Start a Business in Pennsylvania
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This guide on starting your business in Pennsylvania provides step-by-step instructions on the paperwork to file formation documents, obtain tax IDs, and set up company records.
Step-By-Step Startup
Below is an overview of the paperwork, cost, and time to form each of the most popular business structures. Simply click on the link for your desired structure to view detailed step-by-step instructions.
- If you have not decided whether you want to form an LLC, corporation, or other business structure, click here.
- If wish to form your business in a different state than Pennsylvania, click here.
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Pennsylvania Sole Proprietorship Click for step-by-step instructions |
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Pennsylvania General Partnership Click for step-by-step instructions |
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Pennsylvania Limited Liability Company Click for step-by-step instructions |
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Pennsylvania Corporation Click for step-by-step instructions |
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Pennsylvania Nonprofit Click for step-by-step instructions |
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Top 5 Tips on Registering a Business in Pennsylvania
- A few years ago, Pennsylvania launched a website called the Online Business Registration Interview (OBRI) that was designed to simplify registration with multiple state agencies. In theory, using this site allows you to register your business with the Department of State, the Department of Revenue, and the Department of Labor and Industry. In reality however, using the OBRI is a major headache. Even for advanced users, the process usually takes more time and results in more errors than filing by paper.
- Some business owners choose to be sole proprietors to avoid the costs involved in forming an LLC or incorporating. Most sole proprietorships register fictitious names. Pennsylvania is unique in that the cost to register a fictitious name (approx. $270) actually ends up being higher than registering an LLC ($125)! This is due to the publishing requirement for fictitious names but not LLCs.
- A common source of confusion is the annual registration fee for LLCs. Unlike many states, Pennsylvania does not charge an annual report fee for LLCs with the exception of “restricted professional” LLCs. Restricted professionals are licensed doctors, lawyers, CPAs, etc. The annual registration fee for restricted professional LLCs is $500 per member.
- Every business is required to have a registered office in Pennsylvania. Pennsylvania does not use the term “registered agent” but instead refers to a "commercial registered office provider". A CROP is a business that accepts legal documents and government notices for a business.
- Most businesses will need to file the PA-100 Enterprise Registration form to register for taxes with the Pennsylvania Department of Revenue. This 14-page application has brought more than one entrepreneur to tears - don't worry, we'll cover this in detail later.
