Last updated on October 19th, 2022 at 04:36 pm
Being a state whose motto is “industry”, we can’t ignore the fact that Utah is very friendly toward small businesses, as expressed in several ways, including its nice laws and policies.
In case you are wondering what is required to do business in Utah, this article explores the nitty-gritty of what you need to legitimately operate in the Beehive State.
Before you can start the process of registering your business, here are the core things you must first have in place:
Type of Business
There are several business opportunities in the Beehive State, depending on your personal ambitions, interests, resources, skills, and so on.
Knowing the type of business will guide you on which sector it will fix into and know the registration requirements involved.
Also, it will be very helpful to have a good business plan in place too, as it will showcase your readiness to run a serious business.
A Business Structure
Before approaching the relevant authorities, you must decide if your business will be a sole proprietorship, a partnership Limited Liability Company (LLC), or a corporation
You should be familiar with the legal intricacies attached to the structure. You should particularly consider the fact that you are the same entity as your business.
It is necessary to clarify that these three (sole proprietorship, limited liability company, and corporation) are simply the famous ones out there.
Have a Nice Business Name
You have to decide on your business name before you begin the official process to register your business in Utah. You must be sure that no existing business is known for the name you intended to opt for, as available with the Utah Division of Corporations and Commercial Code (DCCC).
You can confirm this anytime on the DCCC website with a simple search. Additionally, after settling for a nice business name, you are permitted to reserve the name for 120 days with the Utah DCCC, as long as it is available. This means, no other entity will get that name during this period, while you get busy with other things.
You should know the requirements attached to the business structure you decided on. For instance, you should add something like LLC to your business name if it is a limited liability company.
Register The Business
After settling all that concerns business structure and name, you can now proceed to do the main registration to run legitimately in Utah. The process varies based on the type of business structure you embraced.
Generally, it is very simple to create a sole proprietorship. You can easily register with the Utah Division of Corporations and Commercial Code online all by yourself, or hire the services of professionals.
If you are forming an LLC in Utah (which means your business is a limited liability company), the first step to take towards registration is to file the “Certificate of Organization” with the Utah Division of Corporations and Commercial Code which is available online on the Utah one-stop business registration portal.
If you are going for a Corporation, you must also file the “Articles of Incorporation”. Then, like in the case of an LLC, you are expected to hold an “Organizational Meeting” to put in place the structures expected of a Company.
For instance, the percentage of ownership for each shareholder is determined and agreed on. Additionally, these sorts of businesses can elect S-Corporation status with the IRS (this can also be done online).
Licenses and Permits
Your business registration is never complete without acquiring the necessary licenses and permits. Amazingly, while these things come with unavoidable complexities, Utah’s OneStop Business Registration platform is very helpful.
We pay tax everywhere, and businesses operating in Utah must pay the different types of tax accorded by the state.
If you are operating as a sole proprietorship, you will pay taxes on profits realized by your business as part of your personal state income tax returns.
An LLC is generally expected to file Form TC-65, Utah Partnership/Limited Liability Partnership, and pay taxes to the state on partnership income on personal tax returns.
Large corporations are required to file a yearly renewal with the DCCC, and its shareholders are to pay state taxes on their dividends from the company. The company is also to pay Utah’s franchise tax.
It should be added also that aside from the various Utah taxes you pay to the state for implementing your business ideas and for doing business there, there are also federal income and employer taxes which you should be aware of.
Register for the Employer Identification Number (EIN) from the IRS if the company is taxed differently from you or if you have employees working for you.
You can do without EIN. However, it is one of the things you need to have a bank account in the name of your business
Other regulatory licenses and permits
There are regulatory licenses and permits you must obtain based on your peculiar industry. You can easily register simultaneously with every necessary agency, including Utah State Tax Commission, Utah Department of Environmental Quality, Utah Department of Commerce, Utah Labor Commission, and so on.
Additional Steps You Should Take
Now that your business is running in Utah, you should go and get Insurance from a reputable insurance company that will help secure your business when something unpleasant happens.
Business insurance will give your assets adequate protection from unforeseen issues like natural disasters or lawsuits.
It doesn’t matter what kind of business you are into, you will get reasonable coverage options for your company, and you will save yourself from a lot of headaches too.
Having a business account for your business is beneficial in several ways. It enables you to easily track your income and expenses and separates you as an entity from the business.
However, irrespective of the size and goals, every legitimate business operating in Utah must be duly registered with relevant authorities. The effort is worth it too.
Above all, the Utah onestop business registration portal is your guide in case you don’t want to engage an agent. A processing fee of $54 and above applies if you are using the dedicated portal by the state