Pittsburgh Business License: City Registration, Payroll Expense Tax and PLI Licenses

Most people searching for a city of Pittsburgh business license want to know one thing: what must be filed before the business can legally open and run? The honest answer is that Pittsburgh does not issue one general business license to every company. Pennsylvania has no state general business license and no county business licenses. Instead, the city asks most businesses to register with the Department of Finance, handle the city taxes that match their payroll and activities, and hold a PLI (Permits, Licenses and Inspections) license only when their specific activity requires one.

This guide covers how to start a business in Pittsburgh in the order you will normally need each step: state formation, city registration, payroll taxes, activity licenses, and construction or zoning checks.

Informational content, not legal or tax advice. This article explains how the City of Pittsburgh and the Commonwealth of Pennsylvania generally approach these requirements. Rates, fees, forms and deadlines change, so confirm each one with the agency named before you file or pay. For a complex situation, such as mixed ownership, multi-state payroll, or a construction company, talk to a qualified attorney and a CPA.

What You Need Before You Start

• A business name that meets Pennsylvania rules. An LLC name must contain Company, Limited, or Limited Liability Company (or an accepted abbreviation) and cannot imply a corporation, such as Corporation or Incorporated.
• A Pennsylvania registered office. Pennsylvania does not use registered agents. You need a street address in Pennsylvania (a post office box alone is not accepted), or a contract with a Commercial Registered Office Provider (CROP) if you have no Pennsylvania address.
• The formation fee: $125 for either a Certificate of Organization (LLC, Form DSCB:15-8821) or Articles of Incorporation (For Profit), each filed with a Docketing Statement (DSCB:15-134A).
• A federal Employer Identification Number (EIN) and a list of the state tax accounts your activity needs, to be set up in myPATH.
• Your payroll plan: planned headcount, pay schedule, and expected owner or partner distributions.
• The street address where you will operate, so you can check zoning and PLI license categories for that location.

Step 1: Form Your Business With the Pennsylvania Department of State

City registration comes after your entity exists, so start with the state. File through the Business Filing Services portal at file.dos.pa.gov. The Bureau of Corporations and Charitable Organizations asks filers to allow about 15 business days for processing. Expedited service is available online or in person for an added fee. The LLC formation fee is $125, and the corporation fee is also $125.

Corporations have one extra step. Notice of the intent to file or of the filing must be advertised in two newspapers of general circulation, one preferably a legal journal, and proof must be kept in your corporate minutes. An LLC has no publication requirement.

If you need to hold a name before filing, a name reservation costs $70 and lasts 120 days. If you will operate under a trade name, you must register a fictitious name (Form DSCB:54-311) for $70. That filing is statewide with the Department of State, not with Allegheny County.

After formation, an LLC files an Annual Report with a $7 fee between January 1 and September 30 each year. A corporation files between January 1 and June 30.

Step 2: Complete Pittsburgh Business Registration With the Department of Finance

Once your entity exists, register with the City of Pittsburgh Department of Finance using the Business Registration Form. Finance is located at 414 Grant St. This is the step that sets up your city tax accounts, so complete it before you hire anyone or begin any activity the city taxes. Ask Finance whether the form can be submitted online, by mail, or in person, because submission options can change.

Keep a copy of your registration with your tax records. You will need the account information for the quarterly city returns, and you may need a Tax Compliance Letter from Finance later for a PLI license.

Step 3: Register State Tax Accounts in myPATH

Pennsylvania retired the PA-100 in 2022. Tax registration now runs through myPATH at the Department of Revenue registration page. Register any state account you need, such as a sales, use and hotel occupancy tax license. If you sell taxable goods, the combined sales tax rate in Pittsburgh is 7%: the 6% state rate plus the 1% Allegheny County rate.

Your entity type also determines the state income tax you will file. Pass-through income from a partnership, S corporation, or an LLC not taxed as a corporation is subject to the 3.07% personal income tax. An LLC taxed as a corporation pays the Corporate Net Income Tax, which is 7.49% for tax years beginning in 2026. Pennsylvania has no LLC franchise tax and no separate LLC annual tax. Confirm your federal classification with a CPA before you file the first return.

Step 4: Understand the Pittsburgh Payroll Expense Tax

The Payroll Expense Tax is the city tax that most employers notice first. The rate is 0.55% (.0055) of every employer's gross payroll. It also applies to the net distributions of self-employed individuals and partners. Returns are filed quarterly on Form ET-1, and the rate is unchanged on the 2026 ET-1.

Two examples show the math. An employer with $300,000 in annual gross payroll owes about $1,650 for the year at 0.55%. A sole proprietor or partner with $100,000 in net distributions would owe $550 on that amount. Confirm with the Department of Finance how the self-employed and partner calculation applies to your entity before you file.

Step 5: Set Up the Local Services Tax

The Local Services Tax is $52 per worker per year. You deduct it evenly from paychecks and remit it quarterly on Form LS-1 to the City Treasurer. A business with 10 workers at the full rate owes $520 for the year.

An upfront exemption applies to workers who earn under $12,000 in the city. Confirm with the City Treasurer how to document that exemption before your first payroll, so you do not withhold from workers who qualify or skip workers who do not.

Step 6: Handle Employee Wage Tax and Other City Taxes

Employee earned income tax (EIT) withheld from wages is not sent to the city. It goes to Jordan Tax Service, the collector for the Allegheny Central Tax Collection District. The city's current tax forms list these taxes: Amusement, EIT, Institution and Service Privilege, Local Services Tax, Parking and Payroll Expense.

Tax	Who it applies to	Where it is filed
Payroll Expense Tax	Employers, plus self-employed individuals and partners on net distributions	Form ET-1, quarterly, to the City of Pittsburgh
Local Services Tax	Employers, per worker ($52 per year)	Form LS-1, quarterly, to the City Treasurer
Employee EIT withholding	Employers withholding from employee wages	Jordan Tax Service
Parking tax	Businesses in parking activities	Confirm with the Department of Finance
Amusement tax	Businesses in amusement activities	Confirm with the Department of Finance
Institution and Service Privilege Tax	Nonprofits	Confirm with the Department of Finance

Two taxes you may have read about no longer apply. Pittsburgh has no mercantile tax, and the Pittsburgh business privilege tax no longer applies because of the 2004 Act 222 reform. If an older guide tells you to register for either one, it is out of date.

Step 7: Check Whether You Need a PLI Business License

PLI business licenses cover only specific activities. The categories include:

• Vending
• Parking lots
• Towing
• Bed and breakfast operations
• Secondhand and pawn dealers
• Solicitation
• Ticket reselling

The new Vending License under City Code Chapter 719 became active on March 13, 2026. If you plan to vend, read Chapter 719 and confirm with PLI which requirements apply before you start selling.

If your business sells or serves food, the Allegheny County Health Department licenses food operations, not the Pennsylvania Department of Agriculture. Start that application early in your planning, because the health department review affects your build-out and your opening date.

Step 8: Get the PLI General Contractor License if You Do Construction

A search for a Pittsburgh contractor license or Pittsburgh general contractor license usually leads to this license. The PLI general contractor license is annual and runs for 365 days. You need it for:

• Commercial building permits
• New one- and two-family homes
• Renovations of rental or investment property
• Demolitions

To obtain it, you need:

• General liability coverage of $1M/$2M. Confirm the exact coverage terms with PLI before you buy the policy.
• Workers' compensation coverage.
• A Tax Compliance Letter from the Department of Finance. Request it from Finance when the license requires one.
• EPA Renovation, Repair and Painting (RRP) certification.

Fees change every year, so check the current PLI fee schedule instead of relying on an older figure. Home improvement contractors also must register with the Pennsylvania Attorney General. A Pittsburgh license does not replace that state requirement.

Step 9: Check Zoning, Occupancy and Building Permits Before You Sign a Lease

Zoning, occupancy and building permits cost first-time owners the most time, and the rules depend on the address and the use. Work through these checks before you sign a lease or buy a property:

1. Zoning. Confirm the zoning of the address and whether your planned use is allowed there under the Pittsburgh zoning code. Check with the city's zoning staff and PLI. Do not rely on a landlord's statement alone.
2. Occupancy permit. Ask whether your business needs an occupancy permit for the space and when it is issued. Confirm with PLI before you schedule any opening date.
3. Building permit. If you will change the structure, plan for a building permit. Confirm with PLI which work requires one, and budget time for the review.

Tips

• Register with Finance before your first hire, so the payroll accounts are ready when the first paycheck goes out.
• Build a calendar that lists the quarterly ET-1 and LS-1 deadlines, the LLC Annual Report window (January 1 to September 30), and the PLI license renewal date. Confirm each date with the agency.
• Keep a separate bank account for payroll taxes withheld from employees, so the money is not spent before it is remitted.

Common Mistakes to Avoid

• Assuming one city business license covers everything. Most businesses register with Finance and need a PLI license only for listed activities.
• Forgetting that the Payroll Expense Tax also applies to net distributions of self-employed individuals and partners.
• Setting up payroll without planning for the $52 Local Services Tax and the $12,000 exemption process.
• Listing a post office box as the Pennsylvania registered office.
• Using the word Corporation or Incorporated in an LLC name.
• Signing a lease before checking zoning and occupancy requirements.
• Starting construction work without the PLI general contractor license or the required Tax Compliance Letter.
• Missing the LLC Annual Report window, which closes September 30.

Expected Results

If you complete these steps in order, you should generally finish with a Pennsylvania entity on file, a City of Pittsburgh registration with the Department of Finance, the state tax accounts your activity needs, and a clear list of city taxes to file. Allow about 15 business days for state processing. Expect the first payroll and the first quarterly city returns to take longer than planned, and expect PLI licensing or zoning review to add time if your activity requires it, so start those steps early. Actual timing depends on your business type, activities and location, so treat this guide as a planning map rather than a guarantee of approval dates.

When to Get Professional Help

Talk to a qualified attorney and a CPA before you file if you have employees, own property, plan construction work, or form a partnership or LLC with mixed owners. A CPA can model payroll tax and income tax across the state and city. An attorney can review your operating agreement and your liability exposure. The Pennsylvania Small Business Development Centers also offer advising to small businesses that are still planning.

Reminder: This article is informational content, not legal or tax advice. Confirm current rates, fees, forms and deadlines with the Department of State, the Department of Revenue, the City of Pittsburgh Department of Finance, PLI, and the Allegheny County Health Department before you act.