Replace Text In Legal Pennsylvania Startup For Sole Proprietorship Forms For Free

Good news, Pennsylvania doesn't require a ?general? business license at the state-level for Sole Proprietors. So there's nothing to do for this step.

It is simple to form a sole proprietorship. You do not need to register, and it is easier to manage and file taxes. However, your personal assets are not protected from business liability. To learn more about starting a sole proprietorship in Pennsylvania, check out our complete guide.

A sole proprietorship is not a taxable entity. All of the business's assets and liabilities are treated as belonging directly to you, the business owner. In the same way, all the business income and expenses are considered to be your income and your expenses.

In Pennsylvania, sole proprietors will report income on a PA Schedule C (Profit or Loss from Business or Profession Form) for each business. This is then reported on a PA-40, PA Income Tax Return Form which is used to pay taxes at the state level. The state income tax rate of 3.07% applies in these cases.

Anyone who is a sole proprietor, business owner or is self-employed has to pay Pennsylvania self employment tax, which is actually a Social Security and Medicare tax. The Pennsylvania self employment tax provides 12.4% to Social Security and 2.9% to Medicare, for a total of 15.3%.

How to Start a Sole Proprietorship in Pennsylvania Confirm you should start a sole proprietorship. ... Determine if you need to register your business name. ... Check Name Availability. ... File Pennsylvania Fictitious Name Registration. ... Publish your Fictitious Name.