PA Business License Requirements—Local Laws and the Application Process

In Pennsylvania, there is no statewide general business license requirement for entities. However, various counties and cities have laws that mandate organizations to apply for local business licenses. Before securing these licenses, you must understand the requirements and application process for obtaining local permits. Beyond general business licenses, entities must also apply for industry-specific permits, depending on their intended services.

In this article, we’ll explore the Pennsylvania business license requirements and the steps to securing general business licenses and industry-specific permits. We’ll also discuss how Harbor Compliance can assist you in obtaining the necessary permits for your entity.

Business Licenses in Pennsylvania—Understanding Local Requirements

A general business license is a permit that grants entities the legal authority to operate within a state, city, or county, regardless of the specific services they provide. As mentioned above, Pennsylvania does not have a statewide general business license, but various cities and counties enforce laws requiring businesses to obtain local business permits.

We will focus on the business license requirements for the following major cities in Pennsylvania:

1. Bethlehem
2. Easton
3. Philadelphia

These are a few examples of cities that impose different licensing requirements. Other municipalities in Pennsylvania may have entirely different regulations. Business owners must research and understand the specific requirements of the city where they plan to operate.

Business Privilege License in Bethlehem

Businesses engaging in commercial activities within Bethlehem must obtain a Business Privilege License (BPL). This includes those whose base of operations is outside the city but conduct business within the city limits. It is important to note the following before applying for a BPL in Bethlehem:

• The annual BPL fee is $25, and the license period runs from May 1 through April 30 of the following year. The fee is not prorated, regardless of when the license is obtained during the license year.
• Entities operating in multiple locations within the City of Bethlehem must obtain a separate BPL for each location.
• The permit must be acquired at least 90 days before the start of business operations in Bethlehem.
• Obtaining BPL does not replace the need for other permits or certifications, such as the Certificate of Occupancy.

Business License and Privilege Tax in Easton

In Easton, businesses must apply for a general business license and pay a Business Privilege Tax. It’s important to note that business licenses in Easton are non-transferable. If a business is sold or ownership changes, the new owner must apply for a new business license.

Additionally, if you own or operate more than one business, you must submit a separate application for each entity. Applications can be submitted online through a dedicated portal, where you can create an account and manage your licenses.

Commercial Activity License in Philadelphia

Philadelphia requires entities to secure a Commercial Activity License (CAL) to operate within city limits. This license is issued by the Department of Licenses and Inspections, and the key requirements include:

• Tax account numbers, which can be a Federal Employer Identification Number (FEIN) and a Business Income and Receipts Tax ID.
• Proof of payment of all city taxes.
• The name and mailing address of each individual that owns at least 49% of the company or the two individuals with the largest shares.

Once you have secured the necessary documents, you can apply online or in person at the Department of Licenses and Inspections. The CAL has no application fee, and entities are not required to renew this permit.

How To Apply for a Business License in Pennsylvania

Although there is no statewide business license in Pennsylvania, the steps for obtaining one at the city or municipal level often follow a similar pattern. Below are the steps business owners typically follow to secure a business permit:

1. Register your business structure
2. Get a Federal Employer Identification Number (FEIN)
3. Register for state tax accounts
4. File for other necessary Pennsylvania business licenses and permits

1. Register Your Business Structure

Entities must file formation documents with the Pennsylvania Department of State to establish their business before applying for licensure. Additionally, sole proprietors who wish to operate using a fictitious name, also known as a “Doing Business As” (DBA) name, must apply to the Department of State.

2. Get a Federal Employer Identification Number (FEIN)

Businesses must also obtain a Federal Employer Identification Number (FEIN) from the Internal Revenue Service (IRS). This number is necessary for various business activities, including filing taxes, hiring employees, and opening a business bank account.

3. Register for State Tax Accounts

In Pennsylvania, businesses must establish tax accounts to pay fees, such as wage withholding and unemployment insurance taxes. To do this, entities can utilize the PA Enterprise Registration Form (PA-100).

4. File For Other Necessary Pennsylvania Business Licenses and Permits

There are additional requirements beyond local business licenses, and entities may be required to file for permits depending on their operations, such as:

• Health department permits for businesses dealing with food, sanitation, or public health
• Environmental permits, which are related to waste removal or management and pollution control
• Signage permits for businesses looking to install or modify exterior signs

Renewing Business Licenses in Pennsylvania

Although certain permits, such as the Commercial Activity License, do not require renewal, most business licenses in Pennsylvania have expiration or renewal dates.

Businesses must file for license renewals to maintain the legal right to operate within the issuing city or jurisdiction. The renewal frequency can vary depending on the license type and the specific requirements set by the regulatory authority.

Failing to renew within the designated time frame can result in penalties, such as fines or the inability to operate in that jurisdiction. Since tracking renewal deadlines can be time-consuming, outsourcing this task to a reliable service provider will simplify the process and ensure you adhere to regulatory requirements.

Securing a PA Business License With Harbor Compliance

While Pennsylvania doesn’t issue a statewide general business license, cities and municipalities can still mandate businesses to obtain local permits. Additionally, depending on the nature of your services, you may also need to apply for industry-specific licenses.

Keeping track of these local laws can quickly become complex, particularly for businesses operating across multiple states or municipalities. As such, it can often be beneficial to partner with third-party service providers, such as Harbor Compliance, who can assist with the licensing process.

Harbor Compliance specializes in helping entities meet their regulatory obligations and remain in good standing in the state. Our Managed Annual License Service helps entities secure local business licenses across multiple regions. Once you provide us with your entity’s details, we will handle the filing process for your business licenses.

Additionally, our licensing solutions extend beyond general business licenses. We also help entities file for industry-specific permits, such as those required in the construction or engineering sectors.

Optimizing License Management With Harbor Compliance’s License Manager Software

In addition to Harbor Compliance’s expertise in business licensing, we offer a proprietary Software Suite designed to assist with tasks ranging from entity to record management. The License Manager Software is a module within the suite with the following key features:

• A centralized platform to store and track all firm and individual licenses
• Role-based task management, which allows entities to assign licensing responsibilities to specific team members within the organization
• A built-in search engine called Compliance Core, which helps identify licensing requirements for various industries nationwide
• Automated reminders for upcoming license renewals, ensuring you never miss a crucial deadline

Ordering Harbor Compliance’s Business Licensing Solutions

If you’d like to partner with us and utilize our business licensing services, you can get started by following these steps:

1. Visit our Business License Service page.
2. Select Order Online.
3. Fill out the form provided with the required business and contact information.
4. Check out your order.

If your entity is interested in using the License Manager (included in our Software Suite), you can schedule a demo session to explore this tool by following these steps:

1. Visit Harbor Compliance’s License Manager page.
2. Click on Schedule a Demo.
3. Provide your contact details and submit your demo request.

Our team will follow up and illustrate how this feature can streamline your licensing needs.

Harbor Compliance’s Additional Services

In addition to our comprehensive business licensing solutions and advanced software, we provide ongoing support to help businesses navigate their regulatory obligations efficiently. Below is an overview of the specialized services we offer:

PA Business License Requirements FAQs

This section answers some frequently asked questions about Pennsylvania's business license requirements. For more details, explore Harbor Compliance’s Information Center.

Navigating Pennsylvania Business License Requirements With Harbor Compliance

While Pennsylvania does not offer a state-level general business license, local laws require businesses to obtain permits from specific cities and counties across the state.

Navigating local business license requirements and tracking renewal deadlines for these permits can quickly become overwhelming. As such, receiving professional assistance from service providers like Harbor Compliance can be beneficial. Order our Managed Annual Business License Service, and let our team handle the licensing process from application to renewals.

Afterward, you can schedule a demo of our Software Suite to explore how it streamlines license tracking and renewal.

If you want to see whether your entity is on top of its other obligations, get a FREE Harbor Compliance Score™. We will help you address any red flags promptly—all you need is to reach out to us to inquire about our other services.

For more information on business license requirements in other U.S. states, explore the table below: