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How to Start a Business in Pennsylvania

Everything it takes to legally start a business in Pennsylvania, in order — with the official Pennsylvania links for each step. Most people can complete the core setup in one to three weeks.

LLC filing fee
~$125
Processing
3–4 weeks online (15 business days)
Ongoing report
annual · ~$7
State sales tax
yes
State income tax
yes

  1. Pick a structure (sole proprietor or LLC)

    Most Pennsylvania owners start as a sole proprietor (free, no filing) or form an LLC for liability protection. The LLC filing fee is about $125, and formation typically takes about 3–4 weeks online (15 business days). Confirm the current fee on the state site before you pay.

    Pennsylvania business filing office ↗

  2. Name a registered agent

    If you form an LLC or corporation, Pennsylvania needs a registered agent with a physical in-state address. You can be your own agent if you're available during business hours, or hire a service for about $100–$150/year.

  3. Get your EIN from the IRS

    An Employer Identification Number is free from the IRS and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN ↗

  4. Register for Pennsylvania taxes

    Pennsylvania has a state sales/use tax and has a state income tax. Pennsylvania switched from a once-a-decade report to a $7 annual report starting in 2025 — put it on your calendar.

    Pennsylvania tax registration ↗

  5. Confirm local licenses and permits

    Pennsylvania rarely issues a single statewide "business license" — most licensing is by city or county, plus profession-specific licenses. Check your city and your trade.

    Pennsylvania professional licensing ↗

  6. Open a business bank account and get insurance

    Keep business and personal money separate from day one. General liability insurance is the baseline; some contracts also require a bond.

  7. Put the ongoing report on your calendar

    Pennsylvania requires a annual report (about $7). new annual report requirement began 2025 (was decennial)

    Pennsylvania reports ↗

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Frequently asked

How much does it cost to start an LLC in Pennsylvania?

The state filing fee is about $125. Beyond that, budget for a registered agent if you hire one (~$100–$150/year), the annual report (~$7), and any local license fees. An EIN is free.

Do I need an LLC to start a business in Pennsylvania?

No. You can operate as a sole proprietor in Pennsylvania with no state filing. An LLC adds a layer of personal liability protection and can make you look more established to customers and lenders — it's a judgment call based on your risk and goals, not a legal requirement.

How long does it take to form an LLC in Pennsylvania?

Standard processing is about 3–4 weeks online (15 business days). Many states offer paid expedited options.

Does Pennsylvania have a sales tax?

Yes. If your product or service is taxable in Pennsylvania, you must register with the state tax agency before you collect tax. Many services are not taxable — confirm on the official site.

What ongoing filings does a Pennsylvania LLC have?

Pennsylvania requires a annual report (about $7). new annual report requirement began 2025 (was decennial)

Official sources

Fees and timelines are commonly-cited figures last reviewed 2025-06 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

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AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center