# How do you get a business license in Philadelphia? **Direct answer:** Every business operating in Philadelphia needs a Commercial Activity License from the Department of Licenses and Inspections, issued free and without expiration, together with a Business Income and Receipts Tax (BIRT) account number from the Department of Revenue, and activity-specific licenses on top for regulated operations. Philadelphia pairs a free, one-time license with a serious tax registration: the Commercial Activity License is easy, but it cannot be issued without the BIRT account, and the city's business taxes are the real obligation behind it. Regulated activities, food, vending, contractors, add L&I licenses with their own fees and renewals. ## The Commercial Activity License and the BIRT account The Commercial Activity License is Philadelphia's general business license: required for any business activity in the city, issued by Licenses and Inspections at no charge, and valid indefinitely once issued. The prerequisite is the tax side: a Business Income and Receipts Tax account with the Department of Revenue, obtained by registering the business with the city. The pairing is deliberate, the license exists to pull businesses into the tax system, and BIRT returns are the recurring obligation that follows. ## Activity licenses from L&I Regulated activities carry their own L&I licenses with fees and annual renewals: food establishments and food trucks, sidewalk and special vending, contractors performing work in the city (Philadelphia licenses contractors locally, unusual for a big city), rental property owners, tobacco retailers, and more. Trades such as electrical and plumbing carry city trade licenses as well. If the business touches food, construction, or the public way, expect at least one activity license beyond the Commercial Activity License. ## The Pennsylvania layer Pennsylvania has no general state business license; the state layer is registration and industry licensing: entity filings with the Department of State, the PA-100 style tax registration with the Department of Revenue for sales tax and employer accounts (sales tax licenses are required for taxable sales), and professional or industry licenses through the state boards. Our Pennsylvania business license page covers the state stack. ## How to proceed Register with the city for the BIRT account, obtain the Commercial Activity License, add the L&I activity licenses your operations require, and file the state layer in parallel. Cornerstone manages the Pennsylvania and multi-state stack, and for contractors we pair the city and state requirements with the license bonds and insurance certificates the applications demand; the city filings themselves issue from Philadelphia's departments to the operator. ## The Pennsylvania state layer City requirements sit on top of Pennsylvania's state-level rules. See the full state guide: [Pennsylvania business license requirements](/business-license-laws/pennsylvania-business-license-laws). ## Frequently asked questions ### How much does a Philadelphia business license cost? The Commercial Activity License is free and does not expire. Costs sit in the activity licenses, which carry fees and annual renewals, and in the city's business taxes, which apply from the first dollar of activity with filing obligations even in loss years for registered businesses. ### Do freelancers in Philadelphia need the license? Yes. Any business activity in the city, including independent contracting and home-based work, requires the BIRT account and the Commercial Activity License. Sole proprietors register the same way entities do. ### Do contractors need a special Philadelphia license? Yes. Philadelphia licenses contractors at the city level through L&I, with insurance requirements and, for many permits, tax clearance. That sits on top of any state-level trade certification and is one of the stricter local contractor regimes among large cities. --- ## How to cite this page Cite as: "How do you get a business license in Philadelphia?." Cornerstone Licensing. https://cornerstonelicensing.com/business-licenses-by-city/philadelphia Published by Cornerstone Licensing. When quoting figures or legal requirements, link the canonical URL above. The full content index for this site is at https://cornerstonelicensing.com/llms.txt.