How to Get a Business License in Pennsylvania (2026)

Q: How do I get a Pennsylvania sales tax license?

Register online through myPATH with the Pennsylvania Department of Revenue (the successor to the PA-100 registration). The Sales, Use and Hotel Occupancy Tax license is free, and you must obtain it before making taxable sales. Pennsylvania's state sales tax rate is 6%.

Q: How much does a Pennsylvania business license cost?

The state Sales, Use and Hotel Occupancy Tax license is free. There is no statewide general business license fee. Local municipal licenses and profession-specific state licenses charge their own fees, which vary by city or county and by profession.

Q: Do I need a local business license in Pennsylvania?

Often yes. Many Pennsylvania cities and townships require a local business license, mercantile license, or zoning or health permit. Philadelphia, for example, requires a Commercial Activity License. Check with your municipality because requirements vary by location and activity.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Pennsylvania has no single statewide general business license. Instead, most businesses register through myPATH for a free Sales, Use and Hotel Occupancy Tax license from the Department of Revenue if they sell taxable goods or services, and then add any local municipal license and any profession-specific state license their activity requires.

Quick Answer

General state license: None - Pennsylvania has no single statewide business license
Most common license: Sales, Use and Hotel Occupancy Tax license (free)
Where to register: myPATH, Pennsylvania Department of Revenue (formerly PA-100)
State sales tax rate: 6% (plus local tax in Allegheny and Philadelphia counties)
Local licenses: Vary by municipality (e.g., Philadelphia Commercial Activity License)
Professions: Many require a state license from a licensing board

Pennsylvania Has No General Business License

Pennsylvania does not issue a single, statewide "business license" that every company must hold. Unlike some states, the Commonwealth does not require a general operating license to be in business. Instead, the licenses and permits a Pennsylvania business needs depend on what it does and where it operates. Most businesses interact with the state primarily through tax registration with the Department of Revenue rather than through a general license. This means the practical question is not "how do I get the Pennsylvania business license" but "which specific licenses, permits, and tax registrations does my business need." For the national framework, see the business license overview.

Thinking of licensing as three separate layers makes the picture manageable. The first layer is state tax registration with the Department of Revenue, which most sellers of taxable goods or services need. The second layer is local licensing from the city, borough, or township where you operate, which can include a general business or mercantile license, zoning approval, and health or fire permits. The third layer is profession-specific licensing from a state board, which applies only if your occupation is regulated. A given business might need all three layers, only one, or - for an unregulated, non-taxable, home-based service - potentially none at the state level. Because the layers are issued by different agencies and none coordinates with the others, you have to check each one against your own activity rather than assume a single filing covers you.

The Sales, Use and Hotel Occupancy Tax License

The most common state-level license a Pennsylvania business needs is the Sales, Use and Hotel Occupancy Tax license from the Department of Revenue. If your business sells taxable goods or certain services, you must obtain this license before making taxable sales, then collect and remit Pennsylvania sales tax. The license is free - there is no application fee - and it does not expire as long as the account stays active. Pennsylvania's state sales tax rate is 6%; Allegheny County adds 1% and Philadelphia adds 2% in local sales tax on top of the state rate. Retailers, restaurants, and many service providers need this license, while purely non-taxable businesses may not.

How to Register: myPATH (Formerly PA-100)

You register for Pennsylvania business taxes and licenses online through myPATH, the Department of Revenue's system that replaced the older PA-100 online business registration. Through the myPATH business registration you can obtain a sales tax license, register for employer withholding, and set up other tax accounts in one place. To register, you generally need your federal EIN, entity information, the owners' or officers' details, and a description of your business activity. There is no charge to register for the sales tax license itself. Complete formation with the Department of State first - see how to form an LLC in Pennsylvania - because tax registration builds on the entity you have already created.

Local Municipal Licenses and Permits

Local governments in Pennsylvania often impose their own business licensing requirements, and these vary widely by city, borough, and township. Depending on where you operate, you may need a local business license or mercantile license, a zoning or use permit, a health permit (for food service), or a sign permit. The best-known example is Philadelphia, which requires a Commercial Activity License (and a Business Income and Receipts Tax account) for most businesses operating in the city. Pittsburgh and other municipalities have their own rules. Because local requirements are not centralized at the state level, you must check directly with the municipality where your business is located to confirm which local licenses apply.

Local licensing can also carry its own local taxes. Some Pennsylvania municipalities levy a business privilege tax or a mercantile tax measured on gross receipts, and the local business license is often the mechanism through which those taxes are administered. Philadelphia's Business Income and Receipts Tax is the most prominent example, but smaller municipalities have their own gross-receipts or per-employee levies. The amounts, filing schedules, and even whether such a tax exists vary from one municipality to the next, which is why two otherwise identical businesses can face different local costs depending only on where they sit. When you contact your municipality about a local license, ask in the same call whether a local business privilege or mercantile tax applies, so you learn about the license and the tax together rather than being surprised by the second one later.

Profession-Specific State Licenses

Many occupations in Pennsylvania require a state professional or occupational license issued by a licensing board, most of which sit under the Department of State's Bureau of Professional and Occupational Affairs. Examples include contractors (home improvement contractors register with the Office of Attorney General), cosmetologists, real estate agents, accountants, health professionals, and many trades. These licenses are separate from tax registration and from local licenses, and each has its own application, qualifications, and fees. If your business is in a regulated field, confirm the specific board and its requirements before you begin operating, because practicing without the required professional license can carry penalties.

Pennsylvania Licensing Checklist

Because there is no single license, use this checklist to identify what your Pennsylvania business actually needs. Each item is separate and may apply on top of the others.

Requirement	Who needs it	Cost	Issued by
Sales, Use & Hotel Occupancy Tax license	Sellers of taxable goods/services	Free	Department of Revenue (myPATH)
Employer withholding & UC registration	Businesses with employees	Free to register	Department of Revenue / Labor & Industry
Local business / mercantile license	Varies by municipality	Varies	City / borough / township
Philadelphia Commercial Activity License	Businesses operating in Philadelphia	Varies (city)	City of Philadelphia
Professional / occupational license	Regulated professions	Varies	State licensing board
Fictitious name (DBA) registration	Businesses using a trade name	State fee	Department of State

Confirm each item against the issuing agency, since local and professional requirements change and depend on your specific activity. If you operate under a trade name, see what a DBA is.

Steps to Get Properly Licensed

To license a Pennsylvania business correctly, work through the requirements in order:

Form your entity. Create the LLC or corporation with the Department of State first; see how to form an LLC in Pennsylvania.
Get an EIN. Obtain a free federal EIN from the IRS to use in registration.
Register with the Department of Revenue. Use myPATH to get your free sales tax license and any employer tax accounts.
Check your municipality. Confirm local business, zoning, and health permits with your city, borough, or township.
Confirm professional licensing. If you are in a regulated field, apply through the appropriate state board.

Home-Based and Online Businesses

Home-based and online Pennsylvania businesses face the same layered system, with a few practical wrinkles. If you sell taxable goods online to Pennsylvania customers, you still need the free Sales, Use and Hotel Occupancy Tax license from the Department of Revenue and must collect the 6% state sales tax on taxable Pennsylvania sales. Zoning is the item home-based owners most often overlook: many municipalities restrict or require a permit for operating a business out of a residence, so your township or borough zoning office is the place to confirm whether a home occupation permit applies. An online-only business with no storefront may not need a local mercantile license, but that depends entirely on the municipality. Because none of this is centralized, treat "check with my municipality" as a required step rather than an optional one, even if you never meet customers in person.

Industry-Specific Permits to Watch

Beyond the general framework, certain Pennsylvania industries carry their own permits and approvals that function as licenses to operate. Food businesses need health and food-safety permits and often a Department of Agriculture registration or a local health department license. Businesses that sell or serve alcohol need a license from the Pennsylvania Liquor Control Board. Contractors performing home improvement work must register as home improvement contractors with the Office of Attorney General. Childcare, healthcare, transportation, and firearms businesses each have their own regulators. These industry permits are separate from the sales tax license and from any local mercantile license, and operating without a required permit can bring fines or a shutdown. If your business is in a regulated field, identify the specific regulator early, because the permit can take time to obtain and may be a precondition to opening. For the entity behind the license, see what an LLC is.

Keeping Licenses and Registrations Current

After you are licensed, keep each registration current. The sales tax license stays active as long as you file and remit on schedule through myPATH; letting the account lapse or failing to remit collected tax can lead to penalties and license revocation. Local licenses and professional licenses typically renew on their own cycles and fees, so track each renewal date. Separately, your LLC must keep up its state filings, including the $7 Department of State annual report due September 30 each year - see the Pennsylvania annual report and taxes guide. Staying current on licenses, tax filings, and the annual report together keeps your business in good standing.

Frequently Asked Questions

Does Pennsylvania require a general business license?

No. Pennsylvania has no single statewide general business license. Most businesses need a free sales tax license if they sell taxable goods, plus any local and profession-specific license their activity requires.

How do I get a Pennsylvania sales tax license?

Register online through myPATH with the Department of Revenue (successor to the PA-100). The license is free and required before making taxable sales. The state sales tax rate is 6%.

How much does a Pennsylvania business license cost?

The state sales tax license is free, and there is no statewide general business license fee. Local municipal licenses and profession-specific licenses charge their own varying fees.

Do I need a local business license in Pennsylvania?

Often yes. Many cities and townships require a local license or permit; Philadelphia, for example, requires a Commercial Activity License. Check with your municipality because rules vary.

Does an LLC need a business license in Pennsylvania?

Forming an LLC is separate from licensing. An LLC still needs a sales tax license if it sells taxable goods, plus any local or professional license; the LLC itself is formed with the Department of State.

Sources

Pennsylvania Department of Revenue - Sales, Use and Hotel Occupancy Tax (6% state rate; license required before taxable sales; local tax in Allegheny and Philadelphia).
Pennsylvania Department of Revenue - Sales Tax registration requirement (registration with the Department of Revenue; 61 Pa. Code § 34.1).
Commonwealth of Pennsylvania - PA-100 / myPATH business tax registration (obtain the sales tax license and employer accounts online).
Pennsylvania Department of Revenue - Personal Income Tax (3.07% rate on pass-through income).
Pennsylvania Department of State - Pennsylvania Limited Liability Company (entity formation, separate from licensing).
Pennsylvania Department of State - Bureau of Professional and Occupational Affairs (professional and occupational licensing boards).
Pennsylvania Department of State - Annual Reports ($7 annual report; September 30 LLC deadline).
City of Philadelphia - Commercial Activity License (local licensing example).
IRS - Get an Employer Identification Number (free EIN used in registration).
IRS - Limited Liability Company (LLC).
U.S. Small Business Administration - Apply for licenses and permits.
Cornell Law School, Legal Information Institute - License.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Pennsylvania Department of Revenue, the Department of State, and your local municipality before acting.