How to Start a Business in Pennsylvania

 How to Start a Business in Pennsylvania 

How to Start a Business in Pennsylvania in 2022: The Ultimate Step-by-Step Guide

 

You might think that because you have the skills, the resources, and millions of business ideas, you can just start any type of business without proper guidance. Well, when you choose to start a business in Pennsylvania, the story changes.

 

Generally, each state has step-by-step business procedures that must be followed for that state before you can run a business.

 

 

 

Understanding and implementing these steps is the first step to building a sustainable business empire!

 

 

 

That is why for people who want to start a business in Pennsylvania, it is best that they have a proper guide to go about it before anything else.

 

So, if you are interested in starting a business in this US state, reading this article will give you detailed information on how to start a business in Pennsylvania, including new and interesting facts about the state.

 

 

 

The table of contents will help you navigate easily!

 

CONTENTS

 

Why start a business in Pennsylvania

The economy of the state is favorable

The state boasts of a high quality of life

Business-friendly policies and laws

Amazing Facts About Pennsylvania

What are the business opportunities in Pennsylvania?

Which startups have formed in Pennsylvania?

How much does it cost to start a business in Pennsylvania?

Does starting a business in Pennsylvania require a license?

What Kind of Business Should I Start in Pennsylvania?

Sole Proprietorship

A limited partnership

Limited Liability Company

Limited Liability Partnership

Corporation

Step by step guide on how to start a business in Pennsylvania

#1. Get a business idea

#2. Write a business plan

#3. Form your business

#4. Register for local taxes, zoning requirements, licenses or permits.

#5. Get tax and employer accounts

#5. Open bank and credit accounts

#6. Get business insurance

#7. Get a physical location

#8. Building a Trademark

#9. Get an online presence

Conclusion

Reference

Advice

Why start a business in Pennsylvania

 

According to a World Population Review , Pennsylvania has a lot to offer, which might explain why it's the sixth most populous state in the United States.

 

The state's friendly atmosphere for entrepreneurs and small businesses is one of Keystone State's attractions. Small businesses make up 99.6% of all businesses in Pennsylvania and employ nearly half of the workforce.

 

 

 

All of these factors and more are the reasons why Pennsylvania has made it to the top of the list of places to visit or start something new in the United States.

 

Let's talk briefly about the other reasons!

 

The economy of the state is favorable

 

The state has a favorable economy that makes it easy for any start-up business to survive. According to Forbes, the cost of doing business in Pennsylvania is 5.8%, which is lower than the national average.

 

The state boasts of a high quality of life

 

The state has a low and affordable cost of living. According to   US News & World Report , Pennsylvania is ranked 18th in  the nation for affordability, the only New England or Mid-Atlantic state to rank in the top 25.

 

Business-friendly policies and laws

 

Small businesses have benefited from business-friendly policies and regulations that have helped them thrive in the market. Steel, agriculture, and financial services continue to be the state's top employers.

 

Excellent Facts About Pennsylvania

 

Pennsylvania, also known as Keystone State and Chocolate Capital of the United States, has some amazing facts that set it apart from other US states.

 

First of all, the state with its capital at Harrisburg was founded in 1643 with over 12,000,000 inhabitants. The state has 45,000 counties and 45,000 major cities that each have more than 45,000 residents.

 

 

 

Other interesting things about the state that will amaze you include:

 

Pennsylvania was named after Admiral William Penn 'Penn's Woods' father.

Pennsylvania is the first state in the fifty United States to put its website URL on a license plate.

The state became home to the first computer in 1946.

Pennsylvania is the only original colony not bordered by the Atlantic Ocean.

Allentown is the third largest city in Pennsylvania after Philadelphia and Pittsburgh.

The first country zoo was established in Philadelphia by Benjamin Franklin.

The oldest golf course in the country is located in Clarion.

Pennsylvania has produced only one US president; James Buchanan.

The first department store in the United States was located in Philadelphia. It was called Wanamaker's.

Pennsylvania is one of the few US states to be a Commonwealth, which has no legal significance but emphasizes the role of the people in state government. .

The state has business-friendly policies and laws.

Pennsylvania is home to the major metropolitan cities of Pittsburgh and Philadelphia as well as the state capital of Harrisburg.

Philadelphia is home to cheesesteak sandwiches, popsicles, soft pretzels and TastyKakes.

The highest Amish population in the world is in Pennsylvania.

The first baseball stadium was built in Pittsburgh.

PA is the mushroom capital of the world. It produces a million pounds of mushrooms a year and holds a mushroom festival every year.

The official state drink is milk.

What are the business opportunities in Pennsylvania ?

 

Pennsylvania has a highly segmented business environment comprising different businesses across all industries.

 

If you want to start a business in Pennsylvania in the United States, here is a list of profitable business opportunities in Pennsylvania that you can fit into once you have the skills:

 

Freelance Writing

Mushroom cultivation

E-commerce business

Online Coaching

child care

Interior design advice

Travel advice

Specialized Landing Page Service

social media service

Which startups have formed in Pennsylvania ?

 

Considering that the state has favorable business policies and laws, many businesses including startups have been able to survive, spreading by wings to many other states and nations in general.

 

For 2022, here is the list of business and technology startups in Pennsylvania:

 

vette

nextmv

Hello Ralphie

Biotherapeutic Aro

Avisi Technologies

Petuum Inc.

Proscia

Good catch

Guru

T Community therapy

EpiVario

Hairtelligence

PLAY Lab s

Duolingo

FutureDerm

RoadRunner Recycling

goPuff

United Fiber & Data

Trice Medical

Mobility systems

Gecko Robotics

Everest Infrastructure Partners

How much does it cost to start a business in Pennsylvania ?

 

To start a business in Pennsylvania, you will likely need to pay application and licensing fees. To obtain a Certificate of Organization from Pennsylvania LLC, for example, it costs about  $125 .

 

Additional fees may apply if your business is structured as a corporation, sole proprietorship or partnership.

 

Does starting a business in Pennsylvania require a license ?

 

Well, not all businesses in Pennsylvania need a license. However, some state companies will require you to obtain one or more licenses or permits before you can operate. While some are regulatory, others relate to health, safety, sales tax and the environment.

 

These licenses and permits are not issued by a single organization. different government agencies are responsible for issuing these licenses.

 

What type of business should I start in Pennsylvania ?

 

When starting a business in Pennsylvania you must first ask yourself: What type of business do I want to start?

 

While this question may seem simple, if you don't have full knowledge of the type of businesses that exist in the state and which ones are worth researching, you could be making the wrong decision.

 

 

 

Remember that a particular type of business exists and is thriving in one state, does not necessarily mean it will be thriving in another state. That's why it's helpful for you to have a handful of information on hot businesses in Pennsylvania that you can start.

 

Below are the types of business structures in Pennsylvania that you can arrange for your new business, along with a brief description of each.

 

Sole proprietorship and general partnership

A Limited Liability Company

Partnership limit

Limited Liability Partnership

Sole Proprietorship

 

This is also known as a sole proprietorship. In this type of business, the owner is different from the business. To start this business, the owner called sole proprietor is required to register with his local county clerk's office for registration under the Assumed Names Act.

 

A Partnership limit

 

This type of business in Pennsylvania includes a general partner and limited partners. Associates do not participate in the day-to-day activities of the business.

 

Limited Liability Company

 

It is the unincorporated form of business that provides its owners with limited liability, flow-through tax treatment, and operational flexibility through participation in the management of the business.

 

Limited Liability Partnership

 

In this type of business structure, the partners are not responsible for the debts, obligations and liabilities of the business.

 

Corporation

 

It is a separate legal entity and is the most complex form of organization. A company can sell shares, which are certificates indicating ownership, to as many people as it wishes.

 

Step by step guide on how to start a business in Pennsylvania

 

When you want to start a business in Pennsylvania, there are a few key steps you need to take to start and run a profitable business. These steps include:

 

Get a business idea

Write a business plan

Form your business

Register for local taxes, zoning requirements, licenses or permits.

Open bank and credit accounts

Get business insurance

Get a physical location

Building a Trademark

Get a website.

#1. Get a business idea

 

Choosing what type of business to start is the first step in becoming a business owner. Look for a concept that matches your passions, personal ambitions and natural abilities.

 

Also consider your skills, resources, availability, and why you want to start a business.

 

 

 

This will keep you focused when the going gets tough and dramatically increase your chances of success.

 

And when you've finally decided on one, check the merits of your business idea by asking yourself these four questions:

 

Does my idea solve a problem?

Is my idea profitable?

How will technology influence my industry?

Is there a market for my idea?

To get started, scroll up to see a list of some business idea opportunities I've compiled and shortlisted right away!

 

# 2. Write a business plan

 

The next step to take is to get a solid and workable business plan. The easiest way to ensure the success of a business before it's even started is to go through its planning process.

 

If you don't plan ahead, you are likely to fail in the business, regardless of your skills and available resources.

 

It is therefore expedient that before investing or starting a business, you create a plan. The plan serves as a roadmap that will guide you through the journey!

 

Company Name

 

Finding a business name can be difficult. You'll want to choose a brand name that meets Pennsylvania's naming guidelines, is memorable for your customers, and can be used as a URL.

 

Therefore, when considering the above obligations, you would choose a name that you and your target market can easily remember. To do this effectively, you can

 

Check Google for easy to pronounce names

Find companies with easy names

Perform a domain search

Do an LLC search

Be careful, if you want to form a Limited Liability Company, you must have "Limited Liability Company” attached to your company name. You should also avoid certain words and phrases such as “company”, “Corp. “, “incorporated”, “Co.”, “Inc.”, “Ltd. and “LP.

 

If you are forming a corporation, the words "corporation", "incorporated", "society" or "limited" must be included but separated from the other words of your business name.

 

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Development of new products

 

What dilemma does your business solve? What would make your product or service stand out from the crowd?

 

Also consider cost, testing, and analysis when discussing product development. Would the manufacturing process be too expensive? Can you make a profit or will you dig yourself into a hole?

 

Sales & Marketing

 

Learn about your target market; people who would be interested in what you are going to sell and how you turn them into customers.

 

People and partnerships

 

What roles will you need to hire and what professional relationships will you need to build to be successful?

 

Financial planning

 

This should be the main part of your planning process. Check if you will have enough capital to pay rent, business tools subscription fees, payroll, marketing and other expenses.

 

Decide how many customers or sales you will need to break even.

 

#3. Form your business

 

Once you have completed the planning, the next step is to set up your business. This is where registering your business as a legal person comes in.

 

Registering your business helps improve credibility and protect you from personal liability.

 

Basically, starting a business largely depends on the type of business. That is to say, business creation varies. On that note, I'm going to give you an overview of how to start a business.

 

How to File a DBA in Pennsylvania

 

To form DBA is also called “Sole Proprietorship”, “Doing Business as”, or a “Fictitious Name”, you need to follow the steps below:

 

Verify your business name by calling the County Recorder or visiting their website.

Obtain the county forms to register your DBA. Each county has its own filing requirements, but most accept the online filing options available here.

File the forms with the county. Some counties require the form to be notarized and published.

How to Form an LLC and Corporation in Pennsylvania

 

Creating an LLC is a perfect choice for most small businesses. LLCs are simpler to set up and administer than other business organizations, and they receive preferential tax treatment. To form an LLC, make sure of the following;

 

That choice of name for your business is available  by searching the Pennsylvania Business Entity Databases and doing a name search on the State of Pennsylvania website.

Then get a professional registered agent. This agent will give you his address and send you all the important documents.

File the correct paperwork  with the Pennsylvania Division of Corporations called "Articles of Organization."

Before we finish this art, let's talk about the importance of having a registered agent.

 

Why Registered Agents ?

 

Any business in Pennsylvania must have a registered agent and a registered office. The registered agent serves as a trusted point of contact between your business and the department, receiving tax and legal documents on your behalf.

 

Your registered agent can be you, a member of your LLC or corporation who is 18 years old and lives in Pennsylvania, or an authorized registered agent service who may receive correspondence on your behalf.

 

There are pros and cons to each registered agent option, so read them and decide which is best for you.

 

How to start an online business

 

For an online business, you will need to register your business name as a domain name.

 

Additionally, to avoid trademark infringement issues, you should perform federal and state trademark verification to ensure that the name you wish to use is not the same or too similar to a name already in use.

 

#4. Register for local taxes, zoning requirements, licenses or permits.

 

Depending on the form of business, additional registrations, licenses and permits may be required. Check the state's website near the end of the process of starting your business in Pennsylvania to find out exactly what you need to file.

 

You can type in your business address on the website and find out who to contact within the government for any registrations, permits or zoning requirements.

 

Therefore, you can also research who to contact if your organization needs special registrations. It's also a great place to go to get answers to questions about how to register your business and name, how to register for business taxes, and more.

 

Moreover, you will also need a professional license if you are starting a business that will offer professional service. It involves practitioners such as doctors, dentists, lawyers and others.

 

These licenses are required before you can start a business and are intended to protect the public from people claiming to have false qualifications or expertise.

 

#5. Get tax and employer accounts

 

After that, you will need to register with state tax and employer accounts in order to officially start a business in Pennsylvania and operate legally. This is how you will set up the business to pay Pennsylvania taxes.

 

Depending on your service line, you may be responsible for paying taxes such as sales tax, hotel occupancy tax, or unemployment compensation tax.

 

Tax registration

 

To register for taxes, you must register with the Pennsylvania Department of Revenue (DOR). Employer payroll deductions must be registered with the DOR if your business will have employees.

 

Both forms of taxes, as well as other corporate taxes, can be filed online through the MyTax Pennsylvania website.

 

EIN (Employer Identification Number)

 

This number will be given to you by the IRS if your business has employees or is taxed separately from you.

 

And even if you're not legally required to have an EIN, there are several business reasons for doing so. Often banks require an EIN to open a business account, and other companies you do business with also require an EIN to process payments.

 

Note that you can obtain an EIN without filing fees by completing an online application on the IRS website.

 

Regulatory licenses

 

Different state agencies grant regulatory licenses. For example, you can obtain environmental permits from the Pennsylvania Environmental Protection Agency and employment-related licenses from the Pennsylvania Department of Labor.

 

#5. Open Bank and Credit Accounts

 

One of the goals of any business entity is to make money.

 

Indeed, in the planning process, the financial aspect of the business which includes both the expenses and the expected income is taken into consideration.

 

It shows that building a business without financial reporting is like building a house on the air. Apart from this, opening a bank account can help protect your personal account from any risk.

 

Indeed, when your personal and business accounts are not separated, your personal assets are at risk.

 

Plus, having a credit account can help you get credit cards and other financing in your business name, better interest rates, higher lines of credit, and more.

 

To open an account, you can visit any of the following commercial banks in Pennsylvania listed below:

 

Beneficiary bank

Bank branch and trust company (BB&T)

Citizens Bank of Pennsylvania

First Commonwealth Bank

First National Bank of Pennsylvania

Manufacturers and Traders Trust Society

North West Savings Bank

PNC Bank

TD Bank

Wells Fargo Bank

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#6. Get Business Insurance

 

Business insurance will protect your business and personal assets from the effects of unpredictable events like personal injury litigation and natural disasters.

 

An insurance provider can help you determine the best coverage options for your business, which could include general liability insurance to protect against bodily injury and property damage claims.

 

It can also be cyber liability insurance, which covers legal and settlement costs in the event of a computer security breach.

 

#7. Get a physical location

 

Where you choose to settle is essential.

 

The idea is to find a place with the best resources that make running your business easier. For every disadvantage of the location (and there will be), there should be 3 advantages.

 

#8. Building a Trademark

 

Building a business brand is one of the ways to have a strong business that can stand up to the competition. In doing so, you need to consider your goals and objectives, your company's core values, and what can make your customers trust your business.

 

Other than that, you need to choose your business name carefully as it is the cornerstone of good branding. Once you're happy with that, then you need to move on to a unique logo that represents what your business offers.

 

#9. Get an Online Presence

 

Whatever your business, a professional website is essential to the long-term success of your business.

 

A website helps potential customers locate your business online and learn about the products or services you provide, as well as improve the reputation of the business.

 

Besides, you can also promote your business online through social media platforms like Facebook and Twitter, access local Google or get a review account like Google Reviews or Yelp account.

 

You can also promote your company's brand using press releases. With press releases, you can advertise, build your brand on the web, and improve your website's SEO, thereby attracting more customers to your website.

 

Conclusion

 

Now that you've completed all the steps necessary to start a business in Pennsylvania, you're ready to turn your genius business idea into reality.

 

Starting a business can be daunting, but by following this guide and organizing all your paperwork, you can make the process as smooth as possible. After that, you can focus on the more critical aspects of your business, such as marketing and development.

 

Reference

 

https://www.99businessideas.com/business-in-pennsylvania/

https://www.50states.com/facts/pennsylvania.htm

https://www.onlyinyourstate.com/pennsylvania/things-you-didnt-know-pa/

https://www.mycompanyworks.com/starting-business-pennsylvania/

Advice

 

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