What should I know about business licenses in Utah?
Utah has led states in job growth rate since 2010. The primary reason Utah enjoys such a robust economy is the exceptional diversity of its economy.
In addition, business investment purchases increased in 2018 by nearly 10 percent for an 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 surprising 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. For example, you will need to obtain three different tax ID numbers (federal, state, and state sales tax ID numbers) before receiving your business license.
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.
Common Utah business license questions
Business is buzzing in the Beehive State of Utah. You can be a business owner in no time here. Find out what you need to know about obtaining a Utah business license with answers to a few of the most common Utah business questions.
Yes. In order to uphold their state registry for accurate public records, anyone who wants to own a business in Utah is legally required to register with the Utah Department of Commerce. There are four types of businesses you can choose from: a "DBA" (Doing Business As), corporation, limited liability company, or limited partnership.
Businesses are also required to obtain a business license from the city or county in which they are located. If you have multiple locations in Utah, you need a business license for each one.
The cost mostly falls under the filing fees to the Utah Department of Commerce and the Division of Corporations and Commercial Code. If there are any other agencies that regulate your business, there will be filing fees for them as well. The fees typically range from $22.00 to $52.00.
By law, all businesses in Utah are required to license with the local municipality in which they are doing business. There are some general licensing standards in place but each city and county also have unique requirements and procedures. It is best to contact your city or county office to be sure you’re meeting their exact standards.
At Avalara, we understand the requirements to getting a business license in Utah and can help you with these first important steps of starting your new business venture.