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Start a Business in Utah

Costs, permits, taxes, and requirements for UT.

Cost rank
30th of 50
98% of the national average · tied with 2 other states
State income tax
4.65%
Charged on top of federal income tax
Sales tax
6.1%
You collect it on taxable sales and remit it to the state
LLC filing fee
$54
One-off, paid to the Secretary of State · 11th cheapest of 50 (median $100)

Where Utah sits on cost

Cheapest third to most expensive third, by startup cost index. Hover a state for its index and rank.

UT Lower cost Mid Higher cost

What's different in Utah

Nearly everyone in Utah lives on one strip along the Wasatch Front, running from Ogden through Salt Lake City down to Provo. A business on that corridor reaches most of the state's customers within an hour and competes with everyone else doing exactly the same; step off it and drive times lengthen quickly. Cities licence broadly here, home-based operations included, so working out of a spare room is still a filing and still a renewal. Anything involving alcohol is a category of its own, because the state controls distribution and the licences are limited in number.

One corridor holds the customers
Ogden to Provo is where the population is, and therefore where the competition is as well.
Working from home still needs a licence
City licensing is broad and having no premises does not take you outside it.
The state controls the alcohol
Distribution is state-run and licences are capped, so a bar plan starts with availability.

Business Guides for Utah

All 53, cheapest first. Ranges are what that business actually costs in UT.

Under $10K 20

$10K – $50K 18

$50K and up 15

Get a personalized cost estimate for Utah

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Business Requirements in Utah

1

Register Your Business

File with Utah Secretary of State. LLC fee: $54

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 6.1%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

Q.01 How much does it cost to start a business in Utah?
Startup costs in Utah are 2% lower than the national average. LLC filing costs $54, plus business license ($50-$300). Total varies by business type.
Q.02 Does Utah have income tax?
Utah has a state income tax rate of 4.65%.
Q.03 What is the sales tax in Utah?
The state sales tax in Utah is 6.1%. Local taxes may apply.
Q.04 How do I form an LLC in Utah?
File Articles of Organization with the Secretary of State (fee: $54). You'll also need an Operating Agreement and EIN from the IRS.

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