Business License Rules in Pennsylvania

Pennsylvania business owners must obtain the proper local and industry licenses to have a legally operative business in the state of Pennsylvania. The licenses needed depend on the type of business and the operative needs of the business, such as employees and insurance plans. However, all businesses in Pennsylvania must obtain a business license and an IRS tax employer identification number.

Business License

According to the U.S. Small Business Administration, all businesses in the state of Pennsylvania must get a business license by registering the business with the Pennsylvania Department of State; this includes filling out a fictitious name registration application form and applying for Pennsylvania state taxes. Pennsylvania state taxes include income tax withholding, seller's permits like sales and use taxes and unemployment tax.

Local Licenses

Pennsylvania business owners must also apply for local licenses based on the type of business and the individual needs of the owner. Local licenses include building licenses, health and safety licenses and occupational permits. These licenses and permits allow business owners to put up signs, provide health services to patients and make building and construction adjustments to buildings and property. Additional licenses are necessary if the Pennsylvania business requires employees. Employee permission is obtained by filing the I-9 form during the registration with the Pennsylvania Department of State.

Industry Licenses

The state of Pennsylvania requires specific industries to get additional licenses to operate legally. The license also displays a level of expertise that customers or clients desire with independent business owners, including auto dealerships and automotive services businesses; construction companies; personal beauty and healthcare service companies; childcare businesses; real estate appraiser or broker services; and restaurants. For example, crane operators for construction companies must get additional licenses from the State Board of Crane Operators, while massage therapists must get operative licenses from the State Board of Massage Therapy.

IRS Tax Requirements

All business owners located in the state of Pennsylvania must apply for an employer identification number, or EIN. The number is obtained by filing the SS-4 form with a local Pennsylvania IRS office. You can obtain the number by mailing the form in, calling a local office to submit the information verbally or by applying online on the IRS website.

References

• U.S. Small Business Administration: Register your Fictitious or "Doing Business As" (DBA) Name
• IRS.gov: Employer ID Numbers (EINs)
• U.S. Small Business Administration: Business Licenses & Permits Results - Pennsylvania
• IRS.gov: Contact My Local Office in Pennsylvania
• Pennsylvania Secretary of State: Licensing