One of the first steps you must do when opening a new business in Utah is to apply for a tax ID number, generally referred to as an employer identification number (EIN). If you want to hire staff members or open a business bank account, you must have this number, which is used to identify your company for tax purposes. What you need to know about obtaining a tax ID number for your company in Utah is provided below.
You must ascertain whether your company qualifies before submitting an application for a tax ID number. The majority of businesses, such as sole proprietorships, partnerships, LLCs, corporations, and non-profit institutions, are eligible. You cannot, however, apply for a new EIN if your company already has one.
You must submit some basic information about your company, such as its legal name, address, and entity type, in order to apply for a tax ID number. If you’re a sole proprietor, you’ll also need to include your name, Social Security number, and individual tax ID number (ITIN).
Step 3: Obtain a Tax Identification Number In Utah, there are various options for getting a tax ID number. You can submit an application by fax, mail, or online through the IRS website. You can apply online and get your EIN right away. Your EIN may not be available for up to four weeks if you submit your application by mail or fax.
Is there a franchise tax in Utah? There is no franchise tax in Utah. However, there are a number of additional taxes that apply to businesses in Utah, including income tax, sales tax, and property tax. What is the sales tax rate in Utah?
The location of the business affects the Utah sales tax rate. The local sales tax rate varies by counties and localities but is generally 4.7% overall. In Utah, the combined top sales tax rate is 10.1%.
Yes, having an employee in Utah establishes nexus, resulting in a tax liability for your company there. If you have nexus in Utah, you must register with the Utah State Tax Commission, collect sales tax on transactions done there, and return that tax.
Yes, in order to coincide with the federal tax deadline extension, Utah has extended the filing date for both individuals and businesses to July 15, 2021. Tax returns, payments, and projected payments are all covered by this extension. The requirement to timely file and remit sales tax applies to companies that collect sales tax as well.
There have been no official announcements concerning a postponement of the Utah State tax filing deadlines as of August 2021. In order to prevent any potential fines or interest costs, it is advised to file and pay all state taxes before the normal due dates. For any revisions or changes to tax deadlines, it is recommended to check with the Utah State Tax Commission or a licensed tax practitioner.