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Business license requirements vary from town to town. This makes it more difficult to learn how much is a business license in Pennsylvania. Make sure to perform due diligence by checking the Department of State’s website for more information. You may not need a small business license in Pennsylvania to get your company started.
Do you need a business license in Pennsylvania?
The answer to the question is it depends. Not all businesses are required to get a business license because the municipality doesn’t require one for the type of operation. However, all businesses need to register with the state for tax collection and remittance. Be sure to check local and state laws for the types of licenses and permits that apply to your business.
How much does a business license cost in Pennsylvania?
Expect to pay around $125 on average for a license or permit. Keep extra funds handy in case the cost is higher than the average. You need to have all relevant licenses in place before you can start legally operating in your municipality. You may also need a permit or license at the county level.
The actual cost of a business license in Pennsylvania depends on the type of license and the issuing municipality. Some municipalities require licenses for a handful of industries, which means your business may not need one. But if your business is required to get a license, it has to be renewed annually. An annual renewal usually comes with a fee that’s lower than the original cost.
Sometimes there are factors that affect the cost of a business license. Some industries have higher costs due to the nature of their operation. Location can also affect the cost of a business license. Cities can be more expensive because there’s more demand for licenses. Corporate structure is another factor in the cost of a business license. A business license for a sole proprietor may cost less than one for an LLC.
Pro tip: the website for your municipality and county will list the fees for business licenses and permits.
Types of business licenses in Pennsylvania and their cost
Getting a business license in Pennsylvania can be difficult and frustrating. It’s a reputation that the state has earned because it has no state requirements for licenses and permits. Oftentimes, cities refer a license seeker to the state’s website because they don’t have a local license requirement. Further adding to the confusion is the fact that the cost of a license or permit is based on the value of the project instead of the entire business.
Here’s a look at where you can get a business license in Pennsylvania:
- Municipal license from city hall
- County-level license obtained at the county seat
- State sales and income tax number
- Federal licenses that apply to the business
Examples of different industries and the different licenses they require in Pennsylvania
Some types of industries require a business license issued by the state. These licenses are issued by the relevant state department, such as the Pennsylvania Department of Agriculture or the Pennsylvania Department of Environmental protection. Some of the business licenses include:
- Agricultural
- Child or daycare facilities
- Professional licenses (dentist, cosmetologist, real estate agent, etc)
- Manufactured homes
- Environmental projects
Pro tip: check the website for the Pennsylvania Licensing System (PALS) for more information about these licenses.
Renewing Your Business License in Pennsylvania
A business license usually renews once a year, and you have to pay a fee for its renewal. Check with the office where you got the license from about expiration and renewal periods. Keeping ahead of the renewal can save you money and avoid late fees.
Your Pennsylvania tax ID does not expire, but your corporation needs to file an annual report. Keeping up with the annual report filing requirement keeps your business in good standing with the state. Pennsylvania used to have a 10-year annual reporting requirement. This has been changed to an annual report. More information is available from the Department of State’s website. You can also read our guide on how to get business licenses and permits for your LLC.
FAQ
As a general rule, no. You don’t need a business license to sell online from the state of Pennsylvania. You may need a license from your local municipality. Also check for home-based business licensing requirements. You may need one to run a business out of your home.
You contact your local governing body to find out what kind of business licenses they require. Once you know what you need, you fill out an application and pay the required fee.
It takes anywhere from a few business days to a few weeks to get a business license in Pennsylvania. Various factors affect how long it takes for a license to be issued. Some business licenses require a background check, while others require specific information that has to be reviewed.
It depends. You can have an LLC in Pennsylvania, but you may not need a business license if your municipality doesn’t require it.
No. A business license is different from an LLC in Pennsylvania. The LLC is a corporate structure that provides limited liability for its members. Whereas a business license gives a business the ability to operate legally in a given municipality.
You may be subject to fines and penalties if you operate a business in Pennsylvania without a license. However, if your business does not require a license, you can operate legally without one.
Yes, the Department of State requires businesses to get a tax ID for sending in different types of taxes. You have to pay business taxes and any applicable sales taxes.
Getting a business license in Pennsylvania can be difficult. This is due to the fact that the rules for getting a license are different from town to town. Visit your local town hall to speak with someone in person. They can help guide you through the application process.
PALS is short for Pennsylvania Licensing System. It lets businesses apply for a license from a specific department on one site. You don’t have to go to multiple webpages to apply for the appropriate licenses under this system.