Radnor Township Business Privilege Tax: Who Owes It and How to Register

If your business operates from a location in Radnor Township, you will likely deal with the township's Business Privilege Tax at some point. Many owners search for a “Radnor Township business license” or a “Wayne PA business license” expecting a single permit, and that is not quite how it works. Pennsylvania has no state general business license and no county business licenses. Radnor requires an annual registration of each place of business and an annual Business Privilege Tax. Some businesses also owe a separate Mercantile Tax, food licensing, or Earned Income Tax withholding. This guide explains who owes what and how to get registered.

This article is informational only and is not legal or tax advice. Confirm current rates, exemptions, fees and due dates with the township before you file.

What You Need Before You Start

Gather these items before you call or visit the Business Tax Office. Having them ready shortens the process and reduces back-and-forth.

• Your exact legal business name and entity type, as it appears on file with the Pennsylvania Department of State. Search the name at file.dos.pa.gov/search/business.
• Every Pennsylvania address your business uses, with the street number. Record the street address for each location separately.
• Your federal Employer Identification Number (EIN), if you have one.
• Your Pennsylvania tax account information, if you already have one through myPATH, such as a sales tax license or withholding account.
• Gross receipts records for the prior year, or a realistic written estimate for a new business, broken out by location if you operate more than one.
• A list of employees and their work locations, if you pay wages. This matters for Earned Income Tax (EIT).
• Any food or other operating licenses you already hold, if your business is in those categories.

Who Owes the Business Privilege Tax

Radnor Township levies an annual Business Privilege Tax of 3 mills, which equals $3 for every $1,000 of gross receipts. The levy is set out in Chapter 260, Article III of the township code. Businesses at a location in the township must register each place of business every year.

The tax is calculated on gross receipts, so a business with higher receipts generally owes more. For example, $500,000 in gross receipts allocated to a Radnor location produces $1,500 at 3 mills ($500,000 divided by 1,000, multiplied by $3). Your actual liability depends on how the township defines gross receipts and which receipts it allocates to your location, so confirm both with the Business Tax Office before you rely on any figure.

The levy is grandfathered: Act 145 of 1988 bars new business privilege and mercantile taxes, so Radnor's tax continues because it predates that law. It collected more than $10 million in 2018. The township, not this guide, is the authority on how that status applies to your situation. If you want the legal basis explained, ask the Business Tax Office or a municipal attorney.

If your business is based outside the township but has customers inside it, do not assume you are exempt or covered. Ask the Business Tax Office whether your situation triggers any obligation.

The Mercantile Tax Is a Separate Obligation

Radnor also levies a Mercantile Tax on retail, wholesale and restaurant businesses. It is separate from the Business Privilege Tax, so a restaurant or retail store in Radnor may owe both. The current mercantile rates, any exemptions, the registration fee and the return due date are set by the township and can change. Confirm each of them with the Business Tax Office. Do not use rates from another municipality as a substitute.

How to Register, Step by Step

1. Confirm the location is inside the township. Postal names do not follow township lines. Addresses that show Wayne, Villanova, St. Davids, Rosemont or Radnor can appear in the township, but a postal name alone does not prove that a location is inside it. Give the Business Tax Office your street address and ask them to confirm that the parcel is in Radnor Township. You can reach the office at 610-688-5600 or at 301 Iven Avenue, Wayne, PA 19087.
2. Set up your Pennsylvania tax account in myPATH. Register your business for the state tax types that apply to you through the Department of Revenue at pa.gov/services/revenue/register-my-business-for-taxes. The paper PA-100 was retired in 2022, so registration now happens through myPATH. Do not look for the PA-100.
3. Confirm your entity is formed. If you have not yet formed your LLC or corporation, do that first at file.dos.pa.gov. An LLC Certificate of Organization carries a $125 filing fee, and the Bureau asks filers to allow about 15 business days for processing. The township will want the legal name exactly as it appears on your state filing.
4. Call the Business Tax Office and request the registration requirements. Ask for the current forms for the Business Privilege Tax and, if applicable, the Mercantile Tax. Ask them to confirm the current mercantile rates, the registration fee, the return due date, and whether they need your state tax account number. Ask how to handle a location that opened partway through the year.
5. Register each place of business. The township requires each place of business to be registered annually. If you have a headquarters and a second location in the township, register both, each with its own address.
6. Estimate gross receipts by location and calculate the tax. Multiply the allocated gross receipts for each location by 3 mills, then add any Mercantile Tax that applies. Keep the records that support the figures, including sales reports and bank deposits.
7. File the return and pay by the due date. Confirm the due date with the office and ask whether late payments carry penalties and how payment must be made.
8. Register for other obligations that apply. Work through the food licensing and Earned Income Tax items below, then calendar your annual renewal.

Other Registrations That May Apply

Food Licensing

Food licensing for Radnor locations is handled by the Delaware County Health Department. Because jurisdiction depends on the exact address, verify it before you apply using the Pennsylvania Department of Agriculture's Food Safety Jurisdiction Search. Do not assume that a Radnor mailing address places your food business under the county health department. Confirm the result with the county.

Earned Income Tax (EIT)

If you have employees, Earned Income Tax is collected in Delaware County through Keystone Collections Group, which serves as the Act 32 collector for the county. Register with Keystone Collections Group and follow its withholding and filing requirements. Confirm with Keystone and the township which account you need to open, because the township and the collector handle different parts of the process.

Pennsylvania State Taxes

Pennsylvania has no general business license at the state level. If you sell taxable goods or services, you will need a sales tax license through myPATH, and the state sales tax rate is 6%. Some trades, such as home improvement contractors, must register with the Pennsylvania Attorney General. Check the requirements for your own activity.

What to Expect After You Register

Once you have registered and filed, you can typically expect a confirmation or account record from the township. Ask the Business Tax Office what confirmation it issues, and keep a copy with your business records. Registration is designed to help you stay compliant with the township's annual requirements. It does not confirm that your gross receipts figure or your tax calculation is correct, so review both before you file.

You should also expect an annual cycle. Each year, the township's requirements for registration, return and payment can recur, so put the due date on your calendar and ask the office whether it sends renewal reminders. If your revenue or location changes, contact the office promptly, because the figures you reported may no longer be accurate.

Tips and Common Mistakes to Avoid

• Treating a Wayne mailing address as proof of township location. Confirm the parcel address with the Business Tax Office.
• Registering only the headquarters. Each place of business in the township must be registered.
• Skipping the Mercantile Tax. Retail, wholesale and restaurant businesses should ask about it specifically.
• Searching for a state or county business license. Pennsylvania has no state general business license and no county business licenses. The township registration and tax are what you need for Radnor.
• Looking for a PA-100. That form was retired in 2022. Use myPATH.
• Paying for newspaper publication for an LLC. Pennsylvania LLCs have no publication requirement.
• Listing a post office box as your registered office. Pennsylvania uses a registered office, not a registered agent, and a post office box alone is not accepted. A Commercial Registered Office Provider (CROP) may be used only if you have no Pennsylvania physical or mailing address, and a CROP cannot be used where a principal place of business is required, such as a fictitious name registration.
• Estimating gross receipts without records. Build the figure from sales data and bank deposits, and keep those records.
• Missing the annual cycle. Registration and tax obligations recur, so set reminders well before the due date.

Official Contacts

Agency	What It Handles	How to Reach It
Radnor Township Finance Department, Business Tax Office	Business Privilege Tax, Mercantile Tax, location registration	301 Iven Avenue, Wayne, PA 19087; 610-688-5600
Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations	Entity formation, business name search, annual reports	pa.gov/agencies/dos/programs/business; file.dos.pa.gov
Pennsylvania Department of Revenue	State tax registration through myPATH, sales tax	pa.gov/agencies/revenue
Delaware County Health Department	Food licensing for Radnor locations	Confirm the contact after verifying jurisdiction by address
Keystone Collections Group	Delaware County Act 32 Earned Income Tax collector	Confirm the contact with the collector directly

Disclaimer: This article is for general information only. It is not legal, tax or accounting advice, and it does not create an attorney-client or professional relationship. Rates, fees, exemptions and due dates for Radnor Township can change, so verify them with the Radnor Township Business Tax Office before you act. For complex situations, such as multi-location operations, mixed retail and food service, or questions about how the grandfathered levy applies to you, consult a qualified attorney or CPA.