Bethlehem Business Privilege License: The $25 License You Need 90 Days Before Opening

If you searched for a bethlehem business license, you will find that Pennsylvania does not issue one. There is no state general business license, and there are no county business licenses. What the City of Bethlehem requires is the Business Privilege License, a $25 annual license for each May 1 to April 30 license year. Bethlehem requires it 90 days before you begin operating, so it belongs near the top of your formation checklist, not at the end.

This guide walks through the order that works best: confirm your location and zoning, form the business and register it with the state, get the city license, set up the city taxes, and handle the Health Bureau steps if you plan to serve food or drinks. Fees and dates below are as of October 2026. Confirm any figure with the named agency before you pay.

What you need before you start

Gather these items before you contact any agency. Most delays come from missing one of them.

• Your legal business name and entity type: sole proprietorship, LLC, or corporation.
• The exact street address where you will operate. Bethlehem spans Northampton and Lehigh counties, so know which side of the line your address is on. That decides which Earned Income Tax collector you use.
• A federal Employer Identification Number (EIN) from the IRS, which is free.
• A myPATH account at the Pennsylvania Department of Revenue for state tax registration.
• Your target opening date, counted back 90 days. Write that deadline on your calendar.
• If you will have employees, a plan for payroll withholding and the collector who handles it.
• If you will serve food or drinks, a floor plan and equipment list for Health Bureau plan review.

Step-by-step: getting your Bethlehem license in order

1. Confirm zoning before you sign a lease. A license does not tell you whether your use is allowed at a particular address. Zoning is set for each property, and a use that is fine in one district can be restricted in another. Ask the City of Bethlehem zoning office in writing for the zoning district at your address and whether your planned use is permitted there. Keep the answer with your lease file. Do this before you commit to a space, not after you have paid for build-out.
2. Form the business and register the name with the state. Pennsylvania does not use registered agents. Instead, your filing must list a registered office with a street address and number. A post office box alone is not accepted. If you have no Pennsylvania address, you may contract with a Commercial Registered Office Provider (CROP) and list its name and county of venue instead, but a CROP may not be used where a principal place of business is required, such as a fictitious name registration. An LLC files the Certificate of Organization (Form DSCB:15-8821) with a Docketing Statement (DSCB:15-134A) for a $125 filing fee through Business Filing Services at file.dos.pa.gov. The Bureau asks filers to allow about 15 business days for processing. Expedited service is available for an added fee, online or in person only. If you need to hold a name while you prepare, a name reservation costs $70 and lasts 120 days. A business that trades under a name other than its legal owner's name files a Registration of Fictitious Name for $70.
3. Register for your state tax accounts on myPATH. The old PA-100 form was retired in 2022, so do not look for it. Register through myPATH at pa.gov. If you will sell taxable goods, you will need a sales tax license. The state sales tax rate is 6 percent.
4. Apply for the Business Privilege License. Start with Tri-State Financial Group, which administers the city's business privilege and mercantile tax program. The license costs $25 a year, and $13 of that is the city share. The license year runs May 1 to April 30 and is not prorated, so opening in late April costs the same $25 as opening in early May. Apply early enough to have the license in hand 90 days before you begin operating.
5. Register for Earned Income Tax with the correct collector. Bethlehem's Earned Income Tax (EIT) is collected by one of two agencies, depending on the side of the county line where the business is located. For the Northampton Tax Collection District, use Keystone Collections Group. For the Lehigh district, use Berkheimer Tax Administrator. Confirm the current rate, withholding schedule, and filing deadlines directly with the collector you are assigned. EIT can apply to your own net profits as an owner as well as to your employees' wages, so ask the collector how it applies to you.
6. Set up the business privilege and mercantile tax calculation. The mercantile tax rate is 1.5 mills on retail, service, and rental receipts, and 1 mill on wholesale. A mill is one-tenth of one percent, so 1.5 mills equals $1.50 for each $1,000 of gross receipts. For example, a retailer with $400,000 in gross receipts works out to $600 at 1.5 mills (400 times $1.50), before any adjustments that may apply to your return. Returns are due the first Monday in May. Confirm with Tri-State how your base is calculated and whether your business type has a different rate.
7. If you will serve food or drinks, schedule Health Bureau plan review first. The City of Bethlehem Health Bureau, not the Pennsylvania Department of Agriculture, licenses and inspects all eating and drinking establishments in the city. Plan review approval is required before you build out or remodel. The plan review fee is $275 for a new establishment and $150 for a change of owner with cosmetic changes only. Submit your plans before you order equipment or start construction, because changes after the build are costly. Confirm the health license fee itself with the Health Bureau, since it is not part of this figure.
8. Certify a food manager within 90 days of opening. The Health Bureau requires a certified food manager at the establishment within 90 days of opening. Schedule the certification course and exam early so the requirement does not hold up your opening date.
9. Clear your city taxes before you apply for the health license. The Health Bureau will not issue a health license to a business that is delinquent in city taxes. Check your account status with the city before you submit the application.
10. Calendar every recurring deadline. Mark the first Monday in May for mercantile and business privilege returns, April 30 for the end of the license year, and the Business Privilege License renewal for the next May 1 to April 30 year. If you formed an LLC, the state annual report, $7, is due January 1 through September 30 at file.dos.pa.gov.

Fee and deadline reference

Item	Amount or rule	Who to confirm with
Business Privilege License	$25 a year ($13 city share), May 1 to April 30, not prorated	Tri-State Financial Group
Mercantile tax, retail, service, rental	1.5 mills of gross receipts	Tri-State Financial Group
Mercantile tax, wholesale	1 mill of gross receipts	Tri-State Financial Group
Returns due	First Monday in May	Tri-State Financial Group
EIT, Northampton side	Collected by Keystone Collections Group	Keystone Collections Group
EIT, Lehigh side	Collected by Berkheimer Tax Administrator	Berkheimer Tax Administrator
Health plan review, new establishment	$275	City of Bethlehem Health Bureau
Health plan review, change of owner, cosmetic changes only	$150	City of Bethlehem Health Bureau
Certified food manager	Required within 90 days of opening	City of Bethlehem Health Bureau

Zoning: confirm it on paper

Bethlehem zoning is the question most first-time owners leave until too late. Search results for bethlehem pa zoning will show district maps and codes, but a map is not a determination for your parcel. Ask for a written answer about your specific address and your specific use, including whether a change of use, a sign, or outdoor seating will need separate approval. Keep the response with your lease. If the answer is unclear, a local land-use attorney can review it before you sign.

Tips that save time

• Work backward from the opening date. Count 90 days back for the Business Privilege License, schedule the health plan review before any build-out, then add the time for state processing and the food manager course.
• Use one address everywhere. Your state filing, city license, tax accounts, and health application should show the same address and the same side of the county line.
• Ask the collector, not a website, for your EIT rate. Rates and filing schedules can change, and the collector assigned to your address is the authority.
• Budget for the full year. Because the license is not prorated, a late-year opening still carries the full $25 cost.

Common mistakes to avoid

• Looking for a state or county business license. Pennsylvania has no state general business license and no county business licenses. The city requirement is the Business Privilege License.
• Listing a post office box as your registered office. Pennsylvania requires a street address with a number, or a properly contracted CROP.
• Using the PA-100. That form was retired in 2022. Register through myPATH.
• Calling the wrong EIT collector. Sending your paperwork to the collector for the other side of the county line can cause delays and corrections.
• Building before plan review. Bethlehem requires Health Bureau plan review approval before you build or remodel a food or drink establishment. Changes after construction can cost far more than the $275 review fee.
• Waiting on the food manager. The certified food manager must be in place within 90 days of opening.
• Ignoring city tax status. A business that is delinquent in city taxes will not be issued a health license.
• Assuming an LLC must publish a notice. Pennsylvania LLCs have no publication requirement. Corporations do, and their notice must be advertised in two newspapers with proof kept in the corporate minutes.

What you can expect when you finish

If you complete these steps in order, you should be positioned to open with your state registration in place, your Bethlehem Business Privilege License issued or in process, your tax accounts set up, and a clear calendar for the next May 1 cycle. Food and drink businesses that complete Health Bureau plan review before construction may face fewer changes during build-out, although timing varies by project and is not guaranteed. Processing times for the state and city can change, so treat any date here as a planning estimate and confirm it with the agency.

Official resources

• Pennsylvania Department of State, Business Filing Services: file.dos.pa.gov
• Pennsylvania Department of State business programs: pa.gov/agencies/dos/programs/business
• Pennsylvania Department of Revenue: pa.gov/agencies/revenue
• Register for state taxes through myPATH: pa.gov/services/revenue/register-my-business-for-taxes
• Pennsylvania Small Business Development Centers: pasbdc.org

Disclaimer

This article is informational only. It is not legal, tax, or zoning advice, and it does not create an attorney-client or accountant-client relationship. Fees, rates, and deadlines can change, so confirm each one with the agency named before you pay or file. If your business has complex ownership, multiple locations, employees in more than one district, or a food or drink operation, consult a qualified attorney and a CPA before you form the business or sign a lease.