How to Protect Your Philadelphia Commercial Activity License

Keeping your business running smoothly in Philadelphia isn’t just about great service or products—it’s also about staying on top of the City’s tax and licensing requirements. One of the most important steps is making sure your Commercial Activity License (CAL) stays active. A Commercial Activity License is required in order to apply for the various business licenses that are necessary to run a compliant business in the City. At Philadelphia Zoning, we’re here to help make sense of the process so you can avoid license revocation and keep your business running smoothly.

Why do Commercial Activity Licenses Get Revoked?

Philadelphia can revoke your Commercial Activity License if you do not follow tax rules or business licensing requirements. Here are some reasons why your Activity License can be revoked:

• Failure to Pay the Business Income and Receipts Tax (BIRT): This tax applies to your total revenue and net income from doing business in the city.
• Failure to Pay the Net Profits Tax (NPT): If your business isn’t incorporated, this tax applies to your net profits.
• Operating without proper business licensing: Running an unlicensed business under your Activity license or continuing to operate after your license has expired puts you at risk for penalties and revocation.
• Failing to Renew your business licenses on time: Failing to renew your business license before it expires can result in revocation of your Commercial Activity License .

These taxes are due by April 15 each year, covering the previous year’s earnings. Missing the deadline or not paying in full could put your license at risk.

What Happens Before Revocation?

If you’re behind on taxes or fail to meet licensing requirements, the City will send two warnings before taking away your license:

1. First Warning: The “Notice of Intent to Revoke License” lists any unpaid taxes, unfiled returns, or licensing violations. You’ll have 10 days to pay what you owe, renew your license, or set up a payment plan. This notice also includes contact details for a caseworker who can help you.
2. Final Warning: If you don’t respond to the first notice, the City will deliver a second letter by hand. This gives you just two more days to fix the issue before your license is revoked.

What Happens If Your Activity License Is Revoked?

Losing your license can seriously hurt your business:

• You can’t legally operate: Once your license is revoked, you’re not allowed to conduct business in Philadelphia.
• You’ll face fines: Operating without a license can cost you $300 per day.
• Your business could be shut down: The City will post a “Cease Operations” notice at your location. If needed, the Philadelphia Police can enforce the closure.

How Can I Keep My Activity License Safe?

Here’s how to stay on top of your tax and licensing responsibilities:

1. Pay taxes on time: Make sure you file and pay all required taxes by their deadlines. You can find information about tax rates and due dates on the City’s Department of Revenue website.
2. Set up a payment plan: If you’re struggling to pay in full, contact the City to arrange a payment plan that works for you.

• Do not conduct business without proper business licensing: Running an unlicensed business or continuing to operate after your license has expired puts you at risk for penalties and revocation.

1. Check your business status regularly: Use the Philadelphia Tax Center to manage your tax account, file returns, and make payments.
2. Get professional help: If you’re unsure about your licensing requirements, let Philadelphia Zoning guide you through the process.

How Philadelphia Zoning Can Help

At Console Matison LLP and Philadelphia Zoning, we have extensive experience in helping businesses handle licensing, permits, and compliance. Whether you’re worried about losing your license or just want to make sure everything is in order, we’ve got you covered. Our services include:

• Applying for your Activity License and Business licenses to ensure compliance.
• Reviewing your licensing status.
• Helping you resolve outstanding issues with the City.
• Guiding you through payment plans or contesting license revocations.

We know your business means everything to you, and we’re here to help you keep it running without interruptions. Contact Philadelphia Zoning today for personalized support at Info@ConsoleLegal.com Let’s work together to protect your business and keep it thriving!