencies, such as food businesses, businesses that sell alcohol, and some environmental or oil and gas operations.
Home improvement contractors
Contractors who perform at least $5,000 of home improvement work a year must register with the Pennsylvania Office of Attorney General. The registration fee is $100 every two years. This is a registration, not a skills license, but working without it can lead to penalties and make contracts harder to enforce.
Step 5: Check local requirements
Local rules vary by municipality. Many Pennsylvania cities, boroughs and townships require businesses to register for local taxes, and some require a local business license, mercantile or business privilege registration, or zoning approval, especially for home-based businesses. Cities such as Pittsburgh have their own business tax registration. Contact your municipality, such as your township office in Washington County, before you open.
Do I need a business license for an LLC in Pennsylvania?
Forming an LLC is not the same as getting a license. The Certificate of Organization creates the company, but you may still need tax registrations, professional licenses and local approvals depending on what the LLC does and where it operates.
Do I need a license for a home-based business?
Often not from the state, unless your work is licensed or you sell taxable goods. But your township or borough may have zoning rules for home occupations, and you may still need local tax registration.
Other steps that protect your business
- Open a separate business bank account
- Get the right insurance, such as general liability
- Put an operating agreement or partnership agreement in writing
- Use written contracts with customers and vendors. See our contract drafting and review page
Frequently asked questions
Does Pennsylvania require a general business license?
No. Pennsylvania does not have one statewide general business license. Your requirements depend on your entity, taxes, profession and location.
How much does a business license cost in PA?
There is no single fee. Common state costs include $70 for a fictitious name, $125 to form an LLC, and $0 for a sales tax license. Professional licenses and local registrations have their own fees.
Do I need a sales tax license in Pennsylvania?
Yes, if you sell taxable goods or services in Pennsylvania. You apply through the Department of Revenue’s myPATH system at no cost.
Where do I apply for a Pennsylvania business license?
It depends on the license. Entity and name filings go to the Department of State, tax registrations to the Department of Revenue, professional licenses to the relevant licensing board, and local registrations to your municipality.
Starting a business in Washington County or the Pittsburgh area? Kostrub Law Firm helps owners with business formation, operating agreements and contracts. Call (304) 982-1586.