You don’t need to register with Utah’s state government to start a sole proprietorship. Check with your county and city for any license requirements.
Licenses and Permits
To legally operate, you may need licenses or permits. For example, if selling goods, you’ll need a Sales Tax Registration to collect and remit sales tax. Professionals like accountants and social workers need a state Professional License.
Business Name Registration
Although not legally required, register your business name as a “Doing Business As” (DBA) with Utah’s Department of Commerce. This ensures your chosen name doesn’t infringe on trademarks or intellectual property rights.
Apply for your city or county’s generic business operating license if required. Be aware of state-level registrations with the Tax Commission, Labor Commission, Department of Commerce, Department of Workforce Services, and Department of Environmental Quality.
Setting Up Your Sole Proprietorship
There’s no formal setup process or fees to become a sole proprietor in Utah. Follow these steps:
- Select an appropriate business name.
- File for a DBA name with Utah’s Division of Corporations and Commercial Code.
- Register for licenses and permits needed for your business activities.
- Open a separate business bank account.
- Get an EIN Number for tax purposes instead of using your Social Security number.
Sole proprietorships allow straightforward, low-cost business launches in Utah. With proper registrations, licenses, and permits, you can legally operate while retaining full control.
Frequently Asked Questions
Do I need a business license in Utah for a sole proprietorship?
You don’t need to register with Utah’s state government to start a sole proprietorship. To legally operate, you may need licenses or permits.
What do you need to operate as a sole proprietor?
To legally operate a sole proprietorship in Utah, you must register for any necessary licenses and permits. Manage record keeping and ensure compliance with state agency regulations.