How to Get Small Business Licenses and Permits in Utah

Utah business license

If you’re thinking about starting a small business in Utah, then chances are you have already looked into Utah business licenses and permits. The bad news is, these can be a little bit hard to understand. The good news is we’re here to talk about just that today.

This post will cover the purpose of business licenses and permits, how to get them in the state of Utah, and some of the most frequently asked questions. So grab your cup of coffee and your legal pad, and let’s dive in.

The purpose of business licenses and permits

The main purpose of small business licenses and permits is to prove to the pertinent jurisdiction that you are allowed to do business there. Having these documents on hand ensures that you are compliant with the laws and regulations that govern your area of operation.

This is important both to government bodies, who need such documents for auditing and compliance purposes, and to you because they legally protect you.

Business licenses vs. permits

There are a few differences between a business license and a permit.

The main difference is that a business license says you are legally allowed to operate your business. Permits, on the other hand, authorize you to perform certain activities while running your business. Think of hanging signage or serving alcohol.

For that reason, every business will need a license, while not every business will need the same permits or even necessarily need permits at all.

They also differ in the requirements needed to obtain each. Utah business licenses and permits are all governed at the county or city level, where you will have to follow specific instructions for each depending on what you need.

Types of business licenses and permits you might need for your Utah business

Again, the small business licenses and permits you need will depend largely on the type of business you are running. However, there are some common threads that all businesses share in Utah.

State of Utah licenses and permits

Utah does not have a standard statewide business license. The one state level requirement is that you get a seller’s permit. This document says that you are allowed to sell goods or services that are subject to sales tax in Utah.

Other than that, licenses and permits vary between cities and counties. You will need to check your area to figure out what these are and what you need to do in order to be in compliance.

There are a number of factors here. Visit the Utah Commerce website and research your area’s regulations. This will help you understand which licenses and permits apply to you. The site contains links to different areas, with specific information and resources for getting your business up and running in that area.

Note that in order to get the right business license, you will need to have already registered your business with the Division of Corporations and Commercial Code of Utah. Most small businesses, and most people running a side hustle, will register as an LLC or limited liability company. Whatever entity you incorporate as, however, you will need to do so before getting your license.

Industry-specific business licenses and permits

In some cases, you may need a license that is specific to an industry. For instance, in Utah, you will need a specific license for running a hair salon. The same goes for selling used cars.

Specialty-specific federal business licenses and permits

Also, business activities that are regulated by a federal agency will also need a federal license or permit. Businesses in the transportation sector fall under this heading. So do businesses that are related to firearms, nuclear energy, and agriculture.

The best way to check which small business licenses and permits might be needed is to visit the U.S. Small Business Administration website. There, you can search out your specific business activities to see if they are federally regulated.

How to obtain business licenses and permits in Utah

So how exactly do you go about getting Utah business licenses and permits? Here’s a step-by-step guide to help you out.

Step 1: Determine which permits and licenses your business needs

First and foremost, you have to figure out which small business licenses and permits you actually need for your business. Only then can you apply for the correct ones.

At a minimum, you will need a seller’s permit. It is extremely unlikely that you will be selling goods or services that do not fall under the sales tax heading.

To determine which other small business licenses and permits you will need, check the following two sites:

  1. Utah Commerce website
  2. U.S. Small Business Administration website

Between the two of these, you should be able to figure out how to get your license and which permits pertain to the types of transactions your business will cover. If you still aren’t sure, it’s a good idea to reach out to one of those government bodies using the contact information on their websites.

In the case of the Utah commerce website, you will find that contact information on the right-hand side of the website, next to the pertinent county and city.

If you need to speak to the US Small Business Administration by phone, you can call 800-827-5722. While you will no doubt enjoy a lot of time on hold for the privilege, you will eventually be able to speak to a real person who can answer your questions.

Ideally, you should speak to the governing body that directly handles the type of permit you need. For instance, the Nuclear Regulatory Commission is responsible for any nuclear energy permits, while the National Oceanic and Atmospheric Administration Fisheries Service governs commercial fishing enterprises, and so on. (The full list is too long to detail here, but if you click on the SBA link above, you will find it.)

Step 2: Submit all required documents and application fees

Know what you need? Now it’s time to get it.

Again, it is impossible to detail instructions for every single potential document and fee. The range of possible business types is simply too varied to know what will apply to you. Instead, take a look at the list of licenses and permits you just made, then research the websites where you can submit your information.

There are, however, a few basic steps.

Apply for the seller’s permit

There is no fee for the seller’s permit, but you will need to complete it before you begin doing business. To apply for the seller’s permit:

  1. Go to the Utah Taxpayer Access Point website.
  2. Click on the link that says “Apply for a tax account(s) – TC-69.”
  3. Complete the required steps.

Get a business license in your area

Let’s say you want to run a business in Salt Lake City. To do so:

  1. Visit their Business Licensing page.
  2. Read through the rules that govern each type of license, such as a commercial, residential, or home-occupied business.
  3. Create an online account where you can submit your application.
  4. Complete the required steps.
  5. Pay fees as necessary, which will vary depending on where your business is, how many employees you have, and the necessity of background checks.

Get specialized licenses and permits where necessary

Depending on your business, you may need other Utah business licenses and permits. For instance, you will need a current license to practice law or medicine.

Or, if you are selling alcohol, you will need a permit to do so. This varies based on whether you’re serving at a single event, serving all the time, selling liquor retail, or pouring it out for people and a bar setting … and so on. The Utah Department of Alcoholic Beverage Services will have more information, as will industry-specific websites in general.

Step 3: Track the status of your application and await approval

Make sure at the time of submission, you identify how to track the status of your application. The government bodies through which you apply for small business licenses and permits will almost always offer you a projected window of time, so write that down and check back once it has elapsed.

Step 4: Renew licenses and permits if needed

Because different licenses and permits have different expiration times and terms, make sure to track them individually. This is also information you will receive at the time of applying for licenses and permits.

When you get the information about when Utah business licenses and permits expire, make a note in your calendar to renew in the months leading up to this. That will help you avoid fines and penalties. In some cases, if you allow a license or permit to lapse, you will have to suspend business operations entirely until you resolve the issue.

Conclusion

Getting your small business licenses and permits together may feel challenging, but with these resources on hand, you should be just fine.

FAQ

If you do not obtain the correct Utah business licenses and permits, you are not legally allowed to do business. This could expose you to significant risk.

In Utah, sole proprietors do not need to file paperwork with the state. That means you can simply begin doing business without filing as a legal entity.

However, business registration is different from licensing and permitting. Typically, sole proprietors still need small business licenses and permits, so perform the same research steps listed above.

Utah business licenses and permits will vary in rules and regulations. Always check the specific license or permit for the rules that pertain to it.