Overview of Tax Obligations for Small Businesses in Utah
Small businesses in Utah may have various tax obligations including state corporate and income taxes, sales and use taxes, and property taxes. Sole proprietorships and single-member LLCs pay taxes at the owner’s personal rate since they are "pass-through" entities. Partnering with a tax professional can help small business owners navigate regulations and ensure accurate and timely filing.
What Taxes Do Small Businesses Pay in Utah?
Licensed and taxable businesses in Utah pay various taxes depending on their business type and industry. This includes a 4.85% corporate income tax rate, a state sales tax rate of 6.10%, a max local sales tax rate of 2.95%, and an individual income tax rate of 4.85%.
Utah Business Tax Requirements
When starting a small business in Utah, it’s crucial to understand the tax implications of different business structures. Common structures to consider include Sole Proprietorship, C Corporation, and Limited Partnership (LP). Each structure has its own tax implications, so it’s essential to assess the best fit for your business.
Utah Corporate Income Tax and Filing Procedures
In Utah, the corporate income tax is generally calculated at a flat 5% of taxable income with a minimum tax of $100. If your LLC is taxed as a corporation, you’ll need to pay this tax by filing the state’s Form TC-20 with the Utah State Tax Commission. Consider reviewing your business structure or prior year’s tax return to identify opportunities for minimizing tax liability.