Starting a Business in Utah
The total fees for starting a business in Utah are $85, which includes the filing fees for registering an LLC and obtaining a business license. To register an LLC in Utah, Articles of Organization must be filed with the Utah Division of Corporations and Commercial Code.
Business Incentives in Utah
The Utah Governor’s Office of Economic Opportunity offers various business incentives for corporations in Utah, such as the Economic Opportunity Tax Credit. To take advantage of these incentives, businesses must meet certain qualifying criteria.
Types of Business Entities in Utah
- Sole Proprietorships: The default designation for individual business owners in Utah. No fees or special registration are required, but owners are personally liable for debts and legal damages.
- Corporations: Offer advantages such as stock trading and flexibility with excess profits compared to LLCs.
- LLCs: Commonly used business organizations in Utah.
Steps to Start a Business in Utah
- Register your business as an LLC with the state, filing Articles of Organization and paying the $65 fee.
- Obtain a business license from the state by paying a $20 fee.
Sales Tax and Business Presence in Utah
If your business has a physical presence in Utah, you are required to collect and remit sales tax. The state’s website provides information on sales tax nexus for both physical and non-physical (online) sales.
Incorporating in Utah
To incorporate a business in Utah, the Articles of Incorporation must be filed with the Division of Corporations & Commercial Code, with a filing fee of $70. Processing times for new Utah Corporation applications typically take around 5-8 business days.
Benefits of Utah Business Incorporation
Utah’s mixed economy supports industries like mining, tourism, agriculture, information technology, manufacturing, and finance. Small businesses in Utah can benefit from incentives like sales tax exemptions for manufacturing equipment.