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Pennsylvania has no general state business license. What you actually need: an entity registered with the Department of State ($125 for an LLC), a free Sales Tax License through myPATH if you sell anything taxable, your city’s registration — in Philadelphia, a free Commercial Activity License — and a state professional license only if your occupation is regulated.
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Want this done today?
Bizee files your Pennsylvania LLC with the PA Department of State and walks you through every step — most people finish the application in one sitting. You choose the package that fits and pay your state’s filing fee.
Prefer DIY? You can file directly at file.dos.pa.gov — the state fee is identical either way.
What makes Pennsylvania different isn’t the license — it’s everything around it. PA runs one of the most layered local tax systems in the country, and since 2025 it has a brand-new annual filing (the $7 Act 122 report) that most older guides don’t mention at all.
What Pennsylvania Actually Requires
- Entity registration ($125) — Certificate of Organization with the Department of State via file.dos.pa.gov, with a registered office address in PA.
- Act 122 annual report ($7) — new since 2025: every LLC files between January 1 and September 30 each year. Miss it starting in 2027 and administrative dissolution follows.
- Sales Tax License (free) — through myPATH, required once you sell taxable goods or services. The same registration opens employer withholding and UC accounts when you hire.
- City registration — Philadelphia requires the free Commercial Activity License and a BIRT account for every business; Pittsburgh registers businesses for its 0.55% Payroll Expense Tax; smaller municipalities license selectively.
- Professional licensing — barbers, cosmetologists, contractors on HICR, health professions, and other regulated fields license through their state boards.
What It Costs
| Item | Cost | Renewal |
|---|---|---|
| Pennsylvania LLC (Certificate of Organization) | $125 | Act 122 report: $7/year |
| Sales Tax License (myPATH) | Free | None |
| Philadelphia Commercial Activity License | Free | None |
| Professional / trade licenses | Board-specific | Varies |
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Want the LLC step handled for you?
Everything in this table starts with your business entity. Bizee files your Pennsylvania LLC with the state and walks you through each step — you choose the package that fits and pay your state’s filing fee. Or use the do-it-yourself walkthrough below; the state fee is identical either way.
How to Get Set Up, In Order
- Form the entity at file.dos.pa.gov ($125). Everything downstream — tax accounts, city licenses — issues to this entity.
- Register on myPATH. One free registration covers the Sales Tax License and, when you hire, withholding and UC.
- Register with your city. Philadelphia: Commercial Activity License + BIRT account. Pittsburgh: payroll tax registration. Elsewhere: ask the municipal office which activities they license.
- Calendar the Act 122 window. January 1 – September 30, every year, $7. It’s new, it’s cheap, and from 2027 forgetting it can dissolve the company.
We earn commissions from purchases made through links on this page.
The filing that didn’t exist two years ago
Pennsylvania’s biggest trap right now isn’t a license — it’s the Act 122 annual report, which replaced the old once-a-decade filing in 2025. Bizee files your Certificate of Organization — you pick the package and pay the state fee and can track the Act 122 deadline as a compliance service, so the brand-new filing doesn’t become the thing that dissolves your LLC in 2027.
Package + Pennsylvania state fee ·
Pennsylvania Licenses by Industry
- Food trucks in Pennsylvania — our most-read PA guide: health licensing, Philly vending, commissaries
- Cleaning services in Pennsylvania — the no-license path, done correctly
- HVAC in Pennsylvania — municipal licensing in a state with no statewide HVAC license
- Daycare in Pennsylvania — DHS certification
The full walkthrough — local EIT/LST, Philadelphia BIRT and wage tax, workers’ comp from the first employee — is in our guide to starting a business in Pennsylvania.
Frequently Asked Questions
Does Pennsylvania require a business license?
No general state license exists. Entity + free myPATH tax license + city registration + professional licenses where regulated.
How much is a Pennsylvania sales tax license?
Free through myPATH. Sales tax runs 6% statewide, 8% in Philadelphia, 7% in Allegheny County.
What licenses does Philadelphia require?
A free Commercial Activity License and a BIRT account for every business, plus activity-specific licenses through L&I.
Sources
| Source | What It Covers |
|---|---|
| PA Department of State — Business Filings | LLC formation, Act 122 annual reports |
| myPATH | Free Sales Tax License, withholding, UC registration |
| City of Philadelphia — Licenses | Commercial Activity License, BIRT, L&I licensing |
Running a food truck? Pennsylvania has its own food truck insurance requirements, with current coverage rules and costs.
Running a daycare? Pennsylvania has its own daycare insurance requirements, with current coverage rules and costs.
Running an HVAC business? Pennsylvania has its own HVAC business insurance requirements, with current coverage rules and costs.
Running a cleaning business? Pennsylvania has its own cleaning business insurance requirements, with current coverage rules and costs.
