PermitDueHow to Get a Business License in Pennsylvania
March 16, 2026 · Daniel Amar·Last updated: March 16, 2026
Pennsylvania keeps it decentralized
Like Texas, Pennsylvania does not have a single state business license. Instead, you deal with the state for entity registration and tax, and your city, borough, or township for business licenses and permits. The result is a system where what you need depends heavily on where you are — Philadelphia and Pittsburgh have completely different requirements from each other and from the small boroughs in between.
Step 1: Register your business with the Department of State
File with the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations.
- LLC: File a Certificate of Organization. Costs $125. File online through the department's BICRS system.
- Corporation: File Articles of Incorporation. Also $125.
- Sole proprietorship: Register a fictitious name with the Department of State if operating under a name other than your own. Costs $70.
Online filings typically process within 2 to 5 business days. Paper filings take 1 to 2 weeks.
Step 2: Register your fictitious name (DBA)
Pennsylvania requires fictitious name registration at the state level (not county level like most states). File with the Department of State using the Fictitious Name Registration form. It costs $70 and is valid for 10 years.
If your LLC operates under its exact registered name, you do not need a fictitious name filing. But if you use any variation or trade name, you do.
Step 3: Get your EIN
Free at irs.gov, takes 10 minutes.
Step 4: Register with the Pennsylvania Department of Revenue
Register with the PA Department of Revenue using the PA-100 form (Pennsylvania Enterprise Registration Form). You can file this online through the PA Open for Business portal. This single form covers:
- Sales tax license: Pennsylvania has a 6% state sales tax (8% in Philadelphia, 7% in Allegheny County). You need a sales tax license if you sell taxable goods or services.
- Employer withholding tax: If you have employees.
- Corporation tax: If you are a corporation or LLC taxed as one.
- Use tax: For out-of-state purchases.
The PA-100 also registers you with the Department of Labor and Industry for unemployment compensation tax. One form, multiple registrations — this is one of the more efficient parts of the Pennsylvania process.
Step 5: Get your local business license
This varies significantly by municipality.
Philadelphia
Philadelphia has its own tax and licensing system that operates almost independently from the rest of the state.
- Business Income and Receipts Tax (BIRT): All businesses operating in Philadelphia must file for BIRT, which taxes gross receipts (0.1415%) and net income (5.99%). You register through the Philadelphia Department of Revenue.
- Commercial Activity License (CAL): Required for all businesses in Philadelphia. Costs $300 annually. Apply through the city's Business Services portal.
- Specific business licenses: Philadelphia requires additional licenses for food establishments, contractors, rental properties, and other specific business types. These go through the Department of Licenses and Inspections (L&I).
Pittsburgh
- City business privilege tax: Pittsburgh charges a business privilege tax on gross receipts. Register through the city's Finance Department.
- Zoning approval: Required before opening a business. Apply through the Department of City Planning.
- Occupancy permit: Required from the city's Bureau of Building Inspection.
Other municipalities
Many Pennsylvania boroughs, townships, and smaller cities require a local business license or mercantile license. The fees are usually modest — $25 to $200. Check with your local municipal office or borough hall.
Step 6: Industry-specific licenses
- Restaurants: Food safety permit from your county or municipal health department. The PA Department of Agriculture also licenses food establishments.
- Bars: Liquor license from the Pennsylvania Liquor Control Board (PLCB). Pennsylvania is a control state — the state controls wholesale liquor distribution. Restaurant liquor licenses are limited by quota and can cost $25,000 to $250,000+ on the secondary market.
- Contractors: Pennsylvania does not have a state general contractor license, but many cities (including Philadelphia and Pittsburgh) require local contractor licensing. Electrical, plumbing, and HVAC work require specific local licenses.
- Salons: Licensed through the State Board of Cosmetology.
What it costs: Pennsylvania business setup fees
| Item | Cost | Frequency |
|---|---|---|
| LLC filing (Department of State) | $125 | One-time |
| Fictitious name registration | $70 | Every 10 years |
| EIN (IRS) | Free | One-time |
| PA-100 tax registration | Free | One-time |
| Philadelphia Commercial Activity License | $300 | Annual |
| Philadelphia BIRT registration | Free (tax due annually) | Annual |
| Local business / mercantile license | $25 - $200 | Annual |
| PLCB liquor license (secondary market) | $25,000 - $250,000+ | Annual renewal ~$1,500 |
| Professional licenses (state boards) | $50 - $300 | Every 1 - 2 years |
Timeline: how long does it take?
| Step | Processing Time |
|---|---|
| LLC filing (online) | 2 - 5 business days |
| EIN | Immediate (online) |
| PA-100 tax registration | 2 - 4 weeks |
| Philadelphia CAL | 1 - 3 weeks |
| Local business license | Same day to 2 weeks |
| PLCB liquor license | 3 - 6 months |
| Health permits | 2 - 6 weeks |
Pennsylvania-specific gotchas
- Pennsylvania is a control state for liquor. The PLCB controls all wholesale distribution of wine and spirits. This affects how bars and restaurants buy their inventory. Liquor licenses are limited by quota per county, and buying one on the secondary market is expensive — especially in Philadelphia and Allegheny (Pittsburgh) counties.
- Philadelphia's tax system is uniquely painful. BIRT, Net Profits Tax, wage tax, school income tax — Philadelphia layers local taxes on top of everything the state charges. If you operate in Philadelphia, budget for a tax accountant who knows the city's system.
- No LLC annual report. Unlike most states, Pennsylvania does not require LLCs to file annual reports. This is genuinely nice. But it means there is no annual check-in with the state — so if your registered agent address changes, you need to proactively file an amendment.
- Decennial report: Pennsylvania LLCs and corporations must file a decennial report every 10 years to confirm the entity is still active. Miss it and the state can assume you are defunct. The filing itself is free, but forgetting it is easy because it only comes around once a decade.
- UCC filings: If you are using business assets as collateral for a loan, UCC (Uniform Commercial Code) filings go through the Department of State. This is relevant for equipment financing and SBA loans.
Get your Pennsylvania permits sorted
Pennsylvania keeps things decentralized, which means you are assembling your permit stack from multiple sources — state, county, city, and industry boards. The good news is that none of the individual steps are particularly hard. The challenge is knowing which steps apply to you.
Run the free permit checker to see every permit your specific Pennsylvania business needs. It shows you the actual agencies, real costs, and deadlines — no guessing.
Thinking about a restaurant vs. bar in Pennsylvania? The liquor licensing alone makes that decision worth careful consideration. And if you already have permits, do not forget to track your renewal dates — Pennsylvania's penalties for lapsed licenses are no joke.