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What legal steps do I need to take if I want to start a small business in Pennsylvania?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Pennsylvania, there are several legal steps that you need to take. These steps are:

  1. Choose a Business Structure: The first step in starting a small business is to choose a legal structure for your business. The most common types of business structures include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its own advantages and disadvantages, so it is important to choose the one that best fits your business needs.
  2. Register Your Business: Once you have chosen a legal structure, you need to register your business with the Pennsylvania Department of State. You can do this by filing the appropriate forms and paying the necessary fees. Depending on the type of business you are starting, you may also need to obtain certain licenses and permits.
  3. Obtain Tax ID Numbers: You will need to obtain a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Additionally, you may need to obtain a Pennsylvania State Employer Identification Number (SEIN) if you have employees in Pennsylvania.
  4. Secure Necessary Permits and Licenses: Depending on the nature of your business, you may need to obtain permits or licenses from local, state, or federal government agencies. For example, if you are starting a restaurant, you will need to obtain a health permit from the local health department.
  5. Comply with Employment Laws: If you have employees, you need to comply with employment laws such as minimum wage and overtime laws, anti-discrimination laws, and employee safety laws.
  6. Obtain Business Insurance: You may need to obtain liability insurance, workers' compensation insurance, or other types of insurance depending on the nature of your business.
  7. Comply with Tax Laws: You need to comply with federal, state, and local tax laws. This includes registering for state and local taxes and collecting and remitting sales tax if applicable.

It is important to note that there may be additional legal steps that you need to take depending on the nature of your business. It is also important to consult with a licensed attorney to ensure that you have complied with all applicable laws and regulations.