How To Register A Sole Proprietorship In Pa

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Sole proprietorships are common business entities because they are elementary to ready, and take relatively few filing requirements. By definition, a sole proprietorship is owned by one person, who remains personally liable for the debts of the business. Most states, including Pennsylvania, do not crave sole proprietors to register the business. Yet, depending on the business organisation type, a business owner may be required to file for licenses, permits and tax registration.

Business Registration

Pennsylvania does not crave sole proprietorships to register with the country, or to obtain a statewide business license. The business does not take a separate existence from the owner. The owner remains liable for the debts of the business concern, and the business does non independently own property or enter into contracts. The sole proprietorship is automatically formed when an individual starts doing business organisation in Pennsylvania.

Fictitious Name

Although you lot practise non have to register the business concern with the state, you must annals a fictitious business name if yous want to do business with a name unlike from your own. To register a fictitious concern name, yous must submit an application to the Pennsylvania Department of State. Although registration does not prevent other businesses from using the same name, you lot must annals before you may commencement using the proper name. In addition, y'all must advertise your fictitious business concern in a local news newspaper and in a legal publication or newspaper in the county where your concern is located. To decide which legal publication or publications are correct for your canton, contact your county courthouse or bar association, and they volition aid y'all.

Read More: Advantages & Disadvantages of Filing for a Fictitious Business organization Name

Professional and Occupational Licenses

Depending on the type of business you lot are running, you may exist responsible for a number of professional or occupational licenses. The state requires accountants, auctioneers, funeral directors, architects, and a number of other professionals to obtain a license. Contact the Department of Country to find out what licensing you may be responsible for.

Local Licenses and Permits

Many counties and cities in Pennsylvania require businesses to obtain additional local licenses and permits. In Philadelphia, all businesses, including sole proprietorships must obtain a commercial activity license. Local officials may require further licenses and permits for certain activities, such as construction, handbill distribution, or handling hazardous materials.

Country Taxation Registration

Although sole proprietorships are not liable for corporate taxation, yous may be responsible for other business organization taxes. If you sell or rent any tangible items, you lot must apply for a sales tax license and annals your business with the Department of Acquirement. You volition exist responsible for collecting taxes from the consumer at the fourth dimension of sale. Further, if yous take employees, yous must register with the state department, and withhold personal income tax from any nonresident employees.