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What legal steps should I take before starting a Pennsylvania-based small business?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Pennsylvania, there are several legal steps you should take to ensure that your business operates lawfully:

  1. Choose a Business Structure: Decide on the type of business structure you would like to form (such as a partnership, LLC, or corporation). You will need to register your business with the Pennsylvania Department of State.
  2. Obtain Necessary Licenses and Permits: Depending on what kind of business you are starting, you may need various permits or licenses from the state or local government. Research the permits you will need and make sure to obtain them before beginning operations.
  3. Register for State Taxes: All businesses must register for state taxes in Pennsylvania. You can register for state taxes at the Pennsylvania Department of Revenue.
  4. Register for Federal Taxes: Depending on your business structure, you may also need to register for federal taxes. For example, if you have employees, you will need to obtain an employer identification number (EIN) and register for federal payroll taxes.
  5. Obtain Insurance: If you have employees, you will need to obtain workers' compensation insurance. Other types of insurance may also be necessary depending on your industry.
  6. Create Contracts and Agreements: It’s essential to create detailed contracts and agreements with suppliers, vendors, and clients to protect yourself and your business in case of disputes.
  7. Protect Intellectual Property: Depending on your business, you may need to protect intellectual property, such as trademarks, copyrights, and patents.
  8. Consult with an Attorney: It’s always a good idea to consult with an attorney to ensure that you have covered all legal requirements for your particular business. An attorney can help you create legally-binding contracts, assist with any legal disputes, and ensure that you are operating within the bounds of the law.

Remember, the requirements for starting a small business in Pennsylvania can vary depending on your industry and business structure. It is crucial to research and obtain all necessary permits and licenses to operate lawfully. If you aren't sure about whether you need to take further legal steps, consult with a licensed attorney who can provide further guidance.