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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Once your company is set up, you will need:

1. Tax ID (EIN) – free over the Internet or phone.
2. Yearly Requirements and Fees for Vermont companies
3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Vermont additional services

• Registered Agent
• Annual Report
• EIN (Tax ID)
• More Additional Services

• Why Vermont?
• Vermont Registered Agent
• Vermont Annual Requirements
• Vermont Corporation Statutes: Vermont Code – 11A: Vermont Business Corporations

• Why Vermont?
• Vermont Registered Agent
• Vermont Annual Requirements
• Vermont LLC Statutes: Vermont Code – Title 11, Chapter 21

Pricing $89.00 per year, special for pre-pay $40 per year

Don’t get fooled by companies claiming the lowest price and increasing it later. Our pricing is very simple. We charge $89 per year. We also have few specials. Whenever you decide to pre-pay additional years you get them for $40/year.

Why you need a Registered Agent?

Vermont State laws require business entities to maintain a Resident Agent in the state that you form your business. The agent’s name and office address are included in the Articles of Incorporation or Articles of Organization to give public notice of where to send important documents to your business entity.

If you need Registered agent in other State than Vermont click here.
We offer Registered Agent service in all 50 States.

State Fee for changing Vermont Registered Agent

For Corporations & LLCs – Changes to Registered Agent: $20.00

Registered Agent Requirements

The registered office may be the same address as any of the corporation’s places of business in Vermont. The agent may be an individual who resides in Vermont and whose business office is identical with the registered office; or a registered business or nonprofit, foreign or domestic corporation in good standing, having a business address that is identical with that of the registered office.