Utah business license: do you need one, and how to get one?

Does Utah require a business license?

Utah doesn't issue a general state business license. Instead, the state recommends that every business register with the Utah Department of Commerce and get licensed by the city or county. Many cities require a business license for any business inside their limits,  so most Utah businesses need a local license plus state tax registration.

While the state provides advisory guidance on registering a business, local rules tend to be the most important here. Each city and county sets its own requirements, so your local licensing office is the place to contact to find out what your business needs.

If your business is in an unincorporated area like Utah County, you check with the county for licensing requirements. If it's inside a city like Provo or Orem, that city handles your licensing.

If you work from home the rules are somewhat looser. State law bars cities from charging a fee for a home-based business unless its impact on the neighborhood goes beyond what the home would have anyway. Salt Lake City, for example, doesn't require a business license for a home business unless it affects the neighborhood. West Valley city, on the other hand, requires a home business license, with an exception for home businesses that gross less than $2,000 a year.

How do Utah city and county business licenses work?

Local licensing is where Utah varies the most. A city may inspect your business or require your business to meet zoning, building, and parking rules before it issues a license. Salt Lake city, for example, reviews every commercial license for zoning, building, and fire safety compliance.

Here’s how a few major jurisdictions differ:

• Salt Lake City licenses through its Finance department, with fees listed in the City’s consolidated fee schedule
• West Valley City requires a license for any business with a place of business inside the city limits. It also issues a separate license for each type of business and each location unincorporated areas license through the county.

If you operate in more than one city or county, you will need a business license in each.  The state suggests calling the local office to confirm. State registration doesn't replace a city license — they are two separate steps.

Not sure who to call? The Division of Corporations business licensing and registration guide lists licensing offices for every County and for cities with 600 or more residents. (It was uploaded in 2021, so you may  find some information outdated.)

How to register a business with the state of Utah

If you're researching how to start a business in Utah you may come across the Utah One Stop business registration system. That system was shut down September 12th, 2024 and online tools were relaunched under a different name. Today, state registration runs on two tracks. 

1. Utah Department of Commerce Division of Corporations and Commercial Code

This is where you can form an LLC, corporation, or partnership, or register a fictitious name (DBA). If you are a sole proprietor doing business under a name other than your own, you register that assumed name here too.

2. Utah State Tax Commission

You apply for a state tax license online through the Utah Taxpayer Access Point (TAP) by choosing “apply for tax account - TC - 69”. If you're hiring, unemployment insurance employer registration goes through the Department of Workforce Services. Withholding taxes are handled by the Tax Commission.

What does the application ask for? Expect to provide a Social Security number or Federal employer identification number (EIN). For sales tax, you'll estimate your sales so the Tax Commission can assign your filing frequency. If you or another owner of your business has a history of filing or paying sales tax late, you may have to pay what's owed or post a surety bond first.

Most Division of Corporations filings are processed immediately. Filings that need manual review, like paper filings, attachments, or name conflicts, take five to seven business days, typically.

If you don't already have an employer identification number (EIN), you can get one for free from the IRS.

To check whether a business name is available, or to look up an existing business, use the division's business entity search.

Do you need a Utah sales tax license?

Yes, if you sell taxable goods or services in Utah you will need a Utah sales tax license. The Tax Commission says every seller with an established presence in the state needs a license. that includes online and out of state sellers once they pass $100,000 in Utah sales in the current or previous calendar year. Marketplace facilitators have to meet the same test.

Your license is tied to your business location, and that location drives your rate. Retail sales in Utah are generally sourced to your fixed place of business, and rates vary by community. The combined rate starts with the 4.85% state rate and adds local taxes.  Some cities want your sales tax number to match your city location. You can look up your rate on the Tax Commission's website.

If you're buying inventory to resell,  purchases for resale  are exempt from sales tax. you give your supplier an exemption certificate to prove it. Utah accepts its own TC-721  form and the multistate resale certificate.

Once you have a license, you'll file it return every period, even when you had no sales.

Which Utah occupations need a state license?

Some trades need a license on top of any city license required. Here's who issues what:

• Department of Professional Licensing (DOPL): numerous occupations, including contractors, cosmetologists, real estate professionals, and many health professionals
• Local health department: Food service
• Department of Health and Human Services, Office of Licensing: Childcare
• Bureau of Criminal Identification: Private investigators
• Department of Alcoholic Beverage Services: businesses serving alcohol

If you run a cleaning or landscaping business, you generally don't need a state license beyond your city license. An exception is pesticide work. Landscaping and Lawn Care businesses that apply pesticides, including herbicides, need licenses from the Utah Department of Agriculture and Food.

If you want to check whether someone you're hiring is licensed, DOPL has a free Verify a License tool. 

How to get a business license in Utah in 5 steps

1. Register with the state. Form your entity or register your DBA with the Division of Corporations and Commercial code, then apply for tax accounts with the tax commission. Need help forming an LLC? See our guide to starting an LLC or visit our business formation marketplace.
2. Get an EIN. It's free from the IRS,
3. Check for occupational licenses. Review the DOPL requirements and the other agencies listed above.
4. Clear zoning, then apply locally. Contact the city or county where you'll operate to check into zoning, building, or parking requirements first
5. Schedule renewals. Put city, state, and any entity deadlines on one calendar so nothing slips. Letting a license lapse can become expensive and some lenders and insurance companies require a current license.

How much does a business license cost in Utah?

At the state level, there's no fee to apply for a sales tax license. Your entity or DBA filing is a formation cost, rather than a license cost. Under the Department of Commerce fee schedule effective July 1, 2025, an LLC certificate of organization costs $59 and a DBA registration costs $22 with a $10 dollar late fee.

City and county fees vary. Provo charges $125 for up to five employees and $175 for 6 to 10.  Salt Lake City publishes fees in its Consolidated fee schedule. Home-based businesses may owe no fee at all.

Occupational license fees depend on the profession. DOPL’s renewal schedule lists $20 to $110 for cosmetology professions, for example, and $78 for an electrician. 

How long does it take to get a Utah business license?

State filings tend to be the fastest. The Division of Corporations processes most filings immediately, and manual reviews may take five to seven business days.  City licenses may take longer because many cities review zoning, building, and fire safety first. 

Provo states, for example, that a business license takes about two weeks unless you need a special permit. Occupational licenses can take the weeks to months, especially when exams are required.

Renewing a Utah business license

Each license renews on its own schedule:

• City and county licenses:  Provo's license runs from anniversary day to anniversary date, for example. Check your city's schedule and late fee rules.
• DOPL licenses:  Most of these licenses were new every two years. Contractor licenses expire November 30 of odd years, for example, and cosmetology licenses expire September 30 of odd years.
• Your entity: Renew your business entity yearly with the Division of Corporations. It costs $18, plus a $10 late fee if you miss the deadline.
• Sales tax license: Keep filing returns every period, even with no sales. If you stop doing business, close the account

Why licensing matters for financing and business credit

Staying legal isn't the only reason to get this paperwork done and to maintain it in good standing. 

Trust is a major factor when it comes to growing your business. Customers, business partners, and lenders want to see that your business is trustworthy. Getting the proper licensees is one step in establishing that trust. Some lenders will ask for copies of your business licenses or registrations.

Nav is not a lender or a credit bureau. Credit information is provided by third-party sources.

The bottom line

Utah has no general state business license, but any businesses will be required to get a city or county license. Register with the state first, get your local license before you open, and set reminders for renewals.

If you’re starting a business, Nav can help you understand what lenders may consider — including good business credit — when evaluating your business for financing. 

Nav’s free guide, A step-by-step checklist to make your business is legit, can help you understand the steps for setting your business up properly.

Nav’s guides for Georgia, New York, Florida, Washington, California, Texas, and Nevada, cover the rules in other states.

Frequently asked questions