How to Get a Business License in Pennsylvania

Starting a business in Pennsylvania is an exciting venture, but it comes with important legal responsibilities — chief among them, obtaining the proper business license. While Pennsylvania does not issue a single, statewide general business license, businesses must comply with a combination of state, county, and municipal licensing and registration requirements. Failing to secure the correct permits can lead to fines, operational disruptions, or even legal action. Understanding how to navigate this system is essential for any entrepreneur looking to operate legally and sustainably in the Keystone State.

This guide provides a comprehensive, step-by-step roadmap to obtaining the necessary business licenses and registrations in Pennsylvania. Whether you’re launching a sole proprietorship, LLC, corporation, or remote business, this tutorial covers the foundational requirements, common pitfalls, best practices, essential tools, real-world examples, and frequently asked questions to ensure your business gets off to a compliant and confident start.

Step-by-Step Guide

Step 1: Determine Your Business Structure

Before applying for any licenses, you must first define your business’s legal structure. Pennsylvania recognizes several types of business entities, each with different licensing, tax, and reporting obligations:

• Sole Proprietorship – The simplest form, where the owner and business are legally the same entity. No formal registration is required with the state, but local licenses still apply.
• Partnership – General or limited partnerships must register with the Pennsylvania Department of State if operating under a fictitious name.
• Limited Liability Company (LLC) – Must file Articles of Organization with the Department of State and obtain an EIN from the IRS.
• Corporation – Requires filing Articles of Incorporation with the Department of State and compliance with corporate formalities.
• Nonprofit – Must register with the Bureau of Charitable Organizations and apply for tax-exempt status with the IRS.

Your structure affects which state agencies you interact with and whether you need to register a fictitious name (also called a “doing business as” or DBA). For example, if you’re a sole proprietor named John Smith but want to operate as “Smith’s Handyman Services,” you must register that DBA with the county recorder of deeds.

Step 2: Register Your Business Name

If your business operates under a name different from your legal name (or the legal names of the owners), you must register it as a fictitious name. This applies to sole proprietors and partnerships. Corporations and LLCs typically register their legal entity name when filing formation documents, but if they want to operate under a different trade name, they still need to file a fictitious name registration.

To register a fictitious name in Pennsylvania:

1. Visit the Pennsylvania Department of State website.
2. Download and complete Form DSCB:15-113, Fictitious Name Registration.
3. Pay the $70 filing fee (as of 2024).
4. Submit the form by mail or in person to the Department of State. Some counties allow local filing, but state registration is mandatory for statewide recognition.

Once approved, your fictitious name is registered for five years and can be renewed. This step is critical for opening a business bank account, signing contracts, and building brand credibility.

Step 3: Obtain an Employer Identification Number (EIN)

Even if you don’t plan to hire employees, most businesses in Pennsylvania need an EIN from the Internal Revenue Service (IRS). This nine-digit number identifies your business for tax purposes and is required to open a business bank account, file state taxes, and apply for certain licenses.

To obtain an EIN:

1. Go to the IRS website.
2. Complete the online EIN application (Form SS-4) during business hours (7 a.m. to 10 p.m. Eastern Time, Monday through Friday).
3. Receive your EIN immediately upon submission.

Keep a printed copy of your EIN confirmation letter. You’ll need it when applying for state tax accounts and local licenses.

Step 4: Register for State Taxes

Depending on your business activities, you may need to register with the Pennsylvania Department of Revenue for one or more of the following tax accounts:

• Sales Tax – Required if you sell tangible goods or certain digital products. You’ll need to collect and remit sales tax to the state.
• Withholding Tax – Required if you have employees. You must withhold state income tax from wages and remit it monthly or quarterly.
• Corporate Net Income Tax – Applies to corporations and LLCs taxed as corporations.
• Use Tax – Applies to businesses that purchase goods out-of-state for use in Pennsylvania without paying sales tax.
• Unemployment Compensation Tax – Required if you have employees.

To register:

1. Visit the Pennsylvania Department of Revenue’s Business Registration Portal.
2. Create an account using your EIN and business information.
3. Select the applicable tax types based on your business model.
4. Submit your application. You’ll receive a Pennsylvania Tax Account Number and registration confirmation.

Some businesses may also need to register with the Pennsylvania Department of Labor & Industry for workers’ compensation insurance or unemployment insurance, especially if they have employees.

Step 5: Apply for Local Business Licenses and Permits

Local licensing requirements vary significantly across Pennsylvania’s 67 counties and over 2,500 municipalities. What’s required in Philadelphia may differ from what’s needed in State College or Erie. Common local licenses include:

• General Business License – Issued by city or township offices; sometimes called a “business privilege license.”
• Home Occupation Permit – Required if you operate a business from your residence.
• Sign Permit – Needed for outdoor signage.
• Building and Zoning Permits – Required for construction, renovations, or changes in property use.
• Health Department Permits – Mandatory for restaurants, food trucks, salons, and any business handling food or personal care services.
• Professional Licenses – Required for regulated professions like contractors, real estate agents, cosmetologists, accountants, and healthcare providers.

To find your local requirements:

1. Visit your city or county’s official website. Search for “business license” or “business permits.”
2. Contact your local chamber of commerce or economic development office.
3. Use the Pennsylvania Department of State’s Local Business Resources page to locate municipal contacts.

For example, in Philadelphia, businesses must register with the Department of Licenses and Inspections (L&I) and pay an annual fee based on gross receipts. In Pittsburgh, businesses must apply for a Business Privilege License through the Bureau of Business Licensing. Always verify requirements directly with your local government — assumptions can lead to noncompliance.

Step 6: Secure Industry-Specific Licenses and Permits

Many industries in Pennsylvania require additional state-level licenses beyond general business registration. These are regulated by specific state agencies:

• Contractors – Must register with the Pennsylvania Department of State’s Contractor Licensing Unit and may need local building permits.
• Alcohol Sales – Must apply for a liquor license through the Pennsylvania Liquor Control Board (PLCB). Types include restaurant, retail, and club licenses.
• Childcare Providers – Must be licensed by the Pennsylvania Department of Human Services.
• Real Estate Agents – Must be licensed by the Pennsylvania Real Estate Commission.
• Auto Repair Shops – May need a Motor Vehicle Repair Shop License from the Pennsylvania Department of State.
• Beauty Salons and Barbershops – Must be licensed by the Pennsylvania State Board of Cosmetology.
• Food Establishments – Must obtain a Food Service Establishment License from the Pennsylvania Department of Agriculture.

Visit the Pennsylvania Industry-Specific Licenses page to search for your profession. Applications often require proof of training, insurance, inspections, and fees ranging from $50 to several thousand dollars.

Step 7: Register for Workers’ Compensation and Unemployment Insurance

If you have employees, Pennsylvania law requires you to carry workers’ compensation insurance and register for unemployment compensation. These are not optional.

Workers’ Compensation:

• Must be obtained through a licensed insurer or through the State Workers’ Insurance Fund (SWIF).
• Failure to carry coverage can result in fines up to $2,500 per day and criminal penalties.
• Register with the Pennsylvania Bureau of Workers’ Compensation at dos.pa.gov.

Unemployment Compensation:

• Register with the Pennsylvania Department of Labor & Industry’s Unemployment Compensation Service Center.
• You’ll be assigned a tax rate based on your industry and claims history.
• File quarterly wage reports and pay premiums.

Even one part-time employee triggers these obligations. Independent contractors do not count unless misclassified.

Step 8: Obtain Zoning and Land Use Approval

Before opening your business location, confirm that your intended use complies with local zoning ordinances. Zoning laws dictate where certain businesses can operate — for instance, a bar may be prohibited in a residential zone, or a manufacturing facility may require a special use permit.

To check zoning:

1. Visit your municipality’s planning or zoning department website.
2. Use interactive zoning maps if available.
3. Request a zoning verification letter if you’re leasing or purchasing property.
4. If your use is not permitted, you may need to apply for a variance or special exception — a process that can take weeks or months.

Failure to comply with zoning can result in cease-and-desist orders, even if you have all other licenses. Always verify zoning before signing a lease or purchasing property.

Step 9: File Annual Reports and Renew Licenses

Most business registrations in Pennsylvania are not one-time events. You must maintain compliance through annual filings and renewals:

• LLCs and Corporations – Must file an Annual Report with the Pennsylvania Department of State by the anniversary of their formation date. Fee: $70–$125.
• Fictitious Names – Must be renewed every five years.
• State Tax Accounts – Must file returns on time (monthly, quarterly, or annually), even if no tax is owed.
• Local Licenses – Most require annual renewal. Fees vary by location.
• Professional Licenses – Often require continuing education and renewal every one to three years.

Set calendar reminders or use business compliance software to avoid lapses. A lapse in your business license can invalidate insurance, trigger penalties, and damage your reputation.

Step 10: Keep Records and Stay Informed

Document every step of your licensing process. Maintain organized files for:

• Business formation documents
• EIN confirmation letter
• State and local license approvals
• Insurance certificates
• Tax account numbers and filings
• Renewal dates and receipts

Subscribe to updates from the Pennsylvania Department of State, Department of Revenue, and your local government. Laws change, and staying informed prevents unexpected compliance issues.

Best Practices

Start Early and Plan Ahead

Business licensing is not a last-minute task. Some permits, like liquor licenses or zoning variances, can take 60 to 90 days to process. Begin your licensing journey at least three to six months before your planned launch date. This allows time for delays, inspections, and appeals if necessary.

Don’t Assume One License Covers All

Many new business owners mistakenly believe that registering with the state is enough. In reality, Pennsylvania’s licensing system is decentralized. You may need state, county, and city licenses simultaneously. Always ask: “Who regulates this activity?” and “Where do I apply?”

Use Official Sources Only

Third-party websites may charge excessive fees for services you can complete for free through official state portals. Always verify information on .gov websites: dos.pa.gov, revenue.pa.gov, and your local government’s official site. Avoid services that promise “guaranteed approval” — no one can guarantee a license; only you can meet the requirements.

Consult Professionals When Needed

If your business involves regulated professions, multiple jurisdictions, or complex tax structures, consider consulting a business attorney or certified public accountant (CPA). Their upfront investment can save you thousands in penalties or legal fees later.

Document Everything

Keep digital and physical copies of all applications, receipts, correspondence, and approvals. In case of an audit or dispute, documentation is your strongest defense. Cloud storage with password protection is recommended.

Understand Your Tax Obligations

Pennsylvania has no sales tax on most services, but it does tax digital products and certain rentals. Misclassifying your revenue can lead to underpayment penalties. Work with a tax professional to understand what you owe and when.

Renew on Time

Lapses in licensing are common and often costly. Set automated reminders for all renewal dates. Many local governments offer email alerts or online dashboards for tracking expiration dates.

Stay Compliant with Employment Laws

If you hire employees, you must display required posters (e.g., minimum wage, workers’ compensation, anti-discrimination) in a visible location. Failure to post these notices can result in fines. Download free posters from the Pennsylvania Department of Labor & Industry’s website.

Tools and Resources

Official Pennsylvania State Portals

• Pennsylvania Department of State – dos.pa.gov – Business filings, fictitious names, annual reports.
• Pennsylvania Department of Revenue – revenue.pa.gov – Tax registration, filing, and payment portal.
• Pennsylvania Department of Labor & Industry – dli.pa.gov – Workers’ comp, unemployment, wage laws, and workplace posters.
• Pennsylvania Liquor Control Board – plcb.pa.gov – Alcohol licensing applications and forms.
• Pennsylvania Department of Agriculture – agriculture.pa.gov – Food service, farm, and market licenses.

Local Government Resources

Each municipality maintains its own business licensing portal. Examples:

• Philadelphia – philadelphiagov.org/l&i
• Pittsburgh – pittsburghpa.gov/biz
• State College – statecollegepa.gov/business
• Altoona – altoona-pa.gov/business-licenses

Third-Party Tools (Use with Caution)

Some platforms simplify compliance but charge fees. Use them only if you need guidance:

• LegalZoom – For business formation and DBA registration (not free, but structured).
• Incfile – Offers state-specific compliance tracking.
• SCORE – Free mentoring from retired executives via score.org.
• Small Business Development Centers (SBDCs) – Funded by the SBA; offer free consulting. Find your local center at sba.gov/local-assistance.

Checklist Template

Create a simple checklist to track your progress:

1. ☐ Determine business structure
2. ☐ Register fictitious name (if applicable)
3. ☐ Obtain EIN from IRS
4. ☐ Register for state taxes
5. ☐ Apply for local business license
6. ☐ Secure industry-specific licenses
7. ☐ Register for workers’ comp and unemployment
8. ☐ Verify zoning compliance
9. ☐ Set up accounting system
10. ☐ Schedule renewal reminders

Real Examples

Example 1: Home-Based Bakery in Lancaster County

Sarah starts a home-based bakery called “Sweet Bloom Bakeshop.” She operates as a sole proprietor and sells baked goods online and at farmers’ markets.

Her steps:

• Registered her DBA “Sweet Bloom Bakeshop” with Lancaster County.
• Obtained an EIN from the IRS.
• Registered for sales tax with the Pennsylvania Department of Revenue.
• Applied for a Home Occupation Permit from her township.
• Passed a health inspection and received a Food Service License from the Pennsylvania Department of Agriculture.
• Purchased liability insurance.
• Renews her food license annually and files quarterly sales tax returns.

She avoids penalties by keeping all documentation and scheduling renewals six weeks in advance.

Example 2: General Contractor in Philadelphia

James launches a residential remodeling business. He incorporates as an LLC and hires three employees.

His steps:

• Filed Articles of Organization with the PA Department of State.
• Obtained an EIN.
• Registered for corporate net income tax and withholding tax.
• Applied for a Contractor License with the Philadelphia Department of Licenses and Inspections.
• Obtained workers’ compensation insurance through SWIF.
• Registered for unemployment compensation with the state.
• Applied for a building permit for each job site.
• Submits annual reports and renews his contractor license every two years.

James uses a cloud-based compliance tool to track deadlines and audit trails.

Example 3: Brewpub in Pittsburgh

Maria opens a brewpub with on-site beer production and food service.

Her steps:

• Registered her LLC with the state.
• Obtained an EIN.
• Applied for a Restaurant Liquor License from the PLCB — a process that took 11 weeks due to public hearings.
• Registered for sales tax and beer tax.
• Obtained a Food Service License from the Department of Agriculture.
• Passed a fire and safety inspection from the Pittsburgh Bureau of Fire.
• Applied for a Sign Permit for her outdoor awning.
• Set up quarterly tax filings and annual renewal reminders.

Her business thrives because she planned ahead and followed every regulatory step.

FAQs

Do I need a business license if I work from home in Pennsylvania?

Yes. Even if you operate from home, you may need a home occupation permit from your local government and a general business license. You also must register for state taxes if you sell goods or services.

How much does a business license cost in Pennsylvania?

Costs vary widely. State-level filings (like LLC formation or fictitious name registration) cost $70–$125. Local licenses range from $50 to $500+ depending on the city and business type. Professional licenses can cost $100–$1,000+. Always check official sources for current fees.

How long does it take to get a business license in Pennsylvania?

Processing times vary. EINs are instant. State tax registration takes 5–10 business days. Local licenses can take 2–8 weeks. Special licenses (like liquor or contractor) may take 60–90 days due to inspections or public review.

Do I need a separate license for each location?

Yes. If you operate multiple business locations, each typically requires its own license, especially if they’re in different municipalities or counties.

Can I operate without a business license?

No. Operating without required licenses can result in fines, closure orders, or legal liability. Even if you’re not actively selling, if you’re conducting business activities, you’re likely required to be licensed.

Do I need a business license if I’m an online seller?

Yes. If you sell tangible goods to Pennsylvania residents, you must register for sales tax. You may also need a local business license depending on your home municipality and business structure.

What happens if I forget to renew my business license?

You may face late fees, suspension of operations, or revocation of your license. In some cases, you’ll need to reapply as a new business, which can delay operations and damage your credibility.

Can I transfer a business license to a new owner?

No. Business licenses are not transferable. When ownership changes, the new owner must apply for a new license under their name and entity.

Is there a one-stop shop for Pennsylvania business licensing?

No. Pennsylvania does not have a centralized business license portal. You must apply to multiple agencies: state, county, and city. Use the PA Business One-Stop Shop at pa.gov/biz to navigate resources, but expect to complete applications separately.

Do nonprofits need a business license?

Yes. Nonprofits must register with the Bureau of Charitable Organizations and may need local business licenses, especially if they operate retail spaces or host events.

Conclusion

Obtaining a business license in Pennsylvania is not a single task — it’s a multi-layered process that requires diligence, organization, and attention to detail. From selecting your legal structure to renewing annual permits, every step plays a critical role in your business’s legitimacy, sustainability, and growth.

By following the step-by-step guide outlined in this tutorial, you’ll avoid common pitfalls that trap new entrepreneurs: unregistered DBAs, expired licenses, unreported taxes, and zoning violations. Use the official resources provided, consult professionals when needed, and maintain meticulous records.

Remember: compliance isn’t just about avoiding penalties — it’s about building trust with customers, partners, and the community. A properly licensed business signals professionalism, accountability, and long-term commitment.

Start early. Research thoroughly. Stay updated. And when in doubt, reach out to your local chamber of commerce or SBDC for free guidance. Pennsylvania offers strong support systems for entrepreneurs — all you need to do is take the first compliant step.

Your business deserves to thrive — legally, safely, and successfully. Now that you know how to get a business license in Pennsylvania, you’re one step closer to making that vision a reality.