🏔️ Utah Business Checklist

Employee must complete Section 1 on or before Day 1. You must complete Section 2 within 3 business days of start date. Verify original identity and work-authorization documents. Retain for 3 years after hire or 1 year after termination (whichever is later).

Employee completes to set federal income tax withholding. Keep on file — do NOT send to IRS. Update when employee's situation changes. Retain for 4 years after employment ends.

Submit within 20 days of hire date. Required by federal law (PRWORA) to help locate parents delinquent on child support.

Utah accepts the federal W-4 for state withholding purposes. Use the employee's W-4 allowances to calculate Utah flat-rate withholding (4.55%).

Before employee's first day, ensure your workers' comp policy covers the new employee. Utah requires WC for all employees with 1 or more employees. Notify your insurer.

Display all required federal and Utah state labor law posters in a conspicuous location. Includes: FLSA minimum wage, OSHA, EEO, FMLA, Utah Anti-discrimination, and Utah Workers' Compensation posters. Free downloads available from DOL and Utah Labor Commission.

Handbook should include: at-will employment statement, anti-harassment policy, time-off policies, code of conduct, IT/social media policy, and safety policies. Signed acknowledgment protects you legally.

Documents position, compensation, start date, and at-will status. Keep signed copy in personnel file.

Employee banking information for payroll. Note: Utah employees cannot be required to use direct deposit — must offer paper check alternative.

Collect emergency contact name, relationship, and phone number. Store in personnel file.

Protects trade secrets, client lists, and proprietary information. Have employee sign before accessing sensitive business data.

Health insurance, dental, vision, 401(k), HSA, etc. Note enrollment deadlines. Provide Summary Plan Description (SPD) if offering group health insurance.

Conduct job-hazard analysis and train employee on workplace safety, emergency procedures, and how to report injuries. Document training date and topics. OSHA 10-hour training recommended.

Train all employees on what constitutes harassment, discrimination, and retaliation, and how to report it. Document completion. Strongly recommended to limit liability.

Walk through job duties, systems, tools, and expectations. Assign a mentor or supervisor for the first 30–90 days. Document training milestones.

Create accounts, email, software access, and provide equipment. Obtain signed Acceptable Use Policy. Enable multi-factor authentication on all accounts.

Use a compliant consumer reporting agency (FCRA). Obtain signed authorization from applicant. Follow adverse action procedures if disqualifying results are found.

May be required for certain industries (DOT-regulated, etc.). Utah has specific rules regarding marijuana — consult legal counsel. Obtain signed authorization.

Contact at least 2–3 professional references. Document responses. Be cautious of defamation risks — stick to verifiable facts.

Most Davis County cities require a general business license regardless of industry. Contact your city directly. Renews annually. Examples: Layton City (801-336-3800), Bountiful City, Kaysville City, Centerville City.

Utah does not issue a general state business license for most businesses. Registration of your LLC with the Division of Corporations serves this purpose. However, certain industries require additional state licensing (see below).

Register via TC-69 / TAP. Required before making first sale. Post permit at your place of business.

Required by most cities in Davis County if running a business from home. Restrictions typically apply to signage, employees, customer visits, and storage.

Utah Division of Professional Licensing (DOPL) licenses 60+ occupations including: contractors, real estate agents, cosmetologists, healthcare providers, accountants, engineers, plumbers, electricians, and more.

General and specialty contractors must be licensed with Utah Division of Occupational & Professional Licensing (DOPL). Requires exam, insurance proof, and bonding.

Davis County Health Department issues food establishment permits. Requires inspection before opening. Renews annually.

Required for interstate or intrastate commerce involving commercial vehicles over 10,001 lbs. Register with FMCSA for USDOT number and MC authority.

Utah has strict liquor licensing laws. Apply with the Utah Department of Alcoholic Beverage Services (DABS). Wait times can be lengthy — apply early.

Required in Utah for any employer with 1+ employees. Covers medical expenses and lost wages for work-related injuries. Obtain from a licensed carrier or through the Utah State Industrial Commission. Penalty for non-compliance: fines + personal liability for employee injuries.

Personal auto policies typically exclude business use. If employees drive for work, or if you use a vehicle for business deliveries or client visits, you need a commercial auto policy.

Protects against third-party claims of bodily injury, property damage, and advertising injury. Essential for any business that interacts with customers or works on client property. Many clients and landlords require it. Typical cost: $500–$2,000/year for small businesses.

Covers claims arising from professional advice, errors, or omissions. Essential for consultants, accountants, IT professionals, real estate agents, and other service businesses.

Covers your business equipment, inventory, and physical location against fire, theft, vandalism, and certain natural disasters. Utah has specific risks: high winds, wildfire smoke, and occasional earthquakes.

Combines general liability + commercial property at a lower cost than buying separately. Good option for small businesses. Usually includes business interruption coverage.

Covers costs from data breaches, ransomware attacks, and cyber incidents. Especially important if you store customer data, process payments, or handle sensitive information.

Provides excess liability coverage above your other policies' limits. Cost-effective way to significantly increase your total liability protection. Recommended as business grows.

Protects business income if you (the owner) are unable to work due to illness or injury. Critical for sole owners with no backup. Also consider key person life insurance.

Never comingle personal and business funds — it can pierce the LLC liability protection ("corporate veil"). Bring: EIN letter, Articles of Organization, operating agreement, and personal ID. Many Utah banks (Zions, America First CU, Cyprus CU, Chase, etc.) offer free business checking.

Set aside 25–30% of net profits for federal and state estimated taxes. Keep it separate from operating funds to avoid spending your tax money.

Simplifies expense tracking, builds business credit history, and earns rewards. Use exclusively for business purchases. Pay balance monthly to avoid interest.

Provides flexible funding for cash flow gaps, inventory, or growth. Apply after 1–2 years in business with revenue history. Keep it as a safety net — don't draw unless needed.

Use dedicated software from Day 1. Popular options: QuickBooks Online (most common), FreshBooks (service businesses), Wave (free), or Xero. Connect directly to your business bank account for automatic transaction sync.

Set up categories for income and expenses that align with your tax return (Schedule C categories). Consider hiring a bookkeeper or CPA to set this up correctly from the start.

IRS requires records be kept 3–7 years. Use a digital receipt app (Dext, Hubdoc, or your accounting software's built-in receipt capture). Never rely on bank statements alone.

Use your accounting software's invoicing feature or a separate tool. For accepting credit cards: Square, Stripe, PayPal Business. Ensure PCI compliance when handling card payments.

A Utah-licensed CPA familiar with small business taxes can save you far more than their fee. Schedule a kickoff meeting to discuss entity structure, tax elections (S-Corp?), and quarterly estimated payments.

IRS standard mileage rate (67¢/mile in 2024) is a significant deduction. Use a mileage log app (MileIQ, Everlance) to track business vs. personal trips automatically.

Options: Gusto (most popular for small business), QuickBooks Payroll, ADP, Paychex. Full-service payroll handles calculations, deposits, and tax filings for you. Cost: $40–$150/month + per-employee fees.

Utah requires wages be paid at least semi-monthly (or as agreed). Notify employees of their payday schedule in writing. Common: bi-weekly (every other Friday).

You pay 7.65% employer FICA on each employee's wages (6.2% SS + 1.45% Medicare). This is separate from what you withhold from the employee. Confirm payroll software is configured correctly.

Due annually by the anniversary of your LLC formation date. Filing fee: ~$20 online. Failure to file results in delinquency and ultimately administrative dissolution. File via the Utah Division of Corporations online portal.

If your registered agent changes (address or person), file Form LLC-5 or update via the online portal promptly. Legal documents may be missed if agent information is outdated.

Notify the Utah Tax Commission of changes in address, ownership, or business activities by filing TC-69C (Change Form).

Most city licenses renew annually. Watch for renewal notices from your city. Set a calendar reminder 30 days before expiration. Operating with an expired license can result in fines.

DOPL licenses renew on set cycles (typically every 2 years). Check renewal dates and required continuing education hours. Late renewal incurs additional fees.

Utah sales tax permits don't expire, but notify the Tax Commission of any changes (new locations, change in sales activities) promptly via TC-69C.

Utah minimum wage follows federal minimum wage ($7.25/hr as of 2024 — may change). Ensure all employees are paid at least minimum wage, and update payroll if the rate changes.

Posters must be updated when laws change. Download current versions annually from DOL and Utah Labor Commission. Failure to post can result in fines during an audit.

Review annually for changes in law (Utah, federal, or local). Have employees sign acknowledgment of any updated version. Consult an employment attorney for significant changes.

Review all policies at renewal for adequate coverage limits, new assets or employees, and premium changes. Compare quotes from multiple carriers. Ensure workers' comp payroll is updated accurately.

Update if business activities, ownership structure, or management has changed. Keep a signed, dated copy with company records.

Retain tax returns and supporting documents 7 years. Employee records: 3–7 years after termination. I-9 forms: 3 years after hire or 1 year after termination, whichever is later. Payroll records: 4 years.