Setting Up a Sole Proprietorship in Pennsylvania
- Choose a unique business name
- Obtain necessary licenses and permits
- Consider risks and liabilities
A sole proprietorship in Pennsylvania does not require formal setup. First, choose a unique, available business name. Search the state database to confirm availability.
Next, obtain necessary licenses, permits, and zoning clearance. Consult an accountant on tax requirements.
Consider risks. You have unlimited personal liability for debts and legal issues. Business credit and financing can be challenging.
Employer Identification Number (EIN) Benefit
- Benefits of having an EIN
- Using Social Security number as an alternative
An employer identification number (EIN) from the IRS is beneficial. It allows you to open business bank accounts and improves tax reporting. Alternatively, you can use your Social Security number.
Choosing the Right Business Structure
- Decision between a sole proprietorship and an LLC
- Seeking expert advice for the best structure
Sole proprietorships setup is straightforward. However, an LLC offers liability protection if desired. Consult experts on the best structure for your goals.