Are you ready to take the plunge and start your own business? It takes a lot of time and effort, and specific risks are involved, but the prospect for rewards is enormous. If you’re still not convinced, consider starting your own business in Philadelphia.
The City of Philadelphia is an exception. Because, despite a Web 1.0 tradition of hits like CDNow, the City is dominated by first-generation entrepreneurs who are yet to achieve significant scale and effect.
It’s worthwhile to start a business and add the cash flow plus your ability to be independent. As a result, we’ll get into the specifics of why Philadelphia is an excellent place to start a business and why you ought to consider it.
Here are the top reasons why you should start a business in Philadelphia:
#1 Connection to Large Markets
Philadelphia is a significant metropolis located near some of the East Coast’s most populous cities. Because its closeness to major cities such as Washington, D.C., New York, and Boston makes it easier to tap into their markets, form commercial alliances, and even attract possible investors.
New York is home to many investment firms, and the train traveling from New York to Philadelphia only takes an hour. That is a short and fascinating trip worth taking, especially if you have a potential business plan. The proximity of large cities to those starting online stores offers a more extensive customer base, which is something to consider if your ambition is to build up.
#2 Support From The Local Government
The policies and general support of a local government significantly impact the effectiveness of doing business in an area. Vital governmental assistance makes it easier to start a firm in Philadelphia. It’s a resource platform for aspiring entrepreneurs and established business owners. The state of Pennsylvania has also built a one-stop business shop.
The local government support guide takes entrepreneurs and business owners through the resources available to assist them in planning, registering, operating, and growing their businesses.
There are also resources for veterans and women-owned businesses. The emphasis on diversity makes it even more reassuring for prospective entrepreneurs from all walks of life to try entrepreneurship in Philadelphia.
#3 Favorable for Growth of Small Businesses
Small enterprises can be found throughout Philadelphia and the state of Pennsylvania as a whole. It provides the foundation for local job creation and economic prosperity. A million small companies hire over 2.5 million people throughout the state.
Small enterprises account for 99.6% of all private sector operations in Philadelphia, according to the 2018 US Small Business Administration. Furthermore, the 2019 business statistics showed that Philadelphia has the 6th largest economy in the United States.
Even though the Coronavirus epidemic throughout 2020 slowed small company growth, the City of Philadelphia provides grants to small firms. To help the business survive and flourish, the potential entrepreneurs in Philadelphia have access to a robust network of other businesses that offer tailor-made help.
#4 Tax Rates are Manageable
Depending on your business structure, the tax status in Philadelphia is a mixed bag. For one thing, corporate taxes can be costly, so those who choose to incorporate may end up paying more. Pennsylvania’s corporate income tax rate is about 10%. According to Business News Daily, the rates improve for pass-through businesses like LLCs because the owners only have to pay personal tax.
At 3%, income taxes are relatively low. According to this guide on incorporating an LLC in Pennsylvania, the government sales tax rate is 6%, with an extra 2% local sales tax in Philadelphia. Pennsylvania’s property tax is also modest, at 1.46 percent of property value. Using the proper legal structure, you can run your firm at a low tax rate with this data.
The Information Do You Need Before Starting A Business In Philadelphia
Before launching a business in Philadelphia, Pennsylvania, anyone who wants to own and run a business of any kind must first obtain a valid business license. You must obtain a business license whether your business is temporary if you buy an established business or go door-to-door marketing. The Business Privilege Permit is another name for the business license. While having a business license is a privilege, and some conditions must be met before being awarded.
What Options Are There For Obtaining A Philadelphia Business Privilege License?
There is a multitude of options to apply for the convenience of the City’s potential business owners. Applying for your Business Privilege License online at http://www.phila.gov/forms/index.html#business is the simplest method. You have the option of printing the application long in advance and submitting it in person at the Municipal Building.
What Is The Price Of Obtaining A Business Privilege License In Philadelphia?
The price is higher than in other Pennsylvania cities. A $300.00 cost is required for a Privilege Business License. The fee is payable when you submit your application for a Business Privilege License, and it is due every year by March 31st after that. While the general renewal charge is $300.00, the fee varies depending on the type of business and gross annual receipts.
The Bottom Line
Philadelphia is already on the rebound and is one of the most cost-effective cities on the east coast. This City’s people, atmosphere, and business-friendly legislation make it one of the most incredible places to start a business.
Philadelphia has a talented workforce with many qualified and experienced personnel, in addition to a vast client base. “The City’s economy is anchored by a broad mix of businesses, such as biological sciences and health, professional services, sophisticated manufacturing and logistics, hospitality, and a rising startup community,” according to the Philadelphia Department of Workforce Development. The University of Pennsylvania and several other prestigious universities are all located in Philadelphia.