A practical startup checklist for Pennsylvania small-business owners.
Starting a small business in Pennsylvania involves more than choosing a name. You need to consider registration, federal and state tax accounts, local licenses, payroll, recordkeeping, and ongoing deadlines.
Accounting Services of York, LLC helps new business owners put those pieces together. Schedule an appointment to discuss your plans and the help you need.
1. Make a plan and budget
Identify your products or services, customers, pricing, startup costs, and monthly expenses. Allow for insurance, professional fees, taxes, and slower months.
2. Choose your business structure
Discuss whether a sole proprietorship, LLC, partnership, or corporation fits your needs. An LLC does not automatically reduce taxes or make your business an S corporation. Schedule an appointment with ASY to discuss the tax differences; an attorney can advise on liability protection and ownership agreements.
3. Check your business name first
Before registering an LLC, check name availability through Pennsylvania Business Filing Services. Determine whether a fictitious name registration is also needed.
4. Register your LLC, if applicable
File the formation documents with the Pennsylvania Department of State. Consider an operating agreement, especially with multiple owners. Pennsylvania requires a registered office with a physical Pennsylvania address rather than a designated registered agent. You can use your own qualifying Pennsylvania home or business address without hiring a provider. A P.O. box alone is not sufficient. If you are outside Pennsylvania without a qualifying Pennsylvania address, you can hire a Commercial Registered Office Provider. ASY can help with the registration process.
5. Watch for junk mail after registering
New businesses often receive official-looking solicitations for labor law posters, certificates, EIN applications, and compliance services. These may be advertisements or scams rather than government bills. Required labor posters are available free from government agencies, and registering does not automatically require buying a certificate. Let ASY review questionable notices before you pay.
6. Obtain an Employer Identification Number (EIN)
After forming your LLC or corporation, apply for its EIN through the IRS. Applying directly is free. Save the confirmation letter for banking, payroll, and tax registration. ASY can assist if you would like help.
7. Register for Pennsylvania tax accounts, if needed
Use Pennsylvania’s myPATH system to register for applicable accounts, including sales tax and employer withholding. This process replaced the former PA-100. Have your EIN available. LLC formation and Pennsylvania tax registration are separate steps.
8. Check local taxes, licenses, and permits
Contact your township, borough, or city about zoning, home-business rules, occupancy permits, and other requirements. In York and Adams counties, check with York Adams Tax Bureau about mercantile/business privilege taxes and any applicable business license or registration fee. Requirements vary by location and activity. These taxes can apply to gross receipts even when the business has little or no profit. Schedule an appointment with ASY to discuss which local requirements may apply.
9. Determine whether you must collect sales tax
Some services, as well as products, are taxable. ASY can help determine whether you need a sales tax license, assist with registration, and explain collection and filing responsibilities.
10. Open separate business bank and credit card accounts
Keep business and personal transactions separate. Clearly identify owner contributions, withdrawals, loans, and transfers so they are recorded correctly.
11. Will you have employees? Plan payroll before the first paycheck
Schedule an appointment with ASY before your first payroll. We can help establish payroll, employer tax accounts, withholding, and filing schedules. You will also need employee paperwork, new-hire reporting, and appropriate workers’ compensation coverage. Discuss how to pay yourself—owning an LLC does not automatically allow you to put yourself on payroll.
12. Hiring contractors? Obtain a W-9 before paying them
Ask each contractor to complete and return a signed Form W-9. It supplies the legal name, tax classification, and taxpayer identification number needed to review year-end Form 1099 requirements. Keep it securely in your records; it generally is not sent to the IRS. A W-9 does not establish contractor status. Have ASY review whether a worker should be treated as an employee before payments begin.
13. Be ready to provide your own W-9
Business customers may request your completed Form W-9 before paying you. Ask ASY for help entering the correct name, tax classification, and taxpayer identification number, especially for an LLC.
14. Start recordkeeping immediately
Use the ASY business income and expense workbook, accounting software, or hire ASY for bookkeeping. Record transactions regularly, reconcile accounts monthly, and retain receipts and invoices. Track mileage, equipment, inventory, startup costs, and potential home-office expenses. The workbook organizes your records; you still need supporting documents. Schedule an appointment to discuss whether you want to manage the records yourself or have ASY handle the bookkeeping.
15. Plan for taxes and estimated payments
ASY can review federal, Pennsylvania, and local obligations, including applicable self-employment taxes. Depending on your tax structure, profit may be taxable even when you leave the money in the business. Owner withdrawals generally do not reduce taxable profit. Set aside money regularly and have ASY review estimated payments as income changes.
16. Review insurance and industry requirements
Speak with an insurance agent about appropriate business coverage. Check whether your work requires professional licenses, special registrations, or additional permits.
17. Keep a deadline calendar
Include tax returns, estimated payments, payroll filings, sales tax returns, local taxes, and license renewals. Pennsylvania LLC annual reports are due September 30, beginning the year after formation. This report is separate from your tax returns. ASY can help you organize the filings that apply to your business.
Frequently asked questions about starting a business in Pennsylvania
Do I register my LLC or get an EIN first?
Check the business name, form the LLC with the Pennsylvania Department of State, then apply for its EIN. Use the EIN when registering applicable Pennsylvania tax accounts through myPATH.
Do I need to hire a registered agent in Pennsylvania?
Pennsylvania requires a registered office with a qualifying physical Pennsylvania address rather than a designated registered agent. You may use your own qualifying Pennsylvania home or business address. If you do not have one, you can hire a Commercial Registered Office Provider.
Is the PA-100 still used for business tax registration?
Pennsylvania’s myPATH online business tax registration replaced the former PA-100. ASY can help determine which tax accounts you need.
Does forming an LLC automatically save taxes?
No. LLC formation and tax treatment are separate matters. Schedule an appointment with ASY to discuss your ownership, expected profit, and appropriate tax treatment.
Can ASY help with payroll, bookkeeping, and estimated taxes?
Yes. Accounting Services of York, LLC can help with payroll setup and processing, bookkeeping, business tax preparation, and estimated-payment planning. Schedule an appointment to discuss the support your business needs.
Start with a conversation at ASY
Bring your business idea, ownership information, projected income and expenses, and any registration documents you already have. We can discuss business registrations, payroll, bookkeeping, tax preparation, and estimated payments.
Call or text 717-759-4227 to schedule an appointment with Accounting Services of York, LLC.
3030 E Market St, York, PA 17402. Appointments required.
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