How To Register Your Business in Pennsylvania: What You Need to Know

Registering a business isn’t very complicated, but entrepreneurs should be mindful of making sure they follow the proper steps to make the process as smooth and efficient as possible. In this blog, we are sharing the answers to four of the most commonly asked questions the PA Business One-Stop Shop receives about business registration.

1. What steps do I need to take before registering my business?

Before registering a business, it’s critical to make sure you have a strong and viable business plan. You can utilize Pennsylvania’s vast network of resources, such as the Small Business Development Centers (SBDC) located in every part of the commonwealth, to help you create a business plan.

After you create your business plan, you’ll need to determine a registered office for your business. You can use your home/business address as the registered office or obtain the services of a Commercial Registered Office Provider (CROP), a third-party organization that charges a fee to use their address as the registered office on a business’s formation documents with the Department of State.

With a registered office selected, it’s time to check that your desired business name is available by searching the name in the PA Department of State’s business filing services website.  Once you’ve verified that the name is available, you can then obtain your federal employer identification number (FEIN/EIN) electronically on the Internal Revenue Service (IRS) website.

All these steps are accounted for in the PA Business One-Stop Shop’s Business Checklist. It’s a great way to get you started in the process of starting a business. It offers a step-by-step guide based on the information you enter, so it’s a good idea to utilize the checklist as you navigate the process of starting your new business. The information on the PA Business One-Stop Shop is designed as a guide, so we still recommend that you consult with a lawyer, accountant, and an insurance agent when forming a business.

2. How do I register a Sole Proprietorship?

A sole proprietorship is an unincorporated business that has just one owner. Generally speaking, it’s the easiest and quickest way to start a business – that’s why most small businesses operate as sole proprietorships. As a business grows, owners may decide to expand and form another structure, such as a partnership or limited liability corporation (LLC). The PA Business One-Stop Shop can help connect you to your local SBDC center where experts can help you determine which business structure is right for you.

After you use the Business Checklist to make sure you are organized with everything you will need, you can register to become a sole proprietorship by filing your official “doing business as” business name with the Department of State – this is called a fictitious name. Everyone will know your business by this name.

Once you’ve verified that the name you want for your business is available and you’ve obtained your federal employer identification number (FEIN/EIN), you can create your fictitious name.  The PA Business One-Stop Shop provides a How to Register a New Business in Business Filing Services guide for officially submitting and paying for a new filing for a business name. Note that the PA Department of State charges a of $70 for registering a business name.

Then, you’ll determine if you need a sales tax license by reviewing PA’s Retailer’s Information Guide. If you determine you need a sales tax license, you will need to file with the PA Department of Revenue’s myPATH tax hub system. There is no fee to file.

Finally, you should check with your local municipality to determine if you need any local business license/tax account. To find the proper contact, you can search your home/business address through the PA Business One-Stop Shop. To learn about other licenses that may be required based on your business type, you can use our Assistance with Federal, State, County, and Local Business Licensing guide.

3. How do I register a limited liability corporation?

A limited liability corporation, or LLC, is a popular choice for a business structure because owners have limited personal liabilities for the debts and actions of the LLC. This is similar to the way corporations work, but LLCs aren’t as complex and aren’t subject to the additional taxes that corporations often pay. LLCs are more like a sole proprietorship or general partnership, providing management flexibility and the benefit of pass-through taxation.

Despite being a different structure from a sole proprietorship, the process to register an LLC is nearly identical. You should get your Business Checklist, verify your desired business name is available, obtain a FEIN/EIN, and register the name. The fee for registering an LLC name is $125, slightly more expensive than for a sole proprietorship.

You can then follow the same steps about determining tax information as laid out in the sole proprietor section above.

4. How do I check the status of my business registration with the PA Department of State?

You can see the status of purchases in the My Work Queue section of the Business Filing Services. To get there, login at PA Business One-Stop Hub, click the link to Business Filing Services, and then click My Work Queue on the left. Finally, click the Business tab at the top and you will see your pending/available registrations. You will receive a notification email that your order has processed but you will need to log in to Business Filing Services in order to download your documents. Once you have downloaded your documents, it is recommended you save them in a secure location such as the PA Business One-Stop Hub.

To learn more about the funding programs and resources available to small businesses, visit our PA Business One-Stop Shop website, and follow our social channels: X, Facebook, and LinkedIn.