Service 02
Business taxes for Philadelphia, including the BIRT.
City, state and federal returns for sole proprietors, LLCs, partnerships and S corporations, planned across the year so April holds no surprises.
- BIRT and Net Profits Tax returns included
- Quarterly estimates calculated for you
In plain words
What changed for small businesses in 2025?
For years, a Philadelphia business with $100,000 or less in gross receipts owed no Business Income and Receipts Tax and could skip the return. That exemption ended with tax year 2025. Now every business in the city files a BIRT return, whether or not it made a profit.
For a freelancer or a new shop, that means a filing that did not exist before, and an estimated payment the year after. We register you with the Philadelphia Tax Center, confirm your Commercial Activity License, and file the BIRT alongside your Net Profits Tax and federal returns so the numbers agree.
What is included
- Philadelphia BIRT return, on gross receipts and on net income
- Net Profits Tax return for sole proprietors, partners and LLC members
- Federal return: Schedule C, Form 1065 or Form 1120-S
- Pennsylvania return and sales tax review
- Quarterly estimated payments calculated, with reminders
- A mid-year meeting to plan for the tax you will owe
How it works
Four steps, no surprises.
Review your setup
Entity type, licenses, city tax accounts and last year's filings. We list anything missing.
Fix the gaps
We open accounts, file late returns and ask for penalty relief where the rules allow it.
Plan the year
A mid-year projection sets your estimates, so you save the right amount each month.
File everything together
City, state and federal returns prepared from one set of books and filed on time.
Fixed prices
What does it cost?
You get a quote in writing before we start, and the invoice matches it.
| Service | What it covers | Price |
|---|---|---|
| Sole proprietor | Schedule C, BIRT and Net Profits Tax, with a personal return | From $850 |
| Partnership or multi-member LLC | Form 1065, K-1s, Pennsylvania and BIRT | From $1,150 |
| S corporation | Form 1120-S, K-1s, Pennsylvania and BIRT | From $1,350 |
| Late or missing city returns | Per year, with a penalty relief request | From $295 |
| New business setup | Entity advice, EIN, city and state tax accounts | $450 |
Sample prices written for this demo.
Also at Tallybrook
Three more services.
Most clients use two of them.
- No. 01
Individual tax returns
Federal, Pennsylvania and Philadelphia returns for employees, freelancers and landlords.
from$375per return - No. 03
Monthly bookkeeping
Books closed by the 10th of each month, with a one page report you can read in five minutes.
from$350per month - No. 04
Payroll
Paychecks, Philadelphia Wage Tax withholding, quarterly filings and W-2s for teams of 1 to 50.
from$95per month
Sample prices written for this demo.
Questions people ask
Small business tax, answered.
What clients ask before they start.
What is the BIRT?
The Business Income and Receipts Tax is Philadelphia's tax on doing business in the city. It has two parts. For tax year 2025 the rates were 1.410 mills on gross receipts, which is $1.41 per $1,000, and 5.71% on net income. The return is due April 15.
Do I owe BIRT if I made less than $100,000?
You must file, and you may owe. Starting with tax year 2025, the city can no longer exempt the first $100,000 of gross receipts, so the tax applies from the first dollar.
What is the Net Profits Tax?
A city tax on the net profit of unincorporated businesses: sole proprietors, partnerships and most LLCs. For tax year 2025 the rate was 3.74% for residents and 3.43% for non-residents. You may be able to take a credit against it for part of the BIRT you paid on net income.
Do I need a Commercial Activity License?
Yes, if you do business in Philadelphia, including freelance work from your apartment. The city can deny or revoke the license when returns are unfiled, which is one more reason to stay current.
Should my LLC be taxed as an S corporation?
Sometimes. It can reduce self-employment tax once profit is high enough to cover a reasonable salary and the cost of payroll. In Philadelphia the math also has to include Wage Tax on that salary and School Income Tax on the remaining profit for residents. We run the numbers both ways before you decide.
Start here
Tell us what you need.
A few details and a real accountant calls you back within one business day. The first call is free and takes about twenty minutes.
(215) 555-0137Old City, Philadelphia. Monday to Friday, 9 AM to 5:30 PM. Saturday mornings from February through April 15.