Utah business guide

How to start a business in Utah

Everything required to legally start a business in Utah, in order, with current costs. Written for first time owners. No fluff.

Step 1. Choose your structure

A sole proprietorship is the simplest option. There is nothing to form, and you report business income on your personal tax return. The tradeoff is that you and the business are the same legal person, so your personal assets are exposed if the business is sued or owes money.

An LLC is a separate legal entity, so business debts and claims generally stay with the business. It is cheap to form in Utah and simple to run, which is why most small Utah businesses choose an LLC. A corporation adds shares, a board, and stricter record keeping. It makes sense if you plan to raise outside investment, but it is more paperwork than most local businesses need.

Step 2. Register with the state

• Registration happens online with the Division of Corporations and Commercial Code at businessregistration.utah.gov. You sign in with a UtahID account.
• The LLC filing, called the Certificate of Organization, costs $59. A corporation's Articles of Incorporation also cost $59. Most online filings are approved right away.
• A DBA registration costs $22 if you operate under a name different from your legal name. How to register a DBA.
• Every LLC and corporation files an annual renewal for $18, due on the anniversary of formation.
• You need a registered agent with a Utah street address. You can be your own registered agent.

Start here: corporations.utah.gov and the Utah business registration portal.

Step 3. Get your federal EIN

Your EIN is your federal tax ID. It is free, it comes directly from the IRS, and the online application takes minutes. Third party sites charge for this. You do not need them. Apply on the IRS EIN application page.

Step 4. Set up state tax accounts

• If you sell taxable goods or services, you need a Utah sales tax license. Registration is free through the Tax Commission's TAP system.
• If you hire employees, you need a withholding account and an unemployment insurance account.

Step 5. Get your city or county business license

• Utah has no statewide general business license. Licensing happens at the city level, and at the county level for unincorporated areas.
• Fees and steps differ by city. Read the city guide for where you operate: start a business in St. George or start a business in Cedar City. More city guides are coming.

Step 6. Check professional licensing

Some trades and professions need a state license on top of your city license. That includes contractors, cosmetology, health professions, and others. Licensing runs through the Division of Occupational and Professional Licensing. Check your profession before you start taking work at dopl.utah.gov.

Step 7. Plan for year one cash flow

Most new businesses fail because cash runs out, not because the product was bad. Keep fixed costs low in year one. Invoice the day work is finished and follow up on late payments. Put idle capacity to work instead of letting open hours or unsold inventory sit. Some Utah businesses join a local trade network to sell open time and inventory to other member businesses for credits they can spend with any member.

How to register a DBA in Utah

A DBA ("doing business as") lets you operate under a name other than your own legal name, or other than your LLC's or corporation's registered name. A sole proprietor called Jane Smith who runs Canyon View Cleaning needs one. So does Canyon View LLC if it sells under the name Canyon View Windows.

1. Check the name. Search Name Availability at businessregistration.utah.gov. The name has to be distinguishable from names already on the state's records.
2. File the registration. Sign in with UtahID, choose Formations, then Assumed Name (DBA). You give the name, what the business does, the business address, a registered agent with a Utah street address, and each owner's name and address.
3. Pay $22. Most online filings are approved right away. Ones that need a manual review can take 5 to 7 business days.
4. Renew every three years. A DBA lasts three years, and renewal costs $18. You can renew in the 60 days before it expires. If it lapses, someone else can claim the name.

File within 30 days of starting to use the name. Until you do, you cannot bring a lawsuit in a Utah court under that name. DBAs are filed with the state only. There is no separate county filing, but you still need your city business license.

A DBA is a name, not a business entity. It gives no liability protection: a sole proprietor with a DBA is still personally responsible for the business's debts. It does not give you trademark rights in the name either. Utah's DBA law was rewritten effective October 1, 2026. The fee and the three year term stayed the same. As it has since 2000, a DBA name can't include "LLC" or "Inc." unless that kind of business owns it.

How to incorporate in Utah

1. File Articles of Incorporation. File online at businessregistration.utah.gov for $59. The articles name the corporation, the number of shares it may issue, its registered agent and the incorporators.
2. Organize the corporation. Adopt bylaws, name the board of directors, issue shares to the owners and keep minutes of those decisions.
3. Get an EIN and tax accounts. Same as steps 3 and 4 above.
4. Renew every year. The annual renewal is $18, due in the month the corporation was formed.

A regular corporation (a C corp) pays tax on its own profit: 21% federal, and 4.45% to Utah for 2026, with a $100 Utah minimum. Owners then pay tax again on dividends. That double tax is why most small Utah businesses form an LLC instead, or elect S corp status.

How to start an S corp in Utah

An S corp is not a separate kind of business you register with the state. It is a federal tax election. You form an LLC or a corporation in Utah first, then ask the IRS to tax it as an S corporation.

1. Check you qualify. The business must be a US company with no more than 100 shareholders and one class of stock. Shareholders must be individuals who are US citizens or residents, estates, or certain trusts.
2. File IRS Form 2553. There is no fee. File it by mail or fax within 2 months and 15 days of the start of the tax year you want it to apply to: March 15 for a calendar year company. A new company counts from the day it first has shareholders, assets or business. An LLC filing Form 2553 does not also need Form 8832.
3. Run payroll for owners who work in the business. The IRS requires a reasonable salary before owners take other distributions.
4. File Utah form TC-20S each year. Utah follows the federal election, so there is no separate state election form. The S corp itself generally pays no Utah income tax. Owners pay Utah tax on their share of the profit at the individual rate, 4.45% for 2026.

Missed the deadline? The IRS can accept a late election for up to 3 years and 75 days if you had reasonable cause. The usual reason to elect is saving self employment tax on profit above the owner's salary, which has to be weighed against the cost of payroll and a separate business return. Talk to a CPA before you file.

Common questions