Follow these steps to get a Philly Tax ID

Starting a business in Philly? You'll need a Philadelphia Tax Identification Number (PHTIN). This number is the first step to doing business in the city. This is also the first step to getting a Commercial Activity License (CAL), which allows you to legally do business in Philadelphia.

There's a big difference between a Philly commercial activity license, a tax ID number, and tax account numbers:

• Philadelphia's commercial activity license permits you to legally operate a business in the city. It's more about compliance than taxes. It answers the question, "Am I allowed to do business in Philly?"
• Tax account numbers are tied to specific taxes, like the Business Income and Receipts Tax (BIRT), which will have its own unique number, even if you have other tax accounts.
• A PHTIN is basically your master tax identifier in our system. This is a unique number per taxpayer. You get it when you register for a Philadelphia Tax Center username and password, or when opening tax accounts. It answers the question, "Who am I in Philly tax system?" This number houses all your tax accounts, like BIRT, Wage Tax, and Net Profit Tax. It's like the federal EIN, but for local taxes. Basically, there are three levels: federal, state, and local.

Business owners, independent contractors, freelancers, and gig workers who conduct business in Philadelphia need all three numbers. However, this post is all about getting a PHTIN for your Philly business.

It's free to apply for a PHTIN, and you can do it entirely online. Just follow these steps:

Step 1: Gather your info

Get these ready before you start:

• Identify your business structure (sole proprietorship, corporation, or partnership). If you are registered with the IRS, you could use your SS4 form to confirm these details.
• A brief description of your business or what you'll be doing in the city.
• Your Pennsylvania Sales and Use Tax license number.
• Your Employer Identification Number (EIN) or Social Security Number (SSN), depending on your business type.
• The date your business began operating in the city, your business and mailing addresses.

Step 2: Go to the Philadelphia Tax Center

Visit the City's official tax filing and payment website at tax-services.phila.gov. This is where you'll register, file, and pay taxes, and manage your accounts.

Step 3: Start a new registration

On the homepage, select "Register a new taxpayer". Choose "Yes" on the "Registration type" screen if you're a third party (such as an accountant) registering on behalf of your client. If not, choose "No". Select "Next" to continue.

Follow the instructions carefully to:

• Choose your business type (sole proprietorship, partnership, corporation, or limited liability company). If you're unsure which business structure to choose, talk to a professional, usually an accountant or lawyer. Revenue staff are unable to provide tax advice. Visit the Free Library's Business Resource and Innovation Center (BRIC) to learn about their free services, including business tax consultations.
• Enter your SSN or EIN
  • Use your SSN if you're registering your business as an individual (sole proprietor), limited liability individual, or estate.
  • Use your federal EIN if you're a corporation, partnership, or limited liability company.
• Provide your business information.
• Choose the taxes you'll be responsible for, like the BIRT. Visit our website for a full list of City taxes, their filing and payment methods, and filing and payment frequencies.

Tip: Selecting "Cancel" will delete your entries. If you need a break, select "Save Draft" so you can finish later. You can access your saved draft for 30 days (the system will delete it thereafter). Take your time and double-check everything.

Check out our website for a complete guide to registering your business and getting your PHTIN. You will find instructions on pages 3 to 20 for registering as a "New taxpayer."

Step 4: Submit your application

Review and submit your application. You'll usually get your PHTIN right away. You should save or print the confirmation page for your records.

Keep your PHTIN somewhere safe. You'll need this number whenever you file and pay Philadelphia income and business taxes.