A challenging endeavor, especially when it comes to the legal procedures, is starting a business. To avoid any legal repercussions, it’s crucial to know when you require a business license in Utah. The kind of business you intend to launch and where it will be located in Utah will determine whether you need a business license. What you should know is as follows.
You must register a DBA (Doing Business As) in Utah if you intend to conduct business using a name other than your legal name. This rule is applicable to sole owners, partnerships, and LLCs who want to use a different name. The Utah Division of Corporations and Commercial Code will require a DBA registration from John Doe if he wishes to operate a company using the name “ABC Cleaning Services,” for instance.
Depending on the county in which you intend to conduct business, different fees apply to registering a DBA in Utah. The cost in Salt Lake County is $22.00 for the initial four years and $12.00 for each subsequent four-year period. The cost varies from $10.00 to $50.00 in other jurisdictions. A DBA can be registered by mail or online.
If you intend to conduct business in Utah under your legal name, a DBA filing is not necessary. However, a DBA must be registered if you intend to use a name that is not your own. It’s also crucial to remember that filing a DBA does not give your company name any legal protection.
Limited Liability Companies (LLCs) are a type of business structure that combine the adaptability of a partnership or sole proprietorship with the liability protection of a corporation. It offers members personal liability protection and is a distinct legal entity from its owners (also referred to as members). On the other hand, a corporation protects its shareholders from personal culpability because it is a different legal entity from its owners, who are known as shareholders. The manner they are taxed is the primary distinction between an LLC and a corporation. The income from LLCs is taxed as a pass-through entity, which means that it is reported on the members’ individual tax returns. Due to the fact that corporations and shareholders are taxed differently, there is double taxation.
In conclusion, the sort of business you intend to launch and the location of your business will determine whether you need a business license in Utah. You must register a DBA if you intend to conduct business using a name other than your legal name. Depending on the county in which you intend to conduct business, there are different fees associated with registering a DBA. Before choosing the greatest business form for your requirements, it’s also critical to comprehend the distinctions between an LLC and a corporation.
You can submit an application by fax, mail, or online through the IRS website to obtain an EIN number in Utah. The legal name of your company, the kind of business organization it is, and your Social Security number or individual taxpayer identification number must all be provided.
You must submit Articles of Organization to the Utah Division of Corporations in order to establish an LLC there. A registered agent must be chosen, an operating agreement must be written, and your LLC must have a name. In order to make sure that your LLC is set up correctly and complies with all state rules and regulations, it is advised that you obtain the advice of a skilled attorney or business specialist.