Starting a Business in Utah? Here’s All You Need to Know!
For a business’s healthiest possible roots, business owners will look for the state with the most fertile soil. What makes a state attractive for starting a business? Maybe it’s favorable tax rates. Perhaps they’re interested in a thriving economy or innovation opportunities. Some may want active community-mindedness, tourism, and more. Where do you start?
We can tell you! One of the best states for starting a business is Utah.
Is Utah a Good State for Business?
The short answer is yes.
For one, USNews ranked Utah1 at #7 on its list of The 10 Best States for Business in 2023. Additionally, Utah snagged the top spot2 on USNews’ overall Best State rankings. For economy and fiscal stability, Utah again hit #1. In infrastructure, education, and healthcare, the Beehive State earned placement in the Top 10.
Specifically for business, Utah has an attractive flat tax system, a growing economy3 attributed to a young, well-educated labor force, and a favorable environment for business. Utah’s government routinely reviews the state’s laws and business regulations to remove prohibitive economic restrictions on its residents and local businesses.
No matter how you look at it, starting a business in Utah is an attractive proposition.
How Much Does It Cost to Start a Business in Utah?
The first step to starting a business in Utah is derermining what type of business entity best fits your business. The right type of business entity can protect your personal liability from decisions made on behalf of the business.
The business type also sets up how revenues are handled for tax purposes. The business entity types are as follows:
- Sole Proprietorship.
- Limited Partnership (LP).
- Limited Liability Partnership (LLP).
- Limited Liability Limited Partnership (LLLP).
- Limited Liability Company (LLC).
Once you choose the best entity for starting a business in Utah, you can determine the types of forms for registering your business. Sole proprietorships and partnerships don’t need to be registered. As for the revenues and tax questions, business attorneys or accountants are the best professionals to advise you.
As for the cost of starting a business in Utah, the registration depends on entity type. There is a $22 fee to file a “doing business as” or DBA form with the Utah Division of Corporations and Commercial Code. This form is also online through the OneStop service, which helps new business owners streamline the process.
For LLCs and Corporations, the two most common business entities, the process is slightly more complex. An LLC requires filing a Certificate of Organization, which has a filing fee of $54. The OneStop service is available for this, too, or forms can be mailed in.
A Corporation must prepare Articles of Incorporation. The filing fee for these is also $54.
There is an additional processing fee for both LLCs and Corporations of $70, so a total of $124.
The additional costs of starting a business in Utah depend wholly on the type of business you start, what other kinds of licensing you need, and the amount of capital it takes to ensure your business has the best possible start.
How Do I Start a Small Business in Utah?
Your next step for starting a business in Utah is to secure a bank account and funding for your unique business idea. By this point, you’ve likely developed your business plan—most people would have before determining their business type and filing their forms.
Once you have secured funds and partnered with investors, you’re ready to find the perfect location for your new business! Site selection is crucial to the success of your new business. Demographic data can be particularly helpful in helping you choose the neighborhood that best suits your new venture.
Having a site selected can help you obtain the necessary permits and licensing you’ll need to renovate, remodel, or otherwise build out your new business’s physical structure. You may require building permits if more extensive renovations or construction is necessary. Otherwise, you’ll need only the permits and licenses required for the daily operations of your new business.
You should also secure insurance, such as worker’s comp and unemployment, which are requirements for starting a business in Utah. Other types of insurance may be desirable, like commercial property and disability insurance.
What Licenses Do I Need to Start a Business in Utah?
Licensing is very important for starting a business in Utah. What sort of business you operate will determine the kinds of business license requirements you have. For example, a bar or restaurant serving alcohol will require a liquor license. A thrift store may need a reseller’s license.
Utah Commerce lists the business licensing resources4 by town and county where entrepreneurs can begin the licensing process.
Consider Starting a Business in Utah with Café Mexicali
Does all of this sound complicated? It can be tricky to navigate some of these initial issues, especially for new entrepreneurs opening a business for the first time.
That’s why opening a franchise, like Café Mexicali, can be one of the best businesses to start in Utah rather than opening a business by yourself. We’ve been in the restaurant business for nearly 2 decades, with experience launching multiple locations that have flourished in Colorado.
In fact, our loyal customers love us so much that we’ve made it into the Fort Collins Restaurant Hall of Fame.
Even better, we’re expanding beyond Colorado’s borders!
We’re seeking qualified investors who are ready to bring our menu of the freshest, highest-quality ingredients and creative flavors to life in places where new customers get to experience us for the first time!
Call today to get started!
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