How To Start A Business In Utah
Starting a business in Utah is quite similar to how people start businesses in many other US States.
The steps for starting an Utah business are straight forward and provided you can comply with them, odds are that you’ll run your business successfully without contravening local business rules and regulations.
This article revolves around the requisites you need for launching a business in Utah and making it a legally qualified enterprise.
Starting A Business In Utah Checklist
» Create a Business Plan
There are a whole lot of reasons why you should create a well-written plan for your proposed Utah business.
First of all, banks hardly give loans to would-be entrepreneurs who do not have any business plan.
Besides, a business plan is a useful document that tells where your business is heading and what strategies will be laid down towards achieving business objectives.
If you don’t have any first-hand experience of writing a business plan, endeavour to obtain online resources such as business plan templates relevant to the kind of business you wish to do.
This way, you’ll be guided on the things your business plan should contain.
» Decide on a Suitable Business Entity
Just like many other places, Utah requires you to choose an appropriate entity for your business.
Alternatively referred to as “business structure’’, business entity outlines the legal status of your business and describes who is responsible for business liability.
Basically, there are four business entities from which you can choose:
- Sole Proprietorship
While Sole Proprietorship is perhaps the simplest and most affordable amongst all, it could be disadvantageous if you can’t afford bearing all business risks alone.
In a nutshell, your personal assets are likely to be affected if your business gets sued.
Advisably, you have to determine the suitable entity for your Utah business.
Note that Partnership business shares similar disadvantages with Sole Proprietorship in the case of a business suit, while a Corporation ensures your personal assets are not affected by any business suit.
But unlike a Partnership and Sole Proprietorship, Corporation appears to be a complex and costly entity to operate.
In Utah, you’ll be charged the sum of $70 by the State’s Department of Commerce to file for the Articles of Incorporation which establishes your business as a Corporation.
» Think up and Register a Business Name
One important thing is creating an interesting business name while another is keeping the name unique.
In Utah, you’ll be charged the sum of $22 to file a Business Name Registration.
Notably, you won’t be required to do any filing if your Partnership or Sole Proprietorship business will operate under your real name –including your first and last names in full.
However, you’ll be required to file a Business Name Registration if your business will be operating under an adopted name or DBA (Doing Business As).
If you’re establishing your Utah business as an LLC or Corporation, you’ll have to file for the entity and choose your business name at the same time.
You may check the Utah Division of Corporations & Commercial Code to see the available names from which you can choose.
After duly registering your unique business name, it’s advisable that you trademark it because registration alone doesn’t prevent the name from being used by someone else.
» Obtain Required Licenses and Permits
You may still have to obtain licenses and/or permits for your Utah business even as the State doesn’t specify a common state of business licensing.
Importantly, the kinds of licenses/permits you need often depend on your business type.
The popular Utah Sales Tax License applies to businesses concerned with the sale/leasing of taxable services or tangible personal property.
In Utah, counties, towns and other local entities usually have their own rules and requirements for business operation.
Although most of them require you to have permits/licenses, you can do well to contact the economic development office, the mayor or certain other sources that should help you decide if you need permits and/or licenses before you can operate in your chosen Utah community.
» File for an FEIN
Issued by the IRS (Internal Revenue Service), FEIN –alternatively EIN –is a 9-digit tax identification number useful for various purposes such as opening a bank account, keeping track of tax returns and identifying a US business.
Although certain businesses do not need an FEIN, you’re required to file for it if your LLC, Partnership, Sole Proprietorship or Corporation business will be hiring employees.