Starting a service business in Pennsylvania

Form your business in Pennsylvania

You form a Pennsylvania LLC by filing a Certificate of Organization (DSCB:15-8821) with a docketing statement through the Department of State's Business Filing Services. The fee is $125 as listed by the Department of State in October 2026, and no newspaper advertising is required to form a domestic LLC. Expedited service is available for an added fee (same day $100, as listed). The Department reports it has averaged about one business day to process filings since May 2025.

Ongoing state filings

Starting in 2025, Pennsylvania requires most LLCs and corporations to file an annual report. For LLCs the fee is $7 as listed by the Department of State in October 2026, and the filing window is January 1 to September 30. Do not skip it because the fee is small: beginning with reports not filed in 2027, a domestic entity that fails to file faces administrative dissolution. Do not confuse this with the separate annual registration filing listed at $500 or more, which applies to other entity types.

Using a business name (DBA)

Any business that operates in Pennsylvania under an assumed or fictitious name must register it with the Department of State. The registration fee is $70 as listed by the Department of State in October 2026. When an individual is a party to the name, as with a sole proprietor, you must also advertise the registration in two newspapers of general circulation in your county, one of them the county's legal newspaper (one paper if the county has only one). Budget for the ad cost on top of the filing fee.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

Pennsylvania's main statewide requirement for home-service contractors is registration with the Attorney General under the Home Improvement Consumer Protection Act. It applies to contractors who perform at least $5,000 of home improvements a year, and home improvement covers repair, remodeling, painting, sandblasting, fences, patios, roofs, siding, central heating and air conditioning installation, and some landscaping, on jobs over $500 at a private residence. Registration costs $100 every two years, and the Attorney General's online registration system has been operating since April 24, 2026. You must carry at least $50,000 of personal injury and $50,000 of property damage liability insurance. Landscapers certified by the Department of Agriculture are excluded unless they build items such as retaining walls, patios, walkways or drainage systems. Cleaning, mowing and pressure washing are not named in the definition. The state's Business Hub lists no further state requirement for construction contractors beyond tax, this registration and asbestos and lead rules; plumbing and electrical licenses are handled locally, for example by the City of Philadelphia, so ask the code office in each municipality where you work. Applying pesticides on someone else's property requires certification from the Pennsylvania Department of Agriculture, and the business needs a pesticide application business license.

• Pennsylvania Office of Attorney General, Home Improvement Contractor Registration: Contractors doing $5,000 or more of home improvement work a year
• City of Philadelphia trade licenses: Example of local licensing: plumbers, electrical contractors and other trades in Philadelphia
• Pennsylvania Department of Agriculture, Pesticide Programs: Commercial pesticide applicator certification and pesticide business licenses

Workers' compensation

The Department of Labor and Industry says workers' compensation coverage is generally mandatory for all employers with one or more employees, part-time or full-time, including family members. You can buy a policy through an agent or broker, directly from one of the hundreds of insurers writing coverage in Pennsylvania, through self-insurance, or from the State Workers' Insurance Fund (SWIF). As a state agency, SWIF is required to provide coverage to all businesses, especially those having trouble getting it from private insurers. If you use subcontractors in construction, read the misclassification rules below before you treat anyone as independent.

More on coverage: business insurance for contractors.

Sales tax on services

Pennsylvania taxes several services home-service companies sell. The state's Business Hub says residential and commercial building cleaning services are subject to sales tax. Revenue regulations list window cleaning, chimney cleaning and siding or exterior cleaning of a building, including pressure washing, as taxable building maintenance, while exterior and interior painting and plumbing repairs are not taxable building services (61 Pa. Code 60.1). Lawn care is taxable, including mowing, trimming, edging, fertilizing, aerating and dethatching; establishing a new lawn and planting, removing or pruning trees and shrubs are not (61 Pa. Code 55.6). Pest control is also taxable. The rate is 6% state, plus 1% local in Allegheny County or 2% in Philadelphia. Apply for a sales tax license through myPATH; the state says there is no fee to submit the application.

Recording business calls in Pennsylvania

Pennsylvania requires the consent of all parties. Intercepting a phone call or conversation is a third-degree felony under 18 Pa.C.S. 5703, and the exception in 5704(4) applies only when all parties have given prior consent. Start every recorded line with a clear notice and get agreement before recording; our guide to recording business calls covers how.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

Pennsylvania's winters bring snow across the state, heavier in the northern tier and the Erie snow belt, so plowing and salting contracts carry many lawn companies through the cold months. Freeze-thaw cycles crack driveways and walks and keep spring repair and sealing work busy. Mowing runs roughly April through October, and humid summers in the southeast drive air conditioning calls. Because lawn care and exterior cleaning are taxable here, price your seasonal packages with tax in mind.

Home improvement contracts and the three-day cancel right

Under the Home Improvement Consumer Protection Act, every contract must be written, legible and signed, and must list the total price, start and end dates, and a description of the work. The owner can cancel without penalty within three business days of signing, wherever it was signed, and the contract must include that notice. On contracts over $5,000 the deposit cannot exceed one-third of the price plus special-order materials, and you cannot take payment before the contract is signed.

Construction misclassification law

Pennsylvania's Construction Workplace Misclassification Act says a construction worker cannot be classified as an independent contractor unless conditions are met, including a written contract, control over their own work and tools, their own business and location, and liability insurance of at least $50,000. Penalties include administrative fines up to $2,500 per violation, criminal prosecution and stop-work orders.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Pennsylvania questions