Philadelphia is known for being small business friendly, and providing many laws and regulations to make it easier to establish and operate your small business. Philadelphia also offers a breadth of resources that you can use to make sure you are complying with all of the laws correctly. The following are some of the best laws of which to be aware.
Act 135 of 2016
In 2016, the Commonwealth of Pennsylvania passed Act 135. Going into effect in January 2017, Act 135 waives some common business fees associated with establishing a small business for veterans or reserve members. The Pennsylvania Department of State defines this as follows, “A veteran is an individual who served in the United States Armed Forces, including a reserve component or the National Guard, and who was discharged or released from service under conditions other than dishonorable. A reservist is a member of a United States Armed Forces reserve component or National Guard.” Veteran owned small businesses can benefit from this Act, saving money on seven different fees.
Association Transaction Act (Act 172 of 2014)
To make Pennsylvania more competitive with other states, the Commonwealth amended its Association Transaction Act in 2014. The law is available on the website of the Pennsylvania General Assembly, but the main change is listed as such, “This act is designed to amend 15 Pa.C.S. Pt. I to integrate the law on corporations and other associations by enacting provisions applicable to all forms of associations and authorizing transactions involving any form of association.” The act makes it easier for businesses of all types to perform common transactions such as mergers, sale of the company, change in corporate structure, and others, creating uniform rules rather than different sets of laws for different types of business entities.
Job Creation Tax Credit
Small businesses are an important part of Pennsylvania’s economy, and the Commonwealth is encouraging business owners to create new job opportunities. The Job Creation Tax Credit program provides credits to businesses of all sizes if they create new jobs in a three-year time period. The Department of Community and Economic Development outlines rules for the credit. “Tax credits may not be utilized by a business until the jobs are actually created. Must create at least 25 new jobs or expand the existing workforce by at least 20 percent.”
These and other laws are assisting small businesses to thrive in the City of Philadelphia. To find more laws and credits that may assist your company, set up an appointment with a tax attorney or another legal professional.
This article was written by Alaina Brandenburger for CBS Small Business Pulse.