Opening a Business in Philadelphia, Pennsylvania

Contemplating starting a business in Philadelphia, Pennsylvania? We walk you through the process of opening a business in Philadelphia.

Philadelphia, Pennsylvania Demographic Information

Philadelphia has an active business community that includes small businesses, mid-sized businesses and large businesses.

To give you a better feel for Philadelphia demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Philadelphia.

As a new Philadelphia entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Philadelphia for each business category. By looking at this chart, you can get a general sense for how much competition there is in the business niche that you are pursuing.

Naming the Company

A good company name can give a big boost to a new startup. It might seem like an easy thing to do, but there are many things to consider when naming a business.

Before you decide on a company name, run it by some prospective customers and see what they think. If they don't like it, it's probably a good idea to go back to the drawing board.

For other considerations regarding naming a company, we recommend this article: Branding Advice.

As a final piece of advice, remember that because you are planning on starting a business in Philadelphia, it's very important that you make sure your company name has not already been claimed by another Pennsylvania business.

Forming a Company in Philadelphia, Pennsylvania

It's essential that your business is formed as a legal entity that is separate from its owners. Doing so will shield you from personal liability for business debts and obligations.

When forming a company, you will choose from many company types, such as a corporation, LLC, sole proprietorship, partnership or other structure.

Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. If you are starting a business in Pennsylvania, you don't necessarily have to incorporate in Pennsylvania. In fact, you can incorporate wherever you want. For example, it's very popular to incorporate in Delaware, and incorporating in Nevada has become very trendy as well. Don't forget, though, that you will have to register as a foreign entity in all states that you do business in.

There are many nuances to forming a company. We recommend you read some of the educational articles about company formation that are availabe on our site, such as Pre-Incorporation Agreements. You may also want to seek the advice of an attorney. On a final note, since you will be starting a business in Philadelphia, Pennsylvania, our web page covering Incorporating in Pennsylvania may be a useful resource if you decide to incorporate in Pennsylvania.

The Role of the Business Plan

Writing a business plan is critical in laying a solid foundation for your business success. In effect, a business plan describes what you plan to do with the business and how you plan to do it. Not having a business plan will greatly reduce your chances of business success.

To learn more about business plans, read Business Plan Mistakes. You can also get face-to-face free consulting available from your local SCORE chapter in Pennsylvania.

Getting Money to Start a Business

Raising money to fund your new Philadelphia business is very difficult due to the ongoing business credit crunch. To obtain business financing, you will need to hear a lot of rejections before you finally find a funding solution that works for you.

Take advantage of our many articles on raising capital, such as Borrowing Money from Friends and Family.

For Philadelphia entrepreneurs who need startup capital, check out our List of Pennsylvania Angel Investors and our List of Pennsylvania Venture Capital Firms.

Learning More About Entrepreneurship

Successful business owners recognize that what they know now may not be enough to ensure their future success.

Given that you are starting a business in Philadelphia, Pennsylvania, you should get information on some of the many programs available at nearby Pennsylvania universities, colleges and community colleges. You should also check if there are any networking groups or organizations in which Philadelphia entrepreneurs get together to network and trade their business experiences.

Now It's Up To You

You have a dream -- starting a business in Philadelphia. To achieve your dream, you have to persevere, even when the odds are against you.

Owning your own business will be a daunting task, but you can do it.

We are here to help Philadelphia businesses to be successful. We want to be there for you to answer your business questions, whether you are a new Philadelphiaentrepreneur who is just getting started or you are already up and running with your new venture.

More Entrepreneurial Resources for Starting a Business in Philadelphia, Pennsylvania

Here are more links that we believe will help you be successful in starting a business in Philadelphia.

• Resources for Philadelphia, Pennsylvania Entrepreneurs - Browse a variety of resources we've collected to assist Philadelphia entrepreneurs.
• Pennsylvania Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Pennsylvania.
• Pennsylvania Small Business Development Center - Pennsylvania SBDCs help aspiring entrepreneurs turn ideas into businesses, help small firms expand, and provide the information every business person needs to make critical decisions. There is no charge for their assistance and their free help can make the difference between business success and failure.
• Philadelphia, Pennsylvania Newspaper Ad Rates - This is a nearly comprehensive list of advertising rates for Philadelphia, Pennsylvania newspapers, including ad costs for newspapers serving the Philadelphia area.
• Philadelphia, Pennsylvania Radio Advertising Prices - To help you in your marketing efforts, we've gathered radio advertising rates for Philadelphia, Pennsylvania area radio stations.