Starting a Business in Utah: 12 Steps Start to Finish
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
Utah Business Facts and Environment
Utah Business Facts
The history of the early 1900s has recorded that the primary economic drive in the Beehive State was mining and farming. The earth and the people of Utah prospered, and in modern times the state has become home to a broad spectrum of economic development.
Salt Lake, Provo, and Ogden are home to a growing number of businesses in IT, software, and aerospace, winning this region the newest nickname of “Silicone Slopes”. The Beehive State is friendly toward business startups with favorable laws and regulations. Individual and corporate taxes remain low, which is encouraging for new companies and established business seeking relocation or expansion.
Major Companies in Utah
Some of the largest companies in America have found their homes in Utah. Autoliv, Nu Skin Enterprises, Alsco, SkyWest, Smith’s Food and Drug, C.R. England, and Sorenson Communications are all large-scale employers in the state.
Startup Environment
A hotbed of tech entrepreneurship, startups and software companies can be found in the “Silicon Slopes” area from Ogden to Provo with Salt Lake City in between. Utah entrepreneurs benefit from low taxes, inexpensive real estate and an impressive pool of talent from top institutions such as Brigham Young University and the University of Utah.
Starting a Business in Utah
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation, or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the fewer times you have to do that the better). In Step 3 we’ll show you how to search for the name in Utah, but we highly recommend you do the following before searching Utah state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
TIP: search misspellings, plurals, variations of spelling, sound-alikes, and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Utah Business Entity Database. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
Restrictions on Utah Business Name & Business Purpose
- A Utah LLC must contain the words “Limited Liability Company,” “Limited Company,” “L.C.,” or “L.L.C.”
- Utah corporations must include a corporate identifier: “Corporation,” “Incorporated” or an abbreviation.
- The company name shall not contain the word “bank,” “trust,” “trustee,” “insurer” or “insurance company”.
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Utah.
How to form an LLC in Utah
- File the “Certificate of Organization” with the Utah Division of Corporations and Commercial Code.
- Once the articles are filed and approved, you will need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Utah
- File the “Articles of Incorporation” with the Utah Division of Corporations and Commercial Code.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
Considerations when incorporating or forming an LLC in Utah
- Check our order form to find out how long Utah is currently taking to process regular and expedited orders.
- Hire a professional Registered Agent. Many people list their home or business address on the Certificate of Organization or Articles of Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent). A registered agent is required for every Utah business.
How to File a DBA in Utah
- You can register your Utah DBA with the Utah Division of Corporations and Commercial Code. Application instructions can be found here.
Ready to register a business in Utah?
- We specialize in registering businesses in Utah.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Learn more about our service for forming LLCs and Corporations
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLCs and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if we form your company.
Step 5: Open Company Bank and Credit Accounts
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.
Step 7: Obtain Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We can help you identify the necessary forms to obtain your business license.
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. Your business needs a system to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years (unless you change your company name or other information listed on the FBN) at which point you’ll need to renew it with the Utah Division of Corporations and Commercial Code.
LLC: Utah LLCs are required to file an annual report each year on or before the anniversary date of the LLC’s formation.
Corporation: Utah corporations must file an annual report every year by the anniversary date of incorporation. LLCs and Corporations will pay a filing cost of $20.
Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.
Important Utah Contacts
Utah Division of Corporations & Commercial Code
160 E 300 S. 2nd Floor
Salt Lake City, UT 84111
Phone: 801-530-4849
Utah Taxation Departments
Utah Labor and Employment Departments
Utah Startup Resources
Small Business Administration (SBA) Utah District Offices
- SCORE Salt Lake – Helping Salt Lake area entrepreneurs to start a new business or grow an existing business.
Utah Legal Statutes
- Utah Revised Business Corporation Act – note this is the broad code that includes various other topics including partnerships and associations.
- Utah Revised Uniform Limited Liability Company Act – the specific act that applies to Utah LLCs.
Online Business Registration – Utah Division of Corporations
Utah Business News
Utah Governor’s Office of Economic Development
Utah Small Business Development Center Network (SBDC)
Utah Green Business – Salt Lake City Green is the face of Salt Lake City’s Sustainability Department.
