Utah is arguably a great destination for entrepreneurs. Yes, starting your own business can be thrilling and exciting, but also daunting. But not to worry, if you are looking to start your own business in Utah, here’s a full guide to help you.
A recent study done by the Chamber of Commerce has shown that about 287,803 small businesses operate in Utah, and they make up 99.3% of the state’s businesses.
The report went ahead to state that about 572,888 Utah residents are employed by these small businesses, accounting for 46.2% of the state’s private workforce.
In a recent report, Forbes named Utah the 2nd best state for business in the nation. Utah was said to be ranking in the top five in several categories, including labor supply, regulatory environment, and growth prospects.
As we proceed in this article, I’m going to share with you trusted tips on how to start a business in Utah.
Meanwhile, see the table of content here below for an overview of what to expect in this article.
So let’s get started!
Why Start A Business in Utah?
As was stated in our opening words, Forbes recently named Utah the 2nd best state for business in the nation. This was after the state ranked in the top five in several categories, including labor supply, regulatory environment, and growth prospects.
According to Tax Foundation, Utah is the 9th state in its 2022 Business Tax Climate Index based on the strength of its 5th ranked property tax and 10th ranked individual income tax.
Interestingly, 79.27% of Utah startups survive beyond their first year of existence.
How Much Does it Cost to Start a Business in Utah?
Utah State has an online business registration site to help facilitate your registration process. The fee collected on the site is the filing fee for the Utah Department of Commerce, Division of Corporations, and Commercial Code.
Usually, the registration fee ranges from $22 to $52 and is non-refundable. And the cost for business incorporation is $70.
Do I Need A Business License to Start A Business in Utah?
Utah does not have a certain stipulated statewide business license for business operators. But businesses may still need to acquire some kind of permission for them to fully operate in Utah.
How To Start A Business in Utah?
To start a business in Utah is quite simple if you keenly follow the steps I’m going to show you here.
Truth is, you might meet a few rigors at some point. But if you consistently follow the steps here, you’ll successfully start up your business.
So let’s quickly look at some of the ways.
Starting a business in Utah requires these three basic steps:
#1. Develop an idea
The first step of an entrepreneur very often is to start with a good idea. You’d really need to ask yourself some very important questions. You have to figure out the products that people in your location really need that are not already on the market.
It is also important to relate your business idea with whatever be your strengths. If your business idea is not something you totally believe in and can sell effectively, it will be much harder to succeed.
#2 Write a Business Plan
To start a business in Utah, you need to write a business plan. This is one of the initial steps while planning to start your business.
A written plan for launching and operating your business is essential to your success. A well-prepared business plan starts you off on solid footing, makes you more attractive to potential lenders, helps you make sound managerial decisions, and better positions your company for growth.
Every business plan must contain an executive summary, financial plan, operational and managerial plan, and marketing strategy.
In Utah, everyone who starts a business should have a basic understanding of accounting and income forecasting.
You need to read this: Starting A Business After College | 10 Avoidable Mistake To Look
#3 Choose a Business Type
Before choosing a business type, you should know about the main business structures in Utah and then follow the same too. Although we will list them below, you may still consult an attorney if you do not know which business type to form.
The business types are:
a. Assumed Names/DBA
This business type is for sole proprietors or general partners who do not conduct business with the full names of each individual doing business with them. They have to file a Certificate of Assumed Name.
Similarly, any corporation, limited partnership, or LLC that conducts business under a name other than the exact legal name of the entity, must file a Certificate of Assumed Name.
b. Utah Business Corporations
This business type is formed when two or more persons come together to form a corporation. The corporation has a general business purpose and has legal power of its own.
c. Utah Nonprofit Corporations
Any individual who wishes to form a nonprofit corporation in Utah must file Articles of Incorporation to include that there will be no monetary gain and no paying of dividends to the members. You may also apply for tax exemption if you are starting a nonprofit organization.
Foreign Corporations (Business, Nonprofit, Cooperative)
d. Utah & Foreign Limited Liability Companies
LLC can be formed by two or more people. It is a business organization that combines flow-through taxation with limited liability.
This means that it is a business that enjoys a liability shield (the owners are legally responsible for the business debts only to the amount of capital they invested) of a corporation and the flexibility and tax pass-through advantages of a partnership.
e. Foreign and Utah Limited Liability Partnerships
For you to start this type of business in Utah, an existing partnership will register to take part in the advantages which a limited liability company enjoys.
f. Utah Public Benefit Corporations
A public benefit corporation is a new type of profit-making business to start in Utah in which the business promises to provide a general or specific benefit to society.
This benefit may not necessarily be related to the business the corporation operates. The business will submit an annual report that details how they met their public benefit.
There is no tax advantage to being a public benefit corporation, or to investing in one. There are no tax deductions to investors, and the company pays corporate tax on all profits.
Lastly, you must file for a public benefit corporation in person. It cannot be done online.
#3 Register/file your Business
You have registered your startup in Utah either by mail or in person. Before we go on to mention how to register your business, business registration does not give you a tax ID number. You have to file for this separately through the Utah Department of Revenue( for a state tax ID).
This will be helpful: What Is A Trade Name For Business? Registration, Procedures
How to Register your Business in Utah
Almost all businesses in Utah must register with the Office of the Utah Secretary of State.
Before registering your business, you must decide the structure/type of business you want to register.
Step1: Create an Online Account
Create an online account and log in. Creating an online account here.
Step2: Choose a Business Structure
Go to the Business Filings Online page and click on the business structure you would like for your business.
Step3: Answer questions
Answer the questions about the non-profit status and professional status.
Step4: Verify Business Name
Verify if the name you would like your business to bear is available. To do this, just type the proposed name into the search box. You don’t need to type the entity ending (LLC, Corporation, etc) at the end, just use the drop-down menu to choose the way you would like the suffix displayed.
Take note of the following information as regards names;
Step5: Upload Documents
Enter other requirements. For the documents, it is recommended you save them as a PDF and the size should be less than 2MB.
The file name must be 10 characters or less and contain no punctuation, spaces, or special characters.
Again, at the bottom of the forms is a place for signatures, typing in your name satisfies this requirement.
Step6: Submission
Make sure to review the file before clicking submit. After this, you’ll receive an Order Number specific to your filing. Record the Order Number before continuing. Then click on the “Go to US Bank” button.
Once on the US Bank page, you will have the option to set up an e-service account with US Bank. The US Bank e-service account will store your credit card information for future transactions.
You can bypass the US Bank e-services registration by clicking on “pay without registering”. This allows you to process a one-time payment with your credit card.
Step7: Confirmation Stage
After payment, you will receive a confirmation page along with a payment confirmation number. Print out the confirmation page or record the Confirmation Number. You will receive an email when the filing is processed as well as an email for the payment from US Bank.
Step 8: Final Stage
You will receive an email that your file has been processed, it contains a link where you can download a copy of the filing.
All filings are kept in your Transaction History for 90 days. After which it is automatically wiped. You can access the transaction history by signing into your online account which you created in step1 and clicking on Transaction History. Click on the order number on the right and it will give you an option to download the filing.
#4 Define Brand
Creating a brand builds customer loyalty. It eliminates competition in the business world.
Ensure you have a unique selling point, a strong online presence, and great advertising channels.
#5 Establish a Web Presence
Social media will create awareness for your brand that you may not get operating locally in a year. It enables you to reach your target audience faster and even cheaper.
In addition, a professional website is instrumental to the long-term success of your business, regardless of what industry you. It enables customers to find your products and services.
Consider setting up social media accounts, registering for a Google profile, and creating accounts on review sites like Google Reviews.
Use social media to your advantage!
Conclusion
The process of starting a business in Utah is straightforward. And we have explained all there is to know.
The State’s Chamber of commerce will inform you of any other process if need be.
The Wealth Circle cares!
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