How to start a business in Utah in 14 steps (2025 guide)

Starting a business is an adventure—a chance to build something from the ground up. And if you're looking for the perfect place to launch your entrepreneurial venture, Utah offers a wealth of opportunity. How to get started? We’ve got you covered. From navigating the ins and outs of business registration to discovering funding opportunities and understanding Utah's taxes, let us be your helpful guide. Get ready to explore the resources and support that await you as you embark on your business journey in the Beehive State.

Why start a business in Utah in 2025?

Utah offers a supportive environment for small businesses. In fact, 99% of the state’s businesses are defined as “small” by U.S. Small Business Administration (SBA) standards. But that’s not all. Utah consistently ranks high in various national surveys, including U.S. News & World Report's "Best States" rankings, where it took the #1 spot overall. It also scored high in key areas like education (#2), infrastructure (#3), and economy (#3). These accolades reflect Utah's dedication to creating a favorable landscape for businesses.

If you're ready to learn how to start a business in Utah, you’ll find state and local government incentives, low business taxes, and a skilled workforce available.

Wondering how to start a business in Utah? Our small business guide will walk you through the steps. 

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Utah
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity: Types of business entities in Utah
• Step 5: Secure funds: Utah small business funding, loans, and grants
• Step 6: Choose your Utah business name and Utah DBA
• Step 7: Pick a business location in Utah
• Step 8: Find a Utah registered agent 
• Step 9: Get a Utah EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in Utah 
• Step 11: Register for your business license and permits in Utah
• Step 12: Secure insurance for your Utah small business
• Step 13: Prepare to pay taxes on your business in Utah
• Step 14: Set up your business bank account
• Additional resources to get your business started 
• Frequently asked questions

14 steps to starting a business in Utah

Utah's landscape is majestic mountains, red rock canyons … and a breeding ground for business innovation. Want to launch a tech startup in Silicon Slopes or a tourism company in Moab? Below we break down each step, from refining your idea to setting up a foundation for growth. With small business resources and insights especially for Utah entrepreneurs, you’ll be prepared for success.

Here are some initial steps to take to start your Utah enterprise.

Step 1: Decide what type of industry is best for your business 

When choosing the best industry for your Utah business, explore what aligns with your skills, interests, and local market demand. Unsurprisingly, one of Utah’s biggest industries is tourism, followed by technology, financial services, life sciences and healthcare, and advanced manufacturing. Consider your own areas of expertise and how they might fit into these sectors, and research local market trends based on your location, whether that’s Salt Lake City or St. George.

Not sure where to start? Begin by exploring a variety of small business ideas to spark inspiration.

Step 2: Conduct industry research

Research your target market, conduct a competitive analysis, and identify any regulations or licensing requirements specific to your chosen field in Utah. The Economic Development Corporation of Utah and the Governor’s Office of Economic Opportunity are good places to start. The more research you do, the more you will understand your market and how your products or services could stand out.

Step 3: Create a business plan

Your business plan is critical to setting up your business. Use it to establish your business concept and goals, identify your target market, develop a marketing plan, create financial projections, and help secure small business funding. 

A well-rounded business plan typically consists of these essential sections:

• Executive Summary: Summarize your business concept, key objectives, and vision in a brief, engaging way.
• Company Overview: Outline your mission, background, and primary goals, highlighting what makes your business unique.
• Market Analysis: Explore your industry, target audience, and market trends to demonstrate a solid understanding of your field.
• Competitive Landscape: Evaluate your competitors and identify the unique value your business brings to the table.
• Products and Services: Provide a clear description of what you offer, emphasizing the benefits for your customers.
• Marketing and Sales Strategy: Detail your approach to attracting, engaging, and retaining your customer base.
• Financial Plan: Present your financial forecasts, including projected income, expenses, and cash flow.
• Team and Leadership: Highlight the skills, experience, and roles of your management team to showcase their ability to drive success.
• Funding Proposal: Specify the amount of funding required and explain how it will be allocated to achieve your business objectives.
• Appendix: Include supplementary materials like detailed market research, financial reports, or product designs.

Taking the time to craft a thoughtful business plan provides clarity, helps attract investors, and lays a strong foundation for success. You can use a free business plan template or seek support from resources like the Utah Small Business Development Center, which offers no-cost guidance to get started.

Step 4: Choose your business entity: Types of business entities in Utah

Whether you’re going it alone or plan to create a more formal structure with shareholders, your business entity structure will determine how you operate, pay taxes, and your liability. Choose one of these main types of business structures 

Sole Proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.  

Limited Liability Company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

General Partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation 

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Step 5: Secure funds: Utah small business funding, loans, and grants 

Determine how much you’ll need to get your new business up and running.

Costs to start a new business in Utah will vary depending on the type of business and industry, required permits and licenses, and other factors. Expect costs of $1,000 to $10,000 to start your Utah small business. Costs will be on the lower end for a sole proprietor and on the higher end for a corporation engaged in a license- or permit-heavy industry. To determine the remainder of your startup costs, you’ll have to look at your business complexity, needs, and other fees involved. 

Here are a few ways business owners typically cover their funds when first starting out. 

There are a variety of funding opportunities and resources specific to Utah that can help you get your small business up and running. Here are some examples: 

Utah Microloan Fund

The Utah Microloan Fund offers small business loans up to $50,000 with a focus on underserved entrepreneurs. 

Governor's Office of Economic Opportunity (GOED)

The GOED provides various funding resources and programs to support small businesses in Utah, including business relocation services and marketing support for tourism-based companies. 

Utah Rural Small Business Program

The Center for Rural Development provides both financial assistance, information about tax credits, and co-working resources to small businesses located in rural areas of Utah.

Utah Business Loans

The Beehive State also has a lot of small business loan programs to explore. This includes the Utah CDC (Certified Development Company) Loan Program, which offers fixed asset financing through the SBA, financing through Mountain West Small Business Finance, as well as Utah banks and credit unions specializing in small business loans. 

Utah Innovation Center Grants

Access grants and support for innovative small businesses and startups through the Utah Innovation Center. 

Utah Outdoor Recreation Grant

If you have a tourism-supporting business, you may be able to access grant opportunities through the Utah Outdoor Recreation Grant program.

Step 6: Choose your Utah business name and Utah DBA

Select a name for your business that will help you stand out from future competitors. Utah requires that your business name be distinguishable from any other existing business names, fictitious names, or trademarks already on file with Utah’s Division of Corporations and Commercial Code (DCCC). When choosing something that reflects your brand identity you’ll need to conduct a Utah entity search. 

Filing a fictitious business name (DBA) in Utah

Utah requires that all sole proprietorships, general partnerships, corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), or out-of-state companies that regularly transact business in Utah under a name different from their legal name to file a DBA with the Utah DCCC.

Reserve your business name

Once you’ve settled on your Utah business name and your DBA, you can reserve both online.

Step 7: Pick a business location in Utah

Utah offers a prospering business startup environment, whether you’re looking to locate a technology business in a big metro area like Salt Lake City or start an outdoor recreation enterprise in St. George.

When choosing a business location, consider factors like proximity to customers and suppliers, local tax rates, and potential incentives for startups in your industry. Be mindful of regulations, permits and associated fees. And don’t overlook quality of life—evaluate housing costs, local amenities, and whether the area provides access to a skilled workforce. Remember, you also have the option to run your business from home, which can save costs and offer flexibility while still meeting your operational needs.

Here’s an overview of the major business areas in Utah.

Salt Lake City

• Salt Lake City is both the capital and largest city in Utah and a major hub for commerce, finance, and technology. 
• The city offers many resources for small businesses, including access to a large and diverse customer base, a well-educated workforce, and various business support programs.
• For more information, contact the Salt Lake City Department of Economic Development. 

Provo

• Provo has a strong entrepreneurial culture and is also home to Brigham Young University, providing ongoing access to a young and educated workforce. 
• The city offers various resources for startups and small businesses, including access to university research facilities and a supportive business community.
• For more information, contact Provo’s Economic Development Department.  

Ogden

• With a long history in manufacturing and logistics, Ogden offers a solid location for businesses that support heavy industry or transportation.
• Ogen is also a growing center for outdoor recreation businesses, given its proximity to the mountains and winter ski areas. 
• The city provides various incentives and support programs to attract and retain small businesses. Learn more through the Ogden’s Business Information Center.

St. George

• A rapidly growing small city, St. George offers an ideal location for a tourism or outdoor recreation business given its proximity to Utah’s famous national parks, including Zion, as well as state parks and national forests.
• To learn more about local business incentives, contact St. George’s Economic Development Department. 

Park City

• Known for its ski resorts and Sundance Film Festival, Park City offers an array of unique business opportunities in tourism, hospitality, and entertainment.
• For more details on starting a business in Park City’s Economic Development Corporation.

Step 8: Find a Utah registered agent

Utah requires a registered agent for every business entity, including corporations, LLCs, and partnerships. The registered agent must have a physical street address in Utah and be available during regular business hours to receive legal documents and government notices on behalf of the business.

Who can be your Utah registered agent?

A registered agent in Utah can be an individual resident of the state or a business entity authorized to conduct business in Utah. The registered agent can be a member of your company, an employee, or a professional registered agent service. It's crucial that the agent is reliable and available during standard business hours to ensure that all essential documents are received and handled promptly.

Step 9: Get a Utah EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Utah doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Do you need an EIN in Utah?

Utah businesses must have an EIN if: 

• They have employees
• Operate as a corporation. LLC, or partnership 
• File employment, excise or alcohol, tobacco, and firearms taxes 
• Withhold taxes on income (other than wages) paid to a non-resident alien

Sole proprietors without employees may not need an EIN but can still obtain one for banking or credit purposes.

Utah tax and employer identification requirements

Utah businesses must also comply with state-specific tax and employer identification requirements. This includes registering for various state taxes, such as sales tax, withholding tax, and unemployment insurance tax, depending on your business type and activities:

LLCs must register with the Utah State Tax Commission for state tax purposes. 

• Sole Proprietorships, if operating without employees, may not need to register for state taxes, but may need to register for sales tax purposes, if applicable.
• Corporations must register with the Utah State Tax Commission and file necessary corporate tax documents. 
• Partnerships must register for state tax purposes and comply with Utah’s partnership tax requirements.

Step 10: Register as a small business in Utah

After choosing your business structure, you'll need to register it with the Division of Corporations and Commercial Code. The fastest and easiest way to do this is through the OneStop Online Business Registration website. The good news about opening a small business in Utah is that registration is relatively straightforward. Review the following requirements and fees.

Visit the Division of Corporations and Commercial Code website for the most updated information.

Step 11: Register for your business license and permits in Utah

While Utah has no statewide business license, you may need a local license from your city or county. Specific industries, like healthcare and cosmetology, require state-level licenses. If you sell taxable goods, you'll need a sales tax permit. Home-based businesses may need a permit, too. Check with your local government and the Utah Department of Commerce for details on licenses, fees, and renewals.

Do you need a business license in Utah?

Most businesses in Utah will need to obtain a business license from the city or county where they operate. This ensures compliance with local regulations, including zoning, safety, and health standards. Some businesses might also need state-level permits depending on their industry.

Examples of common business licenses and permits in Utah

Here’s a breakdown of common small business licensing and permitting requirements in the Beehive State. 

• Sales and Use Tax License: Required for businesses selling tangible personal property or taxable services. This license is obtained from the Utah State Tax Commission.
• Health permits: Necessary for businesses in the food service industry, such as restaurants and food trucks. These permits are issued by the health department in your locality.
• Professional licenses: Required for professionals in certain fields, such as healthcare, legal, and financial services. Obtain these licenses through the Utah Division of Occupational and Professional Licensing.
• Building and zoning permits: Needed for businesses involved in construction or those making significant alterations to their premises. Local city or county planning departments issue these permits.
• Liquor license: Required for businesses that manufacture, sell, or distribute alcoholic beverages. This license is obtained from the Utah Department of Alcoholic Beverage Services.
• Environmental permits: Necessary for businesses that may impact the environment, such as waste management or manufacturing facilities. These permits are issued by the Utah Department of Environmental Quality.

Keep in mind that some industries and locations require special permits, and most licenses need annual renewal. 

Step 12: Secure insurance for your Utah small business

Most Utah businesses will need some type of insurance, whether property insurance in the event of severe weather damage or commercial auto insurance for a company with a vehicle fleet. 

Types of small business insurance in Utah

Workers’ compensation insurance is mandatory in Utah, and it protects your employees in the event of work-related injuries or illnesses. This insurance helps cover medical expenses, lost wages, and disability benefits. 

However, you may also need to purchase the following other types of business insurance. 

Step 13: Prepare to pay taxes on your business in Utah 

Make sure you understand your tax obligations as a small business owner in Utah before you begin operations. Fortunately, Utah boasts a relatively low corporate income tax rate compared to the national average. However, the state collects revenue through various other means, including sales taxes and various industry-specific taxes.

Sales tax 

Utah imposes a sales tax on the sale of tangible personal property and certain services. The state sales tax rate is 4.85%, but local jurisdictions can add additional sales tax, making the total rate vary by location.

Use tax

Use tax applies to goods and services purchased outside of Utah but used within the state. Businesses are required to pay use tax on items purchased tax-free if the goods are for business use and not for resale.

Corporate income tax

The current corporate income tax rate is 4.55%.

Payroll taxes 

If you have employees, you’ll be liable for payroll taxes, including state unemployment insurance and Utah withholding tax. For 2024, the minimum state unemployment insurance tax rate is .3% and the maximum overall tax rate is 7.3%.

Property tax

Businesses owning real property in Utah are subject to local property taxes. The rate and amount vary by county and municipality.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Tax credits and incentives for Utah employers

Utah offers various tax credits and incentives to attract and retain businesses, particularly in targeted industries. Here are a few programs: 

• Enterprise Zone Tax Credits: Businesses operating in designated enterprise zones may qualify for various state income tax credits, including credits for job creation and capital investment.
• Research Activities Tax Credit: Utah offers a tax credit for businesses engaged in qualified research and development activities in an effort to foster innovation and technological advancement within the state. 
• Motion Picture Tax Credit: Businesses in the film production industry may qualify for tax credits and incentives based on the amount of money spent on production within Utah.
• Federal Work Opportunity Tax Credit (WOTC): A federal tax credit incentive that Congress provides to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

Step 14: Set up your business bank account

One of the first things you need to do when starting a small business in Utah is set up a business bank account. Separating personal and business finances helps maintain clear financial records, simplifies tax preparation, and protects personal assets. It also enhances your business's credibility and makes it easier to track profitability and growth.

Here’s how: 

1. Get your paperwork in order, from registrations and permits to licenses and your EIN, to open your small business bank account. 
2. Look for a bank that provides the loan products and services you need. 
3. Apply for a credit card either through your bank or a third-party company so you can begin establishing business credit and charging business-related expenses. 
4. Choose an accounting software and tie it to your business bank account to manage everything from payroll to invoicing. 
5. Find a professional accountant who understands your industry and Utah tax laws to help you navigate finances and other bookkeeping items.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

Utah Small Business Development Center: Helps small business owners start, own, and operate successful small businesses. 

The Utah Division of Corporations and Commercial Code: The Division’s mission is to strengthen trust in Utah’s marketplace by facilitating corporate and commercial code filings and providing reliable information to the public. The Division is the central authority for registering statutory business entities, trademarks, and Uniform Commercial Code filings in Utah.

Utah.gov: The official government portal for the state of Utah, providing a wide range of resources and information for residents, businesses, and visitors. It acts as a central hub for accessing various state services, including business registration, licensing, tax information, and economic development resources.

Utah Microloan Fund: A non-profit Community Development Financial Institution (CDFI) that provides financial services in low-income communities and to people who lack access to financing. Its mission is to empower underserved communities throughout Utah by providing business training and microloans to entrepreneurs in start-up and existing businesses that do not qualify ​for traditional funding sources.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a small business in Utah?

The time it takes you to set up a small business in Utah varies greatly on the type of business, the complexity of the industry in which you work, and whether or not you hire employees. Permits, funding, equipment, and regulations also play roles in the timeline. It can take a startup anywhere from months to a year or more to launch.

Does my Utah small business have to collect sales tax?

If your business sells products or tangible property, you’ll be liable to collect sales tax. Repair and maintenance services, lodging providers, and amusement parks are also liable. 

Why should I start a business in Utah?

Nicknamed the Beehive State, Utah has been nationally ranked within the top three states in the country as the best states for business. The state's biggest industries include mining, cattle ranching, salt production, government services, and tourism. Major companies, including Overstock.com, 1-800 Contacts, and Ancestry.com, are all headquartered within the state. Utah receives an A+ in the overall friendliness and ease of starting up a business.

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