How to Get a Pennsylvania Business License

Do you need a business license in Pennsylvania?

Some states require business owners to obtain a general business license from the state government, but Pennsylvania isn’t one of them. Instead, your licensing requirements will largely depend on what industry you plan to operate in and what requirements your city or country governments impart upon businesses that operate there.

Many cities within Pennsylvania may require a general business license, but this license may be called something different depending on which city or county you’re in. For example, the city of Philadelphia refers to this license as a Commercial Activity License, while other cities such as Harrisburg and Bethlehem refer to this as a Business Privilege and Mercantile License. Because the different naming conventions can be confusing, it’s best to speak with someone at your city or county clerk’s office to determine exactly what license you need to apply for.

Beyond a general city license, you may need to obtain one or more additional business licenses or permits. While not a comprehensive list, the following could be required before you can legally open your business.

Professional licenses

Certain occupations require professionals to get licenses related to their profession and renew them at a regular cadence. Doctors, nurses, accountants, and veterinarians are a few professionals that are often top of mind when it comes to these licenses, but they’re also required of cosmetologists, real estate agents, landscape architects, and even funeral directors.

The Pennsylvania Licensing System (PALS), which is operated by the Pennsylvania Department of State and the Bureau of Professional and Occupational Affairs, has more detailed information for obtaining and renewing these types of licenses.

Sales tax license

If your business activities include selling goods or services for which you plan to collect sales tax, you’ll need to apply for a sales tax license with the Pennsylvania Department of Revenue. There are several different types of sales tax licenses, and the specific type you’ll need will depend on your business activity. The most common is the Sales, Use and Hotel Occupancy Retail Tax License. You can apply for this license online at myPATH, the Department of Revenue’s online portal.

Industry-specific licenses

Certain industries demand special licensing from the state government, federal government, or both. Examples include businesses in the agriculture, alcohol and tobacco sales, transportation, communications, health, and banking industries to name just a few.

The PA Business One-Stop Shop, a tool offered by the Pennsylvania Department of Community and Economic Development, has a helpful checklist you can use to determine what specialized licenses may be necessary for your business, along with links to relevant regulatory agencies.

Other permits

Pennsylvania may require additional licenses and permits on a case-by-case basis. Examples of specialized licenses you may need include building and zoning permits, construction permits, and signage permits. If you’re planning to do any work to a building in relation to opening your business, be sure to speak with your local office to determine if you need a license or permit to get started.

How to get a business license in Pennsylvania: A step-by-step guide

The exact business licensing process you'll need to follow will depend upon your unique situation. But the steps below can be a good starting point if you’re still trying to figure out exactly what licenses you need.

Step 1: Register your business

While the state of Pennsylvania doesn’t require a general business license, it does require all businesses to register with the state. In Pennsylvania, you actually need to register with three different agencies: the Pennsylvania Department of State, the Pennsylvania Department of Revenue, and the Pennsylvania Department of Labor and Industry.

The exact registration process will vary depending on your business structure, so you’ll need to choose a business entity type (such as a corporation or limited liability company) before you begin. You’ll also want to choose a business name and check its availability by doing a search on the PA Department of State’s business website. If your chosen name is available, you can reserve it by filing a business name reservation form with the Department of State.

The PA Business One-Stop Shop registration checklist can walk you through the entire registration process.

Step 2: Apply for federal and state licenses

Use the PA One-Stop Shop licensing checklist to determine which federal and state licenses your business may need. The checklist includes helpful links you can use to access the different applications and other resources you may need to complete your licensing or obtain additional information.

Step 3: Apply for local licenses 

Once you’ve completed the state and federal licensing checklist, you’ll find a link at the bottom of the form that will take you to an online directory that can be helpful in determining what local licensing requirements you’ll need to meet. Input the address of your business to determine your local municipal contact and reach out to them for assistance.

Even with these helpful checklists, it can be tricky to determine exactly how many licenses you need and where to apply for them. LegalZoom’s business license service can help make the process easier by providing a customized summary of all the federal, state, and local licenses you need, along with ongoing updates of licensing requirement changes and deadlines.

Renewing business licenses in Pennsylvania

In most cases, getting a business license isn’t a one-and-done process. The majority of licenses, whether general, professional, or industry-specific, will need to be renewed. The frequency of this renewal process will depend on local laws and regulations, as well as the rules of the licensing board (if applicable).

LegalZoom’s business license service will track your renewals and send you helpful reminders and updates so you never have to worry about missing a renewal date. 

Pennsylvania business license FAQs

What should I do before getting a business license?

Before you apply for a business license, you’ll need to register your business with the state. But before you even get to that stage, it can be a good idea to perform a Pennsylvania business entity search to make sure your preferred business name is actually available. 

Skipping this step could put your registration at risk since you cannot register a business with a name that’s already registered. If your registered business name is too close to another business’s name, you could also put yourself at risk of trademark infringement.

How much does a Pennsylvania business license cost?

Licensing costs will vary depending on the type of business license you’re applying for and where you’re applying for it. For example, there is no cost to get a Commercial Activity License in Philadelphia, while a Business Privilege License in Bethlehem, PA, costs $25 per year. Licensing costs for other professional licenses, zoning permits, and other licenses and permits will vary according to the issuing agency and/or your business location.

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

The time it takes to get your Pennsylvania business license will also vary depending on what license you’re applying for and your business location. In some cases, there could be no wait at all. In Philadelphia, for example, Commercial Activity Licenses are issued while you wait at the Revenue Department or instantly if you file online. Other licenses and permits may have a waiting period of a few days to several weeks, so be sure to check with the issuing agency to determine how far in advance you should apply.

Is an EIN a business license?

An EIN (employer identification number), also sometimes called an FEIN or federal employer identification number, is different from a business license. An EIN is issued by the IRS and used when you file taxes. You can apply for an EIN after you successfully register your business with the state.