SELECT YOUR LANGUAGE

Thinking about starting a business in Pennsylvania?  First, think about the type of business you want to start and why.  Figure out if there is a need for your services, if you are providing a service, and decide on what those services will be.  Decide on who your target audience is (what population do you want to service).  You will also need to strategize about what method you will use to market your business to your target audience.   It is extremely helpful if you create a business name and a business plan.  When you decide on a business name, make sure that you search the internet to see if that business name is already taken.  If you do not know how to create a business plan, you can visit the Small Business Administration website www.sba.gov to get a FREE Template of a business plan that you can edit and enter the details specific to your business.  The small business administration also have resources and courses that you can take to learn more about operating a business.

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After you have a business idea, business name, target audience, and business plan.  Do some research on the types of businesses offering services similar to the one you want to start.  Find out how they market to their audience.  Find out what services they do not offer, so that you can fill in the gaps by providing those services.  Find out their cost for services/products, so that you can be competitive in the market place. 

 

Keep in mind that with any business there are strengths and weaknesses, so expect to have losses as well as gains.  After you do the research and you are ready to start the application process, use the following steps to apply:

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-You must complete an application for a Pennsylvania business license and can apply for a PA license on the PA State website.  On their website, there is a One-Stop-Shop option for you to create a username and password.  You can pay for your business license using their online system at business.pa.gov.  They also list several free resources for entrepreneurs.  For Domestic Corporation/Associations For Profit, the PA business license application that you need to complete is titled, Articles of Organization/Incorporation, which is known as the "Certificate of Formation" to legally start a business in PA.   For Nonprofits, make sure you are completing the “Certificate of Organization” application.  The 2021 application fee is $125.00.  For a Domestic Limited Liability Company (LLC), you will need to complete the application, “Certificate of Organization” and the fee is also $125.00.  There is NO extra fee to file for an LLC.  You only need to complete ONE PA business license application, just make sure that you are completing the application specific to the type of business you want to start. The application form usually has options to choose which ownership type you are requesting, i.e., sole proprietor (means one owner), corporation,  LLC, etc.  If you are not sure of which application you need to submit contact the PA Department of State at 1-833-722-6778.

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-You also must apply for a Federal EIN, which is your employer identification number used for tax purposes.  You can apply for an EIN number for FREE on the IRS.gov website.  You do Not have to pay for an EIN.  The type of business that you are starting, will determine if there are additional IRS forms that you must complete each year, so you want to contact the IRS to make sure that you are following the proper Federal and State guidelines for IRS reporting.

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-Set-up a bank account for your business to keep track of your revenue. Credit unions are good to use for business accounts, in the event that you may need to apply for a business loan, the interest rates are usually the lowest, depending upon your credit score. (Please note: You usually will need the State stamp approved documentation and EIN number to be able to open up a business account at a bank).

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-Create a website for your business.  A website gives people 24hr access to learn more about your products/services, as well as another way to purchase your products/services.  If you do not know how to create a website, you can outsource that service to someone who does.  You can find inexpensive website developers on Fiverr.com or you can try to create a Free website yourself using Wix.com, WordPress, Weebly.com, etc. Please note: Free websites usually do not allow people to make online purchases, until after you have a paid subscription to the website platform you used to create the site and domain name.
 

-After your business license application is returned to you in the mail, it will include a seal stamped by the State.  You are now ready to operate a business in PA.  You will also receive an email as well.  If you have any questions regarding your application and next steps, contact the State via the email they will send to you. (Please note: You usually will need this important documentation from the State to be able to open up a business account at a bank.)
 

Please beware of individuals and companies that charge you any additional fees to obtain a PA business license or EIN.  Always visit your State’s website to find out what you need to do to apply for a business license in your State, before paying someone else for additional information that is usually free online. 

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Don’t be afraid to do the research for yourself.  It is your business, so you should be willing to learn everything that you need to know to run it properly.  Remember, mistakes are how you learn and grow, so don’t worry if you don’t have everything figured out in the beginning.  Getting started is the hardest part.  Go be great!  The world needs what you have to offer.  

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Click on this link to read the helpful Guide to Business Registration in Pennsylvania (PA) available by the State of PA.  I hope this helps.  Good Luck Entrepreneurs!

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By Jason Torrents

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