Pennsylvania requires businesses to obtain the appropriate licenses and permits before they can provide services or engage in business activities. Many businesses are required to file a PA Business Entity Registration with the Department of Revenue, which creates an account under which a business can set up other accounts and licenses.
The most commonly required license is a sales tax license. This license is required for businesses that sell taxable goods or services, including online digital products. A sales tax license allows a business to collect and remit the required 6% sales tax.
Other licenses may be required, such as professional licenses administered by the Pennsylvania state government. These licenses are required for certain service professionals, such as:
- barber shop
- Hairdresser
- engineer
- Healthcare Providers
- pharmacist
- Real Estate Agent
- Social worker
If you operate in a regulated industry, such as selling food or alcoholic beverages, you may also need a license.
When do I need a business license in Pennsylvania?
If your industry, profession, or location requires it, you'll need a business license before you can start your business. This means that you can't even sell your products or services without a valid license.
PA entity registration is completed by filing Form PA-100 with the Department of Revenue. This form is a centralized registration for multiple state tax accounts:
- Employer Withholding Tax
- Public Transport Subsidy Taxes and Fees
- Sales, Use and Hotel Occupancy Taxes
- Tobacco Product License
- Unemployment benefits
- Vehicle rental tax
- Wholesaler Certificate
All businesses that sell taxable items or provide taxable services must obtain a sales tax license. Services subject to sales tax include:
- Secretarial Services
- Lawn Care Services
- Pest Control
- Building Maintenance Services
- Self-storage services
- catering
- Premium Cable
It may take up to 10 business days to receive license approval.
