Starting a business is exciting, but it also comes with a lot of paperwork. Unfortunately, that paperwork does not always arrive in an obvious order. Register too early or complete steps in the wrong sequence, and you may have to redo some of the work.
You can also run into problems if you skip a requirement entirely. Pennsylvania’s newspaper publication rule and newer annual report requirement are two common examples. Business owners sometimes do not realize they missed something until a notice arrives months later.
Here’s the setup sequence we walk new business owners through, in the order it should happen.
Step 1: Choose Your Business Structure
Before filing anything, decide how you want to organize your business.
A sole proprietorship requires no state filing to exist. However, it does not provide personal liability protection.
An LLC (limited liability company) separates your personal and business liability while remaining relatively simple to manage.
A corporation comes with more formal requirements. Still, it may make sense depending on your growth plans, investors, or tax strategy.
Your business structure affects nearly every step that follows. It determines what you file with the state and can affect how you pay taxes.
Therefore, it is worth talking with your accountant before submitting anything.
Step 2: Register Your Business Name
If you’re a sole proprietor or partnership operating under your own legal name, you can usually skip this step. Everyone else should think carefully about naming before filing.
If you’re forming an LLC or corporation, you register the entity’s legal name as part of the formation filing in Step 3.
If you plan to operate under another name, Pennsylvania may require a separate Fictitious Name (DBA) registration.
This applies when you use a name other than your own legal name or your entity’s registered name. You file it with the Department of State’s Bureau of Corporations and Charitable Organizations. The filing fee is $70.
Pennsylvania’s Newspaper Publication Requirement
Here’s the part that often surprises business owners: Pennsylvania requires publication of a fictitious name notice in two newspapers.
One must be a newspaper of general circulation in the county where your business is located. The other must be a legal journal for that county.
Many states dropped this type of requirement years ago, but Pennsylvania still has it.
You do not need to submit proof of publication to the state. However, you should keep the proof in your business records.
Step 3: File Your Formation Documents
If you’re forming an LLC, you’ll file a Certificate of Organization (Form DSCB:15-8821). You’ll also file a Docketing Statement (Form DSCB:15-134A) with the Bureau of Corporations and Charitable Organizations.
The filing fee is $125. Online filings are typically processed within 3 to 5 business days.
Corporations file Articles of Incorporation instead. They file through the same office and pay a similar filing fee.
Choose a Registered Office
One Pennsylvania rule is worth knowing up front: the state requires a registered office rather than a registered agent.
Your Certificate of Organization must include a Pennsylvania street address. You cannot use a P.O. box.
The business must be able to receive official correspondence at this location during business hours.
You can use your own address. Alternatively, you can hire a commercial registered office provider (CROP). This option can help keep your home address off the public record.
Step 4: Get Your EIN
An Employer Identification Number (EIN) from the IRS is free. You can usually obtain one online in just a few minutes.
You’ll need an EIN to open many business bank accounts. You’ll also use it to register for Pennsylvania taxes and hire employees.
Even a single-member LLC with no employees may benefit from having an EIN.
For example, it can help keep your Social Security number off business paperwork and banking documents.
Step 5: Register for Pennsylvania Taxes Through myPATH
myPATH is the Pennsylvania Department of Revenue’s online portal. You can use it to register for the state tax accounts that apply to your business.
These may include:
- Sales tax license, if you sell taxable goods or services in Pennsylvania.
- Employer withholding account, if you’re hiring employees and need to withhold Pennsylvania income tax.
- Corporate Net Income Tax registration, if you formed a corporation.
Registration through myPATH is free.
Step 6: Set Up Payroll and Workers’ Compensation (If You’re Hiring)
Hiring your first employee creates a new set of responsibilities. These requirements are separate from forming your business.
You’ll need to:
- Register for a Pennsylvania Unemployment Compensation account with the Department of Labor and Industry. This account is separate from your Department of Revenue withholding account.
- Report each new hire to the Pennsylvania New Hire Reporting Program within 20 calendar days.
- Secure workers’ compensation insurance. With limited exceptions, Pennsylvania requires coverage for businesses with employees, including part-time workers.
Once you start hiring, you’ll also have federal, state, and local payroll responsibilities.
We’ve covered those requirements in more detail in our payroll tax guide.
Step 7: Handle Local Registration and Licensing
Local requirements can vary quite a bit from one municipality to another. As a result, what you need will depend on your business address.
Common requirements may include a local business privilege license, zoning approval, or occupancy permits.
Businesses with employees may also need to register for local Earned Income Tax and Local Services Tax withholding under Act 32.
Check with your municipality or local tax collector before opening. They can confirm which requirements apply to your specific address.
Step 8: Open a Business Bank Account and Set Up Bookkeeping
Keep your business and personal finances separate from day one. Doing so makes recordkeeping easier and can help protect the separation between you and your business.
Open a dedicated business checking account using your EIN.
Then decide how you’ll track income and expenses. You might use accounting software, a spreadsheet, or an outside bookkeeper.
Whatever system you choose, start using it early. Good records now can save you from a lot of cleanup at tax time.
Step 9: Mark Your Calendar for the Act 122 Annual Report
This is one of the easiest steps for a new business owner to miss because the requirement only recently took effect.
Under Act 122, Pennsylvania requires most business entities to file an annual report. This includes LLCs, corporations, LPs, and LLPs. The filing fee is $7.
Deadlines depend on the type of entity:
- Corporations: June 30
- LLCs: September 30
- Limited partnerships and LLPs: December 31
If you’re forming your business in 2026, your first annual report generally will not be due during the same calendar year. Instead, it will typically be due the following year.
Still, add the deadline to your calendar now.
Repeated missed filings can eventually create serious problems for a business, including administrative dissolution.
Frequently Asked Questions
Do I need a registered agent in Pennsylvania?
Pennsylvania uses the term “registered office” rather than “registered agent.” However, the purpose is similar.
Your business needs a Pennsylvania street address where it can officially receive documents.
You may use your own qualifying address. You can also hire a commercial registered office provider.
How much does it cost to start an LLC in Pennsylvania?
The Certificate of Organization filing fee is $125.
If you also register a fictitious name, add another $70.
You may have additional costs if you hire a commercial registered office provider. Those services often charge an annual fee.
You should also budget $7 each year for the Act 122 annual report.
Do I really need to publish something in a newspaper?
Yes, if you’re registering a fictitious name that falls under Pennsylvania’s publication requirement.
The state requires notice in two newspapers.
One must be a newspaper of general circulation in the county where your business is located. The other must be a legal journal for that county.
An LLC or corporation operating only under its registered legal name does not need to complete this fictitious name publication step.
When is my first Act 122 annual report due?
The deadline depends on your entity type and when you formed the business.
Corporations generally file by June 30. LLCs file by September 30. LPs and LLPs file by December 31.
If you’re creating a new entity in 2026, your first report typically will not be due until the following year.
Still, add the recurring deadline to your calendar right away.
Do I need an EIN if I’m a sole proprietor with no employees?
Not always. A sole proprietor without employees may be able to use a Social Security number for federal tax purposes.
However, many sole proprietors still choose to get an EIN.
It can make business banking and paperwork easier. It also helps keep your Social Security number off documents you may share with others.
Why It Matters
The paperwork is rarely the hardest part of starting a business. However, missing a requirement can create real problems later.
A missed publication requirement can cause headaches. So can an outdated registered office or a forgotten Act 122 annual report.
Taking care of these items early is much easier than fixing them after a problem appears.
We’ve helped Central Pennsylvania business owners get set up correctly since 1984. We’re happy to walk through your situation before you file your first form.
If you’re getting ready to start a business in Carlisle, Mechanicsburg, or anywhere nearby, schedule a call with our team.
We’ll help you get the sequence right from day one.
