How To Get A Business License In Utah: Everything You Need To Know

The short answer is yes, your business likely needs a business license in the state of Utah. There is not a statewide business operating license but the state government does issue a sales tax registration, commonly called a seller’s permit, which is required if you intend to sell or lease tangible property or services subject to sales tax. Your local city or county may also require other licenses or permits depending on your business activity or location.

When Do You Need a Business License in Utah?

A large number of Utah cities and counties will require businesses to obtain a general business operating license, though each city will have different rules or restrictions. In Salt Lake City, all businesses are required to have a city business license, which can be acquired by visiting the city website. Even Green River, with a population of only 856, requires each business operating within city limits to obtain a business license.

In Utah, many cities do not require a general business license but may require a specialty business license for any of a list of regulated professions. This is especially true for any businesses the state deems immoral or “vice.” Utah’s strong history of association with the Church of Latter-day Saints or Mormonism is often casually and historically viewed as a big part of the reason for these regulations.

We strongly encourage business owners to research the specific license regulations in the relevant cities of business operation to ensure compliance with all city or county laws.

Likely any kind of business you are operating in the state of Utah will be required to carry at least one or, more likely, multiple business licenses to legally operate. Determining which licenses are required for your business and which local, county or state agency you need to register those licenses with can be overwhelmingly confusing.

Check with your local city hall or county clerk regarding localized licenses and with any state agencies that may regulate your business to determine if you need any specialized licenses. A list of all Utah cities and counties can be found on the Utah state website. Few official online resources are available for assistance in figuring out which licenses you may need.

Local Business Licenses in Utah

The most common type of business license you will need is a general business operating license, often called simply a “business license” or a “general license.” In some Utah cities, these may have other names but nearly every city will require businesses to obtain a license before beginning operation.

Some cities and unincorporated areas of counties may only require special licensing for certain regulated industries and forgo a general business license. For a full list of specialty industries, or to apply for your local business, you can head to your city or county clerk’s website. If the website is unable to answer your questions, you may need to call the county offices.

Additional Local Permits

Additional permits or licenses are likely required either on a city or county level when you are starting a new business in Utah. Occupancy permits and home occupation permits are required for businesses in certain cities and any new construction or renovation will require a building permit from the planning department.

If your business serves food or provides accommodations, you will almost certainly require a permit from your local health department. This may be in addition to statewide licensing you must obtain for food service or public accommodations. These permits are not the same or included in a business license so you should research to see which, if any, you may need before starting your business.

Utah Statewide Licenses

All businesses in Utah are required to obtain a sales tax license, sometimes referred to as a seller’s permit, if engaged in business in Utah and intending to sell or lease tangible property ordinarily subject to sales tax. You can apply for this permit on the Utah Taxpayer Access Point web portal.

The influence of specific religions in Utah has often been blamed for the intense control Utah exercises over alcohol sales, distribution and manufacturing. These industries are regulated by the Utah state government. For more information about the special licensing required for businesses that sell or distribute alcohol, head to the Utah Department of Alcoholic Beverage Control. 

Federal Licenses and Permits

The majority of small businesses will not need to obtain any federal licenses or permits but, if your business conducts any activities regulated on the federal level, you may need to apply for some or many sorts of federal licenses or permits. Common federal business licensing areas include:

• Agriculture
• Alcoholic sales, serving, distribution or importing
• Aviation
• Firearms, ammunition and explosives
• Fish and wildlife
• Commercial fisheries
• Maritime transportation
• Mining and drilling
• Nuclear energy
• Radio and television broadcasting
• Transportation

Step 1. Name and form your company

If you have not already started a company, your first step before applying for a Utah business license should be to do so. For help starting your business, check out one of our Forbes Advisor guides on starting a business, forming an LLC and, for those who desire assistance with forming a commonly used business structure, Best LLC Services. Once you have officially started your business, get your paperwork in order and make sure you have:

• A business name
• An EIN (Employer Identification Number) or SSN (if you’re a sole proprietor)
• A business entity type (LLC, partnership, corporation, etc.)
• A business address and phone number
• A business plan that includes anticipated revenue and expenses
• A certificate of insurance (COI) for your business insurance policy where required

Step 2. Apply for your Utah business license

The second step for obtaining a Utah business license is to apply for the basic, generic business operating license offered by your city or county. Keep in mind some Utah cities or counties do not require a general business license. To apply, fill out the appropriate forms on the website of your city or if you live in an unincorporated area, your county clerk.

Also be advised of state-level registration for the Utah State Tax Commission, the Utah Labor Commission, the Utah Department of Commerce, the Utah Department of Workforce Services, and the Utah Department of Environmental Quality. To learn more, click here.

Step 3. Determine which other local licenses may be applicable

You’ll also want to check with the local county or city clerk to determine if any other local licenses are required for your business.

Step 4. Apply for any additional statewide license(s) you need

Your business will need to apply for a sales tax license, commonly called a seller’s permit, if you are renting or selling any tangible goods in the state of Utah. Head to the Taxpayer Access Point web portal to apply for this seller’s permit. You should also check to see if your specific profession is regulated by a state agency requiring a license on the state level.

Step 5. Apply for federal licenses and tax treatment (as necessary)

Additionally, although the federal government is not responsible for issuing any general business operating licenses, you may need to obtain licenses with specific government agencies depending on your business’s industry. Several industries may require permits from the federal government, including aviation, agriculture, fishing, firearms, alcohol sales and transportation.

In the state of Utah, the price for a standard business operating license can vary from city to city. For example, obtaining a new business license in Salt Lake City requires a $100 application fee. Provo scales its business license fee based on the number of employees involved in the business and collects different fees for different types of businesses. A business of one to five employees in Provo pays an annual fee of $125 for business licensing, while a business of 100-plus employees must pay $800 annually.

Agencies across Utah handle business licensing differently but the majority require licenses to be renewed every year or every two years. When in doubt, contact the agency responsible for issuing your business license.