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How do Utah sales tax and business licenses work for small businesses

UTAH LAW

Utah Sales Tax & Business Licenses What Small Businesses Must Do

A plain-English roadmap to nexus, permits, rates, filings, deadlines, and common pitfalls

Utah Law Explained takes out the guesswork so you know when to collect sales tax and which licenses you need to legally operate in Utah. Most businesses must obtain a sales tax license before collecting a single dollar from customers, and filings must be accurate and on time to avoid penalties.

This guide gives you a Utah-specific plan: who needs to collect, how to get your sales tax permit, how to charge the right rate, how to file and remit, and which mistakes to avoid. By the end, you’ll have a step-by-step checklist and a filing calendar you can actually follow.

01

Do You Need to Collect? (Nexus in Utah)

“Nexus” is the legal connection that requires your business to collect and remit Utah sales tax. If any of the following apply, you must register for a Utah sales tax license before selling taxable goods or services.

🏬

Physical Presence

You operate a store, office, warehouse, or other location in Utah.

👥

People in Utah

You employ workers or independent contractors in Utah.

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Economic Nexus

You exceed $100,000 in annual sales to Utah customers, even without a physical presence.

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Registration Triggered

If any condition applies, register with the Utah State Tax Commission for a sales tax license.

02

Get Your Utah Sales Tax Permit

Apply through the Utah OneStop Business Registration portal to legally collect sales tax. Keep your license on file at your business once issued.

apply_at Utah OneStop / tax.utah.gov (online application)
registration_fee Small state fee due at registration
what_you_receive Utah Sales Tax License (keep a copy on-site or stored securely)

Checklist to register: Form your entity with the Utah Division of Corporations, get an EIN from the IRS, confirm city/county business licensing (if required), submit your sales tax application online, then retain/display your license.

03

Collecting, Remitting & Helpful Tools

Charge the Right Rate

Key Points: Rates vary by city and county. Use Utah’s official online rate lookup to charge the correct rate at checkout.
Why It Matters: Under/over-collection causes headaches: penalties, refunds, or amended filings.

Keep Clean Records

Key Points: Track taxable and non-taxable sales, exemptions, and receipts. Maintain separate reports for sales, use, returns, and refunds.
Tip: Retain documentation for audits. Reconcile monthly.

File & Remit on Time

What to Do: File returns and remit collected tax to the Utah State Tax Commission each period.
Avoid: Late or missed filings—these can trigger penalties and interest.

Automation & SUTS

Tools: Use accounting software or Utah’s Sales & Use Tax System (SUTS) to automate rate calculation and e-filing.
Why It Helps: Reduces errors, saves time, and keeps you compliant across periods.
04

Filing Cadence & Calendar

1

Monthly Filers

If you collect more than $1,000/month, your return is due the last day of the following month.

2

Quarterly Filers

If you collect $500–$1,000/month, returns are due April 30, July 31, Oct 31, Jan 31.

3

Annual Filers

If you collect <$500/month, the annual return is due January 31 of the following year.

4

Practical Tip

Put deadlines on a shared calendar and set two reminders: a prep reminder one week before, and a file-day reminder.

Avoid the Common Mistakes

Big gotchas: registering after you collect tax, charging the wrong city/county rate, missing due dates, keeping poor records, or confusing sales tax with income tax.

Talk to a Utah Business Attorney
05

Video & Social Learning Hub

Key Takeaways

Nexus can be physical presence, people in Utah, or economic nexus ($100k+). If triggered, you must register.

Apply online for your Utah sales tax license, then charge the correct local rate and keep solid records.

File monthly, quarterly, or annually based on volume—and automate with SUTS or accounting software.

This page is legal information, not legal advice. When in doubt, consult counsel before you file.

Next Step

Confirm nexus, get your permit, set your rates, and map your filing calendar. A short consult can help you avoid penalties and interest.

Book a Compliance Consult

We’ll help you register, configure rates, set up SUTS or accounting software, and establish a repeatable filing workflow.

Utah Law Explained publishes plain-English legal guides for small businesses, including sales tax, licensing, and compliance checklists. This page is informational only—always consider tailored advice for your situation.

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