Let's Start a Small Business!
Pennsylvania is committed to helping aspiring entrepreneurs achieve their business dreams by providing the right training, guidance, and resources to help individuals make good business decisions as they plan and launch a new venture. Whether you’re just starting your business plan, choosing your business structure, or looking for business counseling and advice, we’ve got you covered.
Visit PA Business One-Stop-Shop to learn more.
Starting a Small Business in Pennsylvania
Create A Business Plan
This something that you should not procrastinate! Whether you seek funding or not, a business plan is something that will guide you along the way and keep you focused.
A business plan is a must-have document for new businesses. It tells how you will make money, what are your first, second, and third-year goals are, what your marketing plan is, and more. So, a business plan is the backbone of your business. Our business plan guide is a great resource if you need an example of an outline.
It’s always a good idea to start with a business model canvas before writing your business plan. It’s a one-page document that shows your key business activities.
Business Structure
(Sole Proprietorship Vs. LLC)
The first thing you need to decide is your business structure. 72% of all businesses in the U.S. are sole proprietorship. It is simple to form a sole proprietorship. You do not need to register, and it is easier to manage and file taxes. However, your personal assets are not protected from business liability. To learn more about starting a sole proprietorship in Pennsylvania, check out our complete guide.
A second common type of business is a Limited Liability Company (LLC). Although single-member LLCs are considered as a sole proprietorship for tax purposes, LLC is a separate entity. In other words, your assets are protected under an LLC.
How to decide?
We advise our clients to start a sole proprietorship if they are testing the waters and not sure about the future of their business or keeping their day jobs and looking to make some extra money. However, if you want to protect your personal assets from business liability, and want to grow your company in the long-term then you should opt for an LLC.
You can also start an S or C corp. However, these corporations are a little more difficult to manage and complicated in terms of taxes.
Apply For An Employer Identification Number (EIN)
The next step is applying for an Employer Identification Number (EIN). Go to IRS.gov and apply for an EIN. If you are starting a sole proprietorship, you do not need to apply for an EIN. You can use your SSN instead.
Register for a PA Business License
After you decide your business structure and apply for an EIN, head to Pennsylvania Business One-Stop-Shop to get a business license. Create your account with PA One-Stop-Shop and go to the PENN file. If you are considering starting a sole proprietorship, you can skip this step as you do not need to register your business.
Look-up a Business Name
If you want to make sure your business name is available, you can use the PENN File Business Entity Search feature. You can look up your business name and see if it is taken by someone else.
File Articles of Incorporation
After you make sure your business name is available, you can start filing your application.
How much does a business license cost?
Registering an LLC (filing Articles of Incorporation) with the Pennsylvania Department of State is $125. If you are filing your application yourself, this should be the only fee that you pay. However, if you use third-party websites or consultants, you will end up paying more. Just a reminder that Duquesne University SBDC consultants can help you register your business at no cost (except for a fee of $125 mentioned above).
Request Consulting Help
Duquesne University has some amazing resources to help folks just like you start a business here in Pennsylvania. Many of the area colleges have similar resources. Reach out to one of them for guidance. You can also contact us any any time to ask questions about how to start a business in Koppel.
