Do you want to start a business in Utah and need a license? If YES, here is how much it cost to get a business license in Utah and the steps on how to get it.
Business registration fees in Utah normally consist of a filing fee with the Utah Department of Commerce, Division of Corporations and Commercial Code and a business license fee that is assessed by local municipalities for each business location and these fees vary at each municipality. Each license varies depending on the location of the business.
For example, Salt Lake City has a non-refundable fee of $75, while the fee in the City of St. George is $50. Certain types of businesses may require additional fees.
However, Utah has an OneStop Online Business Registration system that will only collect the filing fee for the Utah Department of Commerce, Division of Corporations and Commercial Code that ranges from $22.00 to $52.00 and these fees are non-refundable.
These fees can be paid with a Visa, MasterCard, or virtual check. The site is available 24 hours a day and will guide you through a series of questions designed to comply with federal and state (and eventually even local) government registration requirements.
Note there are no extra costs involved with the online registration; only the customary fees charged by the agency itself. It is easy and a lot less cumbersome than physically visiting each agency in person.
Have it in mind that Utah has led all states in job growth rate since 2010. The primary reason Utah enjoys such a robust economy is the exceptional diversity of its economy. Additionally, business investment purchases increased in 2018 by nearly 10 percent for estimated business revenue of $10 billion.
The biggest increases involving purchases of business investments came from the manufacturing, wholesale, and construction industries.
It’s not a new thing that Utah is in the top five states selected by entrepreneurs to start their own business. Getting a business license in Utah is not difficult, but it is time-consuming and requires that entrepreneurs gather numerous documents, submit completed forms, and file for tax identification numbers.
Depending on where you plan to open your business, you may also need to apply for a municipality or city license if your business does not have a physical address. Utah welcomes all types and sizes of businesses but enforces strict guidelines regarding the issuance of business licenses.
To avoid taking time away from getting a business up and running, many entrepreneurs rely on professional business license experts who know exactly what to do to obtain a Utah business license.
6 Steps on How to Get a Business License in Utah
In most cases, all businesses in Utah are mandated by law to register with the Utah Department of Commerce, Division of Corporations and Commercial Code, the Utah Department of Workforce Services, the Utah State Tax Commission, the Utah Labour Commission, Internal Revenue Service and with local municipalities to obtain a business license.
However, even though every business license registration is mainly done through the Utah OneStop Online Business Registration system, here are other steps to consider when getting a business license in Utah.
1. Get One or More Business Licenses
Have it in mind that not every Utah business needs a license. However, many types of businesses either can or must get one or more state licenses or permits which are issued by different state agencies. Indeed almost anyone doing business in Utah must register with the state.
You should use Utah’s OneStop Business Registration for this purpose. Registration is primarily overseen by the Department of Commerce (DOC).
Aside from state-issued licenses, note that most business licenses and permits are issued locally. All businesses are required to be licensed with the local municipality where they are doing business. Nonetheless, each city and county can have unique requirements and procedures.
Moreover, you generally will need local licenses in each place where your business operates. You can find more details by checking the website for the cities and counties where you’ll be doing business.
2. File Records For Your Form of Business
Aside from obtaining all required licenses or permits, some legal forms of business, such as corporations and limited liability companies (LLCs), are required to file records with the state.
More specifically, corporations, LLCs, and certain other types of business must file organizational documents with the DOC’s Division of Corporations and Commercial Code (DCCC). You can find additional information by going to the Business Entities section of the DCCC website.
3. Obtain a State Sales Tax Number
Also note that most businesses are required to collect and remit sales tax for the products (and some services) they provide to consumers.
If you use the above mentioned website, you will obtain a sales tax number during this process. If you choose not to use the website, you can go to the two addresses listed above (where you can register for the business name) and also obtain the sales tax number.
4. Obtain Professional Licensing
If you’re a member of any one of many professions and occupations, then you are expected to be licensed by the State of Utah. Utah’s Division of Occupational and Professional Licensing (DOPL) are the umbrella agency for nearly all of the state’s regulatory boards and commissions for licensed professions and occupations.
The Select Profession/ Occupation section of the DOPL website lists the professions and occupations DOPL handles. The list runs from Accountancy to Vocational Rehabilitation.
Have it in mind that many small businesses don’t simply operate under the names of their owners. Instead, they operate under a business name.
Additionally, some businesses, such as corporations and LLCs, may originally register with the state under one name (sometimes called the registered name, actual name, or true name), but later choose to operate under another name.
However, depending on where you’re doing business and how your business is structured, this alternative business name technically may be known as an assumed name, a fictitious name, a trade name, or a DBA (for “doing business as”).
In Utah, businesses structured as, for example, corporations, LLCs, partnerships, and sole proprietorships, must file a form with the DCCC if they intend to operate under a DBA.
6. Obtain Employer Related Tax Numbers
If you plan to have employees, you are expected to register with the following agencies. Please note that this information is also outlined at the State website given above. These agencies are:
Internal Revenue Service – You will need to get an Employer Identification Number (EIN) in order to remit the Federal Tax Withholding and make FUTA (Federal Unemployment Tax) payments for your employees.
State Unemployment Insurance – State unemployment insurance is required for companies with employees. For further information contact the Utah Department of Workforce Services (Job Service).
Worker’s Compensation Insurance is required of all employers. This insurance may be obtained from private companies or the State Insurance Fund. Contact the Worker’s Compensation Fund of Utah, 392 East 6400 South, Salt Lake City, and Utah (Phone: 288-8000).
Registering and acquiring business license is required in Utah so that a comprehensive state registry of all business and corporate information is available for public reference.
This information is vital to an orderly legal system and marketplace. Without it, the public or other businesses may have no way of knowing the persons with whom they are doing business.
Nonetheless, completing the online registration process could take as little as fifteen minutes depending on the complexity of the business organization, or as long as one to two days if you have to wait for a response from one of the participating entities.
This system will allow a maximum of 120 days to complete the process before deleting any partially submitted applications.