How Much Does a Business License Cost in Utah?

Many businesses in Utah are required to obtain licenses and/or permits. Although there’s no standard statewide licensing requirement, you can expect to need at least one license—and likely two or more. In most cases, these licenses are quite affordable even for new and small businesses.

Do you need a business license in Utah?

There are no standard statewide business licensing requirements in Utah, but almost all businesses in the state need at least one license. You’ll likely need a statewide sales tax license, and many municipalities and counties have their own licensing and permitting requirements. Some professions and industries have additional statewide (or even federal) requirements.

The easiest way to find local licensing and permitting requirements is by contacting the city clerk and county clerk where your business operates. Start with where the business is located, and then check with any other locations where you provide services. A city clerk won’t apply if you’re in an unincorporated area.

You can also check city and county websites. The Division of Corporations has a list of local websites and phone numbers. 

Specific statewide licenses are needed for alcohol sales, firearms, medical care, etc. You should probably already be aware of whether your industry requires any specific statewide licenses. Check with the Division of Corporations for any state requirements, and a federal agency if there’s one that governs your industry.

How much does a business license cost in Utah?

Since Utah doesn’t have a single license requirement, the cost of licensing a business varies. A home-based business in an unincorporated area might only need a sales tax license, which is free. A regulated business in Salt Lake City could spend hundreds, or even thousands, on licenses.

If you’re starting a small business in Utah that is fairly standard and registered as an LLC, $100 would likely more than cover basic licensing costs. Costs can be higher for certain businesses, though.

If you do need to purchase a business license, find out whether the license has to be renewed and its renewal costs. Many licenses renew annually.

Types of business licenses in Utah and their cost

Location	License / Permit	Issuer	Potential Cost
Statewide	Sales & Use Tax License (Seller’s Permit)	Utah State Tax Commission	$0
Statewide	Professional Licenses	Utah Commerce – Division fo Professional Licensing	varies
Salt Lake City	General Business License	Salt Lake City	$28 – $193 (Dependent on type of location)
Salt Lake City	Specific Business Licenses	Salt Lake City	$5 – $1,000+ (Dependent on type of business)
Provo	General Business License	Provo	$125 – $800 (Dependent on number of employees)
Summit County	General Business License	Summit County	$125 – $350 (Dependent on type of business)
Local Governments	Food License	Municipality or County	varies

These are just some of the licenses that businesses may need. Other localities have their own requirements and fees.

Sales & use tax license

Almost all businesses in Utah are required to have a Sales & Use Tax Permit, or “seller’s permit.”  This lets a business collect sales or use tax, which must then be remitted to the state.

Obtaining a permit is free through the Utah State Tax Commission. To get one for your business, go to the commission’s Tap Business Registration Page, and complete registration.

Industries and the licenses they need in Utah

Businesses across many industries might need industry-specific licenses, although requirements vary by location. A few examples of different industries that commonly have additional requirements beyond a seller’s permit are:

• Professional Services: Many professionals, ranging from healthcare providers to plumbers, need a license from the state. Check the full list on the Division of Professional Licensing’s website.
• Food Services: Restaurants, food trucks, festival food vendors, and any other businesses serving food or drink might need a license or permit from the local health department.
• Alcohol Sales: Any business selling adult beverages must have a license from the Department of Alcoholic Beverages. Fees vary depending on what’s served and the type of location.
• Contractors: Both general contractors and specialty contractors must be licensed through the Division of Professional Licensing. A surety bond may also be required, and construction projects usually require local permits.
• Home Businesses: Even home businesses sometimes need a general business license from their city or county.

Renewing your business license in Utah

Sales and use tax must be remitted to the state regularly, anywhere from monthly to annually based on how much your business collects. The seller’s permit doesn’t have to be renewed, though.

Many professional licenses must be renewed periodically, but the time frame varies with profession. Renewals usually require a certain number of continuing education units (CEUs).

It’s common for local licenses to renew annually, with late fees imposed if you fail to renew by the deadline. Double-check renewal requirements of any local licenses, and mark the renewal date on your calendar so you don’t forget.

Renewal fees are usually the same or slightly less than the initial license fee. Late fees can be steep, however, with penalties ranging from 20% to potentially double the renewal fee.

Conclusion

Business licenses are just one piece of getting your new venture off the ground. From filing formation documents to creating an operating agreement and choosing a registered agent, there are several other steps involved in registering an LLC in Utah. If you’re looking for a bigger picture of the process, our guide on how to start a business in Utah walks you through it all. Tailor Brands can guide you through each step and help you launch your new business with ease.

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