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Once it has been decided what form of entity will operate the
business, it is important to determine the name under which the
business will operate. The Pennsylvania Fictitious Name Statute
requires anyone carrying on a business under a fictitious name
to register that name with the Pennsylvania Department of State.
A fictitious name is any name other than the proper name of the
individual or registered name of the partnership or corporation.
The registration of a fictitious name does not give the owner
exclusive right to use a word, name or symbol in connection with
the sale of goods or services. To do this you must establish
a prior use and/or register a trademark. Trademarks are discussed
in a different Tel-Law message.
One of the most important considerations in starting a new business
is establishing proper relations with federal, state and local
taxing bodies. All corporations, partnerships and limited liability
companies are required to obtain an employer's identification
number from the Internal Revenue Service, often referred to as
a tax I.D. number. A sole proprietor will only need to obtain
a tax I.D. number if he/ she has employees or if he/she is required
to file specialized federal tax returns, such as those relating
to excise taxes, alcohol, tobacco and firearms taxes. The application
for a tax I.D. number can be obtained by contacting the IRS.
Any business owner who has employees is required to comply with
numerous requirements for the withholding and payment of income
and employment taxes. The employer should contact the IRS and
the Pennsylvania Department of Revenue to obtain the forms
and instructions for complying with these requirements. Employers
should also contact the Pennsylvania Department of Labor and
Industry for information regarding state unemployment compensation.
Fortunately most all information required by the Department
of State, the Department of Labor and Industry and the Department
of Revenue can be submitted on one form (PA-100).
Another obligation which is triggered by the hiring of employees
is that of workers' compensation. All employers within the Commonwealth
of Pennsylvania are required to provide workers' compensation
insurance in order to pay claims resulting from employees who
are injured on the job. Failure to maintain such insurance is
a summary offense punishable by a fine and/or a jail term. Information
regarding workers' compensation can be obtained by contacting
the Bureau of Workers' Compensation.
Finally, any business which will be selling, leasing or licensing
personal property or certain types of services is required to
collect sales tax on its sales and pay those taxes to the Department
of Revenue. Such businesses must first obtain a Sales and Use
Tax License by applying to the Pennsylvania Department of Revenue.
The purchase of an existing business raises additional considerations.
Any agreement to purchase the assets of an existing business
should be in writing. Certain types of agreements are unenforceable
unless they are in writing. These agreements should be reviewed
by your attorney.
These are simply a few matters which must be considered when
starting or acquiring a business. The remaining legal requirements will
depend upon the type of business to be operated and the method
of operation. For example, certain types of businesses require
specific government licenses. Use of a building or other real
estate may require obtaining an occupancy permit, building permit,
zoning permit and the like. In addition, business owners need
to consider the types and amounts of insurance coverage appropriate
for their operations.
Information about the permits and licenses necessary to start
and operate a specific type of business in Pennsylvania can be
obtained by contacting the Pennsylvania Department of Commerce
Business Resource Network. The address for the Business Resource
Network is Room 461, Forum Building, Harrisburg, Pennsylvania
17120. Its telephone number is 717/783-5700.
If you need an attorney and don't have one, the Lawyer Referral and Information Service can help.
Call Us Monday - Friday from 8:30 AM - Noon and 1:15 PM - 3:00 PM
at (814) 459-4411. |
