You must fill out an application and pay a fee to get a business license in Salt Lake City. The cost varies based on your company’s nature and the amount of employees you have. You can also be required to present other paperwork, like zoning approval, insurance proof, and sales tax identification number.
Depending on the type of business you run, you might also need to seek other permissions and licenses in addition to a business license. For instance, the Utah Department of Alcoholic Beverage Control will require a liquor license if you intend to sell alcoholic beverages. You could require a home occupation permit if you intend to run a home-based business.
What kind of legal structure to utilize when creating a business is one of the first choices you’ll have to make. A limited liability company (LLC) or a sole proprietorship are two popular choices.
An LLC offers its owners limited liability protection, which means that their private assets are safeguarded in the case of litigation or bankruptcy. LLCs can be created and kept maintained reasonably easily.
The simplest type of business structure is a sole proprietorship, which has a single owner and only one employee. All of the company’s obligations and debts are personally owed by the owner. However, compared to LLCs, sole proprietorships are simpler to set up and involve fewer paperwork.
The Internal Revenue Service (IRS) issues firms with a unique nine-digit number called an Employer Identification Number (EIN). If you want to submit specific tax returns, hire staff, or create a company bank account, you’ll need an EIN.
You can submit an online application on the IRS website to get an EIN in Utah. Information about your company, including the legal name, address, and organization type, must be provided. The procedure costs nothing and takes only a few minutes to finish.
Although sole proprietorships are not required to register with the state of Utah, depending on the type of business you run, you might need to do so. For instance, you must apply for a sales tax ID number with the Utah State Tax Commission if you intend to offer products or services.
Other licenses and permissions can also be required, such as a Salt Lake City business license or a state licensing board professional license. To make sure you are in compliance with all applicable rules and regulations, it is crucial to understand the requirements for your particular sort of business.
Which Type of Business Is a Sole Proprietorship? A company entity of this type that is owned and run by only one person is known as a sole proprietorship. This person is in charge of the company’s management, operations, and financial issues. Small firms like freelance writers, consultants, and home-based businesses frequently operate as sole proprietorships.
One benefit of a sole proprietorship is that it is simple and affordable to establish and run. The owner, however, is personally responsible for all of the company’s debts and commitments, which may put their personal assets at danger. Before selecting whether a sole proprietorship is the best option for your firm, it is crucial to thoroughly weigh the risks and advantages of such a structure.
A freelance writer who works for themselves and is the sole owner and decision-maker of their firm is an example of a sole proprietorship business.
Even though it can be difficult, starting a business with no money is doable. You can follow the instructions listed below: 1. Pick a business concept that takes little money to launch. 2. Write a thorough business strategy including your objectives and tactics. 3. Make use of free tools like social media, networking occasions, and online marketplaces to advertise and market your good or service. 4. Take into account requesting small business loans or grants. 5. Begin small and reinvest profits to help the company expand over time.
It is critical to keep in mind, though, that in order to legally operate as a business, you must secure all relevant licenses and permits from your state and local governments, regardless of how much initial cash you have.