How to Get a Business License in Utah

If you're starting a small business in Utah, you may need to obtain one (or several) business licenses or permits, depending on your business operations and location.

While Utah doesn't have a general business license requirement, many cities and counties within the state set their own business licensing rules. We'll cover what you need to know about Utah business licenses to help ensure your company is compliant.

What is a business license in Utah?

A Utah business license is a legal document that allows your business to legally operate in the state. It certifies that your business has met the requirements and paid the appropriate fees.

Now, Utah doesn't have a statewide business license requirement, but that doesn't mean your business can forgo licenses and permits altogether. Depending on your business activities and location, your business may need to obtain other licenses and permits.

Types of business licenses

The type of business license you need to acquire will depend on a number of factors, such as what kind of business activities you're conducting. For example, if you plan to sell tangible personal property or services, the state requires you to obtain a seller's permit to collect sales tax. Or, if you plan to operate your business out of your home, you may need an occupancy permit or home occupation permit. Utah also requires occupational licenses for certain professions, like doctors, lawyers, teachers, cosmetologists, and land surveyors.

The physical location of your business will also determine licensing requirements because most cities and counties in Utah set their own rules and regulations regarding business licenses at the local level. For instance, every business operating in North Salt Lake City must obtain a general business license. For more information on city- and county-specific business licensing, navigate to the Utah Department of Commerce website.

If your business operations are regulated at the federal level, you may need federal licenses and permits in addition to state and local licenses. The transportation, agriculture, nuclear energy, and firearms sectors are examples of federally regulated industries.

How to apply for a business license in Utah

Next, let's discuss the business licensing process.

Register your business

Before you can apply for a business license, you must complete the following steps.

The first step is to register your business entity with the Utah Department of Commerce. To get started, visit the Division of Corporations and Commercial Code site, create a UtahID account with the state's new business registration system, and follow the registration instructions.

This registration system also allows you to apply for the Utah State Tax Commission and the Utah Labor Commission in one convenient place.

Obtain an EIN

Next, you must apply for an employee identification number (EIN) from the IRS for federal tax purposes. You'll need this number when registering for your business licenses and permits. Submit Form SS-4 online at the IRS website, by mail, or by fax. Or, if you'd prefer us to take care of it for you, use LegalZoom's EIN services to help simplify the process.

You may also need to acquire a sales tax number, which is like the state's version of an EIN. This number is required when hiring employees and paying state and local taxes. You can apply for one on the Utah State Tax Commission website. 

Conduct a Utah business license search

Because there are so many special licensing requirements, navigate to the local, state, and federal government websites to research which ones apply to your business.

To determine if you need licenses or permits at the state level, visit the Utah Department of Commerce's Division of Professional Licensing website for a full list of all the industries and professions with licensing requirements.

Since each city and county has its own rules and regulations, you'll also need to check with your local jurisdiction or contact your county clerk to learn about local requirements. For example, if your business is operating in Salt Lake City, visit the Salt Lake City resource center for local permits and licensing information. This site covers everything from building permits to commercial business licenses.

As for federal government requirements, we recommend visiting the Small Business Association's (SBA) business guide to permits and licenses. The guide provides a list of federally regulated business activities and each one's issuing agency.

LegalZoom also offers services to help you find and manage the licenses and permits that pertain to your business operations.

Apply for a business license in Utah

Once you've determined which licenses and permits your business needs, it's time to register for them.

You can complete an online license or permit application, or, in some cases, you can mail it in or apply in person with your county clerk. When registering, you'll need to provide information about your entity on the form, such as your business name, business type, business address, and EIN, and pay the application fee.

Once your application is approved, you'll receive your license in the mail.

Business license costs in Utah

Utah business license costs depend on what licenses and permits you need to obtain. Typically, you'll pay a one-time application fee and a renewal fee every year.

In Salt Lake City, the cost of a general license is $150 plus $6 per employee. Meanwhile, in Provo, the cost of a general business license depends on the number of employees your company employs. For instance, a general license is $125 for businesses with up to five employees and $675 for those with 75 to 100 employees.

Keep in mind that you must pay annual renewal fees, too. Again, the costs of these fees vary. For example, the annual renewal fee in Provo is $155.

Do I need a business license in Utah?

Yes, in most cases, your business will need at least a general license to operate in your local jurisdiction, but you may need additional federal or occupational licenses and permits, depending on your business activities.

Now, does licensing change based on your business entity type? No. Utah licensing requirements apply to every business structure, including sole proprietorships, partnerships, limited liability companies, and corporations.

Maintaining your Utah business license

Once you've applied for the applicable licenses and permits and complied with local, state, and federal regulations, you must renew them after a certain amount of time. When you renew will depend on the specific licenses, but most renewals are due a year from your registration date and annually thereafter.

To renew, log into the online portal where you initially applied for your license and follow the steps for renewal. This may involve providing updated information about your business and paying the renewal fee.

FAQs

How long does it take to get a business license in Utah?

It will depend on where you apply for your license. For example, in South Jordan, the approval process may take two to five days, while in Summit County, it usually takes five to 10 business days. However, these estimates can change depending on individual circumstances.

Do I need a business license to operate a small business in Utah?

While there is no statewide business licensing requirement, most Utah cities and counties require small businesses to obtain business licenses.

Can I apply for a business license online in Utah?

Yes, you can apply for a new business license online. Visit the business licensing section of your local city or county website, fill out the application, and pay the fee.

How do I look up a business license in Utah?

If you're wondering what kind of business license you need, conduct a Utah business license lookup. Visit the Utah Department of Commerce website and your local city or county websites for more information. Also, if your business is a federally regulated operation, be sure to research federal licensing requirements. 

What is the difference between a state and local business license in Utah?

The Utah state government doesn't have a general license requirement, but most Utah cities and counties have their own business licensing regulations. In other words, general business licenses are not required at the state level, but they are required at the local level.

How do I renew my business license in Utah?

You can renew your business license using the online portal you used to register for your initial license or permit. Once you've logged in, navigate to the business licensing section and follow the steps for renewal. This usually requires submitting updated information about your business and paying the renewal fee.

What happens if I don’t get a business license in Utah?

If the state finds out you're operating without the appropriate licenses, you could be fined and ordered to stop doing business.

Are there different business licenses for different Utah cities?

Yes, most Utah cities and counties each have their own business license requirements you must follow to legally conduct business in those jurisdictions.