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Starting a business? Here’s how to get a business license in Pennsylvania.

Follow along to learn how to get a business license in Pennsylvania, including any permits your business might need.

Juan Andrés Placencia is opening Brazas BBQ Chicken at 326 South Street in Philadelphia. Placencia has been through the business licensing process many times before and in different states.
Juan Andrés Placencia is opening Brazas BBQ Chicken at 326 South Street in Philadelphia. Placencia has been through the business licensing process many times before and in different states.Read moreALEJANDRO A. ALVAREZ / Staff Photographer

Even for seasoned business owners, like restaurateur Juan Placencia, getting the business licenses you need can be tough.

“I have a little bit of a leg up and it was still difficult for me to navigate,” said Placencia.

A previous owner of two restaurants and recent operator of a cloud kitchen (no dine-in, commercial kitchens for delivery services only), Placencia has been through the business licensing process many times before and in different states. Now as he begins a new endeavor with Brazas BBQ Chicken, a Peruvian rotisserie chicken restaurant on Philly’s South Street, he is in the process all over again.

If you’re doing business in Pennsylvania then you need at least one or more licenses.

For starters, every business in Philadelphia has to get a Commercial Activity License to operate in the city. And depending on what business you have — restaurant, apartment rentals, entertainment, etc. — you’ll have additional, more specific licenses to apply for. It can be tricky.

“One thing that I did that was very helpful for trying to navigate getting all of these licenses and permits, was to find local groups and organizations that are specific to your industry or business type,” Placencia said. “I signed up to the Greater Philadelphia Hispanic Chamber of Commerce. I also belong to the Association of Mexican Business Owners of Philadelphia.”

Keep in mind, Philadelphia can be a difficult city to do business in because of the taxes and regulations imposed on new and small businesses in the city.

There are many aspects to making sure your business is above board, including registering your business with the state, getting a federal tax ID number, zoning ordinances, among other business requirements.

This guide will breakdown how to find what business licenses you need and how to apply for them.

Key takeaways

  • Be patient. Getting a business license can be a long process with lots of back-and-forth between government agencies.
  • Find out what business licenses you need through government websites, business resource centers or local business organizations.
  • Some business licenses cost money. From free to $500, business licenses have a wide range of costs depending on what business you do.
  • Visit the government agency that issues the license you need in-person. You can call or visit their website, but the most efficient way to get your questions answered is in-person.
  • Document everything. You’ll be given documents and tasks to complete along the way that you’ll need throughout the process. From agencies you’ve spoken with to what steps you’ve already completed, write it all down and save it for later.
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What is a business license?

A business license is a document that certifies a business with a government agency and allows them to do business in a specific area — like a city, state, or country. They come in the form of licenses and permits and are issued from local, state and federal agencies.

When do I need a business license?

Pretty much in any situation you’re going to do legal business. Whether you’re selling products or providing a service, you need to be certified to do that business through the government.

» READ MORE: How to get a small business loan in Philly

How much is a business license?

It depends. Some businesses will have licenses that have no cost associated with them, while others will pay hundreds of dollars in licensing and permit fees. For example, if your business only requires a Commercial Activity License from the city, then you’d pay $0. However, if you need a Food Preparation and Serving License, you could be looking at $275 to $415 in licensing fees. Food Truck licenses cost $341.

Do I need a business license to sell on Amazon or Etsy?

No — unless you have an official business, like an LLC or brick-and-mortar store. Most places you sell stuff online don’t require you to have a business license. That includes eBay, Facebook, Shopify and Craigslist.

Do I need a business license to work for food delivery or ride-sharing services?

No, because you work for Uber, Lyft or whichever delivery service is hiring you. The employer is required to have business licenses, but you as the driver do not.

How do I find out what business licenses I need?

According to Placencia, business owners have to do their own due diligence to get the licenses they need. In his experience, getting in contact with different government agencies is difficult as agencies often do not communicate with one another — usually an agency can only answer questions on the specific licenses they issue.

“A phone call with any department or any one of these entities is probably the least efficient way to communicate or get these questions answered,” he said. ”I found that the best way to ask questions is to make an appointment or go in-person.”

Here’s what you can do to get started:

  • Look up what licenses your business needs on federal, state and local government agency websites.
  • Ask for help from the business resources below.
  • Schedule an appointment or visit a government agency in-person.
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“Whomever you speak with you should definitely document the name and position within the department that you spoke with, that way there’s a reference for next time,” Placencia said.

Below are resources you can use to learn more about business licenses and get help applying for them.

This free online tool is for Philadelphia business owners to plan, start and expand their business in the city. You can find all the business licenses you need — by business category — on this site. It will provide a checklist of the documents you need, including business licenses, tax documents and other certificates. Visit business.phila.gov to get started.

This free online tool can be used by business owners across Pennsylvania to learn about what licenses they need. It provides an interactive checklist and business plan templates to help guide you through the process.

You can call 1-833-722-6778 for help from 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. Visit business.pa.gov to get started.

These resource centers provide free business services to entrepreneurs across Pennsylvania. Here you can receive in-person guidance on what business licenses you need, help applying for them, and free business training and events. In the Philly region, Temple University and Widener University have SBDCs. You can apply for free business counseling online.

🌐 pasbdc.org 📞 877-472-7232 ‬

Community Development Corporations (CDC) are nonprofit organizations that provide services to communities around housing, employment, businesses and more. You can find information about what licenses you need or find referrals to other places that can help. Here’s a list of CDC small business resources.

🌐 pacdc.org 📞 215-732-5829📍1315 Walnut Street, Suite 1600

A local nonprofit that provides workshops, business planning, and small business counseling for entrepreneurs in the Philly area.

🌐 thebizctr.com 📞 215-247-2473 📍 7500 Germantown Avenue, Elders Hall, Suite 113

This free resource center at the Free Library of Philadelphia helps established business owners access a variety of research databases, business resources, and information on public programs to help with business needs.

🌐 freelibrary.org 📞 215-686-8663 📍 1901 Vine Street

How to apply for a business license

You’ll need to apply for business licenses with the agency that issues them. Each level of government has different websites where you can apply for their licenses.

Federal licenses

Find out what federal business licenses you’ll need (if any) on the Small Business Administration’s (SBA) website. There, you will find information on all licenses issued by the federal government, including agriculture, radio and television broadcasting, and transportation. You can find help with federal business licenses from free counselors using the SBA’s assistance finder.

State licenses

Pennsylvania Licensing System (PALS) is the website where you will apply for state business licenses. Here you can see all of the requirements and documents needed to apply for a license. They offer an application checklist on the homepage to help you along the way. Find out what businesses licenses you need and apply for them at pals.pa.gov.

Local licenses

The City of Philadelphia has a list of all business licenses offered through the city on their website. Here you can see if your business is included in the list of business licenses and get instructions on how to apply for them. To get help from the city, visit the Office of Business Services website at business.phila.gov.