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What legal steps do I need to take if I want to start a business in Pennsylvania?

Picture of Chris Battis By   ·  1 minute read

If you want to start a business in Pennsylvania, there are several legal steps you should take:

  1. Choose a Business Structure: Before you can register your business, you need to choose a business structure. You can choose to operate as a sole proprietorship, partnership, LLC, or corporation. Each structure has its own tax implications and legal requirements. It is highly recommended to consult a licensed attorney or accountant to help you decide which structure will suit your business best.
  2. Register Your Business: Once you have chosen a business structure, you need to register your business with the Pennsylvania Department of State. You can register online, by mail, or in person. You will need to provide your business name, business structure, and any relevant documents or fees.
  3. Obtain Necessary Licenses and Permits: Depending on your business type, you may need to obtain specific licenses or permits to operate legally in Pennsylvania. The types of permits and licenses required will vary depending on the industry and locality. You can find more information on the Pennsylvania Department of State website or by consulting with a licensed attorney.
  4. 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 a unique nine-digit number that identifies your business for tax purposes.
  5. Pay Taxes: As a business owner, you will be required to pay state and federal taxes. Pennsylvania has a flat rate for corporate net income tax of 9.9% and individual net income tax of 3.07%. You may also be required to pay sales tax on products or services you sell. It is essential to consult with a licensed accountant to ensure you are filing and paying the correct taxes.

In conclusion, starting a business in Pennsylvania requires some legal steps that must be followed to avoid any legal issues or liabilities. It is advised to consult a licensed attorney or accountant to ensure that you are following all the legal procedures and taking necessary actions.