Allentown Business License and Business Privilege Tax

If you sell goods or services, rent out property, or otherwise do business inside the City of Allentown, you will likely deal with two city obligations: the annual Allentown business license and the Allentown business privilege tax. This guide covers what each one costs, who needs it, how the deadlines work, and where owners most often go wrong. It also covers the zoning and rental registration checks that many owners overlook.

Informational only: This article is general information, not legal or tax advice. Fees, rates, and deadlines can change, so confirm current figures with the City of Allentown and the agencies named below. For questions about business structure, tax filings, or an unusual situation, talk to a qualified attorney or CPA.

Quick reference

Item	What to know
City of Allentown Business License	$35 a year, valid for the calendar year
Deadline for a business that first creates nexus in the city	Apply by December 31 of that year
Business Privilege Tax rates (gross receipts)	1 mill wholesale, 1.5 mills retail, 3 mills service, 3 mills rental
Business Privilege Tax return	Annual return and payment due April 15, with a copy of the federal return attached
State general business license	None. Pennsylvania has no general state business license
County business license	None. Pennsylvania counties do not issue general business licenses

What you need before you start

• Your exact legal business name and entity type (sole proprietorship, partnership, corporation, or LLC). If you still need to form an entity, start with the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations.
• A federal Employer Identification Number (EIN), if you have one.
• The street address where the business operates in Allentown, plus a mailing address if it differs.
• Gross receipts for the year, split into wholesale, retail, service, and rental categories. Many owners use one bookkeeping account per category so the split is easy to pull.
• A copy of your federal income tax return for the tax year, since the Business Privilege Tax return requires it.
• A Pennsylvania myPATH account for state tax registrations, available through the Pennsylvania Department of Revenue.
• Property owner details and a copy of the lease, if you rent a space or rent out a property you own.
• Food facility plans, if you will prepare or sell food, and your mobile vendor details if you operate a food truck or cart.

Step 1: Confirm the city license applies to you

The City of Allentown Business License is required for anyone conducting business in the city. A storefront, office, workshop, or warehouse inside city limits clearly triggers it. Other activity may also count, such as making regular sales from a city address or owning rental property in the city. If you are unsure whether your activity counts as conducting business in Allentown, ask the Bureau of Revenue and Audit before you open rather than after. A short phone call now is cheaper than a penalty later.

Step 2: Complete the state steps first

Pennsylvania has no general state business license and no county business license, so there is no separate state permit to add before the city license. The state work is still required, and it usually comes first:

• Form the entity, if needed. An LLC files a Certificate of Organization (Form DSCB:15-8821) with a Docketing Statement (DSCB:15-134A). The filing fee is $125, and the Bureau asks filers to allow about 15 business days for processing. File through Business Filing Services. LLCs have no publication requirement, but corporations do.
• Use a Pennsylvania registered office. Pennsylvania does not use registered agents. Your filing must list a registered office with a street and number. A post office box alone is not accepted. A business without a Pennsylvania address may use a Commercial Registered Office Provider (CROP) only under a real contract. Listing a CROP without one can carry civil and criminal penalties.
• Register for state taxes on myPATH. The PA-100 was retired in 2022, so do not search for it. Register through myPATH instead, including a sales tax license if you sell taxable goods.
• File a fictitious name if needed. If you trade under a name other than your legal name, register it with the Department of State for $70. The filing is statewide, not with the county.

Step 3: Apply for the Allentown Business License

Apply through the Allentown Citizen Self-Service Portal. The license costs $35 a year and is valid for the calendar year, so you will renew it each year. If you are a business that first creates nexus in the city during a given year, you must apply for the license by December 31 of that year. Waiting until the following spring is the single most common reason owners end up out of compliance with the city.

For help with the application, contact the Bureau of Revenue and Audit at City Hall, 435 Hamilton St, Allentown, PA, or call 610-437-7506. Ask them to confirm the current renewal timing and any documents they want uploaded with the application.

Step 4: Understand the Business Privilege Tax

The Allentown Business Privilege Tax is a gross receipts tax under Chapter 570, Article I of the city code. It is calculated on gross receipts, not on profit, so a business with thin margins can still owe it. The current rates are:

• Wholesale: 1 mill
• Retail: 1.5 mills
• Service: 3 mills
• Rental: 3 mills

A mill is one-thousandth of a dollar, so 3 mills equals $3 for every $1,000 of gross receipts. For example, a service business with $400,000 in gross receipts for the year would calculate roughly $1,200 at 3 mills ($400,000 divided by 1,000, times 3). A retail business with the same receipts would calculate roughly $600 at 1.5 mills. This example is a simple illustration. It ignores any deductions, exclusions, or allocation rules that may apply to your situation, so confirm those with the Bureau or a CPA before you rely on the number.

Step 5: File the annual return by April 15

The annual Business Privilege Tax return and payment are due April 15. You must attach a copy of your federal return. Set up your records so the federal return and the gross receipts split are ready in March. If your federal return is on extension, ask the Bureau how to handle the attachment before the April 15 due date rather than assuming an extension covers the city filing.

Step 6: Check zoning and rental registration

Many owners treat the license as the only city approval they need. It often is not. Allentown may require a zoning permit for certain uses, and a home-based business is not automatically exempt. Before you sign a lease or open a location, ask the City of Allentown whether your proposed use is allowed at that address and whether a zoning permit is needed.

If you own or manage property that you rent to others, check the city's rental registration requirement as well. Rental activity is also subject to the Business Privilege Tax at the 3 mill rental rate, so a landlord may have both obligations. Confirm the current rental registration fee and deadlines with the city before you assume the process is simple.

Step 7: Add food, mobile, and trade-specific licenses

The Allentown Health Bureau, through Food Protection Services, licenses and inspects food facilities in the city. This happens instead of the Pennsylvania Department of Agriculture, so do not apply to PDA for a city food facility. Plan approval is required before you build out or remodel a food facility, so submit plans before construction begins, not after equipment is installed.

Mobile food units need a city mobile food facility license and a mobile vendor license. Confirm the requirements for each before you operate. Some trades also need state registration. For example, home improvement contractors must register with the Pennsylvania Attorney General.

Step 8: Register for employer withholding

If you have employees, or if you are self-employed, check your Earned Income Tax (EIT) and Local Services Tax (LST) obligations. The collector for the Lehigh Tax Collection District is Berkheimer Tax Administrator. Confirm with Berkheimer which registration and filing steps apply to your business and your employees before your first payroll.

Common mistakes to avoid

• Looking for a county or state business license. Neither exists for general business activity in Allentown.
• Looking for a PA-100. It was retired in 2022. Use myPATH.
• Treating the Business Privilege Tax as an income tax. It is calculated on gross receipts, so a profitable and an unprofitable business with the same receipts can owe the same amount.
• Missing the December 31 deadline. A business that first creates nexus in the city must apply by December 31 of that year.
• Filing the return without the federal return attached. The return requires a copy of your federal return.
• Using a post office box as your registered office. Pennsylvania requires a street address or a CROP under contract.
• Assuming a home office is exempt from zoning. Confirm your use with the city first.
• Skipping rental registration. Landlords should check the requirement before the first tenant moves in.
• Building a food facility before plan approval. Submit plans to the Allentown Health Bureau first.

Tips that save time

• Put three dates on your calendar: December 31 for a new city presence, April 15 for the Business Privilege Tax return, and your annual license renewal.
• Track gross receipts by category every month. Reconstructing a year of receipts in April is slow and error-prone.
• Ask the Bureau to confirm your category in writing if your business has mixed activity, such as selling goods and performing services.
• Keep copies of every filing, receipt, and confirmation number in one folder.
• If you are starting a business in Pennsylvania from scratch, the Pennsylvania Small Business Development Centers can help you sequence the state and local steps.

Expected results

When the steps above are complete, your business may have a current city license, a filed Business Privilege Tax return, and documented zoning and rental status. Completing these items on time can help you avoid penalties and delays, but no one can guarantee approval timelines or the outcome of any city review. Processing times may change, so check the current status with the agency handling your filing.

When to get professional help

Simple sole proprietorships with one location and one category of receipts often need only the steps above. Get professional help if your business has multiple locations, mixed revenue categories, employees in more than one jurisdiction, property that is rented or leased to others, or a food or contractor operation. An attorney can advise on entity and zoning questions, and a CPA can confirm how the Business Privilege Tax applies to your revenue and your federal return.