Operate Your Business

Gilson Boards – Winfield, PA

Operate

Being a business owner is a busy job. That’s why Pennsylvania makes it easy for you to complete your regular tax and business update filings online. Here, you’ll find resources to help you understand how to maintain your business in the commonwealth, including paying taxes and making updates to important information.

Pennsylvania Business Taxes

Most businesses can use the Pennsylvania Department of Revenue’s e-TIDES portal to electronically file and pay their business taxes and update their business’ tax accounts with the department. The secure, encrypted site allows multiple filers both inside or outside your business (i.e. accountant or other service provider) to submit returns and payments on your behalf based on the permissions you choose.

e-TIDES

Unemployment Compensation (UC) Taxes

Businesses can file and pay quarterly PA Unemployment Compensation (UC) tax through the Pennsylvania Department of Labor and Industry’s Unemployment Compensation Management System (UCMS). This is the site where you can manage your UC activity and update your employer account information. You can also see your business’ history of past filings and payments.

UCMS

Certificate of Annual Registration

Any domestic or foreign limited liability partnership (LLP), limited liability limited partnership (LLLP) and any domestic or foreign restricted professional company (PLLC) in existence on December 31 of any year is required to file a Certificate of Annual Registration. This form and the corresponding annual registration fee must be filed on or before April 15 of each year following the calendar year for which it is being filed.

This form is only for limited liability partnerships, limited liability limited partnerships, and restricted professional companies. It is not for limited liability companies that do not render restricted professional services.

PENN File

Changing your Business Name

As a business owner, you understand the importance of your business name when filing forms with Pennsylvania state government. If you need to change your business name, you will need to file forms with various agencies.

Sole proprietorships changing their Legal Name must file updates with the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry.

A change to a sole proprietorship’s Fictitious Name requires an update with the Pennsylvania Department of State first, followed by updates filed with the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry.

All other business structures changing their Legal Name and/or Fictitious Name must file updates with the Pennsylvania Department of State prior to updating the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry.

Hiring Workers

As your business hires employees, you will have new requirements to consider. Read on to see common requirements for employers in Pennsylvania.

For a more comprehensive guideline, check out the Pennsylvania Department of Labor and Industry’s Employer Information & Services. It’s a great resource for information on compliance, construction code services, developing a skilled workforce, financial incentives, IT policies, labor management services, and more.

Unemployment Compensation (UC)

Unemployment Compensation (UC) provides an income to individuals who become unemployed through no fault of their own. UC benefits are paid, for a limited time, to individuals who are able and available for suitable work, but continue to be unemployed while looking for another job.

The UC Law requires covered employers to make contributions into the UC Trust Fund, which acts as a pooled reserve of funding to pay benefits to individuals covered by the UC program. If you have questions regarding your business' Unemployment Compensation (UC) Tax and account number, visit the Pennsylvania Department of Labor and Industry's Employer UC FAQ page or Contact Us.

Workers' Compensation (WC)

As an employer, your business must provide workers' compensation (WC) coverage for all employees. In the event one of your workers sustains a job injury or a work-related illness, workers' compensation provides medical expenses and wage-loss compensation benefits until your employee can return to work. Workers' compensation also provides death benefits for work-related deaths, and is paid to dependent survivors. Benefits are paid by private insurance companies (also includes third-party administrators) or the State Workers' Insurance Fund, which is a state-run workers' compensation insurance carrier.

If you have questions regarding your business' Workers' Compensation (WC) compliance, visit the Pennsylvania Department of Labor and Industry's Workers' Compensation Compliance page or Contact Us.

Employer Withholding of Personal Income Tax

Pennsylvania law requires employers to withhold Pennsylvania personal income tax from employees' compensation in two common cases:

  • When resident employees perform services within or outside Pennsylvania; and
  • When nonresident employees perform services within Pennsylvania.

More information about your business' responsibility to withhold personal income tax from employees' compensation, and wage and salary reporting requirements, visit the Pennsylvania Department of Revenue's Employer Withholding page.

New Hire Reporting Requirements

Employers must report all employees who reside or work in Pennsylvania to the Pennsylvania Department of Labor and Industry. Visit Pennsylvania Career Link's New Hire Reporting Program homepage for more information and instructions on reporting or Contact Us.

Act 32 and Local Earned Income Tax

Employers with worksites located in Pennsylvania are required to withhold and remit the local Earned Income Tax (EIT) and Local Services Tax (LST) on behalf of their employees working in Pennsylvania. Examples of business worksites include, but are not limited to: factories, warehouses, branches, offices, and residences of home-based employees.

The Pennsylvania Department of Community & Economic Development's Local Income Tax Information page to learn more. Our Local Income Tax FAQ page highlights many of the questions and concerns employers have regarding local tax requirements. If you have additional questions, Contact Us.

State Taxes

As a business in Pennsylvania, you will be required to collect and pay taxes as part of your regular operations. Your responsibilities will be determined based on the type of business you run. In this section, you will find a list of the most common Pennsylvania business taxes.

For more information on Pennsylvania business taxes, view the Pennsylvania Department of Revenue's general business tax guide (PDF).

Common Business Taxes

The following list includes common types of business taxes relevant for a wide variety of businesses operating in Pennsylvania. Detailed information on each of these tax types can be found on the Pennsylvania Department of Revenue's website.

Before you Close Your Business

If you're thinking about closing your business because of financial issues or other difficulties, check out our Getting Business Advice section to get in touch with business experts who can provide one-on-one counseling to address your situation and offer potential solutions.

Discontinuing Your Business in Pennsylvania

When a business is ceasing operations in Pennsylvania, steps must be taken to remove the business from tax and public records. To close your business, it must be in good standing. If you fail to properly notify the appropriate state government agencies about the closure of your business, you risk being liable for taxes and the business will continue to face civil liability.

The basic steps involved include:

  1. Make sure all liabilities and filing requirements are satisfied with the Pennsylvania Department of Revenue.
  2. Close all business accounts with the Pennsylvania Department of Revenue.
  3. Complete proper paperwork with the Pennsylvania Department of State to dissolve or terminate your entity.
  4. Obtain the Tax Clearance Certificates from the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry (if applicable).

The process will be considered final when all online information, payments, and — in the case of for-profit corporations — Tax Clearance Certificates, if applicable, have been received. Note that the issuance of the Tax Clearance Certificate may take several months.

Review our Closing by Business Structure to see which steps you need to take for your business or our Library to access the necessary forms.

Closing Documents & Forms

The process of closing a business differs by business structure, just as it does when registering. Depending on your business structure, you will need to either dissolve, terminate, or withdraw your business entity. Domestic corporations need to be dissolved; domestic limited partnerships, limited liability partnerships, and limited liability companies need to be terminated; and foreign associations need to be withdrawn.

Additionally, the steps included may have a fee associated with them. To see if there is a fee and the amount, please visit the Pennsylvania Department of State website.

If you have any questions regarding the closing process or which forms you'll need, Contact Us.

Visit our Library to access the appropriate forms for closing your business.

Closing Actions & Documents by Business Structure

  • Sole Proprietorship

    You will need:

    • Cancellation of Fictitious Name (DOS)
    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
  • Domestic General Partnership

    You will need:

    • Cancellation of Fictitious Name (DOS)
    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
    • Tax Clearance Certificate (DOR)
    • Tax Clearance Certificate (DLI)
    • Certificate of Termination – Domestic General Partnership (DOS)
  • Domestic Limited Partnership

    You will need:

    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
    • Tax Clearance Certificate (DOR)
    • Tax Clearance Certificate (DLI)
    • Certificate of Termination (DOS)
  • Domestic Limited Liability Company

    You will need:

    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
    • Tax Clearance Certificate (DOR)
    • Tax Clearance Certificate (DLI)
    • Certificate of Termination – Domestic Limited Liability Company (DOS)
  • Domestic Business Corporation

    You will need:

    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
    • Tax Clearance Certificate (DOR)
    • Tax Clearance Certificate (DLI)
    • Articles of Dissolution (DOS)
  • Domestic Nonprofit Corporation

    You will need:

    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
    • Tax Clearance Certificate (DOR)
    • Tax Clearance Certificate (DLI)
    • Articles of Dissolution (DOS)
  • Foreign Association

    You will need:

    • Cancellation of Licenses, Accounts, and Certifications (DOR)
    • Cancellation of Accounts (DLI)
    • Tax Clearance Certificate (DOR)
    • Tax Clearance Certificate (DLI)
    • Statement of Withdrawal of Foreign Registration (DOS)
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