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Business Information & Rankings

• Utah ranked 8th on the 2004 Digital State Survey (Center for Digital Government)
• Utah ranked 5th on the U.S. Index for Economic Freedom (Pacific Research Institute, 2004).
• Utah ranked 2nd in the nation for higher education spending. (Sourcebook 2003)
• Of the hundreds of known economic minerals, 75 are found in Utah, and 14 have helped make Utah a major mineral producer on the national and world scale. (UMA website)

Cost of living

Crime Rate

Utah has the 31st lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Exempt.

Corporate Income Tax
Utah’s corporate tax structure consists of a flat rate of 5% on all corporate income.

Personal Income Tax
Utah’s personal income tax system consists of six brackets with top rate of 7.0% starting at an income level of $4,313.

Personal Property Tax
Property taxes are assessed and collected locally. Utah does not charge intangible property taxes.

State Sales and Use Tax
Base Rate: 4.75%
Machinery Rate: none

Utah provides an exemption for sales or leases of machinery and equipment purchased or leased by a manufacturer for use in new or expanding operations in any manufacturing facility in Utah.

Unemployment Insurance
Utah charges new employers the average industry rate for 1 year.

One of the salient aspects of incorporation in Utah is that the state is ranked #2 on the Forbes list of “Best States for Business”. It is also ranked #2 where availability of skilled labor is concerned and #4 in Regulatory Environment, which is good for businesses. If you are thinking of getting a head start into an IT business then Northern Utah also known as the “Silicon Slopes” is the place to be. This state is home to some of the biggest global brands including Adobe, Intel-Micron joint venture IM Flash Technologies, and EA Sports among others. Salt Lake City is another good business destination according to a report by Harvard and U.C. Berkeley reporters that has ranked it #1 in terms of “upward mobility” in the country.

Why Choose Utah for Incorporation?

Utah comprises of primarily a mixed economy that is driven by industries like mining, tourism, agriculture, information technology, manufacturing, petroleum production, and finance. The manufacturing and mining industries have existed for decades but tourism and information technology are the growing industries that have witnessed a large number of company incorporation in Utah in the recent past.

Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:

Sales Tax Exemption for Manufacturing Equipment: In the state of Utah, any type of equipment and machinery being used in the manufacturing process of a product to be sold as a tangible personal property will be exempted from sales tax. If you set up a company in Utah in the amusement industry then certain equipment and machinery to be used in the industry will also be exempted. The sales of raw materials and utilities & fuel are also exempted from sales tax in the state. In order to benefit from any of the exemptions, you need to submit Form TC-721. Download Form

Some of the other incentives for businesses that you can benefit from include Renewable Energy Development Incentive (REDI), Economic Development Tax Increment Finance Tax Credit (EDTIF), Research Activities Credits, and High Cost Infrastructure Tax Credit (HCITC) among others.

How do you incorporate in Utah?

What is the process through which you can set up company in Utah? What type of documentation is required? Can the registration documents be filed online? If you are confronted with these questions then the following steps will help you in understanding how incorporation works in Utah:

Type of Business

The first step towards incorporation in Utah is choosing the type of business you want to form. You can choose to form a Limited Liability Company, Profit Corporation, Benefit Corporation, Professional Corporation, Real Estate Investment Trust, Business Development Corporations, Business Trust Registration, and Limited Cooperative Association among others. The type of business entity you want to form can be either a domestic or a foreign entity. The forms and fee will be different for each type of entity.

Business Entity Name

The second most important step towards company incorporation in Utah is registering your business entity name. There are 3 steps towards business name formation and they are:

1. Naming Requirements: A corporation under 2011 Utah Code §16-10a-401 and an LLC under Utah Code §48-3a-108 (2014) should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
2. Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
3. Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name pursuant to 2011 Utah Code §16-10a-402 for business corporations and Utah Code §48-3a-109 (2014) for LLC’s. You can reserve the name with the State of Utah, Department of Commerce; Division of Corporations & Commercial Code for a non-renewable period of 120 days.
4. A foreign business entity will have to register their business name pursuant to Utah Code § 48-3a-110 (2014) and 2011 Utah Code § 16-10a-402.

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of Utah, you will have to maintain a registered agent pursuant to Utah Code § 48-3a-111 (2014) for LLC and 2006 Utah Code § 16-10a-501 for Business Corporations.

We are one of the respected registered agents in Utah and will be responsible towards initiating incorporation in Utah through processing of your “Certificate of Organization”, and “Articles of Incorporation” for domestic entities and “Foreign Registration Statement” and “Application for Authority” for foreign business entities.

Articles of Incorporation and Application for Authority

You will be required to file “Articles of Incorporation” pursuant to 2011 Utah Code §16-10a-202, if your business is a domestic corporation. You will have to file an “Application for Authority” to transact business in the state pursuant to the provisions of 2011 Utah Code §16-10a-1503. In order to streamline the process of incorporation in Utah, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Utah, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Utah Incorporation

What would it cost to set up a company in Utah? Check Fees here!

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One of the reasons to form a Utah business is that the state is considered to be one of the few states that offer a healthy and pro-business climate. This is why the state is home to a wide variety of businesses and brands including SkyWest Airlines, Orenson Communications, Alsco, Nu Skin Enterprises, Zions Ban, Associated Food Stores, Vista Outdoor, Vivint, and Rockwell Holdco Inc., among others. It is not just the businesses that are growing but the economies of certain cities like Salt Lake City, Provo-Orem, and St. George. Information and technology industry seem to be growing at a rapid space having created 73,000 jobs and today the “Silicon Slope” is home to more than 4,000 companies.

We are one of the top Utah registered agents and can assist you with the successful registration of your business entity in the state.

Utah LLC Registration and Formation

LLC company formation in Utah is governed by Utah Code, Title 48, and Chapter 3a of Utah Revised Uniform Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Utah then you will be required to continuously maintain a registered agent in the state pursuant to Utah Code § 48-3a-111 (2014). This law is applicable to domestic limited liability companies as well as foreign limited liability companies.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Utah. We can assist you to form a Utah business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Utah is identifying a name for your business entity. The process is as follows:

1. Identify a name for your business entity
2. According to Utah Code §48-3a-108 (2014), the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
4. Apply for reservation of name pursuant to the provisions of Utah Code §48-3a-109 (2014)
5. Submit the form through mail or online with the State of Utah, Department of Commerce; Division of Corporations & Commercial Code along with the applicable fee. An LLC can reserve its name for a period of 120 days.
6. A foreign business entity will have to register their business name pursuant to Utah Code § 48-3a-110 (2014

Step#3: Certificate of Organization and Foreign Registration Statement

If you are planning to form a Utah business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file “Certificate of Organization” governed by Utah Code §48-3a-201 (2014).
• If your business entity is a foreign LLC then you will be required to file “Foreign Registration Statement” pursuant to Utah Code §48-3a-903 (2014).
• The application or documentation for registration of LLC can be filed with the Division of Corporations and Commercial Code, Utah Department of Commerce, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Utah business, feel free to call us on 702-871-8678.

Utah Corporation Registration and Formation

If you are planning to form a Corporation in Utah then it will be governed by 2011 Utah Code, Title 16 Corporations, Chapter 10a Utah Revised Business Corporation Act. The procedure for registration and formation of a business corporation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Utah then you will be required to continuously maintain a registered agent in the state pursuant to 2006 Utah Code § 16-10a-501. This law is applicable to domestic as well as foreign corporations.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Utah. We can assist you to form a Utah business as we are in compliance with all regulations in the State of Utah.

Step#2: Corporate Name Reservation

In order to form a corporation in Utah, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

1. Identify a name for your business entity
2. According to 2011 Utah Code §16-10a-401, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
4. Apply for reservation of name pursuant to 2011 Utah Code §16-10a-402.
5. Submit the form through mail or online with the State of Utah, Department of Commerce; Division of Corporations & Commercial Code along with the applicable fee. A business corporation can reserve its name for a period of 120 days.

Step#3: Articles of Incorporation and Application for Authority

If you are planning to form a corporation in Utah, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to 2011 Utah Code §16-10a-202.
• If your business entity is a foreign corporation then you will be required to file an “Application for Authority ” to transact business in the state pursuant to 2011 Utah Code §16-10a-1503.
• The application or documentation for registration of a corporation can be filed with the Division of Corporations and Commercial Code, Utah Department of Commerce, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Utah incorporation or LLC formation, you can simply visit the Utah Business formation page.

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Since, Utah is considered to be an excellent state for start-ups or new businesses; it is also home to some really great upstarts like Tranont with revenues of $11.4 million. The Silicon Slope is definitely the right place for a start-up company in Utah although you can explore other areas like finance, tourism, and manufacturing. Some of the other top start-up businesses in the state include Beddy’s (a three year growth of 1,817%), American Business Brokers (2017 revenue of $9.6 million), Blue Fire Leads (a three year growth of 2,307%), Slingshot (2017 revenue of $3.4million), iServe (2017 revenue of $121.3 million), Skullcandy , Boomsourcing , and Taft among others.

Advantages of setting up an LLC or Corporation

Yes, the Beehive State has a great business climate but are there any specific advantages or benefits available if you register a new company in Utah? There are plenty of incentives and benefits made available through a variety of programs orchestrated by the state government and local agencies. In fact, the incentive programs are integral to Utah being named Forbes “Best State for Business” for a third consecutive year. Let’s look at some of the advantages or benefits of forming an LLC or a business corporation:

Advantage#1: Salient benefits of Corporation or LLC

Corporation

• Economic Development Zone Increment Financing (EDTIF): This is a tax credit program for new and expanding businesses and it is being administered by Governor’s Office of Economic Development (GOED). The salient aspect of this program is that it provides post-performance, refundable tax credit for a maximum of 30% of new state revenues that include sales, corporate, and withholding taxes from employees paid to the state. This tax credit is applicable over the life of any new commercial project valid for a maximum period of 20 years. The life of this business incentive varies from 5 to 10 years and in a single year, any business can benefit from a maximum of 50% credit.
• Pass through taxation: If you register a new company in Utah as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.
• Independent Life: One of the salient advantages of an S Corporation in Utah is that it enjoys an independent life. The death or incapacitation of a stockholder will not disturb operations of the business.

LLC

• Foreign Trade Zone (FTZ): If you register a new company in Utah Foreign Trade Zone as an LLC, you will be able to benefit from this incentive program. Salt Lake City also known as the “Crossroads of the West” is considered to be the primary hub for this program. There are several benefits of the FTZ and these include:
  – Businesses can easily satisfy exportation requirements
  – There are no “time constraints” on storage
  – Businesses can enjoy increased security as well as lower insurance costs
  – Being situated in an FTZ means reduction in dutiable tariff on imported parts
  – Businesses benefit from reduction in fees related to direct delivery as well as weekly entry
  – A business can potentially avoid any supply chain delays
  – It helps in consolidating customs reporting
  Check how much savings a business can make in a Utah FTZ zone using this Calculator.
• Flexible Profit Distribution: An LLC has the benefit of being able to select different ways of distribution of profits.
• Limited Liability: If you register a new business in Utah as a LLC then you will be able to enjoy limited liability protection. This means claimants can sue the LLC and not the owner or investors.

Advantage#2: Other Business Incentive Programs

There is a variety of business incentive programs including innovation incentives and financing programs available for small and medium enterprises or a start-up company Utah. Let’s look at some of the top programs in Utah.

Recycle Market Development Zone (RMDZ)

It is not surprising that the amount of raw materials or consumer-end products being recycled in the U.S. since 1980, has grown from a mere 9% to over 33%. This growth has created a highly valuable market for recycled goods or products. If you register a new business in Utah that is involved in the process of recycling and if you are looking for an opportunity to expand then the Recycling Market Development Zone is where your business needs to be located. The Utah Recycling Market Development Zone Program was created by Utah Legislature keeping in mind this specific need of businesses. The Program will assist businesses that are into collection, processing, and distribution or use of recycled materials in their manufacturing processes. The possible benefits for businesses are in the form of tax credits like:

• A state income tax credit of 5% on the cost of equipment and machinery
• A state income tax credit of 20% or up to $2,000 on eligible operating expenses
• A variety of local incentives including discounted business license fees, zoning assistance, etc.
• Technical assistance provided by the state recycling economic development professionals

The program has been implemented in Salt Lake City. Check Map of Zone

Utah Enterprise Zone Program (EZ)

An enterprise zone comprises of an area that has been created by the Utah Governor’s Office of Economic Development (GOED) for encouraging economic growth and development in specifically identified distressed areas. In order to avail of the benefits of this program, you will need to register a new company in Utah EZ. You will be eligible for tax credits that can be carried over a period of three years. The tax credit can vary from $200 to $750 for each new full time position filled. There are additional tax credits on investments made in the EZ.

View Enterprise Zones | Download Application

Are there any Disadvantages of Incorporating in Utah?

When you register a new business in Utah, you can be rest assured that there is a wide variety of business incentives that you can leverage. The big question is: are there any disadvantages? Yes, there are a few and they are limited to the type of business entity you form. For instance an LLC requires more paperwork and has a complex structure as compared to a partnership or sole-proprietorship. Similarly, disagreements or conflicts among the stockholders of a business corporation may immobilize overall decision making. These minor disadvantages will not affect business growth keeping in mind the incentives and a robust platform for economic growth that is being offered by the Beehive state.

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Utah is one of the few states that have been voted as just the perfect state for new businesses to register in. This is more so because of the positive business climate, which is driven by factors including robust infrastructure, strong economic growth, varied economy, business incentives and growth programs, and a skilled workforce. These are some of the reasons why businesses are getting registered in the state but what next? The next step is to acquire a business license!

It is important to understand that every Utah business will not require a license; however it is necessary for specific businesses to keep them operational. Hence, some businesses will require one or more Utah company license or permits issued by different state agencies.

Some of the state agencies responsible for issuing licenses or permit to businesses in the state of Utah include:

• Utah State Tax Commission
• Utah Labor Commission
• Utah Department of Commerce
• Utah Department of Workforce Services
• Utah Department of Environmental Quality

Let’s try and understand how the process works.

Step-by-Step Guide to a Business License in Utah

What are the requirements for obtaining a business license in Utah? Which business entities require a license and requires permits? Who is the issuing authority for these licenses? Here is a step-by-step approach towards acquiring licenses or permit in the state:

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Utah? Which type of business license is issued by the state? The type of industry or the activities of a business entity helps in identifying the type of business license required.

In the state of Utah, issuance of licenses is coordinated under specific industries or business activities. In order to understand this, let us take a look at some examples:

Food Establishment

Food establishments are those facilities where food is prepared, manufactured, processed, packaged, and even transported, or stored.

Fees: The business license fee for food establishments vary according to the physical area or size of the establishment. For example, the fee for a small establishment (Less than 1,000 sq ft) is $50.00 while that of a super establishment (Retail food establishment over 50,000 sq ft or Food processor over 20,000 sq ft) is $400.00. Apart from this, there is an inspection fee of $26.50 per hour.

Application: License Application Booklet

Issuance: License is issued by the Utah Department of Agriculture and Food, Division of Regulatory Services.

Others: Some of the other licenses issued by the Utah Department of Agriculture and Food include:

• Dairy License
• Elk License
• Cottage Food Production (Home food business)
• Atmosphere Control in Storage Facilities
• Bedding, Upholstered Furniture and Quilted Clothing
• Beekeeper Licenses
• Fertilizers & Feed Licenses
• Poultry Licenses

Liquor License

If you are planning to serve liquor in a restaurant or are planning to manufacture, import, export, store, sell and transport alcoholic beverages, then you will require a business license in Utah.

The liquor licenses can be classified under the following:

1. Off-premise state license: This includes grocery stores, beer distributors, convenient stores etc)
2. On Premises Retail Licenses: This includes all types of restaurants, reception centers, banquet/catering facilities, airport lounges, qualified resorts, beer recreational retailers, and bars etc)
3. Manufacturing Licenses: includes winery, distillery, brewery, and liquor warehouses.
4. Special Use Permits: includes public service entities such as trains, airlines, etc
5. Temporary event permits: This includes ‘Single Event’ and ‘Temporary Beer’ events

Fee: The fee varies according to the classification of activity. For example, liquor license fee for a full service restaurant comprises of the following:

• Initial fee – $2,200
• Application fee – $330
• Bond – $10,000

Expiration Date/Renewal: The expiration date varies according to the classification of the Utah company license like Liquor Warehouse or Distribution licenses expire on December 31.

Application: Sample License Application

Issuance: License is issued by Utah Dept of Alcoholic Beverage Control

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a state-wide license project then you will have to check with the local city or county office. A Utah company license can also be issued by local counties or cities in which the business is located. Let’s look at an example to understand how this works.

If you form a business in Utah County then a business license will be required for all businesses that are situated within the County. The objective of issuing a license or permit is to ensure that a business location is properly zoned for the activity that is going to be conducted. In order to get a license or permit, you will be required to complete a “Business License Zone Clearance”. This clearance takes 3 – 7 days and once the clearance is complete, a business license application along with the required fee will be provided. Click here to know more about the licensing procedure.

Step#3: Issuance of a Business License

How is a business license in Utah issued? You have to identify the following to complete the process:

1. The type of business or industry or activity
2. Do you need a single license or multiple licenses?
3. Will it be issued by the state, the city, or county?

Once you have identified the above, all you need to do is either download the application or submit online or contact the concerned state department or city of clerk office.

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