An Easy Guide to Utah’s Small Business Legal Checklist
Licenses, contracts, and dispute basics for Utah entrepreneurs
This article breaks down the essential legal steps every small business owner in Utah should take, from getting the right licenses to drafting solid contracts and resolving disputes the smart way. Starting and running a business in Utah involves more than a great idea. You need to meet state and local requirements, protect your agreements, and handle conflicts before they escalate. This guide covers the key legal basics so you can stay compliant and protect your business from common pitfalls.
Choose the Right Business Structure
Your first major decision is how the business is legally formed. Common Utah options include:
- LLC. Personal liability protection with flexible tax options.
- Corporation. Useful for raising investment and formal governance.
- Partnership. Simple for two or more owners, but personal liability may apply.
- Sole Proprietorship. Easiest to start, no liability protection.
For formation requirements, see Utah Code § 16-10a-401 and related entity statutes.
Register Your Business and Trade Name
Register with the Utah Division of Corporations and Commercial Code. File Articles of Organization for an LLC or Articles of Incorporation for a corporation. If you operate under a doing business as name, register your trade name to secure recognition and reduce the risk of confusingly similar names.
Obtain Required Licenses and Permits
Most Utah businesses need a state business license and may need city or county permits. Use the OneStop Business Registration portal to check requirements. Regulated industries such as food, childcare, and construction often require additional approvals. Proper licensing helps you avoid fines and delays.
Draft Clear Contracts
Use written agreements for clients, vendors, and employees. Include scope, payment terms, timelines, and dispute resolution. Review with an attorney or use Utah-specific templates from reputable sources. Strong contracts reduce misunderstandings and protect you if things go wrong.
Understand Tax, Employee, and Insurance Duties
- Register for a sales tax license if you sell taxable goods or services.
- With employees, obtain a Utah Employer Identification Number, set up payroll tax accounts, and carry workers’ compensation insurance.
- Consider general liability and professional coverage for added protection.
Handle Unpaid Invoices the Right Way
- Send a clear written reminder or final notice.
- Document all communications and deliverables.
- Consider small claims court if the amount is under 15,000 dollars. Utah’s small claims track is fast and affordable and often leads to settlement.
Resolve Business Disputes Efficiently
Start with mediation to reach a fair agreement with a neutral third party. If that fails, small claims court is a straightforward next step for modest disputes. Keep invoices, contracts, and correspondence organized so you can escalate efficiently when needed.
When to Involve a Utah Attorney or CPA
A Utah business attorney can help with entity selection, contracts, collections, and dispute strategy. A CPA helps align accounting and tax filings with Utah rules. Early advice often prevents larger problems later.
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Need Help Applying This to Your Business?
Take time to register properly, keep contracts tight, stay current on taxes and insurance, and resolve disputes fairly. If you are unsure about a legal step, speak with a Utah business attorney or CPA before you move forward.
Talk to a Utah AttorneyFor more plain-English legal guidance, stay updated with Utah Law Explained, explore our mission on the About Us page, or connect with trusted counsel like Gibb Law Firm.