How to Start a Business in Utah

Due to low taxes, a fast-growing economy, and strong support for startups, Utah is considered a very business-friendly state. While the state is home to many success stories, including Crumbl Cookies, you still need more than an innovative idea and a business plan to get started. There are legal steps you must follow and many factors you should consider. Below, our Utah business law attorney explains the legal steps involved in starting a business.

Choose a Business Structure 

When starting a business, the first step is to choose a business structure. The structure you choose will depend on your needs, situation, and goals for your business. Some common legal structures include sole proprietorships, limited liability companies (LLCs), and partnerships.

There are other options but it is important to select the structure that will most benefit your business. For example, if your business activities are low risk and you do not plan to expand your company, a sole proprietorship may be the right option. On the other hand, if you will be exposed to risk, an LLC may be a better option, as this will protect you from personal liability.

Choose a Business Name

Whether you already have a name in mind or have yet to come up with one, it is critical that the name of your company reflects what your business does. You must also register your business’ name and ensure that it is not too similar to existing businesses. Registering your business name can cost approximately $100.

Register Tax ID Numbers

Depending on your goals for the business and the type of business you are running, you may have to obtain state and federal ID tax numbers. There is no charge to obtain these tax numbers and it is usually recommended to obtain them soon after forming your business entity. Even if you do not intend to hire employees, obtaining an Employer Identification Number (EIN) is also often a good idea. You will also require a state tax number if you sell any goods or services that are taxable.

Obtain Licenses 

In Utah, you are not required to obtain a statewide business license. However, you will likely have to obtain a local or county license to operate in a certain location. It is important to look up your local requirements.

You may also be required to obtain other types of licenses, as well. For example, if you are opening a restaurant and plan on serving alcohol, you will have to obtain a license from the Department of Alcoholic Beverage Services (DABS).

Our Business Law Attorney in Utah Can Guide You Through the Process

Starting a business is exciting, but the experience can also be scary and intimidating. At AGS Law, our Utah business law attorney can help you navigate the process to ensure that all steps are completed properly and that your business gets off on the right foot. Call us today at 801-477-6144 or fill out our online form to request a consultation with one of our seasoned attorneys and to get more information.

Source:

utah.gov/business/starting/structure.html