Registration and Licensure
Registering and obtaining licensure in Utah means officially establishing your business with the state and local governments. It involves filling out necessary forms and paying fees to comply with legal requirements. This process is crucial as it ensures your business operates legally, abides by regulations, and can avoid potential legal issues. Proper registration and licensure ensure that your business is legitimate and compliant with government regulation.
Legal Formation
When you register your business, you'll have to select a legal formation for your business. To fully understand each legal formation, you'll need to research each type of entity and the pros and cons. It's crucial to choose based on your business needs and personal preferences.
Utah offers several organizational structures for small businesses, including profit corporations, nonprofit corporations, limited liability companies, sole proprietorships, general partnerships, limited partnerships, limited liability partnerships, business trusts, and collection agencies.
Get Your Federal Employer Identification Number (FEIN)
The OneStop Business Registration will ask for your Federal Employer Identification Number, so you'll need to complete this step while you register with the state. It's very important that small businesses obtain an FEIN. Sometimes, business owners will try to use their social security number to apply for business funding, government grants, and other business programs. Many of these databases are not secure enough to receive social security numbers. Small businesses are much safer when they use their FEIN for business applications.
Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service.
State Business Registration
First, you'll need to register your business with the state of Utah. Utah's Business Registration allows business owners to conveniently register their new businesses with three state agencies at one time: the Utah State Tax Commission, the Utah Department of Commerce, and the Utah Department of Workforce Services.
The Business Registration application will ask several questions. Research ahead of time: your business name, legal structures, and Federal Employer Identification Number. If you have questions, reach out to the Department of Commerce Division of Corporations and Commercial Code, the state entity that oversees business licenses.
Apply for Appropriate Business License
To determine the business license you need in Utah, consult the Utah One Stop Business Registration website and the local municipality where you plan to operate. They provide guidance on required licenses based on your business type and location. This ensures you have the right permits for legal operation, avoiding potential issues down the road.
Apply for Your Local Business License
You'll also need to register for a local business license. To register for a local business license in Utah, visit the city or county website where your business is located. Look for the business licensing section, fill out the required forms, and pay any necessary fees. This is essential for legal operation, but the specific process can vary, so check your local municipality's website for detailed instructions.