The Complete Guide to Utah Business Licenses
Utah does not issue a state business license. You register with the state through one online Business Registration, then get a license from your city, town or county. Sellers receive a free sales tax license. This guide explains each step for a new Utah business.
Step 1: Form the LLC
File a Certificate of Organization with the Division of Corporations for $59. The annual renewal is $18, due by your formation anniversary. See the Utah LLC guide for every formation step.
Step 2: Business Registration and sales tax license
One online Business Registration covers the Tax Commission, the Department of Commerce and the Department of Workforce Services. The sales tax license is issued without a license fee under Utah law and has no expiry date — it lasts until you stop doing business, move, or it is revoked. The state rate is 4.85% (1.75% on grocery food), plus local rates.
Step 3: City, town or county license
Every Utah business needs a license from its city, town or county. In Salt Lake City, any business operating in the city — even temporarily — needs a valid license, and commercial licenses go through zoning, building and fire reviews.
Step 4: Contractors and professions (DOPL)
The Division of Professional Licensing (DOPL) licenses contractors and many professions. The handyman exemption covers projects under $7,000 (labor and materials), and projects over $3,000 need a one-time affirmation filed with DOPL.
Hiring staff and DBAs
Employers register for withholding with the Tax Commission and for unemployment insurance with the Department of Workforce Services. DBAs are filed with the state Division of Corporations.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Certificate of Organization | Division of Corporations | $59; $18 annual renewal |
| Sales tax license | Utah State Tax Commission | Free; no expiry |
| City / county business license | Your city, town or county | Required for every business |
| Contractor license | DOPL | Handyman exemption under $7,000 |
Frequently Asked Questions
Does Utah require a business license?
Utah has no state business license, but every business needs a license from its city, town or county after registering with the state.
How much is a Utah sales tax license?
It is free — Utah law issues it without a license fee — and it does not expire unless you stop doing business, move or it is revoked.
Do I need a business license in Salt Lake City?
Yes. Any business operating in Salt Lake City, even temporarily, needs a valid city license.
How much does it cost to form an LLC in Utah?
The Certificate of Organization costs $59, and the annual renewal is $18.
Do handymen need a contractor license in Utah?
Projects under $7,000 (labor and materials) fall under the handyman exemption; projects over $3,000 need a one-time affirmation filed with DOPL.