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What are the steps I need to follow to start a business in Pennsylvania?

Picture of Chris Battis By   ·  1 minute read

To start a business in Pennsylvania, follow these steps:

  1. Choose a structure for your business: You can form a sole proprietorship, partnership, limited liability company (LLC), corporation, or other type of business entity. Each structure has unique legal and tax implications, so it is important to carefully consider your options and consult with a lawyer or accountant to determine the best fit for your situation.
  2. Choose a business name: Your business name should be unique and not too similar to any existing business names in Pennsylvania. You can search for available business names on the Pennsylvania Department of State's website.
  3. Register your business: You will need to register your business with the Pennsylvania Department of State's Bureau of Corporations and Charitable Organizations. The registration process will vary depending on the type of business entity you choose.
  4. Obtain necessary licenses and permits: Depending on the nature of your business, you may need to obtain certain licenses and permits from Pennsylvania or local authorities. For example, if you plan to sell alcohol, you will need a liquor license.
  5. Obtain an Employer Identification Number (EIN): If you plan on hiring employees, you will need to obtain an EIN from the Internal Revenue Service (IRS). An EIN is also required if you form a corporation or partnership.
  6. Register for state and local taxes: You will need to register for Pennsylvania state taxes, such as sales tax, and local taxes, such as a business privilege tax. The Pennsylvania Department of Revenue can provide guidance on what taxes apply to your business.
  7. Obtain necessary insurance: Depending on your business, you may need to obtain certain types of insurance, such as liability insurance, workers' compensation insurance, or health insurance for employees. Consult with an insurance broker to determine what types of coverage are appropriate for your business.

It is important to note that these steps are general guidelines and may not apply to all businesses. Additional steps or requirements may be necessary depending on the specific nature of your business. It is advisable to consult with a lawyer or accountant before starting a business to ensure compliance with all applicable laws and regulations.