It depends, is the response to this query. There is no state-level requirement for a general business license in Utah. However, in order to conduct business inside their boundaries, some towns and counties may demand a business license. Since they may need a license to run their firm, independent contractors should check with their local authorities.
Each business form has advantages and disadvantages, and LLCs and sole proprietorships are no exception. The simplest and most typical type of business structure is a sole proprietorship. It is simple to set up, and the proprietor has all authority over the company. However, any debts or legal problems that might develop are the owner’s personal responsibility.
An LLC, on the other hand, offers its owners limited liability protection, which means that business debts cannot be used to deplete their personal assets. An LLC might also provide managerial flexibility and tax advantages. However, compared to a sole proprietorship, it costs more to establish up and maintain in terms of paperwork and expenses.
As previously stated, the demands of the local government determine whether a lone entrepreneur in Utah needs a business license. No of the structure, all firms operating within a city or county’s boundaries may need to obtain a business license. Therefore, in order to find out whether they require a license in order to run their firm, sole owners should consult with their local authorities. The distinction between an LLC and a DBA is explained here.
Doing business as (DBA) is a moniker that a company employs in place of its official name. John Smith would have to get a DBA if he wanted to run his landscaping company under the name “Green Lawn Care,” for instance. On the other hand, an LLC is a legitimate corporate form that offers its owners limited liability protection. If I Have an LLC, Do I Need a Business License?
In Utah, whether an LLC needs a business license depends on the demands of their local government, much as the answer for sole owners. Although an LLC shields its owners from certain liability, it does not remove them from legal obligations. As a result, LLC owners should consult their local government to find out if they require a license in order to run their company.
Finally, in order to properly conduct their company, independent contractors in Utah should be informed of their regional licensing laws and secure any appropriate licenses or permits. A sole proprietorship or LLC are two common business structures. Choosing the proper one can have significant legal and financial repercussions.