The Ultimate Business License Guide for Allentown, Pennsylvania (No-Nonsense, Verified, and Up-to-Date)
Last updated: August 2025
Quick Help (Fast Answers, Official Links, and Who to Contact)
- If you sell goods or certain services in Allentown, you likely need a Pennsylvania Sales Tax License. Register free on the state’s myPATH system. See: Register for a Sales Tax account on myPATH (PA Dept. of Revenue) (accessed August 2025).
- Allentown regulates local business taxes and permits (including zoning/use and occupancy and health permits). Start at the city’s official site directory: City of Allentown Departments and Services (accessed August 2025).
- Pennsylvania does not have a statewide “general business license.” Licensing is industry- and location-based. See: Pennsylvania Business One-Stop Hub: Licenses & Permits (accessed August 2025).
- Most employers in Allentown must withhold Pennsylvania personal income tax at 3.07%, register for unemployment compensation, carry workers’ compensation insurance, and likely withhold Local Services Tax (LST) up to $52/year per employee under state law. See: PA Dept. of Revenue—Personal Income Tax, PA UC for Employers (L&I), PA Workers’ Compensation (L&I), and DCED—Local Services Tax (all accessed August 2025).
- Most Allentown businesses need a zoning clearance and a Certificate of Use & Occupancy before opening. Start here: City of Allentown—Departments and select Planning, Zoning, and Building Standards/Inspections for current forms and contacts (accessed August 2025).
- Food businesses in Allentown are regulated by the Allentown Health Bureau. Start here: Allentown Health Bureau (Food and Environmental Health) → Health Bureau (accessed August 2025).
- Form a Pennsylvania LLC or corporation with the Department of State. LLC filing fee is typically $125. See: PA Dept. of State—Business Filings & Fee Schedule (accessed August 2025).
- Every PA business entity now files an annual report (new law effective 2024). Most for-profit entities pay $7. Due dates vary by entity. See: PA Dept. of State—Annual Reports (accessed August 2025).
- Unsure what you need? Get free, trusted help: Lehigh University Small Business Development Center (SBDC) and PA SBDC Network—Find Your Center (accessed August 2025).
What “business license” means in Allentown (and what you actually need)
Start here: figure out which level requires what. Pennsylvania has no single, statewide general business license. Your checklist will come from:
- State of Pennsylvania (entity registration, tax accounts, and any state-level or professional licensing)
- City of Allentown (zoning, use & occupancy, local business taxes, local permits)
- County/Regional health or specialized permits (in Allentown, city Health Bureau handles food)
- Federal basics (EIN, certain regulated industries)
Source: Pennsylvania Business One-Stop Hub (accessed August 2025)
Snapshot: Common city and state requirements
Use this as your table of contents. Then jump into each section below.
| Task | Who needs it | Where to apply | Typical cost | Official source |
|---|---|---|---|---|
| Verify zoning & get Certificate of Use & Occupancy | Anyone opening a physical location or changing use | City of Allentown (Planning/Zoning; Building Standards/Inspections) | Varies—see city forms | City of Allentown—Departments (accessed Aug 2025) |
| Local business tax registration (e.g., Business Privilege/Mercantile, LST/EIT) | Most businesses operating in Allentown | City of Allentown Finance/Revenue and designated tax collector(s) | Varies—see city tax pages | City of Allentown—Departments (Finance/Taxes) (accessed Aug 2025), DCED—Local Income/LST (accessed Aug 2025) |
| PA Sales Tax License | Retailers, taxable service providers | PA Dept. of Revenue (myPATH) | $0 | myPATH—Register New Business (accessed Aug 2025) |
| EIN (federal) | Most businesses (banks usually require) | IRS | $0 | IRS—Apply for an EIN (accessed Aug 2025) |
| Entity filing (LLC/corp) | If forming an LLC or corporation | PA Dept. of State | LLC filing typically $125 | PA DOS—Fee Schedule (accessed Aug 2025) |
| Annual report | LLCs, corps, LPs, etc. | PA Dept. of State | Usually $7 | PA DOS—Annual Reports (accessed Aug 2025) |
| Food facility license | Restaurants, food trucks, caterers | Allentown Health Bureau | Varies—see Health Bureau | City of Allentown—Health Bureau (accessed Aug 2025) |
| Alcohol license | Bars, restaurants, retailers | PA Liquor Control Board (PLCB) | Varies by license and county | PLCB—Licensing (accessed Aug 2025) |
| Contractors—state registration | Home improvement contractors | PA Attorney General (HICPA) | Varies—see AG | PA OAG—Home Improvement Registration (accessed Aug 2025) |
| Workers’ comp & UC | Employers | PA L&I | Insurance premiums and UC contributions vary | L&I—Workers’ Comp, UC—Employers (accessed Aug 2025) |
Reality check: there’s no one form that covers everything. You’ll likely do several applications across state and city. Timelines also depend on inspections (zoning/building/health/fire). Plan ahead and don’t sign a lease until you confirm the use is allowed and the space can pass inspections.
Step 1: Lock down your Allentown site and get zoning & use/occupancy approval
Most brick-and-mortar businesses in Allentown will start at City Hall with zoning clearance and a Certificate of Use & Occupancy (U&O). Do this before you build out or buy equipment, and ideally before signing a lease.
- Where to start: City of Allentown—Departments, then select Planning, Zoning, and Building Standards/Inspections (accessed August 2025).
- Why it matters: If your use isn’t allowed by zoning, you may need a variance (time-consuming and not guaranteed). If the space can’t meet code without costly upgrades, your timeline and budget will suffer.
- What you’ll likely need:
- The property address and your proposed use (e.g., “limited-service restaurant,” “office,” “retail clothing”).
- Floor plan or layout, seating count if applicable, occupancy load if known.
- For changes of ownership or use, prior approvals and the last U&O.
- If building or altering: construction drawings, contractor info, and required permits.
- Fees and timelines: Fees vary by application type and inspection needs. Processing often depends on scheduling inspections. Check forms and fee schedules directly via the city’s Planning/Zoning and Building Standards pages: City of Allentown—Departments (accessed August 2025).
- Fire safety: Expect to address fire exits, alarms, sprinklers, and kitchen suppression if cooking. The city’s Building Standards and Fire Prevention offices coordinate on life safety requirements.
- Real example: A coffee shop on Hamilton Street needed zoning approval for “restaurant use,” a U&O inspection, a separate sign permit for the awning, and interior fit-out permits before opening day.
- Official references:
- City of Allentown—Departments Directory (accessed August 2025).
- PA Uniform Construction Code (UCC) at L&I (state construction code) (accessed August 2025).
What to do if this doesn’t work:
- If your use isn’t permitted, ask zoning staff for alternatives (e.g., another zoning district, or obtaining a variance). Variances can take months and include fees and hearings.
- If the building needs major upgrades (e.g., sprinklers), get written estimates and negotiate with the landlord or look for another space.
- If your timeline is tight, consider a different space that already has your use approved and a recent U&O.
Step 2: Register your business entity (optional but common) and your name
If you’re forming an LLC or corporation in Pennsylvania, you’ll file with the Department of State. Sole proprietors don’t have to form an entity, but many do for liability protection.
- Entity formation:
- Pennsylvania LLC filing (Certificate of Organization) typically costs $125 to file online or by mail. See the state’s fee schedule: PA Dept. of State—Business Fee Schedule (accessed August 2025).
- Corporations and limited partnerships have their own forms and fees; see the same official fee schedule above for current amounts.
- File online through the state’s Business Filing Services: PA Dept. of State—Business Filings (accessed August 2025).
- Annual report (new requirement beginning 2024):
- Most for-profit entities must file an annual report with the Department of State. The fee is 7∗∗formostentities;nonprofitsaregenerally∗∗7** for most entities; nonprofits are generally **0. Due dates vary by entity type. See: PA Dept. of State—Annual Reports (accessed August 2025).
- Fictitious name (doing business as/DBA):
- If you’ll use a trade name that doesn’t include the full legal names of the owners (e.g., “Hamilton Street Barber” instead of “John Q. Public”), register a fictitious name with the PA Dept. of State.
- Filing fee is $70. See: PA Dept. of State—Fictitious Names and Fee Schedule (both accessed August 2025).
Reality check:
- Forming an LLC doesn’t replace city approvals or tax registrations.
- Banks usually want your EIN and official state formation approval before opening a business account.
- If you’re on a tight budget, file yourself using official state instructions; if your structure or ownership is complex, budget for a Pennsylvania business attorney.
What to do if this doesn’t work:
- If your filing gets rejected, read the rejection notes carefully; minor issues (incorrect names, missing signatures) are common and fixable.
- If you’re unsure about the right entity, use the free advising from the SBDC: Lehigh SBDC (accessed August 2025), or consult a licensed Pennsylvania attorney.
Step 3: Get your federal EIN and your Pennsylvania tax accounts
Nearly all businesses should get an EIN (employer identification number), even if you have no employees yet.
- EIN:
- Apply online with the IRS; it’s instant and costs $0. See: IRS—Apply for an EIN Online (accessed August 2025).
- Pennsylvania tax accounts (myPATH):
- If you sell taxable goods/services or have employees, register on myPATH for your Sales Tax License and employer withholding accounts.
- myPATH is free to use: PA Dept. of Revenue—myPATH (accessed August 2025).
- Pennsylvania Sales and Use Tax rate:
- Lehigh County (Allentown) is 6%. Additional local sales taxes apply only in Allegheny County (+1%) and Philadelphia (+2%). Source: PA Dept. of Revenue—Sales, Use and Hotel Occupancy Tax (accessed August 2025).
- Resale/exemption certificate:
- If you buy inventory for resale, use Pennsylvania’s resale certificate (Form REV‑1220) with vendors. See: PA Dept. of Revenue—Sales Tax Exemption Certificates (accessed August 2025).
- Employer withholding:
- Pennsylvania personal income tax rate is 3.07%. Employers withhold and remit via myPATH. See: PA Dept. of Revenue—Personal Income Tax (accessed August 2025).
- Local wage taxes:
- Under Act 32, employers must withhold local Earned Income Tax (EIT) and likely Local Services Tax (LST) for employees who live/work in Pennsylvania. Rates vary by municipality and school district.
- Use the official state tools to find your collector and rates: PA DCED—Local Income Taxation (Find Your Collector) and Register as an Employer with your TCD (accessed August 2025).
- State law caps the LST at $52/year per employee (with a low-income exemption threshold if adopted locally). Verify Allentown’s specific LST details on its tax page or your TCD collector’s site. Source: DCED—Local Services Tax (accessed August 2025).
- Unemployment Compensation (UC) and Workers’ Compensation:
- Register as an employer with Pennsylvania’s UC system and purchase Workers’ Compensation insurance before employees start work. Rates vary by industry and claims history. See: PA UC—Employers and PA L&I—Workers’ Compensation (accessed August 2025).
What to do if this doesn’t work:
- If myPATH registration fails, call the PA Dept. of Revenue or use its online contact: PA Dept. of Revenue—Contact (accessed August 2025).
- If you’re unsure about local EIT/LST, contact the PA DCED using the Act 32 directory above, or ask your SBDC advisor to help you identify your correct collector and filings.
Step 4: Register with the City of Allentown for local business taxes and licensing
Allentown, like many Pennsylvania municipalities, administers local business taxes and certain licenses/permits. Expect these common items:
- Business Privilege/Mercantile tax registration (gross receipts taxes are common in PA cities—rates and applicability vary).
- Local Services Tax (LST) and Earned Income Tax (EIT) withholding setup with the city’s designated collector.
- Any city-specific business license forms.
Start from the official city directory and navigate to Finance/Revenue (taxes) to download forms, view fee schedules, and find the city’s designated tax collector(s): City of Allentown—Departments (accessed August 2025).
- Why you can’t skip this: Operating without local tax registration can lead to penalties and back taxes on gross receipts, plus compliance troubles when you go for city permits (like signs or U&O updates).
- Reality check on amounts: Local tax rates and license fees can change. Always pull current forms and rate sheets from the city’s Finance/Revenue pages or the named tax collector’s official website. If the city uses a third-party collector (e.g., Keystone Collections Group or Berkheimer) for EIT/LST, you’ll register there.
- Documentation you’ll typically need:
- Your EIN and legal business name.
- Your Pennsylvania entity info (or sole proprietor details).
- Business address(es) within Allentown and start date.
- Estimated gross receipts and employee counts (if asked).
What to do if this doesn’t work:
- If you can’t find the correct tax forms, contact the city through its department directory: City of Allentown—Departments (accessed August 2025).
- For local wage/LST collector info and rates, use the official DCED tools: DCED—Act 32 Local Income Taxation (accessed August 2025).
Step 5: Health permits (food and beverage) under the Allentown Health Bureau
If you serve, sell, or prepare food in Allentown (restaurant, café, bakery, food truck, caterer), you must comply with local health licensing and inspections. The city operates its own Health Bureau.
- Start here: City of Allentown—Health Bureau (select Health) (accessed August 2025).
- What’s typically required:
- Food facility plan review for new/renovated operations.
- Food facility license issued by the Health Bureau.
- Inspections before opening and periodic inspections afterwards.
- Food safety manager certification for at least one person on duty during operation (ServSafe or equivalent). See state-level info: PA Dept. of Agriculture—Food Employee Certification (accessed August 2025).
- Fees and timelines:
- Fees depend on your operation type (e.g., permanent restaurant, mobile unit, temporary event). The Health Bureau’s current fee schedule and forms are posted on the city website. Always download the latest versions.
- For alcohol service:
- Applicants must work with the Pennsylvania Liquor Control Board (PLCB). Allentown still controls local zoning and occupancy (e.g., hours, noise, location).
- PLCB license availability and fees vary by county and license type. See: PLCB—Licensing Home (accessed August 2025).
- Real example: A food truck operating downtown needed both a mobile food facility license from the Health Bureau and event-specific permits for festivals. The operator registered for a state Sales Tax License on myPATH and carried proof of workers’ comp for staff.
What to do if this doesn’t work:
- Use the Health Bureau’s published phone and email (through the Departments directory) to request a plan review call. Bring your menu, floor plan, and equipment specs.
- If you need help with ServSafe or food safety certification, ask the Health Bureau or the SBDC about local class providers and schedules.
Step 6: Contractors and trades in Allentown and Pennsylvania
If you perform construction or renovation work:
- State registration for home improvement contractors:
- Pennsylvania requires home improvement contractors to register with the Attorney General under HICPA.
- See: PA Office of Attorney General—Home Improvement Contractor Registration (accessed August 2025).
- City-level requirements:
- Allentown may require contractor registration, proof of insurance, and adherence to the PA UCC for permits.
- Apply for building, electrical, plumbing, mechanical, and sign permits as needed.
- Start at: City of Allentown—Departments → Building Standards/Inspections (accessed August 2025).
- Electrical and specialty trades:
- Allentown uses the UCC standards adopted by Pennsylvania. Some specialty licenses or exams may be required locally or proof of state credentials.
- Workers’ comp is mandatory if you have employees:
- Verify coverage: PA L&I—Workers’ Compensation (accessed August 2025).
What to do if this doesn’t work:
- If your permit is delayed, request a pre-submittal meeting with Building Standards staff to clarify code expectations and submittal checklists.
- If you’re unsure about registration, ask for the city’s contractor registration requirements and fee schedule from the Building Standards page.
Step 7: Industry-specific licensing and professional boards
Some businesses need state-issued licenses beyond local approvals:
- Healthcare, engineering, architecture, real estate, cosmetology, barbers, and similar professions are overseen by state boards under the Bureau of Professional and Occupational Affairs (BPOA).
- Always confirm license requirements, training hours, and exams before investing money.
- Start: PA Dept. of State—Professional Licensing (BPOA) (accessed August 2025).
- Child care centers:
- Licensing through the PA Department of Human Services.
- See: PA DHS—Child Care Licensing (accessed August 2025).
- Transportation, trucking, and fuel taxes:
- See: PA Dept. of Revenue—Motor and Alternative Fuels Taxes (accessed August 2025).
What to do if this doesn’t work:
- Contact the specific board or the One-Stop Hub help resources: Pennsylvania Business One-Stop Hub (accessed August 2025).
- For regulated professions, do not open until you have the license number in hand; fines and closures are costly.
The money side: taxes you’ll actually pay (and who you pay)
This table summarizes common taxes affecting Allentown small businesses. Always verify with the official sources for your specific situation.
| Tax | Rate / amount | Who collects | How to register/file | Official source |
|---|---|---|---|---|
| Pennsylvania Sales & Use Tax | 6% in Lehigh County | PA Dept. of Revenue | myPATH registration and filing | PA DOR—Sales & Use Tax (accessed Aug 2025) |
| PA Personal Income Tax (withholding) | 3.07% flat | PA Dept. of Revenue | myPATH employer withholding | PA DOR—PIT (accessed Aug 2025) |
| Local EIT (Earned Income Tax) | Varies by municipality/school district | Local TCD collector | Register with TCD; withhold from employees | DCED—Act 32 EIT (accessed Aug 2025) |
| LST (Local Services Tax) | Up to $52/year/employee (state cap) | Local tax collector | Withhold and remit | DCED—Local Services Tax (accessed Aug 2025) |
| Business Privilege/Mercantile (local) | Rate varies on gross receipts | City of Allentown / designated collector | City registration and filings | City of Allentown—Departments (Finance) (accessed Aug 2025) |
| PA Unemployment Compensation | Employer rates vary | PA L&I UC | Register as employer; quarterly reports | UC—Employers (accessed Aug 2025) |
| Federal payroll taxes | FICA/FUTA rates | IRS | EFTPS and IRS filings | IRS—Employment Taxes (accessed Aug 2025) |
Reality check:
- Your local EIT and LST are not optional. Use the DCED tools to get your specific rates and the correct collector.
- Local gross receipts taxes (business privilege/mercantile) can be a surprise for service businesses; read the city’s rules and exemptions carefully on the official pages.
What to do if this doesn’t work:
- If you’re unsure which local tax applies, call your TCD collector (found via DCED link above) and the City Finance/Revenue office.
- If you fall behind, contact the collector early to set up a payment plan and avoid liens or license holds.
Real-world examples (what licenses and permits were needed)
- Retail boutique on Hamilton Street:
- Zoning clearance for retail use and a Certificate of Use & Occupancy.
- Sign permit for a projecting sign.
- Pennsylvania Sales Tax License (rate 6%).
- Local business tax registration with the city.
- Coffee shop near PPL Center:
- Zoning & U&O; building permits for interior changes.
- Health Bureau plan review and food facility license; ServSafe-certified manager.
- Sales Tax License and local business tax registration.
- If adding beer/wine later: PLCB restaurant license process (lengthy; county quota applies).
- Home improvement contractor based in Allentown:
- State Home Improvement Contractor registration (PA Attorney General).
- City contractor registration and proof of insurance (as required for permits).
- UCC permits for jobs requiring structural, electrical, plumbing, mechanical work.
- Workers’ comp coverage for employees.
- Online-only services freelancer (home-based):
- Check zoning “home occupation” rules if clients will visit your home or if signage/equipment is involved.
- Register a fictitious name (if using one) for $70.
- File local taxes where applicable (Business Privilege/EIT, if required), and withhold LST/EIT if you hire employees.
Timelines you can expect (and how to keep things moving)
| Step | Typical reality | Tips to speed it up | Official links |
|---|---|---|---|
| EIN | Same day online | Apply during IRS EIN hours; have info ready | IRS—EIN |
| PA Sales Tax License | Often quick; allow processing time | Register early on myPATH | myPATH |
| Zoning/U&O | Depends on inspections and workload | Request a pre-application meeting with Planning/Building | Allentown—Departments |
| Health (food) | Plan review + inspection needed | Submit complete plans; schedule early | Allentown Health Bureau |
| Signs & build-out permits | Permit review + inspections | Use licensed contractors; submit full drawings | Allentown—Departments |
| Liquor license | Months (market purchase + PLCB) | Start early; engage counsel | PLCB—Licensing |
Because processing times can change, confirm current timeframes with each office.
Common mistakes to avoid
- Signing a lease before confirming the use is allowed by zoning.
- Forgetting Allentown’s Certificate of Use & Occupancy and sign permits.
- Assuming Pennsylvania has a general state license—there isn’t one; you still need state tax accounts and local permits.
- Missing local gross receipts taxes, LST, and EIT—that’s where many new employers slip.
- Not budgeting time for health plan review when building a restaurant or food truck.
- Skipping workers’ comp or UC registration when hiring your first employee.
- Forgetting the new Pennsylvania annual report requirement with a $7 fee for most entities.
- Using a DBA name in marketing before the $70 fictitious name filing is accepted.
- Not saving proof of tax registrations (myPATH, TCD collector) for your landlord or lender.
- Improper signage or banners without city approval.
What it costs (typical, verified amounts and where to look up the rest)
| Item | Amount | Source |
|---|---|---|
| Pennsylvania LLC filing fee | $125 | PA Dept. of State—Fee Schedule (accessed Aug 2025) |
| Fictitious name filing | $70 | PA DOS—Fictitious Names (accessed Aug 2025) |
| Annual report (most entities) | $7 | PA DOS—Annual Reports (accessed Aug 2025) |
| EIN | $0 | IRS—EIN (accessed Aug 2025) |
| PA Sales Tax License | $0 | myPATH (accessed Aug 2025) |
| Sales tax (Lehigh County) | 6% | PA DOR—Sales & Use (accessed Aug 2025) |
| PIT withholding rate | 3.07% | PA DOR—PIT (accessed Aug 2025) |
| LST (state cap) | Up to $52/year per employee | DCED—LST (accessed Aug 2025) |
| Allentown U&O, permits, health licenses | Varies—see official pages | Allentown—Departments (accessed Aug 2025) |
| PLCB alcohol licenses | Varies by type/county | PLCB—Licensing (accessed Aug 2025) |
Step-by-step: your Allentown business license checklist
Follow this order to avoid rework.
- Confirm zoning and use for your exact address; plan for a U&O.
- Form your entity (LLC/corp) if you choose; or operate as a sole proprietor. Register a $70 fictitious name if using a DBA.
- Get your $0 EIN from the IRS.
- Register on myPATH for Sales Tax and employer withholding (as needed).
- Register with the city/collector for local business taxes (Business Privilege/Mercantile, EIT/LST).
- If you’re serving food, submit Health Bureau plan review and license applications; schedule inspections.
- If building out, apply for building/electrical/plumbing/mechanical permits and sign permits.
- For regulated professions, apply to the state board before opening.
- Hire staff only after UC registration, workers’ comp coverage, and payroll tax setup.
- Put compliance on a calendar: city filings, state myPATH filings, and the $7 Pennsylvania annual report deadline.
Documents you’ll typically need
- Government-issued ID for owners.
- EIN confirmation letter from IRS.
- State incorporation/organization approval or fictitious name approval.
- Lease or proof of property control.
- Floor plans, seating counts, equipment lists for food operations.
- Workers’ comp insurance proof if hiring.
- Sales Tax License certificate and local tax account numbers (post where required).
Inclusivity, diversity, and accessibility resources (Allentown and Pennsylvania)
- Small Diverse Business (SDB) certification for contracting opportunities:
- Pennsylvania recognizes small businesses owned by women, minorities, veterans, service-disabled veterans, LGBTQ+, and persons with disabilities through the Dept. of General Services (DGS).
- Learn and apply: PA DGS—Small Diverse Business (SDB) Program (accessed August 2025).
- Veteran-owned businesses:
- State SDB program includes VBE/SDVBE. Federal certifications (e.g., SDVOSB/VOSB) are through the SBA. See: SBA—Veteran Assistance (accessed August 2025).
- Women-owned businesses:
- Consider WBE certification via DGS SDB and national WBENC (not a government site, but widely recognized). State: PA DGS—SDB (accessed August 2025).
- Minority-owned businesses:
- See SDB program above and the PA Small Business Development Centers for free bid-prep help: PA SBDC Network (accessed August 2025).
- Disability-owned businesses:
- Recognized in SDB. For accessibility compliance, consult ADA standards: ADA.gov—Small Business (accessed August 2025).
- LGBTQ+-owned businesses:
- Eligible for SDB recognition (with accepted third-party certifications). DGS SDB info: PA DGS—SDB (accessed August 2025).
- Immigrant-owned and language access:
- City and state offices can arrange interpreter services upon request. When contacting the city, use the department’s official contact forms: City of Allentown—Departments Directory (accessed August 2025).
- Free advising in multiple languages may be available through the SBDC network: PA SBDC—Find Your Center (accessed August 2025).
- ADA and building accessibility:
- Plan early for accessible routes, restrooms, counters, and seating. Start: ADA.gov—Design and Construction (accessed August 2025).
Practical planning: budget, leases, and inspections
- Put compliance costs into your budget (permits, inspections, plans, signage, health equipment like 3-basin sinks and hoods).
- Negotiate your lease so rent doesn’t start until after you receive critical approvals (zoning, U&O, health). Include contingencies.
- Coordinate inspections in the right order—rough inspections before walls close; final inspections before scheduling your U&O.
- Don’t forget ongoing filings: myPATH sales tax returns, payroll returns, local business privilege/mercantile filings, annual report ($7).
What to do if this doesn’t work:
- If your cash is tight, ask SBDC about grants and microloans and connect with the Allentown Economic Development Corporation: Allentown Economic Development Corporation (AEDC) (accessed August 2025), and SBA lenders: SBA—Lender Match (accessed August 2025).
Local contacts and where to find the right office
| Need | Where to go | Link |
|---|---|---|
| City zoning, building permits, U&O, fire | City of Allentown—Departments directory | Allentown—Departments (accessed Aug 2025) |
| City health (food facilities) | Allentown Health Bureau | Allentown—Departments (Health) (accessed Aug 2025) |
| City business taxes and license forms | Finance/Revenue (city directory) | Allentown—Departments (Finance) (accessed Aug 2025) |
| State business filings, annual report | PA Dept. of State | PA DOS—Business (accessed Aug 2025) |
| PA sales tax, withholding (myPATH) | PA Dept. of Revenue | myPATH (accessed Aug 2025) |
| Local wage/LST collector & rates | PA DCED Act 32 | DCED—Local Income Taxation (accessed Aug 2025) |
| UC and Workers’ Comp | PA L&I | UC—Employers, Workers’ Comp (accessed Aug 2025) |
| Liquor licensing | PLCB | PLCB—Licensing (accessed Aug 2025) |
| Free startup advising | Lehigh SBDC | Lehigh SBDC (accessed Aug 2025) |
What to do if you’re home-based in Allentown
- Check “home occupation” rules before you invite clients to your home or add signage/equipment. See Planning/Zoning: Allentown—Departments (accessed August 2025).
- Sales tax still applies to taxable online sales shipped to Pennsylvania addresses (rate 6% in Lehigh County). See: PA DOR—Sales & Use (accessed August 2025).
- If you hire employees, you still need UC registration, workers’ comp, EIT/LST withholding via your TCD.
What to do if this doesn’t work:
- If zoning limits your planned activity, consider a small office, co-working, or a commercial kitchen for food prep.
“Is this taxable?” quick checks for Allentown retailers and service providers
- Tangible goods are usually taxable at 6% in Lehigh County.
- Some services are taxable (e.g., short-term lodging, certain digital goods). Some services are exempt. Check the state’s official taxability lists: PA DOR—Sales & Use Tax Guidance (accessed August 2025).
- Use tax applies to untaxed business purchases used in Pennsylvania (e.g., equipment bought online without sales tax). Report and pay via myPATH.
What to do if this doesn’t work:
- Use the Department of Revenue’s online customer service or call center from the Contact page: PA DOR—Contact (accessed August 2025).
Plan B: If you’re stuck at any stage
- Zoning/U&O stuck? Ask for a pre-application or technical review meeting with city staff. Bring drawings and specific questions.
- Health plan review delayed? Submit complete equipment specs and menus. Ask for an earlier inspection slot or provisional guidance.
- Tax registration confusion? Use the DCED collector finder for local wage taxes and myPATH help desk for state taxes. SBDC can sit with you to walk through the forms.
- Cash shortfall? Explore SBA microloans and AEDC financing. Ask your landlord to align rent start with inspection approvals.
- Timeline crunch? Phase your opening (soft opening without alcohol; delay non-critical features) while staying fully compliant with core licenses.
10 Pennsylvania-specific FAQs (with official links)
- Do I need a statewide “business license” in Pennsylvania?
- No. Pennsylvania does not issue a single, general statewide business license. Licensing is industry- and location-based. See: Pennsylvania Business One-Stop Hub (accessed August 2025).
- What is the Pennsylvania personal income tax withholding rate?
- 3.07% flat. Employers must withhold and remit. Source: PA Dept. of Revenue—PIT (accessed August 2025).
- What is the sales tax rate in Allentown?
- 6% (Lehigh County). Additional local sales tax applies only in Allegheny County (+1%) and Philadelphia (+2%). Source: PA DOR—Sales & Use (accessed August 2025).
- Do I need to file an annual report for my LLC/corporation in Pennsylvania?
- Yes. Starting 2024, most for-profit entities file an annual report; fee is $7 for most. Due dates vary by entity type. Source: PA DOS—Annual Reports (accessed August 2025).
- How much is the Pennsylvania LLC filing fee?
- Typically $125. Verify on the official fee schedule: PA DOS—Fees (accessed August 2025).
- Do I need a local business license for Allentown?
- Allentown administers local business taxes and permits (e.g., Business Privilege/Mercantile, LST/EIT), and you’ll need zoning/U&O. Use the city’s Finance and Planning/Building pages to register and apply. Start: Allentown—Departments (accessed August 2025).
- Who collects local wage (EIT) and LST in Allentown?
- Use the state’s official DCED tools to find your Tax Collection District (TCD) and rates. Source: DCED—Act 32 (accessed August 2025).
- Where do I get a food license in Allentown?
- The Allentown Health Bureau licenses and inspects food facilities. Start: Allentown—Health Bureau (accessed August 2025).
- Do contractors need a Pennsylvania license?
- Pennsylvania requires home improvement contractor registration (HICPA) with the Attorney General for residential work. Local permits and contractor registration may be required in Allentown. Source: PA OAG—Home Improvement (accessed August 2025).
- Can I get help with business planning and licenses?
- Yes, free. Contact the SBDC: Lehigh SBDC or PA SBDC Network (accessed August 2025).
“What if my business is food, liquor, child care, or professional services?”—Key differences
| Business type | Extra steps | Where to confirm |
|---|---|---|
| Food service (restaurant, truck, café) | Health Bureau plan review, food facility license, ServSafe manager; grease trap, hood/suppression for cooking | Allentown—Health Bureau (accessed Aug 2025) |
| Alcohol service | Zoning suitability, PLCB licensing, possible neighborhood hearings, market purchase/transfer | PLCB—Licensing (accessed Aug 2025) |
| Child care | DHS child care license; staff clearances; facility requirements | PA DHS—Child Care Licensing (accessed Aug 2025) |
| Professional services (cosmetology, barber, medical, engineering, real estate) | State professional license (BPOA boards) | PA DOS—Professional Licensing (accessed Aug 2025) |
| Home improvement contractor | HICPA registration with Attorney General; Allentown permits/registration | PA OAG—Home Improvement (accessed Aug 2025) |
How to apply: step-by-step with links
- Zoning/U&O:
- Visit the city directory, select Planning/Zoning and Building Standards/Inspections, download application forms, and submit with plans and fees. Schedule inspections. See: Allentown—Departments (accessed August 2025).
- Entity registration and DBAs:
- File online with the PA Dept. of State (LLC fee 125∗∗;fictitiousname∗∗125**; fictitious name **70). See: PA DOS—Business and Fees (accessed August 2025).
- EIN:
- Apply free: IRS—EIN Online (accessed August 2025).
- State tax accounts:
- Create myPATH profile and register: myPATH (accessed August 2025).
- Local taxes:
- Use Allentown’s Finance/Revenue pages (city directory) and DCED Act 32 tools to locate your collector for EIT/LST. See: Allentown—Departments and DCED—Act 32 (accessed August 2025).
- Health permits:
- Health Bureau forms and plan review: Allentown—Health Bureau (accessed August 2025).
- Permits for build-out/signs:
- Building Standards/Inspections: Allentown—Departments (accessed August 2025).
If you plan to hire in Allentown
- Register for PA employer withholding at 3.07% via myPATH.
- Withhold EIT and LST with your local collector (find via DCED).
- Register for UC and purchase workers’ comp insurance.
- Post required workplace posters (state and federal). See: PA L&I—Required Workplace Posters (accessed August 2025).
- Minimum wage: Pennsylvania currently follows the federal minimum wage of $7.25/hour. Check for any updates: PA L&I—Minimum Wage (accessed August 2025).
What to do if this doesn’t work:
- If payroll is confusing, consider a reputable payroll provider experienced with Pennsylvania local taxes.
- Use SBDC counselors to set up your payroll calendars and filings.
Keep-yourself-legal calendar (Allentown + Pennsylvania)
- Before opening: Zoning approval, U&O, building permits finalized, Health Bureau license (if food), Sales Tax License, local tax registrations, required posters up.
- Monthly/quarterly: Sales tax filings, payroll tax deposits, local EIT/LST filings.
- Annually: Pennsylvania annual report ($7 for most entities; due date varies by entity type—verify on DOS Annual Reports page), local business privilege/mercantile filings as required, business license renewals (if applicable), food license renewals.
- Changes: New location, change of use, expansions, or adding alcohol—contact the city first.
What to bring to City Hall (or submit online)
- Business entity proof or fictitious name approval.
- EIN letter.
- Lease or deed.
- Floor plan and work scope (if building out).
- Food menu and equipment list (if applicable).
- Insurance and workers’ comp proof (if applicable).
- Completed applications and checks (or online payment info).
Troubleshooting common scenarios
- “I don’t know my local EIT/LST collector” → Use the DCED Act 32 lookup tools: DCED—Act 32 (accessed August 2025).
- “My use isn’t permitted” → Ask Planning/Zoning about conditional uses or variances; consider a different address in a permitted district.
- “Health Bureau says I need a hood” → Ask your design professional about UL 710 hoods and suppression systems; budget accordingly and seek any landlord contribution.
- “I missed the annual report” → File now and pay the $7 fee (most entities). Avoid administrative dissolution. See: PA DOS—Annual Reports (accessed August 2025).
Table: Quick compliance checklist with responsible agency
| Action | Agency | Fee | Link |
|---|---|---|---|
| Confirm zoning / U&O | City of Allentown | Varies | Allentown—Departments |
| File LLC or Corp (optional) | PA Dept. of State | LLC $125 | PA DOS—Business |
| Fictitious name (if DBA) | PA Dept. of State | $70 | PA DOS—Fictitious Names |
| EIN | IRS | $0 | IRS—EIN |
| Sales Tax License | PA Dept. of Revenue | $0 | myPATH |
| Employer withholding | PA Dept. of Revenue | $0 (setup) | myPATH |
| UC and Workers’ Comp | PA L&I | Varies | UC—Employers |
| Local EIT/LST registration | Local TCD collector | Varies | DCED—Act 32 |
| City business tax registration | City of Allentown/collector | Varies | Allentown—Departments |
| Health license (food) | Allentown Health Bureau | Varies | Allentown—Health Bureau |
| Sign permit | City of Allentown | Varies | Allentown—Departments |
| Liquor license | PLCB | Varies | PLCB—Licensing |
What to do if this doesn’t work (section wrap-up)
- Request a 15-minute call with the right city department using their directory to clarify paperwork before you submit.
- Bring a one-page summary of your business, address, and timeline to meetings. Ask, “What could delay my approval?” and “What inspections are on the critical path?”
- Use the SBDC as your free project manager—have them review your steps and hold you accountable.
About This Guide
- Purpose: a practical, verified, single place to understand the business license path in Allentown, Pennsylvania, with direct links to official forms and agencies.
- Scope: focuses on local (Allentown) and Pennsylvania requirements most small businesses face. It’s not legal or tax advice.
- Methods: every fact is linked to an official government or well-established source, checked as of August 2025.
- Feedback: if you find a broken link or updated fee, check the relevant agency page first, then contact that agency directly via the official site.
Disclaimer
This guide is for general information only. Program details, fees, tax rates, due dates, and contacts can change anytime. Always verify requirements with the City of Allentown, the Pennsylvania Department of State, the Pennsylvania Department of Revenue, the Pennsylvania Department of Labor & Industry, and any other relevant agency via the official links in this article before you apply or pay fees.
Sources and key references (verified August 2025):
- City of Allentown—Departments Directory
- Pennsylvania Business One-Stop Hub (Commonwealth of Pennsylvania)
- PA Dept. of State—Business Filings and Fees, Fee Schedule, Annual Reports
- IRS—Apply for an EIN
- PA Dept. of Revenue—myPATH, Sales & Use Tax, Personal Income Tax, Exemption Certificates, Contact
- PA DCED—Local Income Taxation (Act 32, EIT, LST), Local Services Tax
- PA L&I—Workers’ Compensation, Unemployment Compensation—Employers, Minimum Wage, Required Posters
- Allentown Health Bureau (via Departments directory)
- PLCB—Licensing
- PA Office of Attorney General—Home Improvement Contractor Registration
- PA Dept. of Agriculture—Food Employee Certification
- Lehigh University SBDC, PA SBDC Network
- ADA.gov—Small Business
What to do if this doesn’t work:
- If anything here conflicts with an official agency page, follow the agency. Use the official contacts linked above for current forms, fees, and rules.