Salt Lake City is one of the best cities in America to start a business. Utah’s flat income tax, business-friendly regulations, growing tech ecosystem, and access to an educated workforce make SLC an ideal launching pad. Here is a complete step-by-step guide to starting a business in Salt Lake City, Utah.

Step 1: Choose Your Business Structure

Your business structure determines your liability exposure, tax treatment, and administrative requirements. The most common options for SLC entrepreneurs:

• LLC (Limited Liability Company): The most popular choice for small businesses. Provides personal liability protection while offering flexible tax treatment (pass-through by default). Utah LLCs cost $70 to file.
• S-Corporation: A good option for profitable businesses where owners want to minimize self-employment taxes through salary/distribution splitting.
• C-Corporation: The standard structure for venture-backed startups. Required for institutional investment and stock option plans.
• Sole Proprietorship: The simplest structure with no formation required, but no personal liability protection.

For most SLC small business owners, an LLC is the right starting point. For tech startups seeking venture capital, a Delaware C-Corp is the industry standard. You can use LegalZoom to handle the formation paperwork quickly and affordably.

Step 2: Register with the Utah Division of Corporations

File your business formation documents with the Utah Division of Corporations and Commercial Code (DCCC) at corporations.utah.gov.

• LLC Filing Fee: $70 (online)
• Corporation Filing Fee: $70 (online)
• Annual Renewal: Utah requires an annual report and renewal fee ($18 for most entities)
• Registered Agent: You need a Utah registered agent. You can be your own registered agent if you have a Utah physical address, or use a service.

Step 3: Obtain a Salt Lake City Business License

Most businesses operating within Salt Lake City limits need a SLC Business License. Apply through the Salt Lake City Business Licensing portal at slc.gov/bld/.

• Fees vary by business type and size. Most standard business licenses run $50-$200/year.
• Some industries require additional permits or inspections (food service, childcare, healthcare, etc.).
• Home-based businesses in SLC also need a business license and must comply with home occupation zoning rules.

Step 4: Get Your Federal EIN

Apply for a Federal Employer Identification Number (EIN) from the IRS at irs.gov. This is free, instant, and required for opening a business bank account, hiring employees, and filing business taxes. Even sole proprietors often get an EIN to use instead of a Social Security Number on business documents.

Step 5: Register with the Utah State Tax Commission

Register your business with the Utah State Tax Commission at tax.utah.gov. This registration is required for:

• Utah income tax withholding (if you have employees)
• Utah sales tax collection (if selling taxable goods or services)
• Other state-level tax compliance

Step 6: Obtain a Utah Sales Tax Permit (If Applicable)

If your business sells tangible personal property or certain services in Utah, you need a Utah sales tax permit. Apply through the Utah State Tax Commission. Utah’s state sales tax is 6.1%, with local additions bringing the SLC rate to approximately 7.75%.

Step 7: Check Zoning with SLC Planning Division

Before signing a lease or operating from a specific location, verify that your business type is permitted in that zoning district. Contact the Salt Lake City Planning Division or check the SLC zoning map online. This is especially important for home-based businesses, food businesses, retail, and manufacturing.

Step 8: Open a Business Bank Account

Open a dedicated business checking account separate from your personal finances. This protects your LLC liability shield and makes accounting much cleaner. Good options for SLC businesses include Zions Bank, Celtic Bank, Utah First Credit Union, and Mountain America Credit Union. See our full guide to Banks and Credit Unions in Salt Lake City.

Step 9: Use Utah SBDC for Free Consulting

The Utah Small Business Development Center (SBDC) at utahsbdc.org provides free, confidential one-on-one consulting to Utah entrepreneurs. SBDC advisors can review your business plan, help with financial projections, guide you through SBA loan applications, and connect you with other resources.

Step 10: Plug Into Silicon Slopes

Silicon Slopes (siliconslopes.com) is Utah’s tech startup community. Even if you’re not a tech company, the Silicon Slopes community hosts networking events, workshops, and resources for Utah entrepreneurs of all types. Membership in Silicon Slopes is a smart investment for any SLC business owner who wants to grow their network and stay connected to the local entrepreneurial ecosystem.

SLC Business Launch Checklist

1. Choose business structure (LLC recommended for most)
2. File with Utah Division of Corporations at corporations.utah.gov ($70 for LLC)
3. Get Federal EIN from IRS (free)
4. Register with Utah State Tax Commission at tax.utah.gov
5. Get SLC Business License at slc.gov/bld/
6. Get Utah Sales Tax Permit if selling goods
7. Verify zoning for your business location
8. Open business bank account
9. Schedule a free consultation with Utah SBDC
10. Join Silicon Slopes community