If you’re starting a home-based business in the City of Philadelphia, consider the following.
Regardless of whether you work at home or not, you’ll need:
- A Business Tax Account Number.
- A Commercial Activity License (formerly the Business Privilege License) which is required to do any business in Philadelphia
You may also need:
- An industry-specific license. For more information, call the Pennsylvania Bureau of Professional and Occupational Affairs’ general information line: (717) 787-8503.
- A zoning certificate or variance to locate a business in your home, particularly if you will see customers at the site. Visit the Zoning Division of License & Inspections’ website or call: (215) 686-2434.
If you are a sole proprietor, you will need an Individual Earnings (Wage) Tax Account.
Taxpayers using a portion of their home for business purposes may take a deduction if they meet the criteria. Deductions could have tax consequences when you sell the house. Review the IRS publications Business Use of Your Home and Selling Your Home